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SNEAPA 2013 Thursday d4 3_30 jobs and tax revenue
1. Plan it Forward for Jobs and Taxes
SNEAPA Conference
October 17, 2013
⢠Pamela M. Sherrill, AICP, Johnston RI Town Planner, moderator
⢠Mark D. Waterhouse, President of Garnet Consulting Services:
Economic Development Principles for Community Planners
⢠Scott A. Gibbs, Economic Development Foundation of RI: The
Corporate / Developer Perspective
⢠Bruce G. Hughes, Old Colony Planning Council, Brockton, MA:
Role of Regional Planning In Attracting Economic Development
2. ⢠Professional association for economic
developers in 11 northeastern states
⢠Professional education programs
⢠Annual Conference: 2014 in Worcester, MA
⢠Networking
⢠Research and information
⢠EDP professional certification
⢠www.nedaonline.org
3. Planning Forward
for
Jobs & Tax Revenues
Economic Development Principles
for Community Planners
Mark D. Waterhouse, CEcD, LL.B.
4. Why Communities Invest in
Economic Development
⢠Attract capital investment = new tax revenue
⢠Jobs (may = new tax revenue)
⢠Conveniently available goods and services
(may = new tax revenue)
⢠Other community development motivations
6. The Site Selection Process
(Slide courtesy of McCallum-Sweeney Consulting)
Planning
Phase
Phase I
Phase II
Phase III
â˘Conception
â˘Alignment/Criteria
â˘Community Visits
â˘Negotiations
â˘Feasibility
â˘Regional Analysis
â˘Site Evaluation
â˘Evaluation
â˘Investment
Decision
â˘(Areas of Interest)
â˘Comparative Analyses
â˘Site Due Diligence
â˘RFP
â˘Finalist Communities
â˘Selection
â˘Candidate
Communities
Process of Elimination
â˘Announcement
Process of Comparison
7. Site Selection
Evaluation Topics
⢠Market access
⢠Available sites &
buildings
⢠Transportation
⢠Utilities
⢠Labor force
⢠Education
⢠Business climate
⢠Taxes
⢠Public facilities &
services
⢠Quality of place
⢠Available capital &
incentives
⢠Available supplies,
parts, services
8. Some Competitive Realities
ďśExtremely competitive arena
â 3,034 U.S. Counties
â 19,424 Incorporated Cities/Towns/Villages
â 16,519 Unincorporated Towns or Townships
(2007)
â 15,000 â 18,000 EDOs
9. Some Competitive Realities
ďś A measure of economic sluggishness:
Project announcements (new or expansions)
that were any of the following:
â Manufacturing, office/HQ, distribution, R&D, mixed use
â $1 million or more in capital investment
â 50 or more jobs
â 20,000 square feet or more
2000 â 12,529
2004 â 6,905
2008 â 4,425
2001 â 10,808
2005 â 6,482
2009 â 4,345
2002 â 7,600
2006 â 4,906
2010 â 4,623
2003 â 5,793
2007 â 4,888
2011 â 4,978
Source: Conway Data
2012 â 5,580
11. 2012 Projects in New England
State
New Mfg
Mfg.
Expand
Other
CT
8
2
15
25 (+15)
MA
7
31
30
68 (+48)
ME
4
2
3
9 (+3)
NH
2
0
1
3 (-5)
RI
0
5
5
10 (+3)
VT
2
6
0
8 (-24)
Totals
23
46
54
123 (+71)
Total
(Change from â11)
12. Some Competitive Realities
ďśThe Era of the Global Jobs Auction
ďśIt is a Buyerâs Market
â You are both the Seller and the Commodity being
sold
ďśSpeed is of the essence
â Timeframe for selection process (3 - 4 months) is
half that allowed 5 - 10 years ago
ďśSelection process emphasizes elimination
13. Providing a Home - Quickly
ďśIf construction is necessary, so is fast track
permitting
ďśSite selection consultants say they would like
â Local permits within 14 days (7 ideal)
â State permits within 45 days (30 ideal)
14. What the Competition is Doing
⢠Clermont County, OH
â County ordinance requires permits to be issued in 10 days
for complete/accurate application for a project allowed in
the zoning district
⢠Chesapeake, VA
â Office project in office district â permits in 2 days
â The Economic Development Department has a professional
engineer on staff dedicated to working with businesses in
creating a streamlined development process
⢠Phoenix, AZ
â Building Plan Self-Certification Program
15. Major Elements of
Community Planning & Development
⢠Long Range Planning â the Community Master Plan
â Covers 10 â 20 year timeframe between major changes
⢠Continuing Regulations
â Implementation tools for long-range plan
â Ongoing but subject to modification
⢠Short-term Plans and Strategies
â Cover 2 â 5 year timeframe
â May have annual updates
â Should include an Economic Development Action Plan
17. Who is on Your
Economic Development Team?
