fundamentals of municipal economic development

FUNDAMENTALS OF MUNICIPAL ECONOMIC

DEVELOPMENTA Transformational Approach

Presented to the Town of WashingtonApril 28, 2016

(c) CERC2016

Program Development Team

2

(c) CERC2016

Curriculum

1. Definitions of economic development – transactions and transformations

2. Municipal economic indicators in a regional and state context

3. Roles and responsibilities of the town’s economic development team

4. Economic development capacity assessment tool and next steps

3

SECTION 1Definitions of Economic

Development

4

(c) CERC2016

Framing Our Discussion - Illustrative Questions About Economic Development Activities

What is economic development? Why should you care?

Is there a difference between economic development, community development, and real estate development?

How does your town fit into the broader regional & global economy?

What defines the economic future (vision and goals) of the region/town?

What are your strengths and weaknesses?

What are the needs of local businesses?

Who are the stakeholders and partners?

How do different audiences perceive development and how do you communicate?

What is your reputation in the economic development market? (How does your regulatory environment impact development?)

What are the threats to the fiscal health of your community? Can you afford the things you want?

5

(c) CERC2016

Economic Development DefinitionsGrowth vs. Development

Grand list growth

Change in the quality of the town’s assets

One size fits all or different approaches

6

(c) CERC2016

Economic Development DefinitionsKey Trends

■ Changing world of economic development – the playing field = the world

■ Regions are units of economic competition

■ Business turnover – jobs churning

■ Connected workforce

■ “Economic Development” – all areas of community’s development

■ Changing roles of urban centers, suburbs and rural areas (seniors and millennials)

7

(c) CERC2016

Economic Development DefinitionsReal Estate Development

8

■ Real estate development is transactional - one piece of a comprehensive approach to economic development.

■ Economic development is becoming more transformative.

■ Towns and developers need help in speaking the same language.

■ Transactions need to fit into a community’s transformational goals.

■ Knowing the real estate assets and market is important.

(c) CERC2016

©2015

9

(c) CERC2016

Traditional Economic Development Definitions: Recruitment, Retention, Expansion

10

■ Business retention is your community’s best option.

■ Entrepreneur support is a good option.

■ Keep business recruitment in perspective.

■ Understand your economic base.

(c) CERC2016

Economic Development Marketing

■ Desired outcomes

■ Elevator speech

■ Common understanding of what the town is (and unique attributes)

■ Business recruitment

11

(c) CERC2016

Transactional

Do the deal

Make the numbers work

Get building permit and other approvals

Not much community input

Focused on specific property

Looking for financial incentives

Cost/benefit – fiscal impact

Transformational

Interdisciplinary approaches

Creating attractive and inviting places

More complex and comprehensive ways of measuring success

Measure real community‐wide benefits and outcomes, not just activity

Consistent with community vision

12

Economic Development DefinitionsTransactional vs. Transformational

Be self aware enough through planning, strategy development to know what transactions fit with your community vision.

(c) CERC2016

Business Perspective on Local Government

“We want to locate where we are wanted, where government appreciates our contribution to the economy, and values local ownership, where people understand that it is a good thing for the community if we make money. We want to work with officials who are focused on growing the economic pie, and who value our business activity because we export goods and services out of the Pioneer Valley, yet the profits stay in the valley. We want local government to create a favorable playing field for all business activity, and to be active in keeping track of the “customer satisfaction level” of its businesses. We want to be in a town where government is strategically focused on providing a business‐friendly place.” – The Holman Doctrine

13

One example to illustrate the difference: Different approaches to development of a pharmacy

One example to illustrate the difference: Different approaches to development of a pharmacy

©2015

(c) CERC2016

Housing as a Component of Economic Development and Community Fiscal Health

■ Largest component of the grand list

■ Housing stock, beautiful but expensive

■ Lack of a diversity of housing choices

18

Economic Development Choices: DensityWe have nothing to fear but fear itself… courtesy of CT Main Street Center

19

(c) CERC2016

Placemaking

■ Community centric – building consensus, collaboration & empowered citizens

■ Public spaces – plan, design, manage and program

■ Social capital

■ Cultural, economic, social, ecological

■ Capitalized on community assets

20

(c) CERC2016

10 Placemaking Principles

1. Community is the expert

2. Create a place, not a design

3. Partners

4. Observe

5. Vision

6. Short term improvements

7. Triangulate

8. “It can be done”

9. Form supports function

10. You are never finished

21Source: Project for Public Spaces

Asheville Big Box vs. Downtown Mixed‐Use

Development

Economic Development Choices: Big Box vs. Main Street Development

22

Courtesy of CT Main Street Center

(c) CERC2016

Your Place in a Broader Economy

■ Local success linked to regional/global success

■ Know your role - How do you define your economic region?

