rose m. washington tulsa economic development corporation tulsa, oklahoma (918) 585-tedc

Rose M. WashingtonTulsa Economic Development Corporation

Tulsa, Oklahoma

(918) 585-TEDC

www.TEDCnet.com

DISCUSSION POINTS

• About TEDC• The Shoppes on Peoria• FORWARD

TEDC: Intro• not-for-profit, economic development corporation

organized in 1979• CDBG sub-recipient and partner• certified CDFI, SBA micro enterprise lender and CDC • progressive lender to promising businesses• serve small companies that create measurable,

sustainable economic impact

TEDC: Clients• represent most industries• positively impact workforce• fall outside of conventional credit

standards• locate in target areas• are considered disadvantaged

Value of Small Business

Employ just over half of the country’s private sector workforce

Represent 97.3 percent of exporters Represent 99.7 percent of employer firms  Locally, hire more LMI individuals Means of economic self-sufficiency for

business owners and employees Mechanism to revitalize LMI communities

Shoppes on Peoria-Overview

Place-centered community, economic and business development initiative

$4 million CDBG-funded retail project in one of Tulsa’s most “studied and planned” LMI areas

Site acquired by City’s development authority 12 years ago to eliminate slum and blight

Site became high priority in 2006 through NTEDI Great location – main corridor, highway access, near

downtown Retail highest and best use

Shoppes on Peoria-Purpose

redevelop LMI area primarily residential in nature

fill opportunity gap & reduce leakage create economic momentum by encouraging

business starts create jobs primarily for LMI individuals restore community hope and pride deliver on promise to rebuild higher quality

version of that which had been demolished

FORWARD©

FORWARD© is a comprehensive economic development system that uses franchising as an approach to creating business starts in targeted communities.

FORWARD©

FRANCHISING

OPPORTUNITIES

REINFORCED

WITH

ASSISTANCE

REWARDS

DEVELOPMENT

Snapshot of Franchises in OK

12,000 franchise establishments 16% of all companies with employees 140,000 direct jobs $3 billion in payroll $9.5 billion in output

Why Franchising as a Strategy?

Economics: job creation, sales tax generation, business growth

Opportunity: minority ownership is greater among franchise businesses; single unit, multi-unit, area development, master franchisor

Variety: more than 75 industries operate within franchising format

Demand: many goods and services needed by public sold through franchises

Why Franchising as a Strategy?

Cost: more affordable means of accelerating business expansion – economies of scale

Access to capital: easier; lenders perceive franchises as less risky with proven practices

Credentials: pre-established; symbol of quality, consistency, service, value

Support: extensive training; capacity building; in business for self, not by self

FORWARD©: The Participants

Satisfactory behavior/values assessment Complete business planning course Be franchise approved or have legitimate business

model Work PT in like business if no industry experience Work full-time in new business Commit 7-10 years at retail site Comply with TEDC lending criteria Agree to monthly coaching, mentoring, technical

assistance and fiscal oversight

FORWARD©: Site I

• To be developed and owned by CBO• Banfield site -- 3 acres at Peoria and Reading

Streets• Single-level, 15,000 square feet of rentable space• Outdoor community gathering and play space• 2 out-parcels for private development• $3,988,805 development and construction costs

FORWARD©

: The Investment

$4,262,305.18

+$150,000 average per business

(loan, equity, some combination thereof)

Outcomes Project built on time and within budget 12 bays, 75% leased, 50% occupied: Little Caesars

Pizza, Sole Mates Shoe Boutique, Cricket Wireless, Tropical Smoothie Café, Oklahoma Wellness Center, UPS Store, Paradise Donuts/Java Daves, Sweet Lisa’s Soul Food, beauty salon

50 jobs created to date, nearly 100% held by local residents

Expected – 100 jobs created and $5,000,000 in direct output annually

Finale

The Shoppes on Peoria and FORWARD brought together the power of human and financial capital to help transform Tulsa’s north community into a vibrant, desirable place where people want to live, work and play.

In partnership with the City of Tulsa, a dozen community based organizations and over a hundred citizens, this project has promoted positive, sustainable impact through geographic-specific economic development.