Mission StatementThe Boone EDC works to create a political, social andeducational environment that will create conditions to build astrong tax base, attract a broad range of better payingjobs, and spur new retail, residential, recreational, andcultural opportunities that flow from economic development.It publicizes Boone County’s many assets andopportunities, and educates current residents on the benefitsresulting from quality economic development.
History of the Organization• History of Indiana EDC (LEDO)• Jobs Act of 1982 –Reaganomics• June 1989• Public/Private Partnerships• 87 County LEDOs in Indiana• Average Budget – $300,000• Average Marketing Budget - $40,000• Boone County is 4rd lowest funded EDC in Indy Metro Region
Boone EDC Staff Dax Norton - Executive Director • Hired October 2008 • 9 Years Economic Development Experience • Graduate of University of Oklahoma Economic Development Institute - 2010 • Graduate of Ball State University – 1995 • Resident of Zionsville
Boone EDC Staff Tina Staley • 20 Years with Boone EDC • Manager/Coordinator of Operations and Prospect Services • Ball State Economic Development Basic Course – 1993 • Resident of Lebanon
Boone EDC Staff Bryan Brackemyre • Hired full time 2010 • Director of Marketing and Communications • Ball State Economic Development Basic Course – 2010 • University of Indianapolis graduate • Pursing MBA from the IU Kelley School of Business • Resident of Whitestown
Competitors Funding Information Total Public Municipal Private County Operating Investment Contribution Investment BudgetBoone $166,000 $106,000 $46,750 $283,300Hamilton 214,000 114,000 273,000 487,000Hendricks 325,000 325,000 100,000 550,000Johnson 100,000 75,000 224,218 324,218Blackford 175,750 55,750 34,750 210,500Jackson 129,450 74,450 270,550 400,000City of 15,000 15,000 285,000 300,000Columbia
Public Private Operating BudgetTotal OperatingBudget 350,000 300,000In order to remaincompetitive with our 250,000competitors, the Boone 200,000EDC has increased it’sOperating Budget with 150,000assistance from the Public 100,000and Private sector. 50,000 0 2009 2010 2011 2012
2011 Funding BreakdownFunding: Private Public UtilitiesThis graph shows thebreakdown between the 11%Private, Public, and 20%Utilities investors in theBoone EDC. 69%
2011 Public InvestorsPublic Sector• Boone County• City of Lebanon• Town of Jamestown• Town of Whitestown• Town of Zionsville
2011 Private Investors • Bose McKinney & Evans • Browning • Duke Realty Corporation • Cassidy Turley • IMPA • Duke Energy • Lebanon Utilities • Denison Properties • Ronald L. Lind, CPA • Eagle Flyers, Inc. • Verus Partners, LLC • Farmers Bank • American Structurepoint • Hachette Book Group • AT&T • Home National Bank • Boone REMC • Katz, Sapper & Miller
2011 Private Investors • Krieg DeVault • TDS Telecom • MIBOR • Umbaugh & Associates • Milestone Contractors • Vectren • Montgomery Aviation • WF Industrial • Parr Richey Obremskey & • Whitestown Utilities Morton • Lyn Lea Estates • Prologis • Huntington Bank • State Bank of Lizton • Solutions Air Charter
Change Agent:Characteristics:1. See a future no one else does and that vision won’t let them rest2. They have the courage to bet their careers3. Have something about them that galvanizes people and turns them on
Has Multiple Perspectives Simultaneously TranscendUnconventional Boundaries Innovator Against Norms Oddballish Preserving
Visionary: 1. Deliberative and Open 2. Flexible 3. Forward-Thinking 4. Organized and Strategic
Dynamic:A force that stimulates changeor progress within a system ofProcess.
The Economic Development Process: The Fundamentals
What is your definition ofEconomic Development?
