Lincoln,North Platte & Scottsbluff

December 12, 2013

www.neded.org

DEPARTMENT OF DEPARTMENT OF ECONOMIC ECONOMIC

DEVELOPMENT BRIEFINGDEVELOPMENT BRIEFING

AGENDA9 a.m. Welcome & Introductions – Catherine Lang, Director9:30 a.m. Economic Dev. Overview – Gary Hamer, Deputy

Director9:45 a.m. Business Dev. Division – Dan Curran, BD Div. Director10:30 a.m. Break10:45 a.m. Research Division-Dave Dearmont, Research Director11:10 a.m. Community Dev. Division – Lara Huskey, CD Div. Dir.11:40 a.m. Wrap-Up, Q & A12 – 1 p.m. Lunch, provided by NPPD

OBJECTIVES• Discuss economic

development: What is it?• Review DED programs & how

to access them

ECONOMIC DEVELOPMENT OVERVIEW

WHAT IS ECONOMIC DEVELOPMENT?• 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

DED’S GOALS• 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

DEFINING PROJECTS TO INVEST 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)

HOW CAN E.D. BE INFLUENCED• 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

Evaluating DED ImpactSuccessful 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

MARKETING NEBRASKAIn-State, Nationally and

InternationallyPromoting Opportunities—

•Quality of Life / Place and Cost of Living

•Business Retention, Expansion and Recruitment

•Entrepreneurship •People Retention and Recruitment•Jobs

Facebook, Twitter and YouTube

DED ANNUAL BUDGETMAJOR 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

DED INITIATIVES• 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

BUSINESS DEVELOPMENT

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.

Business Development Field Staff Regions

WesternStarr Lehl505A Broadway, Suite 400Scottsbluff, NE 69361308-631-7780starr.lehl@nebraska.gov

Northeast/North CentralSheryl Hiatt, Field Service ManagerPO Box 272Spencer, NE 68777402-340-6180sheryl.hiatt@nebraska.gov

West Central/SouthwestVACANT

Central/South CentralAndrea McClinticPO Box 1569Kearney, NE 68848308-440-1490andrea.mcclintic@nebraska.gov

East CentralPat Compton4735 Avenue EKearney, NE 68847308-440-5960pat.compton@nebraska.gov

East/SoutheastLynn KohoutPO Box 94666Lincoln, NE 68509402-440-2599lynn.kohout@nebraska.gov

Hispanic/Latino Business ConsultantTO BE ANNOUNCED

 

BUSINESS RETENTION & EXPANSION• 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

BUSINESS ASSISTANCE ACTIVITIESFinancial Assistance

Types Of Assistance:

Nebraska Advantage

Job Training

Community Development Block Grant

Nebraska Progress Loan Fund

Site and Building Development

• 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)

ECONOMIC DEVELOPMENT CERTIFIED COMMUNITY

BENEFITS 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

BUSINESS 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

BUSINESS RECRUITMENTWORKING WITH PROSPECTS

• 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

• 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

LOCAL RECRUITMENT TOOLS

DED TALENT INITIATIVESIntern 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

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 INNOVATION INITIATIVES

Prototyping GrantBusiness 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 InvestmentBusiness with no more than 500 employees or

individuals for the purposes of commercializing a product/process. Maximum Grant $500,000 (50% match)

DED INNOVATION INITIATIVES

Research and DevelopmentBusinesses 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 ProgramMicroenterprises – 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 INNOVATION INITIATIVES

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 INNOVATION INITIATIVES

INDUSTRY CLUSTER INITIATIVE• 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

INDUSTRY CLUSTER INITIATIVE•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 orFood Processing

INDUSTRY CLUSTER INITIATIVEBusiness 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&DIncrease 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 expansionAssistance 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.

Council CoordinatorWhitney Bumgarner

whitney.bumgarner@nebraska.gov402-471-6281

NeMACNebraska Manufacturing Advisory Council

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Information Technology CouncilCouncil Coordinator

Jacob Knutson

jacob.knutson@nebraska.gov402-471-3113

BIO NebraskaNebraska Logistics Council

Collaborative efforts moving forward…

Working with NDE and DOL:

Nebraska Career Clusters

Community Colleges Universities

Private Colleges NROC (districts)

Regional and local development groupsLegislators

Other Providers

INTERNATIONAL TRADE & DEVELOPMENT• Import/export assistance

• Business recruitment • Promote international partnerships• New-to-export consulting• Trade missions• Nebraska Center Japan & China

Contact: Joe Chapuran at joe.chapuran@Nebraska.gov

Break

RESEARCH

RESEARCH INITIATIVES• Labor Shed Study• GIS—Upgrade capabilities• Updating “A Competitive

Advantage Assessment and Strategy for Nebraska” (Battelle study)

• 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

WHAT IS A LABOR SHED STUDY

• 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

USES OF A LABOR SHED STUDY

• 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 2014.

• A third study, funds available, is under consideration for the summer/fall of 2014.

• Currently using federal grant funds to complete pilot.

LABOR SHED STUDY

• 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

UPGRADE OF GIS CAPABILITIES

• 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

UPGRADE OF GIS CAPABILITIES

• “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

UPDATE COMPETITIVE ADVANTAGE STUDY

COMMUNITY DEVELOPMENT

SITE AND BUILDING DEVELOPMENT• 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 2014-2015• For Industrial-ready sites and buildings• Commercial/retail business parks not

eligible

SITE AND BUILDING DEVELOPMENT• 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)

JOB TRAINING• 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

NEBRASKA PROGRESS LOAN FUND

• 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

Planning

Public Facilities

Water/Waste-Water assistance

Tourism Development Initiative

Housing

CDBG – TYPESDowntown Revitalization Initiative

Economic Development

Comprehensive Revitalization

Comprehensive Investment & Stabilization

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

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

CDBG-PLANNING CATEGORY• 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

TOURISM DEVELOPMENT• 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.

DOWNTOWN REVITALIZATION• 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

ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE

• 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

COMPREHENSIVE REVITALIZATION

• 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

COMPREHENSIVE INVESTMENT & STABILIZATION (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

CRD / CDBG PROJECT STAFF CONTACTS

• Kevin Andersen…Planning, Downtown 402.471.3775• Steve Charleston…CDBG manager 402.471.3757• Bob Doty…Housing Program Mgr. 402.471.2095• Brian Gaskill…Housing & Action plan 402.471.2280• Dave Honz…ED 402.471.3763• Carol Malcolm…CD Public Works 402.471.3745

NEBRASKA AFFORDABLE HOUSING PROGRAM

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.

NEBRASKA AFFORDABLE HOUSING

PROGRAM FUNDING SOURCES• HOME Investment Partnerships Program

(HOME)• Community Development Block Grant

(CDBG)• Nebraska Affordable Housing Trust Fund

(NAHTF)

PROGRAM FUNDING SOURCES IN 2013

• CDBG $1.9 million• HOME $2.7 million• NAHTF $6.25 million ________ $10.85 million available for

projects

HOUSING PROGRAMS

• Homebuyer programs• Owner-Occupied Rehabilitation

programs• Non-profit Operating Assistance• Rental housing

• 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

ACCESSING FUNDS

HOUSING APPLICATIONS• 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

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 Andersen402-471-3775kevin.s.andersen@nebraska.gov

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.

COMMUNITY DEVELOPMENT ASSISTANCE ACTWhat 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.

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

WRAP-UP & Q / AConnect with DED Online:

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