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Lincoln, North Platte & Scottsbluff December 12, 2013 www.neded.org D EPARTMENT OF E CONOMIC D EVELOPMENT B RIEFING.

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Presentation on theme: "Lincoln, North Platte & Scottsbluff December 12, 2013 www.neded.org D EPARTMENT OF E CONOMIC D EVELOPMENT B RIEFING."— Presentation transcript:

1 Lincoln, North Platte & Scottsbluff December 12, D EPARTMENT OF E CONOMIC D EVELOPMENT B RIEFING

2 A GENDA 9 a.m. Welcome & Introductions – Catherine Lang, Director 9:30 a.m. Economic Dev. Overview – Gary Hamer, Deputy Director 9:45 a.m. Business Dev. Division – Dan Curran, BD Div. Director 10:30 a.m. Break 10:45 a.m. Research Division-Dave Dearmont, Research Director 11:10 a.m. Community Dev. Division – Lara Huskey, CD Div. Dir. 11:40 a.m. Wrap-Up, Q & A 12 – 1 p.m. Lunch, provided by NPPD

3 O BJECTIVES Discuss economic development: What is it? Review DED programs & how to access them

4 E CONOMIC D EVELOPMENT O VERVIEW

5 W HAT IS E CONOMIC D EVELOPMENT ? Process that leads to creation & growth of businesses, jobs and communities Measurable criteria: quantity, quality, sustainability and geographic location Focus on businesses and jobs in primary industries (state level) Local perspective is not always the same as the statewide perspective

6 DED’S G OALS Strive to create community & economic growth Make Nebraska a better place to live, work, raise a family and grow a business Accomplished by focusing efforts on: – Aggressive community development – Business retention & expansion – New business attraction – New business creation – Promoting our Great State – Special emphasis on the creation of new primary jobs & wealth creation

7 D EFINING P ROJECTS TO I NVEST IN Primary Project Investment – New primary jobs generate new secondary jobs – Make strategic public investments Primary Jobs – Where goods or services manufactured by Nebraska workers are sold outside of state bringing dollars from outside state – Create new wealth – Includes research and development funded by non-Nebraska sources (federal or international) – Seldom includes local or regional retail Secondary Jobs – Where goods or services manufactured by Nebraska workers are sold locally or regionally (in-state)

8 H OW C AN E.D. B E I NFLUENCED Business activity occurs at the location of highest profitability Critical factors: transportation, labor quality & availability, quality of life, sites, buildings and incentives How economic development is done: – Product development – Business start-up support – Business retention and expansion – Business recruitment

9 Evaluating DED Impact Successful economic development initiatives should: Grow stronger communities by supporting solid public infrastructure and high quality, affordable housing options that stimulate long-term community sustainability and future economic growth Stimulate creation and retention of high quality, primary employment opportunities that improve per capita incomes and lead to a better quality of life for Nebraska residents Generate additional wealth creation potential for Nebraska residents Attract human and financial capital from outside the State Grow a readily-available, top quality, skilled workforce to meet the ever-changing needs of business and industry, thereby retaining Nebraska’s best and brightest youth and attracting additional workforce and population to Nebraska communities

10 M ARKETING N EBRASKA In-State, Nationally and Internationally  Promoting Opportunities— Quality of Life / Place and Cost of Living Business Retention, Expansion and Recruitment Entrepreneurship People Retention and Recruitment Jobs  Facebook, Twitter and YouTube

11 DED A NNUAL B UDGET MAJOR AID PROGRAMS Community Development Block Grant (CDBG) Affordable Housing Trust Fund (AHTF) Business Innovation Act HOME Site and Building Development Fund (SBDF) Customized Job Training Invest Nebraska Civic, Cultural & Convention Center Fund

12 DED I NITIATIVES Battelle Report What is needed in Nebraska is not just new economic development tools to raise value added, but a concerted effort to deepen the level of connections between industry, higher education and talent in the state Focus on Three Major Initiatives: – A Nebraska Talent Advantage Initiative to connect college students/former Nebraskans with employers and to establish incentives for high skilled talent to stay in, or return to, Nebraska – A Nebraska Innovation Initiative to assist and enable growth-oriented emerging and existing companies in Nebraska to succeed – A Nebraska Industry Cluster Initiative that includes tailored, industry- driven initiatives for workforce development, retention, expansion and business attraction targeted to Nebraska’s industry clusters

