THE DEDICATED VOICE OF RURAL COLORADO. CRDC Mission & Visio

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Colorado Rural Development Council

• Economic Development 101Influencing Positive
  Economic Change in La Plata County, Colorado!
  
• June 18, 2007

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Colorado Rural Development Council
A Leader Influencing Positive Economic Change
for Rural Colorado! Clarke Becker, President/CE
O [phone] cbecker_at_ruralcolorado.org T
HE DEDICATED VOICE OF RURAL COLORADO

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CRDC Mission Vision

• CRDC shall be a PARTNERSHIP committed to
  advancing rural interests identified by LISTENING
  to the needs of rural people with the Mission to
  ENCOURAGE and ASSIST locally defined COMMUNITY
  DEVELOPMENT by fostering creative partnerships,
  knowledge, communications and resources to
  effectively implement their OWN VISIONS.

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A New Compact for Rural ColoradoTHE CHALLENGE

• Rural Colorado at a Crossroads
• The future of the State is directly linked to the
  future of our rural areas
  
• Path to a global economy of the 21st century puts
  many rural communities at risk
  
• Rural Colorado faces many challenges

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A New Compact for Rural ColoradoTHE CHALLENGE

• Infrastructure (including technology
  infrastructure) and the resulting impacts on
  transportation, workforce, education, healthcare,
  and job opportunities
• Job concerns, ranging from high unemployment to
  low unemployment issues
  
• Management of natural resources, including water
  ownership, supply, and storage
  
• Provision of services, including education and
  healthcare, in rural communities
  

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A New Compact for Rural ColoradoTHE CHALLENGE

• Rural areas are home to 20 of Colorados total
  population, but comprise 80 of Colorados land
  area. This disparity places serious limitations
  on public policy solutions
• The future of Colorado is directly linked to the
  future of our rural areas, AND there is a
  critical need for good working relationships
  between rural and urban interests

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A New Compact for Rural ColoradoOpportunity,
Wealth, Responsibility, Community

• PRIORITIES
• BE THE VOICE OF RURAL COLORADO
• ECONOMIC VIABILITY AND PROSPERITY IN RURAL AREAS
• CONNECT RESOURCES TO PEOPLE
• IGNITE INNOVATION

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At a State level, over 80 of Colorado land is
rural
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Citizens View of Economic Development

• Statewide Survey
• of Likely Voters
• Economic Development Council
• of Colorado
• http//www.edcconline.org/
• Link to
• Colorado Economic Leadership Coalition

Ciruli Associates October 2006
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Economic Direction
Is economy getting better?
Ciruli Associates, N500, 2006
Question Considering the local economy over the
next year, do you think your areas economy is
getting better, getting worse or staying the
same? Q5
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Top Issue for State
What is your top issue for governor and
legislature?
Immigration 28 Education/money (more money, bett
er pay, more teachers/smaller class size) 2
0 Economy (economic slowdown/unemployment/need jo
bs) 11 Health care price/accessibility 8 Transp
ortation (congestion/traffic/roads) 6
Tax burdens 5 Environment (air/water pollution/w
ildlife) 4 Water shortage/supply 4 Growth (spr
awl/development/too many people/crowding) 3
Ciruli Associates, N500, 2006
Question What is the top issue you want the
governor and state legislature to address?
Multiple Answers Q4
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Colorado Quality of Life
What is Colorados best aspect. . .?
Aspect Agree
Good weather 29 Mountains 17 Outdoor recreation
15 Environment/clean air 13 Beautiful vistas 12
Friendly people 7 Wildlife/nature/outdoors 6
Open space/public lands 5 Job security 4
Ciruli Associates, N500, 2006
Question Changing topics for a moment, if you
were to describe to an out-of-state visitor what
you believe is the best aspect of Colorados
quality of life, what would it be? Q18
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The Purpose of Economic Development
To Influence Positive Economic Change

• Wealth Generation
• Economic Diversification
• Job Growth Preservation
• Building the Local Tax Base
• Building a Future for La Plata County

Quality of Life Begins with a Good Job
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Economic Development is
Job Creation Job Retention Tax Base Enha
ncement
Quality of Life

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Economic DevelopmentWHY?

