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Applying the Wealth Creation Framework to the CEDS

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This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/

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Applying the Wealth Creation Framework to the CEDS

  1. 1. APPLYINGWEALTHCREATION Applying the Wealth Creation Framework to the CEDS NADO Annual Training Conference October 15, 2018
  2. 2. APPLYINGWEALTHCREATION 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
  3. 3. APPLYINGWEALTHCREATION 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
  4. 4. APPLYINGWEALTHCREATION 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
  5. 5. APPLYINGWEALTHCREATION WealthWorks is a National Movement
  6. 6. APPLYINGWEALTHCREATION 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
  7. 7. APPLYINGWEALTHCREATION Ushering in a New Era for the Comprehensive Economic Development Strategy (CEDS) From this…
  8. 8. APPLYINGWEALTHCREATION …to this! Ushering in a New Era for the Comprehensive Economic Development Strategy
  9. 9. APPLYINGWEALTHCREATION 9 CEDS Cover Designed by Local Artist in Michigan Captures the Spirit of the Region…
  10. 10. APPLYINGWEALTHCREATION 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
  11. 11. APPLYINGWEALTHCREATION 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
  12. 12. APPLYINGWEALTHCREATION A New Vocabulary to Support Your Existing Efforts
  13. 13. www.CEDSCentral.com
  14. 14. APPLYINGWEALTHCREATION Multiple Forms of Wealth Improved Livelihoods for Everyone Local Ownership WealthWorks: Doing Economic Development Differently Demand-driven community and economic development
  15. 15. APPLYINGWEALTHCREATION 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
  16. 16. APPLYINGWEALTHCREATION 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
  17. 17. APPLYINGWEALTHCREATION To improve the livelihoods of people and communities by creating wealth through market interactions that are owned, controlled, and reinvested locally. WealthWorks Goal Slide credit: Rural Development Initiatives
  18. 18. APPLYINGWEALTHCREATION Slide credit: Rural Development Initiatives Eight Forms of Community Capital
  19. 19. APPLYINGWEALTHCREATION Significance of Community Capitals • https://www.youtube.com/watch?v=S7gIQMW1YDA&list =PLS5p6hpOYWYK2p0xM8e2GdFN_pUmUxB0R&index=4 19
  20. 20. APPLYINGWEALTHCREATION 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.
  21. 21. APPLYINGWEALTHCREATION 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
  22. 22. APPLYINGWEALTHCREATION Using the Capitals Framework in Planning • Assess assets in your community • Define the strategy & make investment decisions • Measure your impact 22
  23. 23. APPLYINGWEALTHCREATION 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
  24. 24. APPLYINGWEALTHCREATION “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
  25. 25. APPLYINGWEALTHCREATION
  26. 26. APPLYINGWEALTHCREATION All Forms of Capital Are Needed for a Resilient Region And remember: Do no harm!
  27. 27. APPLYINGWEALTHCREATION The SWOT Image: Georgia State University
  28. 28. APPLYINGWEALTHCREATION 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
  29. 29. APPLYINGWEALTHCREATION Photo: Southeastern Conference (AK) + Use the Capitals to Drive the SWOT Conversation
  30. 30. APPLYINGWEALTHCREATION Use Your “Spidey Sense” to Map the Capitals During the SWOT Process spiderman.marvelhq.com
  31. 31. APPLYINGWEALTHCREATION Don’t exchange business cards on the battlefield!
  32. 32. APPLYINGWEALTHCREATION 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?
  33. 33. APPLYINGWEALTHCREATION “[Trust] is the only legal performance enhancing drug.” - Dov Seidman, as quoted in Thomas Friedman’s Thank You for Being Late
  34. 34. Using Community Capitals to Create your CEDS • Community Feedback • Creating Goals and Strategies • CEDS Committees • Vital Project Selection • Evaluation
  35. 35. Community Input and Feedback Sessions
  36. 36. Goal and Strategy Development
  37. 37. CEDS Strategy Committee
  38. 38. Vital Project Selection
  39. 39. Evaluation
  40. 40. APPLYINGWEALTHCREATION 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
  41. 41. APPLYINGWEALTHCREATION 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
  42. 42. APPLYINGWEALTHCREATION 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.
  43. 43. APPLYINGWEALTHCREATION 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.
  44. 44. APPLYINGWEALTHCREATION 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
  45. 45. APPLYINGWEALTHCREATION Sample Value Chain Roles 45Slide credit: Appalachian Center for Economic Networks
  46. 46. APPLYINGWEALTHCREATION 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 Slide credit: Appalachian Center for Economic Networks