13 B USINESS D EVELOPMENT

14 Field Service 6 Field Service Representatives located across the state. Serve as front line for promoting DED programs and connecting point between businesses and resource providers. Business Recruitment New business and industry recruitment. Market the state and its assets to prospective businesses. Innovation Manage new programs on business start up, research and development, new products and innovation, university partnerships. Cluster Initiative Councils will serve as primary directors to communicate business needs/solutions for industries to compete and innovate in a global economy International International recruitment, export assistance, joint venture partnerships, Governor trade missions. China and Japan offices.

15 Business Development Field Staff Regions

16 Western Starr Lehl 505A Broadway, Suite 400 Scottsbluff, NE Northeast/North Central Sheryl Hiatt, Field Service Manager PO Box 272 Spencer, NE West Central/Southwest VACANT Central/South Central Andrea McClintic PO Box 1569 Kearney, NE East Central Pat Compton 4735 Avenue E Kearney, NE East/Southeast Lynn Kohout PO Box Lincoln, NE Hispanic/Latino Business Consultant TO BE ANNOUNCED

17 B USINESS R ETENTION & E XPANSION BR&E is a strategy to work with existing businesses Interview business leaders on business climate Demonstrate appreciation of business to local economy Identify opportunities for growth and expansion Help existing businesses solve problems Helps DED build program strategies to respond to needs of businesses

18 B USINESS A SSISTANCE A CTIVITIES Financial Assistance Types Of Assistance: Nebraska Advantage Job Training Community Development Block Grant Nebraska Progress Loan Fund Site and Building Development

19 Benchmarks include:  Organizational capacity  Business Retention & Expansion program (BR&E)  Target market  Workforce issues  Infrastructure  Local financing  Building and site availability  Location One Information System (LOIS) E CONOMIC D EVELOPMENT C ERTIFIED C OMMUNITY

20 B ENEFITS OF BECOMING AN EDCC Better positioned for economic development opportunities Identified and documented as ready for economic development Marketed to business and industry Publicly recognized as economic development leaders ED CDBG points on scoring Eligible to apply for “Downtown Revitalization” NIFA housing tax credit points

21 B USINESS RECRUITMENT Actively recruit new businesses for increased investment and employment opportunities Activities: – Working with Consultants to develop enhanced understanding of Nebraska and benefits – Focused efforts on targeted industries – National/International recruitment trips – National Real Estate associations and industry trade shows

22 B USINESS R ECRUITMENT W ORKING WITH P ROSPECTS Help define prospective location criteria, timetable and expectations of client Provide Request for Information (RFI) to selected communities that meet criteria Coordinate unified Nebraska response to RFI Preparation of Incentive information including Nebraska Advantage, CDBG and Customized Job Training

23 Available land and buildings must be listed in LOIS and available LB 840-Local Option Municipal Economic Development Act – use sales/property tax for economic development Tax Increment Financing Local government funds for marketing and recruiting L OCAL R ECRUITMENT T OOLS

24 DED T ALENT I NITIATIVES Intern Nebraska Strengthen connections between students and companies Address high demand, skill shortage areas Provides financial assistance to companies in Nebraska who are creating new internships. Grant awards may be up to 50% of the cost of the internship for eligible projects up to $5000 per internship. Businesses that hire students receiving Federal Pell Grants may be awarded a grant of up to 75% and an additional $2500. internNE.com

25 Planning Grants (SBIR Phase 0) Small businesses that qualify under the Small Business Innovation Research (SBIR) program for the purposes of planning for an application under the SBIR Program. Maximum Grant Amount $5,000 Matching for SBIR Grants (Phase 1 and Phase 2) Small businesses that qualify for funding under the SBIR program – Phase 1 or Phase 2. 65% of the federal grant with a maximum of $100,000 DED I NNOVATION I NITIATIVES

26 Prototyping Grant Business with no more than 500 employees or to individuals for the purposes of creating a prototype of a product stemming from research and development at a business operating in Nebraska or a public or private college or university in Nebraska. Maximum Grant Amount $50,000 (50% Match) Commercialization Investment Business with no more than 500 employees or individuals for the purposes of commercializing a product/process. Maximum Grant $500,000 (50% match) DED I NNOVATION I NITIATIVES

