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County
Commissioners
Association of Ohio
Lunch and Learn:
County Economic Development Essentials
February 10, 2015
Februar...
February 10, 2015 Presentation by Mark Barbash 2
• Statewide nonprofit financial intermediary
• Est. in 1987 to connect co...
February 10, 2015 Presentation by Mark Barbash 3
What is Economic Development?
Economic and Demographic Trends
Major Long ...
February 10, 2015 Presentation by Mark Barbash 4
What is Economic
Development?
• Improve the economic well-being…
• …Improve the quality of life
• …for a community or a region
• …by helping to create a...
Community
Development
Economic
Development
Business
Development
Housing & Neighborhoods
Quality of Life
Human Services
Edu...
February 10, 2015 Presentation by Mark Barbash 7
Economic and Demographic
Trends Impacting Economic
Development
February 10, 2015 Presentation by Mark Barbash 8
The economy is recovering …
employment is up….
February 10, 2015 Presentation by Mark Barbash 9
Unemployment is down…
February 10, 2015 Presentation by Mark Barbash 10
…but the recovery is slower than
any other recession
76 months to recove...
February 10, 2015 Presentation by Mark Barbash 11
… and while productivity is up,
wages & family income are not
February 10, 2015 Presentation by Mark Barbash 12
The country is going
through a major long term
economic transition
February 10, 2015 Presentation by Mark Barbash 13
The younger talent pool is 40% less
than retirement age pool
February 10, 2015 Presentation by Mark Barbash 14
The internet has accelerated
business innovation & competition
February 10, 2015 Presentation by Mark Barbash 15
… manufacturing technology is
increasing productivity
February 10, 2015 Presentation by Mark Barbash 16
… and education remains the best
path to higher earnings
February 10, 2015 Presentation by Mark Barbash 17
The Practice of Economic
Development is Changing in
Response
February 10, 2015
Think, Plan & Act Regionally
February 10, 2015 Presentation by Mark Barbash 19
Think, Plan & Act Regionally
55% of
County
Workers
Live
Inside
the
Count...
• Companies are increasingly looking for a good quality of
life for their employees and executives:
• Arts, Culture & Recr...
• Total Projects: 93 (47 Expansion, 46 New)
– Projects connected with existing businesses: 78
– Average Jobs: 181
– High J...
Strategy #3: Double Down on
Retention & Expansion
• Keeping existing businesses happy should be
priority number 1!
• Why d...
• Communities that are working together in their
regions are more successful in business
attraction, retention and expansi...
February 10, 2015 Presentation by Mark Barbash 24
What Matters Most to Site Selectors:
1. State and Local Tax Structure
2....
• Main Street Revitalization
• Small Business Technical Assistance
• Tech Based Entrepreneurship
• Economic Gardening
• Sm...
• 90% of the research by a site selection company is
done BEFORE you are contacted
• Have a user-friendly website
• Link y...
• Retention and Expansion
• Attraction
• Workforce Development
• Main Street Revitalization
• Leverage a major regional as...
• Use incentives strategically
• Create local incentives that make sense for your
community
• Provide for transparency and...
Property Taxes based upon
Valuation
Sales Taxes based upon Sales
Revenue
Income Taxes based upon
Wages
Property Taxes base...
Cost
• Short term Investment in
infrastructure, grants
• Roadway construction AND
maintenance
• Cost of tax incentives
(fo...
The Structure of Economic
Development in Ohio
• Economic Development
• Business Attraction
• Industry Growth
• International Business
• Regional Network
Partners
• Comm...
February 10, 2015 Presentation by Mark Barbash 33
JobsOhio Network Partners
February 10, 2015
The Structure of Economic
Development in Northwest Ohio
February 10, 2015
Economic Development Incentives:
Rules of the Game
• Start early
• Explain the strings up front.
• There...
February 10, 2015
Economic Development Incentives:
What else is an incentive?
• Expedited permit review and processing
• L...