■ What regional assets can help sell your community?

■ Urban center

■ Suburb – primarily residential

■ Rural

■ Polycentric nodal regions

■ Unique asset – connections to large metros (NYC)

23

SECTION 2Overview of Municipal

Economic Indicators in a Regional and State Context

24

(c) CERC2016

Total Population

27,121

8,9838,316

3,422 3,5962,858 2,301 2,136 1,824 1,254

28,142

8,9908,466

3,607 3,5782,979

2,388 2,262 1,727 1,461

0

5,000

10,000

15,000

20,000

25,000

30,000

New Milford Woodbridge Litchfield Bethlehem Washington Kent Morris Roxbury Bridgewater Warren

2000 2010

25Source: Decennial census. U.S. Census Bureau. 2000, 2010.

(c) CERC2016

Density (Residents per Sq. Mile)

742.8

201.0

91.6

0

100

200

300

400

500

600

700

800

Connecticut Litchfield Cty Washington

26Source: Municipal Fiscal Indicators. CT Office of Policy and Management. 2014.

(c) CERC2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

U.S. Connecticut Litchfield Cty Washington

Two or moreraces

Some otherrace (thanlisted below)

Asian or PacificIslander

AmericanIndian orAlaska Native

Black or AfricanAmerican

White

Latino orHispanic

Population by Race and Ethnicity

27Source: American Community Survey. U.S. Census Bureau. 2010-2014.

(c) CERC2016

Population by Age

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Under 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and over


(c) CERC2016

Population by Educational Attainment

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Less Than 12th Grade High School Graduate Some College

Associate's Degree Bachelor's Degree Graduate Degree


(c) CERC2016

Distribution of Household Income

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Under $50K $50K-$75K $75K-$100K $100K-$150K Over $150K


(c) CERC2016

Where Residents Work (Top 10)

Washington25.3%

New Milford11.3%

Danbury 5.7%

Torrington 2.9%

Litchfield 2.3%

Waterbury 2.2%Roxbury 2.0%Manhattan 2.0%Brookfield 1.7%

Southbury 1.7%

All Other Locations42.8%

31Source: LEHD Origin Destination Employment Statistics. U.S. Census Bureau. 2013.

(c) CERC2016

Where Workers Live (Top 10)

Washington25.4%

New Milford13.3%

Torrington 6.7%

Litchfield 4.9%Woodbury3.6%

Danbury 3.5%Bethlehem 2.8%

Warren 2.5%

Watertown 2.2%Roxbury 1.7%

All Other Locations33.4%

32Source: LEHD Origin Destination Employment Statistics. U.S. Census Bureau. 2013.

(c) CERC2016

Unemployment Rate

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


33Source: Local Area Unemployment Statistics. CT Dept. of Labor. Not Seasonally Adjusted.

(c) CERC2016

Largest Industries by Employment

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Accomm. andFood Services

EducationalServices

Government Retail Trade Arts,entertainment,

and rec.

Other Services Admin. andWaste

Services

Construction Prof. andTech. Services

Finance andinsurance


34Source: Quarterly Census of Employment and Wages. CT Dept. of Labor. 2014.

(c) CERC2016

Most Common Occupations of Workers

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Education,Training, and

Library

FoodPreparationand Serving

Office andAdministrative

Support

Sales andRelated

Management Building andGrounds

Cleaning andMaintenance

Transportationand Material

Moving

Arts, Design,Entertainment,

Sports, andMedia

Constructionand Extraction

Personal Careand ServiceOccupations


35Source: Occupational Employment Statistics Derived Estimates. Economic Modeling Specialists International. 2014.