(Public Sector - besides the E.D. folks)
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
Chief Elected Official
Town Planner
ZEO
Building Inspector
Fire Marshal
Assessor
Land Use Boards and Commissions
Health Department
Superintendent of Schools
18. The Bottom Line
⢠Development regulations and procedures should
be simple, swift and certain
⢠All community staff should be process facilitators
â not regulation enforcers
⢠Economic development is an essential part of
community development and quality of life
â Most people include having a job and a good standard
of living as part of their personal quality of life
â You can help make that happen
20. Dispelling Some Assumptions
Not All Developers / Businesses Are Looking For A âDealâ
Not All Developers / Businesses Are Looking To âDestroyâ Your
Community
But Frequently, Thatâs Exactly The Message That You Are Sending
The Development / Business Community
â˘
â˘
â˘
â˘
Design of Regulatory & Permitting Processes
Attitudes of Public Employees
Attitudes of Elected/Appointed Officials
How you Incentivize Investment
21. The Marketing Mix
As Applied To Planning
Product Design
Product Pricing
Product Promotion
Product Distribution
A Community Must Be Strategic In Linking Itâs Economic and
Fiscal Visions with how it Proactively Manages the Four âPâs. The
Business and Development you want to Attract needs to be
Embodied in your Strategic Management of the Four âPâs.
22. The ED Truisms
⢠You cannot be everything to everybody
⢠You must make choices and the choices you make define
your communityâs brand
⢠The consistency between what you say and what you do
strengthens your brand integrity
⢠Everybody must be singing from the same sheet of music
⢠You must consistently communicate what you are doing
and why you are doing it in order to build a culture that is
passionate about the future vision
⢠You must identify and track the metrics that are congruent
with measuring your communityâs progress in the context
of your strategies and future vision
23. Building A Pro-Investment Culture
Investment hates risk â so manage investment /
development risk
Elements of investment risk:
â˘
â˘
â˘
â˘
â˘
â˘
Fiscal Instability
Anti-business Tax Policy
Political Instability
Regulatory / Permitting Process Ambiguity & Complexity
Absence of Urgency
No Long-Term Vision & Strategies
24. Anecdotal Stories
⢠In search of the âknowledge industryâ
⢠Weâre not asking for the Taj Mahal, we just know
what we donât want
⢠This is when you can start construction, and
⢠This is what your costs will be for 10 years
⢠Thatâs a âstupidâ tax
⢠Thatâs our best deal
⢠Itâs not just a transaction, itâs a long-term
relationship
25. Strategy Options
⢠Re-engineering regulatory and permitting
processes: sequential vs. concurrent
⢠Embracing digital technology as SOP
⢠Building a âTQMâ culture in city hall: metrics,
training, and communication
⢠Building a long-term vision with aligned
strategies and measurable milestones
⢠Constant communication with stakeholders:
enough with the fluff
26. Conclusion
⢠Stop being a âbureaucratâ and start being an
entrepreneur.
⢠Being a leader for change entails taking
professional risk, but itâs a necessary
component to being a true professional.
⢠Your communityâs Brand is more than the
promise you make; your Brand is also the
promise you keep.
27. The Role Of Regional Planning In
Attracting Economic Development
Bruce G. Hughes, MPA, EDP
Economic Development/Community
Planner, Old Colony Planning Council,
Brockton, MA
28. Regional Planning Agency (RPA)
Infrastructure Planning Assistance
⢠MA Chapter 43 D Expedited Permitting
⢠MassWorks Infrastructure Program
⢠Planning and Zoning
⢠Economic Target Areas (ETAs)
⢠Growth Districts
29. RPA Transportation Infrastructure
Planning Assistance
â˘
â˘
â˘
â˘
â˘
Corridor Studies
Major Bottleneck Studies
Roadway Drainage and Runoff Inventory
Local Technical Assistance
Planning/Funding Mechanisms - The Unified
Planning Work Program (UPWP)
⢠Regional Transportation Plan Goal (RTP) balanced range of well connected
transportation options
30. RPA Transportation Infrastructure
Planning Assistance
⢠Transportation Improvement Plan (TIP) â The
federally-mandated document
⢠Public Participation Plan
⢠Environmental Justice
35. Case Study: Old Colony Planning
Council Assistance to Town of
Abington, MA
⢠Town of Abington tax sale acquisition: former golf driving
range. Low Density Residential zone
⢠Highway Commercial Zone Map Amendment
â OCPC drafted zoning amendment for Abington Planning Board review and
Spring 2011 Abington Town Meeting Warrant
â Spring 2011 Town Meeting approval of zoning amendment
⢠Town sold the property to Cape Cod Lumber Company
⢠Cape Cod Lumber - Tax Inventive Finance application
â TIF passed by town meeting in 2012
â Cape Cod Lumber made a seven million dollar investment in the property
building a new lumber yard, warehouse and offices which opened in 2013
37. Plan It Forward for Jobs and Tax Revenue
Contact Information
Pam Sherrill, AICP, Johnston RI Town Planner
(401) 231-4000 x4021, planner@johnston-ri.us
Mark D. Waterhouse, Garnet Consulting Services
(860) 379-7449, mwaterhouse@snet.net
Scott A. Gibbs, Economic Development Foundation of RI
(401) 658-1050, sgibbs@edf-ri.com
Bruce Hughes, Old Colony Planning Council
(508) 583-1833 Ext.203, bhughes@ocpcrpa.org