Saturday, September 11, 2010

Connecting Livability and Economic Development in Dubuque, Iowa

Welcome back to the APA Economic Development Division (EDD) Blog! EDD took a bit of a break from our blog in August, since many of our contributors were on vacation or just extra-busy with work. Please be assured that EDD is now back with many great posts planned for this Fall. We've recently had two new bloggers join our team, Della Rucker of Jacobs and Joy McGee. You'll be hearing from both of them over the next several weeks, and I'll let them both introduce themselves in their next posts. As always, please feel free to contact us if you're interested in contributing to the blog!

Our first Fall blog post also features the first video that we've posted to the EDD blog. Earlier this year the ongoing PBS series on American infrastructure, Blueprint America, featured Dubuque, Iowa. The former factory town has bet its economic future on sustainable development and smart growth. The city's sustainable development plan is a national model. Dubuque is pursuing all of the hallmarks of smart growth, including complete streets and sustainable transportation, energy efficiency and a riverfront revitalization strategy. The redevelopment of a historic warehouse district is intended to attract young professionals and create affordable, workforce housing to reinvigorate the downtown. Dubuque was named a National Resources Defense Council's 2010 Smarter City for Energy. Late last year IBM announced that Dubuque would serve as the model for its Smarter Cities initiative and that the firm would relocate 1,300 employees to a technology support center in the city by the end of 2010. However, Dubuque's reputation as a green city wasn't the only thing that attracted IBM, but $50 million in state and local incentives also played a role.

However, as you'll see in the video some in Dubuque question whether the IBM move and the investments in creating a livable community alone can generate long term economic growth
. Are sustainability and livablity linked with economic growth in the 21st century, or are they just planning fads? Can downtown redevelopment aid in the retention of educated young people even in a mid-sized Midwestern city like Dubuque? Will the IBM move to Dubuque generate long-term growth? Was the $50 million incentive package given to IBM worth the $100 million IBM investment and 1,300 jobs? The blog team looks forward to reading your thoughts in the comments!

Monday, July 26, 2010

The Role of Economic Developers in Creating Quality Jobs (New IEDC Report)

This week's guest post was authored by Louise Anderson, Senior Associate at the International Economic Development Council.

Job creation remains a key measure of success for economic development efforts. But the era in
which nearly any job was a “good job,” to a certain extent, is over. Growth in the economy is becoming increasingly bifurcated, with high-tech, high-wage jobs on one hand and low-wage, largely service-sector jobs on the other. Economic developers find it increasingly challenging to create jobs that deliver the kinds of wages and benefits that were standard in the industrial era.

A recent report from the International Economic Development Council,
Creating Quality Jobs – Transforming the Economic Development Landscape, shows how economic development is transforming in response to a changing economy. Creating quality jobs and rebuild the middle class in a global, knowledge-driven economy requires new strategies, new partners, new goals and new metrics of success.

Creating Quality Jobs – Transforming the Economic Development Landscape, is based on in-depth case studies of seven communities: Ponca City, Okla.; San Jose; Newton, Iowa; Albuquerque, N.M.; Tupelo, Miss.; Pittsburgh and Akron. The cases reveal an emerging framework for economic development, one aimed at creating broad-based prosperity through the transformation of both the regional economy and the institutions that support it. The framework has seven components:
  • Alignment in a Regional Context
  • Engaged Local Leadership
  • Incorporating Inclusion
  • Building Capacity
  • Building on Existing Assets
  • Basing Plans on Solid Research
  • Innovation and Entrepreneurship
While each case represents a different variant of this new framework, their common goal is a more systemic approach to job creation, with the objective of creating sustainable, quality jobs in a more resilient, more diverse economy. You can access a PDF of the Creating Quality Jobs – Transforming the Economic Development Landscape on IEDC’s website: http://www.iedconline.org/Downloads/IEDC_Quality_Jobs.pdf

Monday, July 19, 2010

Economic Inclusion in City Awarded Contracts

This post was authored by D. Joy McGee, EDD's newest division volunteer blogger!

Small business enterprises (SBE) are critical to our economy, they create employment
opportunities, and help the United States compete in today’s global market. Government at all levels is heavily invested in making sure SBEs succeed. Yet, even in the current recession there are prime government contracting opportunities for which minority- and women-owned businesses often are not utilized. Acknowledging the disparity of city contracts awarded to minority- and women-owned businesses, some cities have created task forces, city departments and programs to foster minority economic inclusion. To create this economy of inclusion, a procurement plan must include goals to expand the number of small- minority- and women-business enterprises (SBE/ MBE/WBE) to do business with the city by removing obstacles.