  47. 47. APPLYINGWEALTHCREATION Supporting Functions Coordinator Rules & Regulations Suppliers Producers Processors Distributors Demand: Consumers Welcome to the Chain! Slide credit: Appalachian Center for Economic Networks
  48. 48. APPLYINGWEALTHCREATION Use Your Rolodex to Build the Value Chain 48
  49. 49. APPLYINGWEALTHCREATION 49
  50. 50. Land of Sky Resilience Urban & Rural Wealth Creation in Western North Carolina ATC 2018 - NADO Wealth Creation Framework & CEDS
  51. 51. 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.
  52. 52. 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
  53. 53. Comprehensive Economic Development Strategy High Priorities: ▪ High-Speed Broadband Access ▪ Transportation ▪ Housing Options ▪ Workforce Solutions www.landofsky.org/ceds
  54. 54. www.landofsky.org/ceds
  55. 55. Craft Beverage in WNC
  56. 56. 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
  57. 57. 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)
  58. 58. 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
  59. 59. Regional Transportation Planning
  60. 60. Population Growth and Development Evolving Energy RealityAffordable Housing New realities Commuting Miles and Time
  61. 61. ▪ 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
  62. 62. 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
  63. 63. 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
  64. 64. Flooding WildfireWater Shortage Major threats for the Land of Sky Region Landslides
  65. 65. Flooding May 30, 2018 — Asheville, NC
  66. 66. 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
  67. 67. Flooding May 16, 2018 — Wilson Road, Transylvania County, NC
  68. 68. Documented 3,290 landslides prior to 2011 Landslides
  69. 69. Rock slides on I-40 through the Pigeon River Gorge 2009 — Rock Slide on I-40
  70. 70. I-40 Rockslide in 2009 = $10.4M Economic Impact = $1M/day Final economic impact = $200M Landslides
  71. 71. NC 9 landslide near Bat Cave WLOS June 5, 2018 • Limited Street Network Connectivity • Detours, challenging emergency response
  72. 72. WNC Wildfires Summer/Fall 2016 Over 20 fires burning – most due to humans and arson Wildfire
  73. 73. Fuel shortages due to pipeline disruptions
  74. 74. 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
  75. 75. Same exposure—different vulnerability Image: New York Times
  76. 76. 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
  77. 77. Most vulnerable and at-risk are: ● On modified steep slopes OR are downslope from potential slope failures ● Developed prior to slope ordinance Impacts to residential, commercial, industrial audiences: ● Human life safety, personal property, mobility, business interruption Residential Asheville | Landslides
  78. 78. Most vulnerable and at-risk are: ● Adjacent to or surrounded by vegetation and fuels (homes in WUI) ● Have less proximity to initial wildfire response Impacts to residential audience: ● Human life safety, personal property Residential Asheville | Wildfire
  79. 79. Questions? ATC 2018 - NADO Wealth Creation Framework & CEDS Erica Anderson, AICP Economic & Community Development Director erica@landofsky.org 828.251.6622
  80. 80. APPLYINGWEALTHCREATION 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?
  81. 81. APPLYINGWEALTHCREATION 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
  82. 82. APPLYINGWEALTHCREATION 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
  83. 83. APPLYINGWEALTHCREATION 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
  84. 84. APPLYINGWEALTHCREATION 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
  85. 85. 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
  86. 86. APPLYINGWEALTHCREATION 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
  87. 87. APPLYINGWEALTHCREATION 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
  88. 88. APPLYINGWEALTHCREATION 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/
  89. 89. APPLYINGWEALTHCREATION Contact us • Erica Anderson, Erica@landofsky.org • Dawn Espe, despe@regionfive.org • Carrie Kissel, ckissel@nado.org • Brett Schwartz, bschwartz@nado.org 93
  90. 90. APPLYINGWEALTHCREATION
  91. 91. APPLYINGWEALTHCREATION 95 Slide credit: Mountain Association for Community and Economic Development
  92. 92. APPLYINGWEALTHCREATION 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
  93. 93. APPLYINGWEALTHCREATION 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
  94. 94. APPLYINGWEALTHCREATION Who to Engage Explorers and planners Producers or suppliers Employees Owners of assets Consumers Beneficiaries
  95. 95. APPLYINGWEALTHCREATION 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
  96. 96. APPLYINGWEALTHCREATION 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
  97. 97. APPLYINGWEALTHCREATION 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

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