Transcript Slide 1

Overland, Missouri
ECONOMIC DEVELOPMENT
February 17, 2009
Robert M. Lewis, AICP, CEcD
DEVELOPMENT STRATEGIES
DEVELOPMENT STRATEGIES
Carol L. Waggoner, AICP
Tonight’s Agenda
• Regional Perspective
• Economic
Development
Philosophy
• Public Sector
Incentives
• Local Process and
Expectations
DEVELOPMENT STRATEGIES
Regional Perspective
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DEVELOPMENT STRATEGIES
DEVELOPMENT STRATEGIES
DEVELOPMENT STRATEGIES
20 Largest Metropolitan Areas, 2007
Millions of People
New York
Los Angeles
Chicago
Dallas
Philadelphia
Houston
Miami
Washington
Atlanta
Boston
Detroit
San Francisco
Phoenix
Riverside
Seattle
Minneapolis
San Diego
St. Louis
Tampa
Baltimore
5
10
15
20
18.82
12.88
9.52
6.15
5.83
5.63
5.41
5.31
5.28
4.48
4.47
4.20
4.18
4.08
3.31
3.21
2.97
2.80
2.72
2.67
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STRATEGIES
DEVELOPMENT STRATEGIES
20 Largest Metropolitan Areas, 2007:
Growth Rate from 2000-2007
0%
New York
Los Angeles
Chicago
Dallas
Philadelphia
Houston
Miami
Washington
Atlanta
Boston
Detroit
San Francisco
Phoenix
Riverside
Seattle
Minneapolis
San Diego
St. Louis
Tampa
Baltimore
USA
Missouri
Illinois
5%
10%
15%
20%
25%
2.5%
3.8%
4.4%
18.2%
2.4%
18.7%
7.7%
10.1%
23.3%
1.8%
0.2%
1.6%
27.5%
24.5%
8.4%
7.6%
5.3%
3.8%
13.3%
4.3%
6.9%
4.9%
3.3%
DEVELOPMENT
DEVELOPMENT STRATEGIES
30%
Population of The St. Louis Metro Area 1980-2020
16 Counties
Jurisdiction
Census
1980
Census
1990
2007
Estimate
St. Louis City
453,100
396,700
350,800
St. Louis County
973,900
993,500
995,100
St. Charles County
144,100
212,900
344,000
Other MO Counties
272,500
320,800
422,400
Madison County
247,700
249,200
267,300
St. Clair County
267,500
262,900
261,300
Other Illinois Counties
144,700
144,800
162,900
METRO WEST
1,843,600
1,923,900
2,112,300
2,250,000
METRO EAST
659,900
656,900
691,500
850,000
METRO AREA
2,503,500
2,580,800
2,803,800
3,100,000
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DSI Forecast
2020
Income Density & Regional Retail: Highways
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Economic Development
Philosophy
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Economic Development
No single, widely accepted definition of
economic development.
However, there is considerable agreement
that the main goal of economic development
is . . .
. . .improving the economic well being of a
community through efforts focused on job
development and quality of life
improvement.
International Economic Development Council (IEDC)
DEVELOPMENT STRATEGIES
New Model of Economic Development
PROSPERITY
Rising Real Income per Capita
PRODUCTIVITY
Increased Output per Worker
INNOVATION
Increasingly higher value
products and services
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Produced more efficiently
(lower per unit costs)
New Model of Economic Development
Current Model =
Reactive: Opportunism
Future Model =
Proactive: Leading Change
Individual places
Business-oriented
Win-Lose competition
Jobs oriented
Pieces & parts
Improvisational
Fragmented
Operate on the margins
Local/regional
Pragmatic
Short term oriented
Favors ‘status quo.’
Networks of places
Business network-oriented
Win-Win collaboration
Human potential
More holistic/systems-oriented
Strategic
Connected/integrated
Mainstream focused
Local/regional/global
Performance-based
Short/intermediate/long-term
Promotes ‘change.’
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Most Important Econ Dev Functions
Existing business retention/expansion
New business recruitment
Marketing/promotion
Real estate/site location assistance
Entrepreneurial assistance
Industry cluster/target industry development
Business advocacy/public policy
Development project financing
Workforce development services
Business networking
Community development
Infrastructure services
Technology assistance services
Downtown development
International trade development
Rural development
Other
Travel and tourism development
Commercial revitalization
Total
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15.3%
11.7%
10.2%
7.1%
7.0%
7.0%
5.8%
5.3%
5.3%
4.1%
4.1%
3.6%
2.7%
2.4%
2.1%
1.8%
1.7%
1.4%
1.2%
100 %
New Model of Economic Development
ED organizations fall along a continuum.
The form of organization is a major determinant
of who its leaders are.
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Public Sector Incentives
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Missouri Tools
• State tools foster public/private
development partnerships
• Generally, state programs address. . .
– Alleviation of Blight
– Land Assembly
– Infrastructure
– Job Training
DEVELOPMENT STRATEGIES
– Environmental Clean-up
– Historic Preservation
– Workforce Housing
Missouri Public Finance Tools
Local Initiatives
Property Tax Abatement (Ch. 353)
Local Tax Increment Financing (TIFs)
Neighborhood Improvement Districts (NIDs)
Community Improvement Districts (CIDs)
Transportation Development Districts (TDDs)
Economic Development Sales Tax
Sales Tax Rebate Agreements
Industrial Development Bonds (IDBs)
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Missouri Public Finance Tools
State Initiatives
Missouri Historic Tax Credits (MOHTC)
MO Brownfield Redevelopment Program
Missouri Rebuilding Communities (RBC) Tax Credits
Missouri Quality Jobs (MOQJ)
Missouri Enhanced Enterprise Zone (EEZ)
Missouri Downtown Economic Stimulus Act (MODESA)
Missouri Downtown Revitalization Preservation Act (MODESA Light)
Missouri State Supplemental Tax Increment Financing
Urban Enterprise Loan (UEL)
Resources for Missouri, Inc.-SBA Micro Loan Program
MO Business Use Incentives for Large-Scale Development (BUILD)
Missouri Low Income Housing Tax Credits (LIHTC)
Missouri First Linked Deposit Program
DEVELOPMENT STRATEGIES
Missouri Public Financing Tools
State Initiatives
Small Business Incubator Tax Credit
Neighborhood Preservation Tax Credit
Neighborhood Assistance Program (NAP) Tax Credit
Sales & Use Tax Exemptions
Certified Capital Companies (CAPCOs) Tax Credits
Missouri Tax Credit for Contribution Program
MO Community College New Jobs Training Program
MO Customized Training Program
Youth Opportunity Program
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Federal Public Finance Tools
Federal Historic Tax Credits
Federal Empowerment Zone Benefits
New Markets Tax Credits
SBA 504 Loans
SBA 7A Loans
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Local Process and
Expectations
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Local Economic Development
A program, group of policies, or activity to
improve the economic well being and
quality of life for a community, by creating
and/or retaining jobs that facilitate growth
and provide a stable tax base.
International Economic Development Council
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Local Economic Development
Local government intervenes to stimulate or
maintain business activity or employment.
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Local Redevelopment Project
Examples
West County Center
NorthPark
Lakeside Crossing
Chesterfield Commons
Kirkwood Commons
St. Louis Galleria
Gravois Bluffs
St. Louis Mills Mall
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Major Redevelopment Projects
Take 10 plus years to create
Require many elements to come together

