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Guide prepared by: Greater Des Moines Economic Development Practitioners 2007 ED 101 Economic Development Basics.

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Presentation on theme: "Guide prepared by: Greater Des Moines Economic Development Practitioners 2007 ED 101 Economic Development Basics."— Presentation transcript:

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2 Guide prepared by: Greater Des Moines Economic Development Practitioners 2007 ED 101 Economic Development Basics

3 Economic Development Basics Economic Development Partners Elected officials Governmental staff (city, county and state) Economic development organizations Utilities Chambers of Commerce Neighborhood Associations Commercial real estate professionals Developers Educational Institutions Financial community Citizens

4 Economic Development Basics Economic Development Partners Training Goals To understand the economic development process and how it works in the Greater Des Moines area. To provide an overview of the basic concepts and principles of the economic development process. To understand your role in the process

5 Economic Development Basics Definition of Economic Development Process that influences growth and restructuring of an economy to enhance the economic well being of a community. The desired result is creation of wealth for a region.

6 Economic Development Basics Economic Development Infrastructure Human Infrastructure Professional staff Partners Local Product Land Available buildings Zoning Physical infrastructure (i.e. water, sewer, gas, electric, roads, telecommunications, etc.) Business Climate Workforce

7 Economic Development Basics Economic Development Infrastructure Program of Work Marketing Iowa Department of Economic Development (IDED) Greater Des Moines Partnership (GDMP) Counties Communities Prospect Process Business Retention Legislative monitoring and influencing

8 Economic Development Basics Marketing IDED-markets Iowa on national and international level Sell Iowa Trips Trade Shows Advertising & Publications Web Site GDMP-markets region on national and international level Industry Trade Shows Recruitment trips (industry targets, site selection consultants, and national headquarters) Web Site Market research Site Selector events Principal Charity Golf Classic (formerly known as the Allianz) Feature Articles and Stories Publications and Collateral Material Communities, Counties and Utilities-participate with GDMP and IDED in partnership Maintain Location One Information System (LOIS) database with community data, buildings and sites Trade Shows Community Tours Publications & Collateral Material Web Sites Events Speculative Buildings

9 Economic Development Basics Prospect Process Site Selection Overview Process of elimination Risk aversion Confidentiality More than 15,000 local development groups competing for 100- 200 major projects annually nationwide Site Selectors Use the Web 86% to familiarize themselves with community 85% gather preliminary location data 63% to find local contact information Most new locations are in same region 60%-80% of growth is due to local existing business expansion

10 Economic Development Basics Prospect Process Stage 1 – Lead Generation Stage 2 – Response Stage 3 – Monitoring and Follow Up Stage 4 – Prospect Visit Stage 5 – Financial Packaging and Incentives Stage 6 – Negotiation and Decision

11 Economic Development Basics Prospect Process Stage 1 – Lead Generation

12 Economic Development Basics Prospect Process Stage 1 – Lead Generation Trend 2000-2006

13 Economic Development Basics Prospect Process Stage 2 - Response Step One: GDMP receives lead Provides general regional information Identifies project parameters with client Step Two: GDMP distributes lead to partners Request specific building, site, and community information Step Three: Communities, realtors, developers research local assets (i.e. buildings, sites, infrastructure, zoning, etc.) Respond with requested information Step Four: GDMP reviews and packages local responses GDMP provides other information such as workforce data, financial incentives overview, completes consultant questionnaires, etc. All information is compiled and submitted to prospect

14 Economic Development Basics Project Representation 79 CDMC Prospect Inquiries in 2006 46 CDMC Property Searches in 2006 17 Site Searches Size Range: 2 to 800 acres Median Size: 10 acres 14 Industrial Building Searches Size Range: 10,000 sf to 425,000 sf Median Size: 38,750 sf 15 Office Building Searches Size Range: 10,000 to 120,00 sf Median Size: 25,000 sf

15 Economic Development Basics Prospect Process Stage 3 – Monitoring and Follow Up GDMP contacts the prospect to confirm information, answers additional questions, verifies timeline, etc. Encourages a local visit to further promote area Request visit to company headquarters Timeline – this stage can last from one week to several years depending upon prospect

16 Economic Development Basics Prospect Process Stage 4 – Prospect Visit GDMP coordinates the visit to showcase the Greater Des Moines area General overview of area Available building and sites – local officials are notified of specific visits If requested, local economic development professionals arrange meetings with local business executives, human resource directors, public officials, educational representatives, utility representatives, etc.

17 Economic Development Basics Prospect Process Stage 5 – Financial Packaging and Incentives During this stage we may be competing with one or two alternate locations All partners associated with the project are at the table Financial Package Identify the controllable issues that could prevent the company from choosing the region as the location (i.e. gap financing, return on investment, locational disadvantages, job training, infrastructure, etc.) Create an initial incentive offering that minimizes the risk to the community and the company

18 Economic Development Basics Prospect Process Stage 6 – Negotiation and Decision Final Negotiations Complete necessary applications and receive approvals (i.e. forgivable loan/loan funding, tax abatement and credits, job training, infrastructure improvements, etc.)

19 Announce Project!

20 Economic Development Basics Prospect Process Stage 1 – Lead Generation Stage 2 – Response Stage 3 – Monitoring and Follow Up Stage 4 – Prospect Visit Stage 5 – Financial Packaging and Incentives Stage 6 – Negotiation and Decision

21 Economic Development Basics CDMC Results 1999 to 2006 New Locations:64 Expansions:145 New/Retained Jobs:12,145 Sq. Footage:9,018,992 Capital Investment:$1.56 billion

22 Economic Development Basics Greater Des Moines Collaboration

23 Economic Development Basics Business Retention and Expansion Executive Call Program Meet with executives to learn about their products and processes Build relationships Identify expansion opportunities or companies at risk Learn about issues that keep executives up at night Provide resources

24 Economic Development Basics Business Retention and Expansion Corporate Headquarter Visits Identify how the Des Moines metro locations compete within the corporate structure Establish ourselves as a resource for future business projects Build relationships

25 Economic Development Basics Business Retention and Expansion Local Business Expansion Focus on community specific project Can be brick and mortar, employment growth, equipment investment Work as team to identify opportunities and resources Provide pertinent information to influence company decision May be exploring several avenues within a corporate structure Fair Play Agreement

26 Economic Development Basics Appendix Confidentiality Agreement Prospect Check List Greater Des Moines Fair Play Agreement PDI Code of Ethics

27 Economic Development Basics Acknowledgements This guide is developed as a joint project between local economic development practitioners in the Des Moines metro area. Aquila Incorporated Ankeny Economic Development Corporation City of Ankeny, Economic Development City of Des Moines, Economic Development City of Waukee, Community Development City of West Des Moines, Community Development Eastern Polk Regional Development Greater Dallas County Development Alliance Greater Des Moines Partnership Grimes Chamber and Economic Development Johnston Economic Development Corporation MidAmerican Energy EconomicAdvantage Warren County Economic Development


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