Applying the Wealth Creation Framework to the CEDS

APPLYINGWEALTHCREATION
Applying the Wealth Creation Framework
to the CEDS
NADO Annual Training Conference
October 15, 2018

Today’s Speakers
 Erica Anderson, Land of Sky Regional Council (NC)
 Dawn Espe, Region Five Development Commission (MN)
 Carrie Kissel, NADO Research Foundation
 Brett Schwartz, NADO Research Foundation

Workshop Agenda
• Wealth Creation Basics
• Asset Identification Exercise
• SWOT and Resilience Planning
• Weaving Wealth Creation through the CREDS in Central MN
• Organizing Partners through Value Chains
• Planning and Implementing CEDS Strategies, Risk and
Resilience in WNC
• Exercise: Mapping Partners

Doing Economic Development Differently
WealthWorks is an approach to community-driven economic
development that:
• aligns local assets around a shared set of values and goals
• seeks new business opportunities in response to changing
markets
4

WealthWorks is a National Movement

Doing Economic Development Differently
• Regional scale is appropriate
– Pulling together assets
– Accessing markets
• Lots of potential partners and roles, but there are
opportunities to apply the framework to existing RDO
programs
6

Ushering in a New Era for the
Comprehensive Economic Development Strategy (CEDS)
From this…

…to this!
Ushering in a New Era for the
Comprehensive Economic Development Strategy

9
CEDS Cover Designed by Local
Artist in Michigan Captures
the Spirit of the Region…

CEDS Content Guidelines: Make it Your Best Friend!
www.eda.gov/CEDS
 Provides guidance on the
required sections of the CEDS
 Summary Background
 SWOT
 Strategic Direction/Action Plan
 Evaluation Framework
 Economic Resilience
 Best practices, case studies,
and links

WealthWorks & the CEDS Content Guidelines:
What It Says…
[T]he concept of wealth is one that should be highlighted because of its
natural alignment with asset-based strategies and approaches. More than
just jobs and income, regional wealth is represented by intellectual,
individual, social, natural, built environment, political, financial, and cultural
assets. These assets, when invested in, nurtured, and leveraged
appropriately, can reflect the true level of a region’s economic (and social)
well-being.
Finding ways to better identify, foster, and measure these assets can help a
region towards a more lasting prosperity since a focus on wealth creation
and retention can build a region’s resiliency and long-term sustainability.
Recommended Resource: See www.wealthworks.org for more tools and
information on building and measuring regional wealth

A New Vocabulary to Support Your Existing Efforts

Multiple Forms of
Wealth
Improved
Livelihoods for
Everyone
Local
Ownership
WealthWorks: Doing Economic Development
Differently
Demand-driven community and economic development

The WealthWorks Difference
Traditional Economic
Development
• Focuses on economic growth
• Focuses on quantity of jobs
• Brings in outside firms
• Often supports absentee and
elite ownership
• Focuses on short-term gains
WealthWorks Approach
• Focuses on creation of multiple
forms of wealth
• Focuses on job quality: inclusive,
living-wage jobs
• Develops local assets for the benefit
of local residents
• Promotes local, broad-based
ownership
• Focuses on long-term sustainability
Slide credit: Rural Development Initiatives

Drawing on Many Fields of Expertise
• Asset Based Community
Development
• Michael Porter’s Value Chains
• Business clusters and networks
• Collective Impact/Backbone
Organizations
• BALLE: Business Alliance for Livable
Local Economies
• Economic Justice: Inclusion of people
on economic margins
• Cooperatives
• Triple Bottom line Investment
Slide credit: Barbara Wyckoff, Creative Disruptors

To improve the livelihoods of people and communities
by creating wealth through market interactions that are
owned, controlled, and reinvested locally.
WealthWorks Goal

Eight Forms of Community Capital

Significance of Community Capitals
• https://www.youtube.com/watch?v=S7gIQMW1YDA&list
=PLS5p6hpOYWYK2p0xM8e2GdFN_pUmUxB0R&index=4
19

Exercise: Evaluate Your Community’s Wealth
• Identify two things you like about your community or
region: strengths, assets, or characteristics that contribute
to quality of life and economic development.
• Write them on sticky notes (one concept per note).
• Place them on the flip chart paper that corresponds with
the form of capital you think you have.