27 Research and Development Businesses using faculty or facilities of a public or private college or university in Nebraska for applied research or development of new products or use intellectual property. Maximum Grant $100,000 Phase I, $400,000 Phase II Microenterprise Program Microenterprises – micro lending and technical assistance to for- profit entities with no more than 10 full-time equivalent employees through micro-loan delivery organizations. Maximum Loan Amount of $50,000. (35% Match) DED I NNOVATION I NITIATIVES

28 Nebraska Progress Loan Fund (NPLF) Loans to small primary businesses developing, modifying, or acquiring new technology. Loans for expanding small businesses Nebraska Progress Seed Fund (NPSF) For Angel Fund Investments NPSF will award seed capital funds that match other capital investments from Angel Funds. DED I NNOVATION I NITIATIVES

29 I NDUSTRY C LUSTER I NITIATIVE Objectives: – Private sector driven – Resource providers to assist (government, education, services, etc.) – Address common needs of firms in a cluster from workforce development to technical assistance to market access – Better organize and focus state economic development services to advance competitive industries – Enable more broad-based initiatives to engage colleges and universities to address industry needs and opportunities

30 I NDUSTRY C LUSTER I NITIATIVE Work with key private sector individuals to effectively facilitate industry councils. Councils will serve as primary directors to communicate business needs/solutions for industries to compete and innovate in a global economy. Goal is to move the represented industry sector up the value curve for increased value of goods/services produced. Transportation, Logistics Manufacturing Information Technology Bio Fuels or Food Processing

31 I NDUSTRY C LUSTER I NITIATIVE Business retention and expansion Using business survey tools to monitor key businesses in industry clusters to understand business climate, industry stability and how best to develop and change government programs to fit industry needs in areas such as workforce, education, tax climate, etc. Innovation, R&D Increase the amount of research and development conducted in Nebraska in order to increase the amount of new products/services and the value of the products and services. International trade and expansion Assistance with new markets/exporting, forming joint partnerships with international companies to produce new products, joint research and development, testing, etc. Industry recruitment Target businesses and industries that best compliment existing businesses to form local and regional clusters that move an anchor business or industry up the value curve.

32 Council Coordinator Whitney Bumgarner NeMAC Nebraska Manufacturing Advisory Council FacebookFacebook Twitter Pinterest Google+ BlogTwitterPinterestGoogle+Blog

33 Information Technology Council Council Coordinator Jacob Knutson BIO Nebraska Nebraska Logistics Council

34 Collaborative efforts moving forward… Working with NDE and DOL: Nebraska Career Clusters Community CollegesUniversities Private CollegesNROC (districts) Regional and local development groupsLegislators Other Providers

35 I NTERNATIONAL T RADE & D EVELOPMENT Import/export assistance Business recruitment Promote international partnerships New-to-export consulting Trade missions Nebraska Center Japan & China Contact: Joe Chapuran at

36 Break

37 R ESEARCH

38 R ESEARCH I NITIATIVES Labor Shed Study GIS—Upgrade capabilities Updating “A Competitive Advantage Assessment and Strategy for Nebraska” (Battelle study)

39 A Labor shed study is based on a survey sent to a random sample of households in a region from which an employment center draws it commuting workers A Labor shed study is designed to determine the characteristics of the labor pool in a particular area Location of workers Skills, training, and education of workers Wages and desired wages Commuting preferences Underemployment Willingness to change jobs or reenter workforce W HAT IS A L ABOR S HED S TUDY

40 Survey results can be used to attract, recruit, and retain businesses and industries Promoting availability and skills of local workforce Provides data about numbers and quality of potential employees Provides data about wage levels needed to attract potential employees Provides information needed to develop workforce skills and willingness of workers to learn new skills U SES OF A L ABOR S HED S TUDY

41 Pilot project in conjunction with the Nebraska Department of Labor’s Labor Market Information division. Surveys were mailed to 12,000 households in the project area. Initial reports will be completed in January. A second study is under consideration for the metro areas to be completed in the spring/summer of A third study, funds available, is under consideration for the summer/fall of Currently using federal grant funds to complete pilot. L ABOR S HED S TUDY