February 10, 2015 Presentation by Mark Barbash 37
The Role and Challenges of
Counties in Economic
Development
• Counties are Sponsors of Local Economic
Development Initiatives
• Workforce Challenges are at the Top of the
County Econ...
Working Collaboratively
1. Developing the Regional Perspective
2. How to distinguish County priorities
3. How to link Coun...
Fiscal Challenges
1. Conflicting Priorities based on Fiscal Structure
2. Limited Financial Resources
3. Entitlement vs. No...
Ohio County Economic Development Tools
1. Infrastructure Investment
2. Highway maintenance
3. Workforce Development (WIB)
...
Presentation by Mark Barbash 42
February 10, 2015
So where do you go from
here?
• Is there a county wide economic development
strategy with performance measurement?
• Have you established priorities, go...
So What’s the Dessert?
February 10, 2015 Presentation by Mark Barbash 44
Mark Barbash, EVP, Strategic Initiatives
markbarbash@financefund.org
(614) 774-7599
Finance Fund
www.financefund.org
(800)...
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Counties Play an Important Role in Economic Development

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County government plays an important role in economic development, in Ohio and the nation. This presentation to new County Commissioners in Ohio on 02/10/2015 outlines current economic trends, how economic development is changing, and the role of Counties.

Published in: Economy & Finance
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Counties Play an Important Role in Economic Development

  1. 1. County Commissioners Association of Ohio Lunch and Learn: County Economic Development Essentials February 10, 2015 February 10, 2015 Presentation by Mark Barbash 1 Mark Barbash Executive Vice President Finance Fund
  2. 2. February 10, 2015 Presentation by Mark Barbash 2 • Statewide nonprofit financial intermediary • Est. in 1987 to connect communities with capital • To date, $296.4 million invested in housing, economic development, & community facilities leveraging over $1.2 billion. • Economic Development • Small Business Lending • Health care facilities and equipment • Commercial Real Estate Development • Healthy Foods Retail FINANCE FUND: WHO WE ARE
  3. 3. February 10, 2015 Presentation by Mark Barbash 3 What is Economic Development? Economic and Demographic Trends Major Long Term Economic Transition Practice of Economic Development Economic Development in Ohio Counties in Economic Development So, what do you do now?
  4. 4. February 10, 2015 Presentation by Mark Barbash 4 What is Economic Development?
  5. 5. • Improve the economic well-being… • …Improve the quality of life • …for a community or a region • …by helping to create and/or retain jobs • … growing incomes • and the local tax base… • …to provided needed services. February 10, 2015 Presentation by Mark Barbash 5 What is Economic Development?
  6. 6. Community Development Economic Development Business Development Housing & Neighborhoods Quality of Life Human Services Education Infrastructure Workforce Tech Based ED Capital Access Marketing Attraction & Retention Entrepreneurship Infrastructure Main Street Incubators Small Business Entrepreneurship February 10, 2015 Difference between economic & community development?
  7. 7. February 10, 2015 Presentation by Mark Barbash 7 Economic and Demographic Trends Impacting Economic Development
  8. 8. February 10, 2015 Presentation by Mark Barbash 8 The economy is recovering … employment is up….
