Presentation on theme: "Managing an Effective Economic Development Organization Indiana Economic Development Course January 12, 2015 Jim Plump, CEcD, FM Seymour-Jackson County,"— Presentation transcript:
Managing an Effective Economic Development Organization Indiana Economic Development Course January 12, 2015 Jim Plump, CEcD, FM Seymour-Jackson County, Indiana www.jcidc.com
Outline Overview of Economic Development Trends Types of organizations –Advantages/disadvantages Role of Board members & ED practitioner/staff Case study of JCIDC Regionalism Social media The marketplace
Economic Development “101” JOBS INCOME HOUSING RETAIL TAXES EDUCATION WORKFORCE produce that provides the market for that fund which provides that attracts which creates that generates
Economic Development Trends Regionalism Attraction Return On Investment Workforce Development Privatization Retention & Expansion Benchmarking Performance Evaluation
Benchmarking Need to evaluate performance –Outcomes and/or impact Jobs, Tax Base … And More! –JCIDC Measures “Promised Investment” Partnerships & Coalitions –Workforce Partnership & JCEC Construction & Wage Impacts
Benchmarking “If not for our activity, this would not have occurred” –Helps defend organization’s mission “We don’t invest or create jobs; we are facilitators”
Privatization is Growing Trend Budget cuts at all government levels is driver, but there is a silver lining: –More flexibility in activities –Eliminates some public regulatory obstacles: –Hiring practices/Salary issues
Return on Investment How will project affect local economy? –Economic Impact Analysis How will financial support to ED organization benefit the contributor?
Types of Organizations EDOs may not fall neatly into one category –State/Local/Federal Government –Public-Private not-for-profits –Chambers of Commerce –Port Authorities –Utility companies –Regional marketing/planning organizations –Development/Redevelopment organizations –Colleges/Universities
Public ED Organizations Established in variety of ways: –Independent agencies –Local government departments –Part of one or more local departments –Part of Mayor’s office
Advantages of Public Organization Direct access to sources of public funding –TIF Zones and access to those funds Through Redevelopment Commissions –Business incentives (tax abatement) Through City/Town Councils –Ownership of land/Right of way –Zoning/Regulatory powers –Ability to construct and operate public facilities –Direct access to planning, zoning, public works resources, infrastructure
Disadvantages of Public Organization Direct political influence Elections can cause turnover/Inconsistent policies Municipal debt limitations Restrictions on financial incentives for private sector
Private or Public/Private Organization Also established in a variety of ways –As part of Chambers of Commerce –Community Development Corporations (CDC) –501(c)(3), (c)(4) or (c)(6)
501 (c)s (3) Absolutely prohibited from supporting political candidates, and are subject to limits on lobbying. Gifts are tax deductible. (4) May lobby for legislation and participate in political campaigns and elections, as long as its primary activity is the promotion of social welfare. Contributions are usually not deductible as charitable contributions for U.S. federal income tax, with a few exceptions. Are not required to disclose their donors publicly. (6) Lobbying allowable and encouraged to promote particular industry. Contributions generally not deductible, although gifts typically can be written off as business expense.
Advantages of Private Organization –Not directly related to political party Get “right people” on the Board –Organized to make decisions quickly –Serve as intermediary so private clients can deal with government –Able to perform functions and activities in public interest without rules and regulations of government
Disadvantages of Private Organization –Lack power –May lack public support –Non-ED activities (i.e. Fundraising) If you’re raising money, you are taking time away from doing economic development
Role of ED Board –Developing policy –Financial oversight –Resource development –Strategic planning –Community relations –Personnel issues
Does size matter? Is there a perfect size? Executive Committee vs. Full Board of Directors Does the board: Take hands-on approach? Burp & belch? Do you want to change it? –How? Organize the work, not the people; consider your role in education of board … and yourself Role of ED Board
Board Policies Audits Conflict of Interest Statement Confidentially Statement Position Papers Staff Reviews Ethics Policy Succession Plan
Role of ED Practitioner Analyst Catalyst Gap Filler Advocate Educator Visionary Facilitator
Role of ED Practitioner Key issues you must address –What does your board expect? Is it realistic? –What available resources do you have? What resources do you need? –Is your board active and inspired? How do you retain or develop that? –Is there a current strategic plan? Yes? What is your scope of work? No? Get one done!