42 Geographic Information System Can map anything that is tied to an address or GPS coordinate Purchased a Business Analyst package Business data for all states Better ability to map and understand industry clusters from a geographical perspective U PGRADE OF GIS C APABILITIES

43 Examples of uses: Determine spatial patterns of businesses within industry groups Where are the best sites for proposed industrial parks What areas are economically distressed U PGRADE OF GIS C APABILITIES

44 “A Competitive Advantage Assessment and Strategy for Nebraska” Aka the “Battelle study” The study was completed in October 2010 Much of the available economic data ended in 2008 Chance to see how Nebraska weathered the Great Recession Review the Nebraska industry clusters identified in the report Review the progress on the original report’s action plan items Cluster initiative Talent initiative Innovation initiative U PDATE C OMPETITIVE A DVANTAGE S TUDY

45 C OMMUNITY D EVELOPMENT

46 S ITE AND B UILDING D EVELOPMENT Financed with a documentary stamp tax of $.25 tax for every $1,000 of valuation on all real estate transfers Estimated approx. $2 million/year SBDF Plan prepared for years For Industrial-ready sites and buildings Commercial/retail business parks not eligible

47 S ITE AND B UILDING D EVELOPMENT First Priority - Projects where a business commits to locate at a Nebraska site Business Recruitment/Expansion projects Possible application cycle for speculative sites/buildings Eligible applicants – Governmental Subdivisions – Non-profit development organizations 501(c)(3), 501(c)(4), or 501(c)(6)

48 J OB T RAINING Provide training assistance to businesses that retain and create quality jobs Typical award range: $1000 to $4,000 per job Non-administrative positions Eligible Applicants – Businesses who engage in selling primarily to a non-Nebraska market

49 N EBRASKA P ROGRESS L OAN F UND Lower risk for private lenders to encourage private investment Direct business assistance in the form of a 0% or low-interest loan Typical loans range from $50,000 - $500,000 Business size 500 employees or less

50  Planning  Public Facilities  Water/Waste-Water assistance  Tourism Development Initiative  Housing CDBG – T YPES  Downtown Revitalization Initiative  Economic Development  Comprehensive Revitalization  Comprehensive Investment & Stabilization

51 Eligible Applicants: Municipalities under 50,000 and every county. Cities of Lincoln, Bellevue, Grand Island and Omaha are entitlement communities and receive direct CDBG funding from HUD. CDBG

52 National Objectives: 1.Benefiting low- and moderate-income persons; OR Primary objective of CDBG, majority of funds must meet this requirement 2.Aiding in the prevention or elimination of slums or blight More restrictive definition of slums or blight than what is required for Tax Increment Financing CDBG

53 CDBG-P LANNING C ATEGORY Eligible Activities: – Community strategic planning; – Neighborhood, Strategic and Comprehensive Planning; – Functional Studies; – Environmental and Historic Preservation; – Downtown Revitalization; – Pre-engineering studies for publicly owned water/wastewater projects; – Business park site/location/use feasibility studies. 3 funding cycles Maximum Grant Amount: – $30,000 per community/ $50,000 per county

54 T OURISM D EVELOPMENT State objective: Assist tourist attractions expected to draw 2,500 visits or more annually from origins of at least 100 miles away. – Historic Restorations; – Interpretive Educational Sites/Facilities; – Cultural and Heritage Recreational Sites/Facilities; – Supporting Activities related to removal of architectural barriers that restrict mobility and accessibility to sites/facilities.

55 D OWNTOWN R EVITALIZATION Eligible Activities: Located in the designated downtown business district. Pre-development All public facility and infrastructure activities that are also eligible under the “Community Development Public Works Category” Loans to businesses Historic restoration, rehabilitation and preservation for physical structures and infrastructure. Maximum Grant Amount: $30,000 pre-development phase $350,000 project phase (includes final design and construction components—No Project Phasing

56 E CONOMIC D EVELOPMENT B USINESS A SSISTANCE Direct loans to businesses Grants to communities for infrastructure Typically $250,000 to $500,000 per grant Business must create jobs for low-to-moderate income people Must meet definition of “qualified business” in Nebraska Advantage – research and development, manufacturing, data processing, telecommunications, insurance, financial services, distribution, storage, transportation, administrative headquarters, and targeted export services. Starting wage of at least $9.00 per hour