  9. 9. February 10, 2015 Presentation by Mark Barbash 9 Unemployment is down…
  10. 10. February 10, 2015 Presentation by Mark Barbash 10 …but the recovery is slower than any other recession 76 months to recover 46 months to recover
  11. 11. February 10, 2015 Presentation by Mark Barbash 11 … and while productivity is up, wages & family income are not
  12. 12. February 10, 2015 Presentation by Mark Barbash 12 The country is going through a major long term economic transition
  13. 13. February 10, 2015 Presentation by Mark Barbash 13 The younger talent pool is 40% less than retirement age pool
  14. 14. February 10, 2015 Presentation by Mark Barbash 14 The internet has accelerated business innovation & competition
  15. 15. February 10, 2015 Presentation by Mark Barbash 15 … manufacturing technology is increasing productivity
  16. 16. February 10, 2015 Presentation by Mark Barbash 16 … and education remains the best path to higher earnings
  17. 17. February 10, 2015 Presentation by Mark Barbash 17 The Practice of Economic Development is Changing in Response
  18. 18. February 10, 2015 Think, Plan & Act Regionally
  19. 19. February 10, 2015 Presentation by Mark Barbash 19 Think, Plan & Act Regionally 55% of County Workers Live Inside the County 45% of County Workers Live Outside the County 38% of County residents work outside the county Montgomery County Workforce Inflow / Outflow
  20. 20. • Companies are increasingly looking for a good quality of life for their employees and executives: • Arts, Culture & Recreation • Education • Diversity of Housing and Transportation Opportunities • looking for What makes your community special? • What makes your community special? • Identify and leverage your strongest assets such as colleges, universities, arts, natural resources, health care • Do asset mapping on a local AND regional basis • How is your community connected to your neighbors? Place Matters: Enhance What Makes Your Community Livable
  21. 21. • Total Projects: 93 (47 Expansion, 46 New) – Projects connected with existing businesses: 78 – Average Jobs: 181 – High Jobs Number: 900 – Average Square Feet: 157,000 – Average New Jobs: 256 – Average New Square Feet: 203,000 • Big Deals: – 1 Project; 1,500 jobs, Mfg. 1M Sq. Ft. Source: Site Selection Magazine Death of the Big Deal
  22. 22. Strategy #3: Double Down on Retention & Expansion • Keeping existing businesses happy should be priority number 1! • Why do businesses leave a home-town location: a lack of expansion space. • New businesses look for customers, suppliers, strategic partners, and a quality workforce. • The best Attraction Strategy is a strong Retention & Expansion Strategy. Double Down on Retention & Expansion
  23. 23. • Communities that are working together in their regions are more successful in business attraction, retention and expansion • …and the site selectors are paying attention. • Do you understand what drives your economy? • Do you have a partnership group that is broadbased, has assigned responsibilities, and is networked with the region and the state? February 10, 2015 Collaboration is the New Competition
  24. 24. February 10, 2015 Presentation by Mark Barbash 24 What Matters Most to Site Selectors: 1. State and Local Tax Structure 2. Transportation & Utility Infrastructure 3. Land/Building Prices & Supply 4. Ease of Permitting and Regulatory Process 5. Workforce Skills 6. Regional Economic Development Strategy 7. Legal Climate 8. Availability of Incentives 9. State Economic Development Strategy Collaboration is the New Competition
  25. 25. • Main Street Revitalization • Small Business Technical Assistance • Tech Based Entrepreneurship • Economic Gardening • Small Business Supply Chain • 1099 Economy • Incubation vs. Acceleration Emphasize the Entrepreneurial Strategy that Fits Your Community
  26. 26. • 90% of the research by a site selection company is done BEFORE you are contacted • Have a user-friendly website • Link your site with your regional economic development partner • Easily accessible public services • Keep your inventory of sites up to date Technology has Changed the Practice of Economic Development
  27. 27. • Retention and Expansion • Attraction • Workforce Development • Main Street Revitalization • Leverage a major regional asset • Tourism • Arts and Culture • Targeted Industry or Industry Cluster Develop a Mix of Strategies that Responds to Your Community
  28. 28. • Use incentives strategically • Create local incentives that make sense for your community • Provide for transparency and accountability • The fewer the programs, the easier the deal • You DON’T need to give away the kitchen sink: Be strategic with your investment. Fine Tune Your Financing and Incentive Toolkit
  29. 29. Property Taxes based upon Valuation Sales Taxes based upon Sales Revenue Income Taxes based upon Wages Property Taxes based upon Valuation Fees and Transfer Payments from other govt sources It’s all about the Fiscal Impact of Your Investments
  30. 30. Cost • Short term Investment in infrastructure, grants • Roadway construction AND maintenance • Cost of tax incentives (forgone revenue) • Political • Environmental impact Benefit • Property, income or sales tax revenue • Fee revenue • Payments in Lieu • New Job Opportunities • Revitalized neighborhoods February 10, 2015 County Economic Development Essentials Mark Barbash30 Understand the ROI of Your Incentives and Investments Take Informed Risk!