Timing

Regulatory

Financing

Market

Availability

Manpower
The big myth
If you build it, they will come.
The other big myth
Real estate development is not economic
development.
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City Roles
Traditional
– Public Service Provider
– Regulator (Building Codes, Zoning)
Entrepreneurial
– Deal maker
– Recruiter
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Keys to City Success
Be a strong partner; these are business
deals.
Understand own tax base in depth.
Strategically create opportunities.
Strategically alleviate obstacles.
Create partnerships.
DEVELOPMENT STRATEGIES
Public Sector Strategies
Provide
Clear and
Assemble
Land
Underwrite
Risk
Amenities
Economic
and
Develop-
Infrastructure
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Promote
ment:
Marketing
Provide Job
Training
Change
Tax
Structure
Modify
Regulations
Real Estate Strategies
 Identify supply and demand for a
geographic area
 Identify land characteristics:
 Commercial strips
 Large blocks
 Creating large from small
 Changing land uses on the small
DEVELOPMENT STRATEGIES
The Players
“Time and Money”
 Elected Officials
 P&Z Commissions
 Econ Dev Commissions
 Property Owners
 Existing Tenants
 Lawyers
 Missouri DED / DOT /
DNR
 County Government
 Adjacent Cities
 Econ Dev Consultants
DEVELOPMENT STRATEGIES
 Financial Advisors
 Underwriters
 Developers
 Future Tenants
 Bankers
 More Lawyers
 School Districts
 Other Affected
Taxing Districts
 Urban Planners
Strategic
Economic
Development
Planning
Process
DEVELOPMENT STRATEGIES
What is Going on in Our City?
What makes up city tax base & trends?
What business takes place?
Where are non-residential uses and what type?
What is physical condition of infrastructure, buildings?
Does zoning facilitate the type of economic development desired?
What are the potential development/redevelopment sites?
Are there opportunities or requirements for parcel assembly?
How does this impact quality of life in our community?
DEVELOPMENT STRATEGIES
Identify Key Issues
SWOT Analysis
Existing Conditions Analysis
What do we have?
Clearly define the issues
Barriers to economic development
DEVELOPMENT STRATEGIES
Define Strategies
What will you do?
What will you need others to do?
How will you get there?
What partners do you need?
What is the schedule?
DEVELOPMENT STRATEGIES
Define Implementation Plans
Specific programs or actions
–
–
–
–
–
Policies
Staffing
Tools
Resources
Timeline
DEVELOPMENT STRATEGIES
Evaluate Your Efforts
Mark your progress, accomplishments
Routinely revisit & update your strategies
DEVELOPMENT STRATEGIES
Robert M. Lewis, AICP, CEcD
Principal
Carol L. Waggoner, AICP
Senior Planner
DEVELOPMENT STRATEGIES
10 South Broadway, Suite 1500
St. Louis, Missouri 63102
Office (314) 421-2800
Email – [email protected]
DEVELOPMENT STRATEGIES