Discussion:
What does this have to do with CEDS?
• What assets are strong in your community or region?
• What assets need attention to be built?
21

Using the Capitals Framework in Planning
• Assess assets in your community
• Define the strategy & make investment decisions
• Measure your impact
22

Resilience: The ability of a region or
community to anticipate, withstand, and bounce
back from shocks and disruptions, including:
Natural disasters or hazards
Climate change impacts
The closure of a large employer
The decline of an important industry
Changes in the workforce

“Another way of looking at resilience is the ability not only to
bounce back but also to “bounce forward” - to recover and at
the same time to enhance the capacities of the community or
organization to better withstand future stresses.”
- Urban Land Institute – After Sandy
Not Just Bouncing Back…Bouncing Forward

All Forms of Capital Are Needed for a Resilient Region
And remember: Do no harm!

The SWOT
Image: Georgia State University

We seize Opportunities,
by building on our Strengths,
and addressing our Weaknesses, while
managing Threats to our success.
SWOT? Try OSWT!
Thanks to Barbara Wyckoff, Co-Founder, Creative Disrupters

Photo: Southeastern Conference (AK)
+
Use the Capitals to Drive the SWOT Conversation

Use Your “Spidey Sense” to Map the Capitals
During the SWOT Process
spiderman.marvelhq.com

Don’t exchange business cards on the battlefield!

Equity means always asking:
“Who Else Needs to Be At the Table?”
Grantmakers for Education
And a reality check:
Are we designing our process to be inclusive or just saying it?

“[Trust] is the only legal
performance enhancing drug.”
- Dov Seidman, as quoted in Thomas Friedman’s Thank You for Being Late

Using Community
Capitals to Create your
CEDS
• Community Feedback
• Creating Goals and Strategies
• CEDS Committees
• Vital Project Selection
• Evaluation

Community Input and Feedback Sessions

Break
• 10 minutes: Network, check out CEDS Committee
Engagement Worksheet
• After break: Developing and implementing strategies,
bringing partners together in the Land of Sky region of NC,
exercise to apply concepts!
40

Strategies to Sustain Wealth Building
• Start with market demand!
• Choose market opportunities with the greatest “wealth-building”
potential
• Connecting community assets to real market demand–
– Start by serving local demand, then scale up
– Local demand may be more flexible
• Find regional customers / demand partners to bring initiative to scale
• Map process and partners from input to end customer (value chain is a
great tool)
• Identify the gaps
– Create opportunities for new entrepreneurs or business expansions
41
Slide credit: Appalachian Center for Economic Networks

Some Vocabulary
Supply Chains focus on the operational steps to get a product from
its original form to the consumer
Value Chains focus on adding value at each step to meet consumer
expectations
WealthWorks Value Chains, like all value chains, are demand
driven, but focus on building local ownership, equity, and multiple
forms of wealth.

WealthWorks Value Chains
Traditional value chains focus on
financial profitability and the amount
of financial value added at each stage
of the chain.
WealthWorks value chains consider
the whole system and respond to
gaps in the market where multiple
forms of wealth can grow.

VCs can identify
opportunities for
strengthening
multiple forms of
wealth
VCs can uncover
more
opportunities for
inclusion
VCs can link
local assets to
demand
Building Wealth Through A Value Chain

Sample Value Chain Roles
45Slide credit: Appalachian Center for Economic Networks

Value chains do not self-organize
A coordinator should be willing to take on these functions:
• Holds and steward the vision and values
• Builds relationships among and between partners
• Guides activities and partnerships to build multiple forms of
capital
• Ensures low-income people and places participate and benefit
• Measurement: develops clear measures early on; focuses
collaborating partners and strengthens impacts
46

Supporting Functions
Coordinator
Rules & Regulations
Suppliers Producers Processors Distributors
Demand:
Consumers
Welcome to the Chain!