Why is minority inclusion a challenge? Some of the challenges that SBEs, MBEs and WBEs face include, but are not limited to, marketplace discrimination, obtaining certifications, bonding and insurance, technical expertise and capacity, and believing that opportunities are tangible. What can be done to close the gap and to make sure that significant disparities don’t continue to persist? Best practices include but are not limited to:
  • executive buy-in;
  • streamlining the process of certifications;
  • technology used to promote outreach and diversity;
  • training and promoting staff;
  • building partnerships among the public and private sector and outreach;
  • strategic use of under threshold contracts, and;
  • preparing minority and women-owned businesses to bid for large contracts.
Should cities adopt a race based or a race neutral program or a combination of both? In 2009, Cincinnati, OH and San Antonio, TX made commitments to improve their current procurement policies and SBE programs.

The City of Cincinnati
has a race neutral SBE program. The task force, Open Cincinnati Action Team, was commissioned by Mayor Mark Mallory to make recommendations aimed at accelerating minority firms doing business with the City. If economic inclusion has not improved within 18 months of implementing the 27 task force recommendations, the Action Team recommends that the City commission a disparity study to examine if a race based program with goals and/or set asides will work in its jurisdiction.

The City of San Antonio
commissioned a study in 2006 to determine what, if any, evidence of disparities exist in procurement practices related to the ethnicity, race, or gender of the business owner. As a result of MGT of America, Inc. findings and recommendations, City Council determined that a combination of race- and gender-neutral and race- and gender-conscious remedies and programs will aid in the effort to remedy past marketplace discrimination. City government’s economic power can be employed to create an economic inclusion program that is committed to breaking down barriers. A disparity study can be conducted to analyze procurement practices and to determine which economic inclusion program should be utilized.

City government’s economic power can be employed to create an economic inclusion program that is committed to breaking down barriers. A disparity study can be conducted to analyze procurement practices and to determine which economic inclusion program should be utilized.

Tuesday, July 6, 2010

Economic Development in a Transforming Energy Economy - New IEDC Report Available to the Public

Today's guest blog is authored by Elizabeth Thorstensen, Senior Associate at the International Economic Development Council (IEDC), and a primary author of the IEDC publication Getting Prepared: Economic Development in a Transforming Energy Economy.

While the specifics of the transition to a low-carbon economy are still being debated, it appears likely that some
type of cap and trade or carbon pricing will emerge. Any effort to price carbon will hold significant implications for U.S. industries, regions and the nation. The International Economic Development Counicl (IEDC) recently published a report, Getting Prepared: Economic Development in a Transforming Energy Economy, designed to aid economic developers and others in related fields in positioning their economies to benefit from the transition. While IEDC does not specifically promote a cap and trade policy, we recognize that this is an important emerging issue that those in the economic development and allied professions need to be aware of and to understand.

To understand how states are preparing for this changing policy paradigm, IEDC convened a
group of state economic development leaders in the fall of 2009. The meeting was intended to explore the opportunities and challenges presented by a regional or economy-wide move toward carbon pricing. The states represented diverse geographies and economic circumstances.

Following this meeting, IEDC selected nine states to profile in the Getting Prepared report to better understand how states are already transitioning to the low-carbon economy and working to reduce their greenhouse gas (GHG) emissions. Across the majority of states examined for this report, we found a significant amount of GHG mitigation activity, much of which is linked to economic development or is in the process of developing such linkages. Policies such as renewable energy standards, state and local energy efficiency strategies, new building codes, as well as clean tech development and deployment have tremendous implications for economic development.

If national and local economies are to maintain and increase their competitiveness, reduction of GHGs must be understood as beneficial to the future health of the economy, not just the environment. Almost all states are now taking steps toward changing their energy profiles and incorporating sustainability into their economies. The challenge of transitioning to a clean energy economy will be to employ and connect all of these pieces in a synergistic way. Given that cap and trade, or carbon pricing may relatively soon become a reality of the American economy, changes and preparation are needed if it’s going to be a smooth transition. How economic developers build systems that will aid the transition and tap into its potential is of critical importance.

Despite the diversity of their assets all of the states featured in Getting Prepared indicated some movement toward greater preparedness in light of a shifting energy economy. That preparedness emerged in four areas detailed in the report:

  • Policy drivers;
  • Investments in innovation;
  • Transition assistance, and;
  • New partnership development.
While some policies stand alone, others are part of a set of complementary policies that are capable of transitioning economies over the long term. The integration of the business community, government, workforce intermediaries, utilities, and entrepreneurs will all be vital for the transition to grow organically rather than reactively or behind the curve.

Unlike the biotech sector, in which only a few regions were favored by sustained federal R&D funding, all communities can stand to benefit from the transition to a lower-carbon economy. Therefore, the real story is that preparedness is an economic driver in and of itself. The more you invest, the more prepared you are, but you’re also starting to drive your economy into more dynamic areas of growth. The key will lie in balancing acceptable climate change policies with economic assets in a way that advances GHG mitigation while driving growth.


