Montgomery County

1
Montgomery County

• ED/GE

2

• ED/GE
• Economic Development/
• Government Equity
• Overview
• History
• How it Works and Why
• Success Stories
• Conclusion

3
Overview

• 2 inter-related but separate funds
• First tax based sharing in Ohio and one of few in
  USA
• 13 cities, 7 villages and 9 townships have joined
• Creates more positive atmosphere between
  jurisdictions and county

4
Overview

• Creates jobs
• Enhances tax base
• Reduces economic development competition between
  municipalities
• Helps economy compete in national and
  international markets
• Leverages private, non-profit and government
  funds

5
History

• Concept began in 1986
• County Commissioners concerned about fiscal
  picture
• Local governments plagued by
• Increasing service costs
• Lower than predicted tax revenues
• Cutbacks in state and federal aid
• Increasingly mobile industrial base

6
History

• Traditional smokestack industries undergoing
  retrenchment
• Area leaders perceived local governments
  duplicating economic development efforts
  infighting
• Public/private committee recommended improvement
  in countys revenue collection and fiscal
  management

7
History

• Commissioners envisioned county-wide effort would
  benefit local economy
• Voted in 1989 to increase sales tax by one half
  percent (.5)
• Created community programs ED/GE, Arts and
  Affordable Housing

8
How it Works
Economic Development Component

• Distributes at least 5 million per year in
  economic development grants
• Awards based on competitive review and advisory
  committee
• Advisory committee comprised of participating
  jurisdictions and business community

9
How it Works
Government Equity Component

• Shares portion of tax revenues as result of
  growth with participants
• Participants either contribute or receive money
  from GE fund based on previous years growth
• Three year settle up provision - No jurisdiction
  contributes more to the GE fund than it receives
  from the ED fund

10
How it Works

• Jurisdiction must participate in tax based
  sharing to receive grant funds
• Jurisdiction must remain in program for duration
• Jurisdictions must be members of ED/GE to apply
  for ED funds

11
How it Works

• Advisory Board
• 2 seats held by largest two cities
• Eight seats rotate among 28 jurisdictions
• Each seat is held for either 2 or 3 years
• County Commissioners have 2 permanent seats
• Private sector appoints remaining 3 seats through
  Chamber of Commerce

12
How it Works

• Applications accepted each April and November
• County summarizes applications based on criteria
• Committee assesses application and ED/GE goals
• Advisory Council recommends recipients to County
  Commissioners

13
ED/GE Funds and Total Leveraged Projects as of
12/31/99
Total Leveraged Projects
ED/GE Funds
14
Total Jobs Created and Retained to This
Point 15,455
15
Otterbein Business Park

• 1,202,800 total project
• 919,200 ED/GE funds
• 335 Jobs Created

16
D-MAX

• 300 million total project
• 1 million ED/GE funds
• Largest Ohio manufacturing investing in 1999
• 700 new or retained jobs

17
City of Kettering / Victorias Secret Catalog

• 10.5 million total project
• 600,000 ED/GE funds
• 1,250 Jobs Created

18
Huber Heights / Center Point Commerce Park

• 3,758, 019 total project
• 1,295,932 ED/GE funds
• 1,026 Jobs Created

19
Reynolds and ReynoldsPhase I

• 57 million total project
• 1 million ED/GE funds
• 700 Jobs Created

20
Miami Township / Lyons Business Park

• 5.1 million total project
• 175,000 ED/GE funds
• 150 Jobs Created

21
Minor League Baseball

• 26.6 million total project
• 4 million ED/GE funds
• 150 Jobs Created

22
Conclusion

• Brought urban, suburban and rural interests
  together
• Educates communities about neighboring economic
  development issues
• Forum for resurgence of central city discussion
• Places county in center of economic development
  projects connects staff to all communities
• Connects community through positive actions

23
Conclusion

• Jurisdictions participated in designing program
  buy in at beginning
• Higher understanding of economic development than
  before
• Region has more sophisticated outlook for
  economic development