  31. 31. The Structure of Economic Development in Ohio
  32. 32. • Economic Development • Business Attraction • Industry Growth • International Business • Regional Network Partners • Community Development • Housing & Partnerships • Historic Prez Tax Credits • Ohio Third Frontier • Energy Office • Small & Minority Business February 10, 2015 The Structure of Economic Development in Ohio
  33. 33. February 10, 2015 Presentation by Mark Barbash 33 JobsOhio Network Partners
  34. 34. February 10, 2015 The Structure of Economic Development in Northwest Ohio
  35. 35. February 10, 2015 Economic Development Incentives: Rules of the Game • Start early • Explain the strings up front. • There are NO programs that provide 100% support • Work with your economic development professional • Work with your JobsOhio Network Partner • Not all projects can work with programs • Be prepared to take informed risk. • Be willing to walk away. • If it sounds too good to be true, it probably is!
  36. 36. February 10, 2015 Economic Development Incentives: What else is an incentive? • Expedited permit review and processing • Local one-stop-shop • Have all key people at the table • Infrastructure: Roadways, traffic signals, rail spurs, connectivity • Workforce partnerships with colleges/universities • A “job ready” site • Adequate sewer, water, utility service • A good place to live, work and raise a family.
  37. 37. February 10, 2015 Presentation by Mark Barbash 37 The Role and Challenges of Counties in Economic Development
  38. 38. • Counties are Sponsors of Local Economic Development Initiatives • Workforce Challenges are at the Top of the County Economic Development Agenda • Collaboration is the Key to County Economic Development Initiatives February 10, 2015 Presentation by Mark Barbash 38 NACO, July 2014 The Role and Challenges of Counties in Economic Development
  39. 39. Working Collaboratively 1. Developing the Regional Perspective 2. How to distinguish County priorities 3. How to link County priorities with City Priorities 4. Rural – Urban -- Suburban 5. Larger Urban Community in the County 6. No Urban Community in the County 7. Community College or University in County February 10, 2015 Presentation by Mark Barbash 39 The Challenges of Counties in Economic Development
  40. 40. Fiscal Challenges 1. Conflicting Priorities based on Fiscal Structure 2. Limited Financial Resources 3. Entitlement vs. Non-Entitlement 4. Others Jurisdictions Spending Your Resources 5. Limited authority February 10, 2015 Presentation by Mark Barbash 40 The Challenges of Counties in Economic Development
  41. 41. Ohio County Economic Development Tools 1. Infrastructure Investment 2. Highway maintenance 3. Workforce Development (WIB) 4. Land Banks 5. County level organization 6. Planning and Zoning February 10, 2015 Presentation by Mark Barbash 41 The Challenges of Counties in Economic Development
  42. 42. Presentation by Mark Barbash 42 February 10, 2015 So where do you go from here?
  43. 43. • Is there a county wide economic development strategy with performance measurement? • Have you established priorities, goals, tasks, with assigned leads ? • Is there a Collaborative Partnership? • How inclusive is the partnership? • Is there a working group of EDPros from the region? • Is there a toolbox that is appropriate to your community and priorities ? February 10, 2015 Presentation by Mark Barbash 43 Next Steps: Some Benchmarks and Questions
  44. 44. So What’s the Dessert? February 10, 2015 Presentation by Mark Barbash 44
  45. 45. Mark Barbash, EVP, Strategic Initiatives markbarbash@financefund.org (614) 774-7599 Finance Fund www.financefund.org (800) 959-2333 - (614) 221-1114

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