To find out more and to read the full report, please go to: http://www.iedconline.org/?p=Getting_Prepared

Wednesday, June 23, 2010

NADO Webinar: Recovering from the BP Gulf Oil Disaster - Lessons Learned from Exxon Valdez

The National Association of Development Organizations (NADO) asked us to pass along this upcoming webinar information.

Title:
Recovering from the BP Gulf Oil Disaster - Lessons Learned from Exxon Valdez

Date:
Tuesday, July 13, 2010

Time:
3:00 PM - 4:30 PM EDT

Reserve your Webinar seat now at:
 https://www2.gotomeeting.com/register/734086826

The BP oil leak in the Gulf of Mexico has already surpassed Exxon Valdez as the worst oil-related disaster in U.S. history. 

As concerns continue to grow about the long-term impact on the businesses and livelihoods in the Gulf Coast region, people are searching for ideas on how to be proactive in the recovery process. What is the role of local government? Should businesses expect to relocate? How do we best manage public and mental health issues? How can we diversify our workforce? 

Drawing on their experience in the Exxon Valdez recovery process, NADO is honored to have two presenters share their thoughts on the obstacles to oil spill recovery:



- Molly McCammon, Executive Director of the Alaska Ocean Observing System and former Executive Director of the Exxon Valdez Oil Spill Trustee Council 


- Dave Cobb, Business Manager of the Valdez Fisheries, former Mayor of Valdez, AK, former member of Valdez Oil Spill Trustee Council 

The purpose of this broadcast is gather insight from one historically significant disaster to assist in the recovery process of another.

Monday, June 14, 2010

Communities become entrepreneurs

This week's post is by guest contributor Joshua Bloom, Principal of Arlington, VA-based Community Land Use and Economics Group, LLC.

Cooperatives have been around almost forever. But the movement has seen new growth and creativity, especially now, when retail revitalization requires new approaches to traditional business recruitment. As an alternative to recruiting businesses, many communities are actually becoming entrepreneurs and developing businesses themselves. In Clare, MI, for example, a 100-year-old downtown bakery was about to close. But the Clare police department put a stop to it: rather than letting the store become vacant, the entire police department organized themselves (as private citizens) to become an investor group and buy the bakery. They renamed it "Cops & Doughnuts". They now have 18 employees and the bakery has already doubled its retail space in the first twelve months of operation.


The March/April issue of Main Street Now, a publication of the National Trust Main Street Center, explores the wide range of community-owned businesses -- including Cops & Doughnuts.

Community-owned retail businesses typically use one of four models:
  • Cooperative. A communally owned and managed business, open to anyone, and operated for the benefit of its members. In a cooperative, each member owns an equal share.
  • Community-owned corporation. A traditional for-profit corporation that integrates social enterprise principles. Investors may make different equity investments and own differing numbers of shares.
  • Small ownership group. A small, ad hoc investor group that capitalizes and/or operates a business as a partnership or a closely-held corporation.
  • Investment fund. A community-based fund that invests debt or equity in local business ventures. Typically, the community investment fund finances a local entrepreneur as the owner/operator of the business.
For resources and examples, see communitybusinesses.blogspot.com. To read the original article, visit www.preservationnation.org/main-street (membership required).


Joshua Bloom, principal
Community Land Use and Economics Group, LLC
www.cluegroup.com | 202.427.4722
www.communitybusinesses.blogspot.com

Friday, May 28, 2010

3 Questions With Peter Lowitt: Advice for Job Seekers

It's graduation season, and many urban planning students have recently completed their graduate work and are looking for jobs. Recently I got the opportunity to ask some advice from the APA's former EDD chair, Peter Lowitt about advice for those looking for their first economic development position. Here Peter Lowitt shares insight into how the field fares in times of economic hardship and strategies for job hunters.

Alison: Do you find that economic development planning is any more or less recession proof than other areas of planning?

Peter: Economic developers tend to be hired in periods of recession because communities seem interested in attracting jobs-but the position is very political. Economic developers can be seen as the scapegoats if a particular project goes wrong. There’s a saying for economic developers that ‘if it moves shoot it, and if it falls, claim a victory.’

Alison: What should students be looking for if they want to find a job in their area?

Peter: Look at regional planning agencies. Communities are always going to be preparing plans. Look into Chambers of Commerce. A good idea is to look into the International Economic Development Council, which has regional components. For instance, the Northeastern Economic Developers Association, or the Maryland Economic Developers Association.

Alison: What is one thing that you wish all people entering the field knew on day one of their new job?

Peter: Any background that you have in business will help. That is the language that many people you will be working with are used to, and so being able to speak their language is very important.

Peter Lowitt is a Director at Devens Enterprise Commission in the Greater Boston Area, and is the Chair of Green Roofs for Healthy Cities.