Use Your Rolodex to Build the Value Chain
48

Land of Sky Resilience
Urban & Rural Wealth Creation in Western North Carolina
ATC 2018 - NADO Wealth Creation Framework & CEDS

Who We Are
Land of Sky Regional Council is a multi-county, local
government planning and development organization. We
reach across county and municipal borders providing technical
assistance to local governments and administer projects and
programs which benefit our region’s citizens.

Land of Sky Regional Council is recognized by
the Appalachian Regional Commission (ARC)
and the Economic Development
Administration (EDA) as the Lead Economic
Development District for regional economic
development planning and activities in our four
county area.
Economic Development

Applying the Wealth Creation Framework to the CEDS

Comprehensive
Economic
Development
Strategy
High Priorities:
▪ High-Speed Broadband Access
▪ Transportation
▪ Housing Options
▪ Workforce Solutions
www.landofsky.org/ceds

Agriculture and Food
Supply Chains
Infrastructure Economy People Natural/Environment
Food
Production
Food
Distribution
Farms
Farmers
Land Suitable
For Farming
Farmland
Water
Shortage
Soil
Topograph
y
Food
Consumer
s
Drought
Average
Precipitation
Christmas
Trees
Landscape
Plants
Turf
• Trout
• Poultry
• Livestock
• Dairy
• Greenhouses
• Vegetables
• Fruit
Farm Receipts

Stakeholders
create local
food & farm
engagement
opportunities
Public
engages with
local food &
farm
(activities)
Changes in
perceptions
Changes in
actions
Conditions shift
in response to
shifts in public
perception,
desires, & action
Stakeholders observe/measure the effects of
engagement activities
Incremental changes in conditions create new opportunities for engagement, which in
turn continue to shift conditions
Observed impacts continuously inform
strategies & actions
Localization Through Community Engagement
Selected Engagement Opportunities
Farmers Markets
Farm Tours
Farm to School
Local food & farms in the
media/social media
Public forums, events,
meetings, and classes
Community Supported
Agriculture
Volunteerism (community
garden, farm, food
pantries)

Wealth Creation in Action
2016 Completed WNC AgriVentures:
1. Innovation Council sparked WNC
FarmLink, Outdoor Gear Builders
a. FarmLink now full-time position
with NCSU Extension in
Partnership with Land
Conservancy
b. OGB recent recipient of
POWER Award to grow
opportunities

Regional Transportation Planning

Population Growth and Development
Evolving Energy RealityAffordable Housing
New realities
Commuting Miles and Time

▪ Regional growth 11.27% 2013-
2018
▪ Developing rapidly—23%
increase in construction jobs
▪ Congestion on roads increasing
▪ Development and industry infill
▪ Housing costs are high
▪ Farmland conversion
▪ Stormwater impacts
Regional Realities

Regional Resilience
What can we do?
Data-driven process to evaluate risk in our economic and transportation assets in the
region. This is an implementation of the CEDS and addresses new requirements for the
transportation planning processes.
Stakeholder-Driven:
▪ Strategies for reducing community vulnerability and risk to impacts from extreme
weather events, climate change, and increasing rates of growth
▪ Partner with community groups, municipal staff, nonprofits, agencies
▪ Critical that process has broad input – under-represented communities are often
impacted the most

Regional Resilience
A Cross-Sectoral Partnership
NEMAC, NOAA and other partners have developed a framework to guide communities
through the process of planning and implementing resilience-building projects.
Steps to Resilience:
1. Identify threats from climate and non-climate stressors
2. Analysis of impacts to key assets
3. Quantifiable evaluation of exposure, vulnerability, and risk (scoping)
4. Identify actionable and prioritized options
Application in the Land of Sky Region:
Exposure Analysis of Regional Economic and Transportation Assets