57 C OMPREHENSIVE R EVITALIZATION Assists communities 20,000-50,000 population Columbus, Fremont, Grand Island, Hastings, Kearney, Norfolk, and North Platte 3 year funding period based on a community developed needs assessment strategy. Grant Amount: $150,000 to $225,000 formula base Leverage: $1 other funds for $1 CDBG funds

58 C OMPREHENSIVE I NVESTMENT & S TABILIZATION (CIS) Assists communities 5,000-20,000 population 3 year funding period based on a community developed needs assessment strategy. Grant Amount: $150,000 to $225,000 formula base Leverage: $1 other funds for $1 CDBG funds

59 CRD / CDBG P ROJECT S TAFF C ONTACTS Kevin Andersen… Planning, Downtown Steve Charleston… CDBG manager Bob Doty… Housing Program Mgr Brian Gaskill… Housing & Action plan Dave Honz… ED Carol Malcolm… CD Public Works

60 N EBRASKA A FFORDABLE H OUSING P ROGRAM Program funds used to provide for investing funds in quality housing projects and programs in communities so that local governments and non- profit organizations can leverage private financing to provide for affordable, decent, safe, and appropriate housing as part of balanced economic development in Nebraska.

61 N EBRASKA A FFORDABLE H OUSING P ROGRAM F UNDING S OURCES HOME Investment Partnerships Program (HOME) Community Development Block Grant (CDBG) Nebraska Affordable Housing Trust Fund (NAHTF)

62 P ROGRAM F UNDING S OURCES IN 2013 CDBG $1.9 million HOME $2.7 million NAHTF $6.25 million ________ $10.85 million available for projects

63 H OUSING P ROGRAMS Homebuyer programs Owner-Occupied Rehabilitation programs Non-profit Operating Assistance Rental housing

64 Eligible Applicants Units of Government Non-profit Affordable Housing Organizations – 501(c)(3) or 501(c)(4) – Economic or Community Development Organizations with affordable housing as part of their mission - 501(c)3 or 501(c)4 – Tribally-affiliated non-profits Public Housing Agencies A CCESSING F UNDS

65 H OUSING A PPLICATIONS Annual Cycle—for homebuyer, rental, non-profit operating assistance, and owner occupied rehab projects CDBG OOR Cycle—for CDBG eligible entities for owner occupied rehab projects NIFA/DED Cycles—tax credit cycles for projects that have HOME and low income housing tax credits City of Omaha Trust Fund Set Aside—apply for NAHTF housing projects in Omaha

66 Civic and Community Center Financing Fund Civic Center Libraries Recreation Center Historic Buildings Community Center – “Downtown District” Grant Amounts: – No more than 50% of total project costs – Based on pop. Size 40,000-99,999: $1,125,000 20,000-39,999: $750,000 10,000-19,999: $600,000 < 9,999:$375,000 Kevin Andersen

67 COMMUNITY DEVELOPMENT ASSISTANCE ACT CDAA empowers the Department of Economic Development to distribute a 40 percent state tax credit to businesses, corporations, insurance firms, financial institutions, or individuals that make eligible contributions of cash, services or materials to approved community betterment projects. A non-profit community betterment organization (CBO) may apply to the Department to become qualified for CDAA tax credits. Upon approval of a project, the community betterment organization can notify donors they are eligible for tax credits. The donors then submit a tax credit request form to the Department.

68 COMMUNITY DEVELOPMENT ASSISTANCE ACT What projects qualify? Employment training Human and medical services Physical facility and neighborhood development services Recreational and educational activities Crime prevention State Priorities Building the capacity of local residents to address locally defined objectives. Essential services to low and moderate income persons The development of lasting cooperation and public/private partnership efforts of area organizations and businesses.

69 COMMUNITY DEVELOPMENT ASSISTANCE ACT A CBO may apply for and receive $25,000 in CDAA credits per year for up to three consecutive years Upon receipt, the CBO may distribute CDAA credits to contributors at a maximum value of 40% of the cash or in-kind contribution

70 W RAP - UP & Q / A Connect with DED Online: neded.org Twitter.com/DevelopNebraska Facebook.com/DevelopNebraska YouTube.com/NebraskaDED DED E-newsletter


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