11 August 6, 2015 REGIONAL CITIES INITIATIVE

22 OUTLINE Background Regional Development Authorities Plan Development Return on Investment Analysis Selection Process Site Visits Discussion

33 BACKGROUND

44 RESEARCH Assessment » Phenomenal business climate » Threat of population stagnation Peer Cities Study » 11 cities / 9 universal principles » Road show across state last October

55 LEGISLATION HEA 1403: » IEDC structural framework » Improvements to RDA law Appropriation » $84M for biennium, sourced through tax amnesty program

66 OBJECTIVE Two regions attain consistent, positive national brand over next 8 years Become destination for talent/net in- migration state

77 REGIONAL DEVELOPMENT AUTHORITY

88 PURPOSE National leaders in economic development and talent attraction look beyond political boundaries Regional body acts as a central figure in both planning and executing » Under the law, an RDA must be the applicant for Regional Cities funding Broad authority that regions can choose to invoke as needed

99 ESTABLISHING AN RDA An RDA may be established by: » 1 or more counties and 1 or more adjacent counties » 1 or more counties and 1 or more qualified cities in adjacent counties » 1 or more qualified cities and 1 or more qualified cities in adjacent counties

10 RDA FORMATION The Fiscal Body of the local unit must adopt an ordinance authorizing the participation in the RDA If a county establishes or joins an RDA, all qualified and third class cities automatically become members of the RDA There is no upfront financial obligation for establishing or joining an RDA » But local public funds are necessary to receive the state match

11 BOARD Board member eligibility: » May not be elected official or employee of a unit » Must have at least 5 years of experience in one or more: Business or finance Regional economic development Transportation Private, nonprofit, or academia Five members, as determined by written agreement among member units

12 CURRENT & PLANNED RDAS North Central  Began planning in Nov  3 counties / 22 cities and towns Northeast » 11 counties » 700 citizens completed survey Central » Marion County + Carmel, Westfield & Greenwood » Transit focus East Central » Targeting 4-6 counties » 250 people attended the 1 st Regional Summit Southwest » 4 counties » 25 member steering committee Southeast » Targeting 5 counties

13 REGIONAL CITIES MAKING HEADLINES

14 PREPARING TO APPLY: PLAN DEVELOPMENT

15 Research has indicated that national leaders in economic development developed comprehensive plans focused on transformational growth The plans were developed at the community level State involvement was minimal, and sometimes non-existent or an impediment Local communities are more in tune with the unique challenges they face and the assets they have to tackle them LOCALLY- DRIVEN PLANNING PROCESS

16 Based on the principles in the Peer Cities Study The IEDC Board adopted the Guidelines and will use them as a baseline in evaluating the plans Regions should use the Guidelines to develop and mold their plans around a unique vision PLAN GUIDELINES

17 DEVELOPING YOUR REGIONAL PLAN A regional development plan is a multi- faceted narrative that discusses » The region » Its current and future opportunities & challenges » Bold vision » Specific projects that help the region achieve excellence in quality of place

18 IDENTIFYING PROJECTS TO INCLUDE IN THE REGIONAL DEVELOPMENT PLAN Brick and mortar projects » Projects necessary to support talent retention/attraction and to build a national brand for the region » Brick and mortar projects will be eligible for state funding Programmatic functions may be vital components of the regional development plan and should be included, but they will not be eligible for Regional Cities funds

19 RETURN ON INVESTMENT ANALYSIS

20 RETURN ON INVESTMENT (ROI) State law requires plans to have a positive return on investment for the state. An IEDC ROI analysis must be conducted on proposed projects before plans are submitted. » ROI tool was developed in partnership with the Indiana Business Research Center (IBRC) » The results of the analysis need to be included in the plan that is submitted to the IEDC

21 RETURN ON INVESTMENT (CONT.) Project-specific details include: » Estimated timeline for the project » Project budget » Proposed funding sources » Industry—if applicable » Location of project » Number of jobs created—if applicable This information can be found in the IEDC Guidelines document on the Regional Cities website

22 IDENTIFYING FUNDING COMMITMENTS Funding commitments must be identified in the regional development plan, but the commitments do not have to be executed at the time the plan is submitted » Local funding levels must be identified for each project The IEDC board will look for at least a 3:2 private- public funding ratio » For every local dollar committed to an approved project, the state will match through the Regional Cities Initiative

23 Qualifying Local Funds Any local revenue source may be used including: » Any local revenue source permitted by law » Distributions » Incentive payments » Local major moves money » Money received by local communities through a local Casino development agreement » Municipal bonds » Federal grants QUALIFYING LOCAL FUNDS FOR STATE MATCH Not Considered Local Funds Philanthropic funds Private funds University funds State funds

24 SELECTION PROCESS

25 APPLICATION WINDOW Applications should be submitted in PDF format. The application window will run for approximately 60 days, from July 1 st through August 31 st

26 STRATEGIC REVIEW COMMITTEE Composed of non-government, statewide leaders with various backgrounds Members are appointed by the IEDC Board of Directors, which indicated a desire to add a couple members The committee is tasked with reviewing and evaluating regional development plans The IEDC and other key state agencies (OCRA, Tourism, OMB, DWD, INDOT) will support & assist the committee Following its review, the committee will provide recommendations to the IEDC Board

27 TIMELINE

28 EXECUTION OF REGIONAL DEVELOPMENT PLANS Following IEDC Board selection, the RDAs will enter into a contractual agreement with the IEDC The IEDC will publish a report on the selection process that will provide reasoning for the selection decisions The IEDC will provide feedback to regions that are not selected for state investment and continue to work with them as they execute the portions of the plans there were identified for completion absent state partnership

29 STATUTORY CRITERIA FOR APPROVAL Three basic requirements for consideration under IC : » Which project have the greatest economic development potential » The degree of regional collaboration » The level of state and local financial commitment and potential return on investment

30 STATUTORY CRITERIA FOR APPROVAL (CONT.) The Board may not approve an application unless: » The State Budget Committee has reviewed the application » The Board finds that approving the application will have an overall positive return on investment for the state » The application has received a positive recommendation from the Strategic Review Committee

31 BOARD GUIDANCE FOR THE SRC Questions to consider as it evaluates applications: » Does the plan establish an organizational structure that will support its execution? Who is responsible each day for ensuring the plan gets implemented? » Does the plan build upon existing regional assets? Is it rooted in reality? » If fully executed, does the plan contain the elements that could reasonably move the needle in establishing a consistently positive national brand for the region? » Does the region’s local governments have adequate ‘skin in the game?’ » Are the projects in the plan connected by a common theme? Do they complement one another? » Do the stakeholders participating in the development of the plan represent a broad cross section of the community?

32 SITE VISITS

33 SITE VISITS Each trip will include a briefing with regional stakeholders, followed by visiting 1-2 locations integral to their plan Videographer will be on-hand to interview key leaders and capture key locations on film Schedule: » Aug. 18 th – North Central Region » Aug. 19 th – Northeast Region » Aug. 21 st – East Central Region » Aug. 24 th – Northwest Region » Sept. 1 st – Southwest Region » Sept. 2 nd – Southeast Region

34 DISCUSSION