Role of ED Practitioner Don’t forget about public relations –Newsletter –Op/Ed articles for newspapers –Radio talk shows –Service organizations –Attend contributor meetings
Your Personal Development Economic Development Institute (EDI) International Economic Development Council (IEDC) Regional ED organizations State ED associations Education Opportunities All offer training opportunities
ED Staff Quality of ED program/organization is contingent upon the quality of the staff. Staff must be able to make judgment decisions; understand laws, regulations and procedures; be familiar with the needs of businesses, politicians, community residents and government employees; be good communicators; & be pro-active.
Jackson County Industrial Development Corporation … Seymour, Indiana –Created in 1984 as non-profit 501(c)3 –Main Focus: Business Retention & Expansion Business Attraction Workforce Development –4-person staff (3 full-time, 1 part-time) –Governed by 4-member executive committee & 29 person board –More than 80 contributors –Total budget for 2014 was $410,000 (Including Workforce Partnership)
JCIDC Organization Chart Board of Directors Executive Committee Planning & Program Committee Workforce Partnership External Relations Committee Resource Development Committee Loan Committee
Organization Responsibilities Executive Committee 1. Personnel 2. Annual Budget 3. Oversight of Other Committees External Relations Committee 1. Annual Reception 2. Networking Events Planning & Program Committee 1. Strategic Plan 2. New Programs 3. Retreat 4. Oversight of Workforce Partnership Resource Development Committee 1. Fund-raising 2. Other Financial Issues 3. Oversight of Loan Committee
JCIDC Workforce Partnership As a result of the strategic plan, JCIDC created the Jackson County Workforce Partnership in 1998. The goal is to bring industries, schools, local elected officials and economic development leaders together to make Jackson County employers more competitive. Also work closely with Education Coalition. –22 entities contribute to the Partnership –2014 Budget $106,000 –Science, Technology, Engineering, Math (STEM) education Coordination With County Schools, JCLC, and Post Secondary Seamless Career Pathways Robotics –Career Awareness and Activities: Social Media, Business Profiles, Manufacturing Corners Job Shadowing, Senior Mock Interviews, CEO Panel, 21st Century Business, Industry-To-School, Company Tours, Career Days, Dream It-Do It, Mystery Chasers, LEGO Engine Build
Measuring Results Promised Investment 2014: $175 Million 2013: Established New High: $177.1 Million 2012: $152.1 Million 2011: $81.3 Million After Low of $22 Million ‘09
Measuring Results Jobs 2014: 294 new jobs promised; 4,646 retained 2013: 246 new jobs promised, 3,801 retained 2012: 589 new jobs promised; 2,800 retained 2011: 117 new jobs promised; 2,200 retained
Regionalism Why work with the “enemy? Expands your own budget Companies/Consultants recognize areas more than cities or towns Creates larger area for statistics and demographics which will be “in play” anyway
Utilization of Website Mandatory in today’s economic development world Provides instant access to information 24/7/365 International Real Time Link to social media
A Word (or two) About Social & Mobile Media Facebook LinkedIn Twitter Social media uses web-based technologies to transform and broadcast into social media dialogues, and allow the creation and exchange of user-generated content. … Wikipedia
Social Media These are applications designed to connect a “community” across any web-enabled device. Social media allows interaction that can be done in real time, with some or all members of the community. Blogs, Twitter, YouTube, and Facebook are examples of social media. It’s social; it’s public; it’s mobile
Mobile Media This concept isn’t so much about the medium as it is the device. The ability to receive a wide range of information, and fully engage from wherever you are, constitutes a mobile interaction. Mobile media are formatted (sometimes in the form of a mobile app) to allow communication to be received on today’s smart mobile devices, including digital tablets and ipads.
A Word (or two) About Economic Downturns What is role of ED organization? You are expected to be in the know How can ED organization be pro-active? Retention/Expansion program
State of Indiana Trends IEDA 2013 Wage & Benefit Survey of Economic Development Professionals Conducted by: Indiana Economic Development Association
Typical Indiana ED Organization $200-250K Budget 25-50K Population Jurisdiction Attraction & Retention 1-2 Employees 11-15 Person LEDO Board $50-65K Salary 5-9 Years Experience 2-4 Years in Current Position
Managing an Effective Economic Development Organization Jim Plump, CEcD, FM Jackson Co. IDC Seymour, IN firstname.lastname@example.org