Economic Development 101
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The document discusses defining and achieving prosperity for a region through economic development. It provides context on past economic development successes over 30 years that transformed farmland into commercial areas with major employers. It emphasizes the importance of having an economic development strategic plan to assess strengths and challenges, engage stakeholders, prioritize resources, and define metrics for accountability and success. The plan helps provide predictability, speed and savings for clients and constituents.
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Economic Development 101
- 1. D E C E M B E R 6 , 2 0 1 9 ED 101 – Fundamentals
- 2. #ED411 2 Vision DEFINING A GREATER PURPOSE To be the most prosperous region in the United States. Prosperity Defined The process by which more and more people in a region improve their economic and social well-being.
- 3. #ED411 is to prepare for success 3 The quickest and most efficient path to success
- 4. #ED411 November 1999 completion of Polaris Parkway/Cleveland Ave extension 941 acres identified for commercial development The farmland in 1999 is now home to DHL, Nationwide Childrens, Central Ohio Primary Care, Century Insurance, Vertiv, Syneos Health, Bank of America, Ohio Health and T. Marzetti 30 years in the making 4 Westar
- 5. #ED411 2019 top factors influencing location decisions 5
- 6. #ED411 6
- 8. #ED411 Assess existing conditions Stakeholder engagement/visioning Gaps between existing conditions and vision Prioritize focus, policies and resources based on agreed upon community priorities Performance metrics – accountability against the plan ECONOMIC DEVELOPMENT STRATEGIC PLAN 8 B u i l d i n g b l o c k s
- 9. #ED411 Economic development assets 9 E x i s t i n g c o n d i t i o n s Workforce Infrastructure Quality of Life Business Climate Sites and buildings
- 10. #ED411 Self awareness of community strengths and challenges Establishes and provides agreed upon vision Engages stakeholders Defines path for execution Prioritizes use of scarce resources Defines success Provides investors & constituents insight into use of resources Provides accountability FOR THE CLIENT: Predictability, speed and $ savings WHY? 10 E c o n o m i c D e v e l o p m e n t S t r a t e g y
- 11. #ED411 11 Executive Director, Pickaway Progress Partnership R y a n S c r i b e r It takes a community, The Pickaway Progress Partnership (P3)
- 12. #ED411 12 P i c k a w a y P r o g r e s s P a r t n e r s h i p
- 13. #ED411 Economic development agency for all of Pickaway County Community Improvement Corporation (CIC) /501c3 Small staff – big Board 34 board members… Cross section of public/private sector leadership Public/Private Partnership 50/50 Mixed Funding P3 OVERVIEW 13 P i c k a w a y P r o g r e s s P a r t n e r s h i p
- 14. #ED411 Why not? vs. Why not. Embrace partnership - regionalism Alignment Focus Balance P3 PRINCIPLES 14 P i c k a w a y P r o g r e s s P a r t n e r s h i p
- 15. #ED411 Business Retention & Expansion (BRE) Infrastructure & Community Development Marketing and Attraction P3 INITIATIVES 15 P i c k a w a y P r o g r e s s P a r t n e r s h i p
- 16. #ED411 16 P i c k a w a y P r o g r e s s P a r t n e r s h i p
- 17. #ED411 17 Superintendent, Olentangy Local School District M a r k R a i f f A school’s perspective on economic development collaboration
- 18. #ED411 18 C o s t o f e d u c a t i o n
- 19. #ED411 Do schools benefit when incentives ar e used? 19
- 20. #ED411 Single Family Homes create on average 1.6-1.8 students per home Single Family Home = $350,000 = generates approximately $6,000 in taxes to the schools annually Single Family Home Places annual cost of at least $17,611 on the School District Multifamily projects requires at least 6-8 units to generate 1.6-1.8 students Multifamily projects are taxed at higher rate = average unit cost $80,000 * 6 = $480,000 Example 801 Polaris = generates $500,000 annually to schools in taxes = generates 15 kids (6 previously in the district) SUPPORTING INFRASTRUCTURE DEVELOPMENT BY LEVERAGING MULTIFAMILY PROJECTS 20 S m a r t e c o n o m i c d e v e l o p m e n t
- 21. #ED411 21 Deputy Director, Economic Development, City of Columbus Q u i n t e n H a r r i s A city’s response to rapid growth can be varied…
- 22. #ED411 Columbus is the best U.S. City for tech jobs - Fortune Magazine 22 A g r o w i n g c i t y The Columbus Region's GDP grows over $3.41 billion Columbus Business First Columbus is named a top 10 city for young, growing families - CNBC Millennials continue to leave largest cities for cities like Columbus - Wall Street Journal Columbus is a Midwestern bright spot and a 'market to watch,' investors say - Columbus Business First Columbus hiring outlook for fall best in nation - The Columbus Dispatch Ohio State kicks off 'historic' $2.4B in construction driven by master plan - Columbus Business First
- 23. #ED411 23 U n d e r s t a n d e x i s t i n g c o n d i t i o n s
- 24. #ED411 24 A l i g n i n g p o l i c y t o a c h i e v e d e s i r e d o u t c o m e
- 25. #ED411 Factors considered when evaluating projects: • Capital investment • New job creation and payroll • Job retention level and payroll • Priority location/place-based development • Enhancement of built environment • Creation of a vibrant, mixed-income, mixed-use neighborhood • Additional investment factors for job creation, growth and innovation 25 C r i t e r i a - w h a t i s m o s t i m p o r t a n t ?