Economic Development 101:Definition #1:The sustained, concerted actions of policymakers andcommunities that promote the standard of living andeconomic health of a specific area. Such actions caninvolve multiple areas including development of humancapital, critical infrastructure, regionalcompetitiveness, environmental sustainability, socialinclusion, health, safety, literacy, and other initiatives.Economic development differs from economic growth.Whereas economic development is a policy interventionendeavor with aims of economic and social well-beingof people, economic growth is a phenomenon of marketproductivity and rise in GDP.
Economic Development 101:Definition #2:The definition of economic development should bethose activities that cause a net gain of moneyflow, called an economic base, into the community.- Academic Standard
Economic Development 101:Definition #3:Process that influences growth and restructuring ofan economy to enhance the economic well being ofa community. The desired result is creation ofwealth for a region.
Purpose of Economic Development:1. Increase AV/Diversify and broaden the tax base2. Plug the Leaky Bucket3. Provide the highest possible standard of living for all individuals
What is AV?The dollar value of an asset assigned by a public taxassessor for the purposes of taxation.
What is Tax Base?The tax base may refer to that of an individual asset, such as thetax base of a house, or a pool of assets, such as the tax base of allhouses in a city. For example, the property tax base of a house isits value. The property tax base of a city is the collective value ofall taxable real estate in the city.
Balanced Tax Based Percentages:1. Zionsville?2. Lebanon ?3. Whitestown ?
Standard of Living:The level of wealth, comfort, material goods and necessitiesavailable to a certain socioeconomic class in a certain geographicarea.Includes factors such as:• Income• Quality and availability of employment• Quality and affordability of housing• Education• Infrastructure
Focus/Foundation: Recruiting New Business Existing Business Development/ Entrepreneurial Development Quality of Life/Workforce Development/Infrastructure Leadership/Civic Development and the Role of Public Policy
Keys to Economic Development Success• Embrace change• Develop a unified vision• Plan• Create a competitive economic and workforce advantage• Tell the Story
Embrace Change:1. Change is inevitable, growth is optional.2. Change is hard.3. One of or biggest struggles is when we overestimate the value of change and underestimate what we could gain.4. Some people will never change.5. Resistance to change is normal.6. When managing change, be proactive as possible.7. Communicate! Don’t leave anyone out of the information loop.8. The biggest change we can make it within ourselves
VISIONHave a shared vision of the future that isshared by all organizations/constituencies
Vision Statement:2008 Boone County Economic Development Strategic Plan“The vision of Boone County, Indiana, is to provide a highquality of life for a diverse community, respecting thehistorically strong farming and rural communities, whileencouraging trail systems, commerce, and attracting innovativeindustries that create sustainable job growth, and that alsosupports all families and businesses of all sizes, with a strongfoundation of responsive County government to ensureeffective services for all residents.”
PLAN1. Have a plan for how you will get there2. Each team member should be able to see their role
How we get this done?1. Staff2. Services3. Focus
Staff:Skills of the Economic Development Professional:• Environmental Management• Finance (Bonds, TIF, Loans, Grants, et • Education Development c.) • Engineering• Geography • Law• Government Affairs • Marketing• Human Relations• International Relations • Planning• Construction • Public Speaking• Creative Writing • Stats• Economics • Technology Trends • Real Estate
Roles: • Analyst • Catalyst • Gap filler • Advocate • Educator • Visionary/Agent of change
2. Services and Focus: Economic Entrepreneurial Development Finance Development Attraction Retention & Expansion Boone EDC Services Public Policy Development Marketing Product Development
Public Policy Development: Policies that governments undertake to meet broad Item 1 economic objectives such as price stability, high unemployment, and sustainable growth. Policies and programs to provide infrastructure and services such as building highways, sewers, water systems, technology Item 2 delivery systems, managing roads, and providing medical services. Policies and programs explicitly directed at improving the Item 3 business climate through specific efforts in business finance, marketing, neighborhood development, small business development, business retention and expansion, technology transfer, and real estate redevelopment and reuse.