Flooding
WildfireWater Shortage
Major threats for the Land of Sky Region
Landslides

Flooding
May 30, 2018 — Asheville, NC

Flooding
May 16, 2018 — South Main Street/Greenville Hwy, Hendersonville, NC
Image: https://wlos.com/news/local/heavy-rains-flood-roads-park-in-henderson-county

Flooding
May 16, 2018 — Wilson Road, Transylvania County, NC

Documented 3,290
landslides prior to 2011
Landslides

Rock slides on I-40 through the
Pigeon River Gorge
2009 — Rock Slide on I-40

I-40 Rockslide in 2009 = $10.4M
Economic Impact = $1M/day
Final economic impact = $200M
Landslides

NC 9 landslide near Bat Cave
WLOS
June 5, 2018
• Limited Street Network
Connectivity
• Detours, challenging
emergency response

WNC Wildfires
Summer/Fall 2016
Over 20 fires burning –
most due to humans
and arson
Wildfire

Fuel shortages due to pipeline disruptions

1. Flooding exposure for retail properties
is found regionally—not just the usual
suspects in Asheville
2. Wildfire exposure is very high
3. Landslide exposure is only assessed for
Buncombe and Henderson County —
the other counties need to be mapped!
4. Transportation and economic
development are linked assets when
looking at exposure (and subsequent
vulnerability and risk)
Conclusions from Exposure
Assessment

Same exposure—different vulnerability
Image: New York Times

Most vulnerable and at-risk are:
● Multi-family, retirement, mobile
home parks, single-family
● Built before 1980 (no building
elevation)
Impacts to residential, commercial,
industrial audiences:
● Human life safety, personal
property, mobility, business
interruption
Residential
Asheville | Flooding

● On modified steep slopes OR are
downslope from potential slope
failures
● Developed prior to slope
ordinance
Impacts to residential, commercial,
industrial audiences:
property, mobility, business
interruption
Residential
Asheville | Landslides

● Adjacent to or surrounded by
vegetation and fuels (homes in
WUI)
● Have less proximity to initial
wildfire response
Impacts to residential audience:
property
Residential
Asheville | Wildfire

Questions?
ATC 2018 - NADO Wealth Creation Framework & CEDS
Erica Anderson, AICP
Economic & Community Development Director
erica@landofsky.org
828.251.6622

Exercise 2: Building a Value Chain
• Using the cards at your table, work with your neighbors to
build a value chain
• Start with demand: who represents demand for the
product or services associated with your sector?
• Who are the transactional partners? (suppliers,
distributors, etc.)
• Who are support partners? (investors, public sector,
nonprofits, others)
• Who is missing?

Exercise 2 Discussion
• What surprised you about the value chain?
• How does your region’s CEDS (and/or other regional plans)
fit into supporting a particular sector?
• What about your value chain seems resilient?
• Are there gaps and opportunities? How do you develop
those into strategies?
85

Support for Economic Sectors
• Does the CEDS support economic sectors that have wealth-
building potential (not just job creating potential) and
opportunities that have some local energy?
• Can EDDs and their partners do more in their existing
programs to root ownership and control of economic assets
within the region?
• How can we do more to promote economic resilience,
including planning for recovery in the event of an extreme
natural disaster, or changes resulting from an economic
dislocation?
86

Value Propositions: Who Cares?
• Rationale for why a person or organization/enterprise would
want to be involved in a value chain
• What might their role be?
• What do they bring to the table (besides money)?
• How does/could the value chain help them do their work or
align with their goals?
87

Coordinator’s Role
• Who else might or should care about this?
• Why might they care? Ask them: Why do they care?
• Will they help move the dial on the issues that matter to the
value chain?
• Track your progress! But don’t worry about who gets the
credit.
88