- 26. #ED411 Adopted Plan Recommendations – Columbus Site Information Resource (CSIR) 26 L a n d U s e - C i t y o f C o l u m b u s http://gis.columbus.gov/csir/
- 27. #ED411 27 Wo r k i n g w i t h o u r s c h o o l s
- 28. #ED411 The City of Columbus Department of Development uses its Office of Infrastructure Investments to coordinate the delivery of P3 projects to ensure the appropriate and efficient use of public funds. Public-Private Partnerships (P3) are commercial development projects supported by public infrastructure improvements funded wholly or partially by public funds. 28 I n f r a s t r u c t u r e i n v e s t m e n t s
- 29. #ED411 29 P r o j e c t s i n t h e C o l u m b u s a r e a
- 30. #ED411 Market Tower 28 story Mixed-Use Tower $192 Million Expansion 30 P 3 d e v e l o p m e n t White Castle – new HQs HQ Expansion and Mixed-Use Development $65 Million Expansion Gravity Project Urban Redevelopment Residential, Office & Retail $54 Million Investment
- 31. #ED411 31 P 3 d e v e l o p m e n t Confluence Village Future Home to Major League Soccer Team: Columbus Crew $240 Million Investment CoverMyMeds Electronic Pharmaceutical Solutions $240 Million Expansion OhioHealth $89 million investment +/- 240,000 SF administrative operations facility
- 32. #ED411 32 I m p e r a t i v e s f o r s u c c e s s Sustain our economic momentum Develop, inspire and attract a talented, adaptive and diverse workforce Enable the innovation capacity Increase global identity and connectivity The Columbus Region must: to compete for investment. by continuing to make economic growth and prosperity a top priority of business, academic and government sectors to grow dynamically. to attract investment and talent from around the world.
Editor's Notes
- Economic development success – grow economic base – How do we influence growth of the economic base – business retention, expansion and attraction
- 33rd Annual Corporate Survey & the 15th Annual Consultants Survey
- What Are the Consultants’ Site Selection Priorities? The consultants were also asked to rate the site selection factors as “very important,” “important,” “minor consideration” or “of no importance.” It should be noted that whereas every site selection factor received a “of no importance” rating from some of the Corporate Survey respondents, only seven of the 28 factors were considered “of no importance” by any of those responding to the Consultants Survey. Interestingly, 100 percent of the respondents to our 15th annual Consultants Survey rated three factors as “very important” or “important” — availability of skilled labor, highway accessibility, and proximity to major markets, all with a No. 1 rank, with availability of skilled labor receiving the highest “very important” score among all the site selection factors. As companies look to satisfy their need for skilled workers, it’s therefore no surprise that training programs/technical schools received a 96.1 percent combined importance rating from the consultants, ranking in a tie for No. 6. Availability of skilled labor was the only factor receiving a combined importance rating over 90 percent in the Corporate Survey, but 12 factors received a combined importance rating over 90 percent from the responding consultants. In fact, more than 98 percent of the responding consultants also consider labor costs as well as state and local incentives — ranking No. 4 and No. 5, respectively — as “very important” or “important.” Since more than 90 percent of the consultants say they provide incentives negotiation/management services to their clients, it’s only natural that they consider this latter factor a primary consideration in the location decision. More than 80 percent consider cash grants or tax credits and exemptions as the types of incentives that are most important to their clients when making location decisions. According to CBRE, demand for industrial real estate has been exceeding supply for nine consecutive years, driving the vacancy rate to an historic low of 4.3 percent. It follows that 96.1 percent of the respondents to the Consultants Survey rate both available land and available buildings as “very important” or “important,” also in the No. 6 spot.
- How do you or does your organization plan the annual budget? Preparing for economic development follows a similar path. Spending /investing in initiatives AFTER planning and preparation will yield far more efficient use of resources AND stakeholder by-in
- Based on your role in your community, education, elected official or paid staff, etc. by way of raised hand, which of these area(s) do you have a role in community preparedness Assess current state against desired state, defined goals and objectives. Do the economic assets position the community for success? If there are gaps, what resources are required. What are the priorities, the near term easy wins, the longer stretch goals?
- Developing and managing a public private partnership; community preparedness
- Why economic development matters to local schools; School role in economic development; Tips
- P3 initiatives; stakeholder relationships; Schools
- You are here today because you have interest in the future of your community. As you return to your community in whatever capacity that might be give thought to how you can and should play a role in accomplishing these imperatives. 1 | The Region must consistently invest in and execute a comprehensive economic development strategy in order to compete and to be ready for opportunities that emerge. 2 | A talented workforce is the most critical location factor for our existing companies and for those who seek to locate here. 3 | To grow dynamically and to diversify our economy, we must create, use and leverage technology. 4 | The Columbus Region must be connected physically, digitally and intellectually with the rest of the world.