(c) CERC2016

Types of Employment

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Self-employed and unpaid family workers Private employers Government


(c) CERC2016

Equalized Net Grand List

Residential real estate

75.0%

Commercial real estate

4.0%

Motor vehicle3.0%

Personal property

1.0%

Other 17.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Residential real estate Commercial real estate

Motor vehicle Personal property

Other


(c) CERC2016

Equalized Net Grand List Per Capita

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2007 2008 2009 2010 2011 2012

Connecticut Washington Roxbury Torrington


(c) CERC2016

Bonded Long-Term Debt Per Capita

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2007 2008 2009 20010 2011 2012

Connecticut Litchfield Town Roxbury Washington


(c) CERC2016

Debt as a Percent of Grand List

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2007 2008 2009 2010 2011 2012

Connecticut Litchfield Town Roxbury Washington


(c) CERC2016

Occupied or Vacant Housing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Occupied Vacant-other Vacant-seasonal, recreational, or other use


(c) CERC2016

Owner- or Renter-Occupied Housing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Owner-occupied Renter-occupied


(c) CERC2016

Homeowners with Mortgages

70.6% 70.0%

62.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%



(c) CERC2016

Affordable Housing as Percent of Occupied Units

11.3%

6.3%

2.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


44Source: Housing Data Profiles. Connecticut Partnership for Strong Communities. 2013.

(c) CERC2016

Age of Housing Stock

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

2010+ 2000s 1970-1999 1940-1969 pre-1940


(c) CERC2016

Value of Owner-Occupied Housing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Litchfield Cty

Connecticut

U.S.

Less than $50K $50K-$100K $100K-$200K $200K-$300K

$300K-$500K $500K-$1M Over $1M


SECTION 3Roles and Responsibilities of

the Town’s Economic Development Team

47

(c) CERC2016

Roles and Responsibilities

■ Plan of Conservation and Development (POCD) –vision

■ Taking a pulse– Primary assets– Challenges in the next ten years– Game changers

48

(c) CERC2016

Who is on the team?

■ Reminder of who is on the team:– Elected officials/municipal offices

– Boards and commissions (P&Z, conservation, etc.)

– Business community and citizens

– Schools and universities

– Chambers, nonprofits and regional ED organizations

– Advocates: housing, transportation, preservationists, environmentalists

– Product/service providers: developers and real estate community, site selectors/consultants

– Government: state and federal

49

(c) CERC2016

Economic Development Commission & Staff■ Adopt strategic plan of economic development

■ Promote economic development in town and contribute to plan of conservation & development

■ Identify areas of town for development

■ Make recommendations to voting boards in town

■ Initiate an application to change a zoning district, propose an economic development zone, present proposed regulations

■ Appear before other land use commissions meeting and present position

■ Review all other commissions agendas and minutes to keep abreast of developments and timelines

50

(c) CERC2016

Components of a Successful Economic Development Program

■ Business visitation

■ Liaison between the business and the town

■ Ambassador efforts and partnerships

■ Single point of contact for business

■ Realistic understanding of the current economic situation in your community

■ Know your competitive advantages

■ Business attraction

■ Workforce strategy that includes businesses, colleges and high school

51

(c) CERC2016


■ Marketing (eNews, social media, CERC SiteFinder®)

■ Intergovernmental relations – Know your reps, grants

■ Financing solutions – DECD, local banks

■ Incentives – both local and state

■ Heritage tourism – Enhances quality of life

■ Shovel-ready initiatives – DOT permits, wetlands flagging, utility extensions

■ Utility economic development tools

■ Useful data

52

(c) CERC2016


■ Town Center/Other Commercial Areas– Main Street Four Point Approach - CMSC

■ Organization

■ Design

– Form Based Code, Village District, Streetscape, Facades

■ Promotion

■ Economic Restructuring

– Market Analysis– Building Inventory

■ Great downtowns don’t just happen – they are created!

53

(c) CERC2016

What the Process Should Be When You Have a Live One

■ Predictable

■ Clear

■ Reliable

■ Consistent

■ Effective (Does the right thing)

■ Efficient (Does things right)

54

One of the best business incentives is astreamlined regulatory process.

(c) CERC2016

Next Steps

■ What did you learn?

■ Where do you go from here?

55

(c) CERC2016

Contact Us

CERC.com, @CERCInc

CEDAS.org, @CTCEDAS

fundamentals of municipal economic development

Documents