• Quality of Life is Largely Determined by
• Community Wealth
• Public and Private

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Economic Development Is

• Deciding What You Want
• Identifying Desired Results, Balancing Trade
  Offs
  
• Understanding Reality
• Competition is Real and Aggressive
• Profitability Supercedes Quality of Life
• Thinking from Your Customers Perspective
• Learning What Works
• What Do Your Companies Need?
• How Can You Effectively Compete?
• What Will Your Residents Support?

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How Do YOU Accomplish this?By assessing or
developing an inventory of what you have and by
identifying what you dont have!
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Community AssessmentsAdvancing one community at
a time!Community Action PlanningStrategic
Planning
Colorado Rural Development Council
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Challenges and Victories

• The communities of our state must deal on a daily
  basis with a common set of challenges
  
• Cost of Living
• Health Care
• Education
• Elder Care
• Housing Costs
• Infrastructure
• Land Use
• Growth
• Labor Pool
• Transportation
• Water and Wastewater
• Youth out-migration with community affirmation.

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Change is coming, with or without you!!
It took 1,500 years to double that first knowle
dge base By the early 70s mankind was doubling
knowledge every 6 years Human Knowledge is expe
cted to be doubling every year by the year 201
2 (If assumed that mankind had one unit of know
ledge in the year AD1)

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What Does Economic Development Encompass?

• Planning/Land Use
• Real Estate
• Law
• Tax Policy
• Statistics
• Workforce
• Exporting
• Infrastructure
• Finance

• Politics/Advocacy
• Marketing
• Sales
• Public Relations
• Negotiations/Mediation
• Consensus Building
• Incentives
• Financial Sustainability
• Research

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Colorado Rural Development Council

• Its About the Jobs!

A job is no longer just the roof over your head
and the food on your table, its your health
care, your kids education and your
retirement.
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Colorado Job Growth

• Averaged 56,000 jobs per year 1995-2001
• Lost 75,000 jobs in 02 03
• Gained only 26,000 in 2004
• Gained 47,000 new jobs in 05, 10th highest job
  growth in the country, the Bureau of Labor
  Statistics reports, but the state still falls
  short of peak employment in 2001
• Estimated another 47,000 new jobs in 06.
• 3,500 new jobs in the greater Denver Area
• Or 84 new jobs in La Plata County.

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A Snap Shot of La Plata County Region
Population - Med Age Tran Pymt - Unemp Per
SM CO 4,722,460 35.6 10.6 5.0 4
5.19 LPC 48,023 36.9 10.3 3.9
28.25 Reg 9 87,011 38.1 13.7 4.5
13.48 2005 estimates Information provide
d by the Colorado State Demographer, DOLA
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Economic Drivers

• La Plata County
• Primary Economic Drivers in the State
• 1. Regional Center/ National Services
• Income 19 Jobs 18 (4th)
• Additional Drivers
• 2. Tourism Income 24 Jobs 35 (15)
• 3. Retirees Income 12 Jobs 11 (12)
• Colorado Counties by Primary Economic Driver, 2005

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Economic Drivers Defined

• Regional Center / National Services
• Includes all establishments primarily engaged
  in providing services to a region (a group of
  counties) or the nation.
  
• Tourism
• Includes all establishments with activities
  related to tourism. Examples of which include
  activities at resorts, second homes, tourist
  services, and tourist transportation.
• Households Retirees
• Earnings and employment associated with
  expenditures made by retirees on local resident
  services. Retiree income includes transfer
  payments from the federal government to
  individuals over age 60 and dividends, interest,
  and rental income also earned by individuals
  over age 60.

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The Focus of Economic Development - Quality Jobs

• Primary Jobs are the
• economic engine of the
• local economy.

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The Local Economy
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What are Primary Jobs? (contd)
Goods Services
New Money
Materials Supplies
Labor
Professional Services
Wages
Housing
Retail (Food, Clothing,etc..)
Health Care
Services (Cleaning, Hair Cuts, CPA, etc...)
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Ghost Towns - A Working Example
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Ghost Towns - A Working Example
CLOSED
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Why Do You Need to Promote Quality Job Growth?