Public Policy Development:• Tax Caps• Local Zoning• Right to Work• Economic Development Funding• Local Permit Process• Smoking Bans• TIF
Product Development:What is Economic Development Product?1. Human Capital2. Public Infrastructure3. Development Infrastructure4. Funding
What is Human CapitalDevelopment? Skills Roles People
What is Human Capital Development?• Number 1 Impediment to Economic Development? Available Skilled Workforce!• 10,000 Workers Will Turn 65 Each Day This Year• K-12 Changes• Adult Skill Enhancement
New Business Recruitment/Attraction:MYTH: ALL THAT MATTERS IS ATTRACTING BIGCOMPANIESYes, its easy to measure the direct economic impact of bigcompanies that employ 100+ workers, and its easy to highlightbig companies as a case study for success, but most of thetime, after investing hundreds of hours helping big companiesconsider your area for an expansion, they will decide to notlocate. Statistically a community would see such a companysettle into a brand new location once every 11 years. (Adjustnumber of years before this happens lower for metroareas, and higher for rural areas). (2) The reason thisinvestment of resources is worth it, is because the long-termpayoff when they do locate should be significant.
New Business Recruitment/Attraction:MYTH #2: This is Boone County! Companies will want tolocate here because we are Boone County. You need toprovide less incentives here in Boone County because peopleand companies are busting down the door to get in here!
The Process: PROSPECT COMPANIES CAN GO ANYWHERE!!!!!
New BusinessRecruitment/Attraction: Developing ProductHow does BooneCounty go fromdeveloping a product toattracting a potentialemployer? Incentives Marketing Research/Data
New BusinessRecruitment/AttractionResearch/Data• Up to date Incentives • Tax Abatement• Accurate • Tax Increment Financing• Relevant (TIF)• Easily accessible • Grants• Ease of use • Performance Tax Credits• Transferrable
The Initial ProcessThe Lead The RFI The Site Visit
Prospect Process: Step 1 Lead Generation Step 2 Response/Site Eliminations (Top 10) Step 3 Monitor/Follow-up Step 4 Site Visits/Site Eliminations (Top 6) Step 5 Financial Packaging and Incentive/Elimination (Top 2-3) Step 6 Negotiation and Decision/Elimination (Final Site)
Prospect Process Cont.• Site Selection Overview• Process of elimination• Risk Aversion• Confidentiality• More than 15,000 development groups in North America competing for 100-200 major projects annually nationwide• Site Selectors use the web -86% of time to familiarize themselves with community -85% gather preliminary location data -63% to find local contact info
Prospect Process Cont.Lead Generation:• Direct from Company to the IEDC/Indy Partnership/Local LEDO• Site Location Consultant to the IEDC/Indy Partnership/Local LEDO• Developers/Realtor• Utilities• Direct to the Mayor’s office• Other
Process Cont.:Response:• Electronically• Typically very little time to gather info 1-5 Days• Brief description of site• RFI (2-14 Days to complete)• A community can/will be eliminated if information is left out or vague
Process Cont.:Monitor and Follow-up:• Electronically to lead generator• Phone call to real estate broker• Directly to company or site location consultant• Thank you for being considered
Process Cont.:The Prospect Visit:• The beginning of multiple visits• First visit usually only site location consultant team• Next visit (usually the stage the company name is revealed) with company representatives and small group of local officials – usually not a Mayor• Final visit with site location consultant, local elected officials and local negotiating team• Coordination and scheduling very important
Process Cont.:Financial Packaging and Incentives:• Incentives do not drive the location process• Very competitive incentive environment• Determine if company may benefit from public gap financing
Process Cont.:Local Incentives/Public InvestmentAs of right:• Tax Phase-in (Real Property and Personal PropertyNegotiated:• TIF Cash Grant• TIF Bond• Relocation Fund• Industrial Development Revenue Bond• Volume Cap Bonds• Local low interest loan programs• Local training grant programs
Process Cont.:Negotiation and Decision:• Can be a long process• 50/50 shot• Give and take• Some guessing