HubNetwork
Alaska, Arizona, California,
Colorado, Hawaii, Idaho,
Montana, Nevada, New
Mexico, Oregon, Utah,
Washington, Wyoming
California, Idaho, Oregon,
Washington
Minnesota
Connecticut, Maine,
Massachusetts, New
Hampshire, New York, Rhode
Island, Vermont
Kentucky, North Carolina,
Ohio, Tennessee, Virginia,
West Virginia
Arkansas, Louisiana,
Mississippi, Oklahoma,
Tennessee, Texas
National Support Partners: Aspen Institute Community Strategies
Group, National Association of Development Organizations
Research Foundation, Rural Community Assistance Partnership

Get Involved
• Quarterly calls of WealthWorks practitioners
– Nov. 6, 12 – 1 p.m. ET
– Agenda: how to map value chains with stakeholders; what’s
going on in the outdoor recreation sector
• WealthWorks Community Google Group
– Administered by Melissa Levy, Founder of Community Roots
– Melissa@community-roots.com
90

For more information
• Case studies, videos, and how-to guides at
www.WealthWorks.org
• Brand new videos on selecting a sector to work in, analyzing
market demand, and more, at
https://www.wealthworks.org/economic-development-
resources/wealthworks-videos
• http://www.rupri.org/areas-of-work/nea-lab/
91

For more information
92
https://www.nado.org/regional-wealth-creation-
case-studies/
https://www.nado.org/measuring-rural-wealth-
creation-a-guide-for-regional-development-
organizations/

Contact us
• Erica Anderson, Erica@landofsky.org
• Dawn Espe, despe@regionfive.org
• Carrie Kissel, ckissel@nado.org
• Brett Schwartz, bschwartz@nado.org
93

95
Slide credit: Mountain Association for Community and Economic Development

Addressing Equity
• For your region, how does your CEDS:
– Build the stocks of the region’s assets, using the 8 capitals?
– Intentionally address equity and inclusion?
• How are you addressing equity in your public participation plan?
• How do the strategies and priority projects address equity?
• How does performance measurement address equity?
– Support local ownership and control of assets?
96

Public Participation Plan
• Intentionally including people at the economic margins?
• Using accessible language?
• Connecting to outcomes that are meaningful to people?
• Showing how proposed projects build capital and livelihoods?
97

Who to Engage
Explorers and planners Producers or suppliers
Employees Owners of assets
Consumers Beneficiaries

Prioritizing Projects
• How does a project end up being highly ranked for your
region?
• How do your criteria stack up against the 8 capitals? Are you
missing any capitals?
• Is equity embedded in your ranking system?
• Who is IDing and ranking projects?
– People who haven’t traditionally been at the table
– People engaged in building capitals
99

Proposed Wealth Creation Alpha Metrics
• Cultural Capital
• Stories related to culture and evolving regional identity (qualitative measure; stories are broadly
defined; content may matter more than number)
• Number of successions and new entrants in locally owned businesses in sectors that are important to
regional identity (demonstrate new activity in economy)
• Political Capital
• Number of organizations and networks engaged in supporting policy change aligned with value chain
strategies
• Number of policies and programs supporting value chain strategies (to demonstrate systems change)
• Social Capital
• Number of value chain members (measured as organizations/enterprises)
• Decisions made together by the value chain members (qualitative; this measure demonstrates
purpose of social capital)
100

Proposed Wealth Creation Alpha Metrics
• Financial Capital
• $ of investment
• Number of enterprises created or expanded
• Built Capital
• Amount of new/improved infrastructure that supports the value chain
• Intellectual Capital
• Number of partners implementing new ideas (“partners” could mean other beneficiaries beyond value chain members;
implementation of new ideas will be specific to each value chain)
• Natural Capital Alpha:
• Land: acreage meeting value chain goals (in production, conservation, restored)
• Watersheds protected or water quality restored due to value chain activities
• Individual Capital
• Change in behavior due to new skills and insights
• Increased engagement in value chain activities
• FTE jobs (seasonal and year-round)
101

Applying the Wealth Creation Framework to the CEDS

Applying the Wealth Creation Framework to the CEDS

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