• Because the economy is
• always leaking!

Primary Job Base
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Who pays the bills to sustain La Plata County?
Gallagher Amendment - 101! Property Tax Assessme
nts (Excluding Sales Tax Collections)
Resident vs. Business Assume a 250,000 Buildin
g at 50 mils (Ave.) Residential 7.96 Ass
essed Valuation Business 29.00 Assessed Valu
ation Therefore Residential AV 19,900 Ta
x 995 Business AV 72,500 Tax 3,62
5

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Three Legged Stool for Economic Development
Must provide an environment conducive to doing
business Must have a workforce that is job rea
dy and available Must have housing that is aff
ordable for the people that work in the
community. Quality of life begins with a job, a
GOOD job!
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Three Legged Stool for Community Development
The Business Community Local Government/Elec
ted Officials The Citizens in the Community
Everyone must buy into the plan to truly be a
success!
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It is all about Economic Development Workforce D
evelopment Community Development The Best Lea
ders Think beyond their experience, Plan beyon
d their tenure.
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Economic Development Basics
All Activities Fall Into 1 of 4 Categories

• Supporting Existing Employers
• So They Will Stay and Grow
• Attracting New Employers
• To Further Expand and Diversify the Economic
  Base
  
• Growing New Companies
• Incubators, Entrepreneurial Assistance
• Educating the Community About Their Importance
• So They are Appreciated and Supported

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Business Retention and Expansion

• Two components
• Improving the Business Environment
• Strategic infrastructure improvements
• Streamlined Regulations
• Recognizing Business Contribution to Community
• Value-added services that are meaningful to local
  companies
  
• Improving Productivity, Finding Qualified Labor,
  Cutting Costs, Expanding Markets, Financing, RE
  Info

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Business Retention and Expansion
Expansion can Keep or increase local jobs P
reserve or increase the local tax base
Increase local property values
Enhance community image/increased confidence
Maintain the economic health of
sectors/clusters

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Business Retention and Expansion
According to economic development consultant Eric
P. Canada, the basic rule of thumb in business
marketing 70 of all business comes from repea
t clients 15 comes from referrals 15 comes
from new business development

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Retention and Expansion Programs

• Workforce Development
• Specialized Programs (Manufacturers Programs,
  Exporting, Training, Procurement, etc.)
  
• Advocacy Local, State Govt, Special Dist.
• Community Awareness - Events, PR, Presentations
• Regular Contact Surveys to assess the risk and
  opportunity for your companies, CEO Visits

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Questions to ask your existing businesses
What does their company need?
How do they feel about your community?
What is their opportunity for Growth?
What is their risk of leaving/shutting down?
How can you help them?

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Entrepreneurial Development
What is an Entrepreneur? Identify or recognize a
need and create a product or service to meet that
need. Employers Tax Revenue Generators
Economic Supporters Property Owners and Renter
s Providers of Economic Stability.

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Entrepreneurial Development
Small Business Incubators Low Rent Shared
Support Services Network Opportunities Techn
ology-based Development Local Economic Diversif
ication Revitalization

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Economic Development Resources
and Technical Assistance Colorado Office of Eco
nomic Development, International Trade
Economic Development Council of Colorado
Colorado Department of Local Affairs
International Economic Developers Council
Colorado Rural Development Council
Region 9 Economic Development District
USDA Rural Development Rural Workforce Consor
tium

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Financing Tools
Direct Lending Revolving Loan Funds Micr
oloan Programs State Financing Programs Fe
deral Financing (SBA, EDA, HUD, USDA)
Development Authorities State Venture Capita
l Funds and Angel Networks.

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Attraction

• Who Should You Attract?
• How do you attract them?
• Advertising and marketing program
• Print Media
• Magazines
• Newspapers
• Electronic Media
• Television/Radio
• Publicity
• Third party endorsements
• Site selection conferences
• Promotional Materials
• Brochures
• Videos
• Newsletters

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Attraction

• How to you attract them? (Continued)
• Advertising and marketing program
• Website
• Direct Mail
• Recruitment trips
• Personal Selling
• Economic briefing
• Site selection conferences
• Trade shows
• Cold calling
• Prospecting

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If youre lucky enough to live in La Pla
ta County your lucky enough! But, without innova
tion and rising productivity, that wont be
enough!

