What is Economic Development? Lee Lewellen – CEO, Indiana Economic Development Association

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The most commonly identified goal of economic development:

Jobs

The most commonly identified goal of economic development: Jobs Tax Base

Not all jobs and tax base are created equal….

Ed Morrison – Purdue Center for Regional Development Three kinds of money in the local economy: Bad money Neutral money Good Money

Ed Morrison – Purdue Center for Regional Development Three kinds of money in the local economy: Bad money Money that ‘leaks’ out of the local economy

Ed Morrison – Purdue Center for Regional Development Three kinds of money in the local economy: Neutral money Money within the economy that only circulates locally

Ed Morrison – Purdue Center for Regional Development Three kinds of money in the local economy: Good Money New money that is imported into the community that generates new spending and additional jobs

Ed Morrison – Purdue Center for Regional Development Three kinds of money in the local economy: Good Money New money that is imported into the community that generates new spending and additional jobs Multiplier effect

Traditional, ‘industrial’ development Cheap land

Traditional, ‘industrial’ development Cheap land Available and cheap infrastructure (water, sewer, electric, roads, railroad, etc.)

Traditional, ‘industrial’ development Cheap land Available and cheap infrastructure (water, sewer, electric, roads, railroad, etc.) Cheap and ignorant workforce

Richard Florida Rise of the Creative Class, 2002

‘Creatives’ choose where they want to live first, then secure a job….

21 st Century Economic Development versus 20 th Century ‘Industrial’ Development Workforce – Talent – is often the number 1 consideration for relocating companies

21 st Century Economic Development versus 20 th Century ‘Industrial’ Development Workforce – Talent – is often the number 1 consideration for relocating companies ‘Place’ matters

21 st Century Economic Development versus 20 th Century ‘Industrial’ Development Workforce – Talent – is often the number 1 consideration for relocating companies ‘Place’ matters Relocation and expansion decisions are part of a web of considerations that include community and regional assets

21 st Century Economic Development versus 20 th Century ‘Industrial’ Development Communities are exploring locally-based entrepreneurship as part of a larger economic development strategy

21 st Century Economic Development versus 20 th Century ‘Industrial’ Development Some communities are exploring locally-based entrepreneurship as part of a larger economic development strategy Expansion and retention of existing industry are an increasingly important part of the economic development strategy

Asset Based Economic Development Identifying and cataloging a community’s unique assets to attract new investment that is consistent with or complementary to those assets

Asset Based Economic Development Existing industry – + suppliers, customers

Asset Based Economic Development Existing industry – + suppliers, customers Workforce – Talent

Asset Based Economic Development Existing industry – + suppliers, customers Workforce – Talent Educational assets – Universities, K – 12 education, career centers

Asset Based Economic Development Existing industry – + suppliers, customers Workforce – Talent Educational assets – Universities, K – 12 education, career centers Infrastructure – Roads/interstate, water, sewer, electric, broadband

Asset Based Economic Development Existing industry – + suppliers, customers Workforce – Talent Educational assets – Universities, K – 12 education, career centers Infrastructure – Roads/interstate, water, sewer, electric, broadband Quality of life

Asset Based Economic Development Brown County/Nashville

Asset Based Economic Development Brown County/Nashville Steuben County – Northeast Indiana

Asset Based Economic Development Brown County/Nashville Steuben County – Northeast Indiana Central Indiana – Life sciences, advanced manufacturing, logistics

Asset Based Economic Development

Glossary of terms & acronyms IEDC – Indiana Economic Development Corporation LEDO – Local Economic Development Organization REDO – Regional Economic Development Organization TIF – Tax Increment Financing Tax Abatement EDGE Credits – Economic Development for a Growing Economy

Glossary of terms & acronyms EDGE Credits – Economic Development for a Growing Economy EDGE may be awarded for up to 100% of the projected payroll withholdings for the company’s Indiana project. These may be awarded up to 10 years.

Glossary of terms & acronyms Brownfields – Environmentally distressed land/property Greenfields – Previously undeveloped land and/or ag land SEF – Skills Enhancement Funds

Glossary of terms & acronyms SEF – Skills Enhancement Funds Reimbursement of a company’s cost to train its Indiana workers. SEF is disbursed over a two-year period and is limited to 50% of a company’s eligible training expenses.