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Why Companies Locate
The same things that attract new companies also
keep existing companies at home

• Quality of life issues
• Cost of doing business
• Strong and stable political leadership
• Adequate Infrastructure Capacity
• Incentives

• 60 minutes from airport
• Proximity to markets
• Labor skills/availability
• Tax and regulatory
• Close to major universities

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Incentives No one wants to pay sticker price!

• Incentives only target future revenues, not the
  existing base
  
• Incentives are tie breakers incentives dont
  make a bad deal good
  
• Incentives should be available to existing
  companies that expand as well as new companies
  

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Incentive guidelines

• Why should you offer incentives?
• Who should get incentives?
• Primary which ones? - why?
• Retail which ones - why?
• Whats available? how do you find out?
• How much incentive should be offered why?
• Training funds are best why?
• Non-cash sometimes as good as cash like what?
• You need to demonstrate economic benefit how?
• Incentive policies are tools not obligations!

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Measuring Effectiveness

• Success is measured by
• The number and quality of new jobs
• Capital Investment/ROI
• Increase in local taxrevenues
• Diversification
• Meeting Community Goals

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Financial Inducements (Incentives)
Performance Based Criteria Number of Jobs Crea
ted Quality of Jobs Minimum Investment Re
quirements Reporting Requirements But for
Determination Cost Benefit Analysis

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FACTOIDS

• Regional Foundations of U.S. CompetitivenessMicha
  el Porter-Harvard University-(www.compete.org)
  
• Required high quality business environment that
  fosters innovation and rising productivity
  
• Prosperity of a region depends on the
  productivity of all its industries
  
• A strong physical and information infrastructure
  is a baseline requirement to establish and
  sustain a prosperous regional economy
  
• A strong K-12 system is important for developing
  local talent and attracting outside talent

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Colorado Rural Development Council

• No one should know your community better and no
  one should be better at selling it.

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Economic Developers provide

• INFORMATION Demographics Workforce Stats
  Infrastructure Capacity Real Estate.
  
• FACILITATION The main customer service
  component of your effort. Facilitation of
  meetings Coordination of efforts (single point
  of contact,)
• ADVOCACY Incentives Regulatory Community
  Taxes/Fees.

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Professional Ethics

• Confidentiality - driven by prospect
• Potential conflicts of interests
• Real Estate Brokers/Developers
• Press
• Elected Officials/Board Members
• Other ED organizations

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The Basics of Process

• Identifying Your Stakeholders
• Public Sector (Investors, Tax Payers)
• Private Sector (Investors, Employers)
• General Public (Media, Community Groups, Govt)
• Information is King,
• but Getting the Word Out is Queen!
• Realizing Motivation, Risk and Reward
• How Will You Sell Your Program?

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A VISION for Economic Sustainability Estab
lish a diverse, sustainable, year-round economy t
hat promotes your communities sense of place.

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A VISION Celebrate your Small Town Character
Promote your Unique History Enhance your Qu
ality of Life!

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From BOOMTOWN, USA The 71/2 Keys to Big Success
in Small Towns Jack Schultz Adopt a Can-Do Attit
ude Shape Your Vision Leverage Your Resources R
aise up Strong Leaders Encourage an Entrepreneuri
al Approach Maintain Local Control Build Your Br
and ½ Embrace the Teeter-Totter Factor

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The Word for Today

• Collaboration
• The act of working together with others to
  achieve a common goal!
  

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Closing Thoughts!

• You can change the world.
• Eric Clapton
• You cant always get what you want.
• Mick Jagger
• Failure isnt fatal..success is not final.
• Local pool boy

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Colorado Rural Development Council

Things come to those who wait,
but only the things left by those who hustle." -
Abraham Lincoln
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THANK YOU!
Colorado Rural Development Council

Clarke Becker, President/CEO Colorado Rural Deve
lopment Council