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Technical Assistance Report : Recommendations for a New Economic Development OrganizationAcknowledgements TheInternationalEconomicDevelopmentCouncil(IEDC)undertookthistechnicalassistanceprojectfortheCity ofSalina,KansaswiththesupportoftheSalinaAirportAuthorityandtheSalinaChamberofCommerce.This reportprovidesrecommendationsbasedoninterviews,focusgroups,Internetbasedresearchregardingthe oflocaleconomicdevelopmentactivitiesfromMaytoAugust2014. regionaleconomy,andadocumentreview Theauthorsofthisreportgreatlyappreciatetheinputandassistancereceivedfrommorethan50stakeholders representingthepublicandprivatesectorsoftheCityofSalinaandSalineCounty. AbouttheInternationalEconomicDevelopmentCouncil TheInternationalEconomicDevelopmentCouncil(IEDC)istheÞ©7xlargestmembershiporganizationserving theeconomicdevelopmentprofessionwithnearly4,500membersandanetworkofover25,000economic developmentprofessionalsandallies.Frompublictoprivate,ruraltourban,andlocaltointernational,L95/x membersrepresenttheentirebreadthofeconomicdevelopmentexperience.Througharangeof;©Ýz-; includingconferences,trainingcourses,webinars,publications,research,andtechnicalassistance;EE©·L95/ strivestoprovidepracticaleconomicdevelopmentadviceandsolutionstotheeconomicdevelopment communityanditsstakeholders.Formoreinformation,pleasevisitwww.iedconline.org. IEDCProjectTeam JeffreyFinkle,CEcD President&CEO LynnA.Knight,CEcD VicePresidentofKnowledgeManagementand Development TyeLibby EconomicDevelopmentandResearchAssociate AEDOProgramManager MishkaParkins EconomicDevelopmentAssociate EliDile EconomicDevelopmentAssociate EmilyBurns EconomicDevelopmentIntern Contents EXECUTIVESUMMARY......................................................................3 Background ................................................................................................................ 3 Methodology ............................................................................................................. 3 Recommendations ................................................................................................................ 3 I.INTRODUCTION..............................................................................5 Project Mission and Scope of Work ......................................................................................... 5 Project Methodology ........................................................................................................... 6 Regional EDOs and Their Roles ............................................................................. 7 II.TYPESOFECONOMICDEVELOPMENTORGANIZATIONSANDGOVERNANCE...............................................11 Public-Private Partnerships ................................................................................... 11 Role of the Economic Development Organization .................................................................... 13 Roles of Public-Private Partnerships ...................................................................................... 15 PPP EDO Structure and Governance ...................................................................................... 16 Board of Directors ............................................................................................................. 18 Role of the Board ............................................................................................................. 18 Role of Board Officers ........................................................................................................ 19 Recruiting Board Members .................................................................................................. 20 Board Size and Composition ............................................................................... 20 Rights and Powers of Board Members .................................................................................. 20 President and CEO .......................................................................................................... 21 III.FUNDING&CASESTUDIES................................................................22 Funding ..................................................................................................................... 22 Salina Area Chamber of CommerceÔs Budget for Economic Development Services ............................................... 2 Salina Chamber of CommerceÐEconomic Development Division .............................................................. 23 2013 Statement of Activities ................................................................................................. 23 Funding Sources for Economic Development Activities of the ......................................................................... 24 Salina Chamber of Commerce ............................................................................ 24 Comparable Budgets from Other Jurisdictions ........................................................................ 24 Summary of Findings ............................................................................................. 29 IV.RECOMMENDATIONS.................................................................30 V.METRICS:HOWSHOULDSUCCESSBEMEASURED?................................................................35 Managing Expectations ..................................................................................................... 36 Defining Roles with Metrics ................................................................................... 36 CONCLUSION..................................................................................37 APPENDICES....................................................................................38 Sample Articles of Incorporation Sample Job Descriptions Sample CEO Employment Contract ExecutiveSummary Background Inspring2014,representativesofSalina,KansascontactedtheInternationalEconomicDevelopmentCouncil (IEDC)witharequestforinformationregardinghowtheircommunitycouldbestestablishaneweconomic developmentorganization(EDO).Afterseveralconferencecalls,IEDCwasformally-·©-·;7Þz·wjoint fundingfromtheCityofSalina,theSalinaAirportAuthority,SalineCounty,andtheSalinaAreaChamberof /;©-;·assistlocalstakeholdersinevaluatingtheneedforvarioustypesofservicestobeofferedbya newEDO. IEDCistheÞ©7xlargestmembershiporganizationservingtheeconomicdevelopmentprofessionwithnearly economicdevelopmentprofessionalsandallies. 4,500membersandanetworkofover25,000 Methodology ThisprojectwasstructuredasanexpertadvisoryprocessalongthelinesofwhatIEDChaspreviouslyusedto delivertechnicalassistancetolocalcommunities.Preparationandbackgroundresearchforthisprojectinvolved gatheringandanalyzinginformationregardingtheeconomyofSalinaandSalineCountyinadditionto Earlyintheprocess,IEDCproducedanddeliveredawebinar,whichwas conductingstakeholderinterviews. opentothepublic,titled{L·©7Ò-·ztoEconomic5;Ý;¦;·|fortheSalinaWorkingGrouponJuly2,2014. IEDCalsointerviewed20stakeholdersviatelephoneandconductedasitevisittoSalina,whichtookplace throughThursday,July25,2014.Duringthisvisit,IEDCfacilitatedeightfocusgroupsessions Tuesday,July23 withover50stakeholdersfromawidearrayofprofessionsandbackgrounds.Onthefinaldayofthesitevisit, IEDCpresenteditspreliminaryfindingstothestakeholdersandcommunity. Recommendations ThefullreportpresentsL95/xcompletefindingsandrecommendationsregardingthebestorganizational structureandfundinglevelfor{zxnewEDO,aswellasanumberofgeneralstrategies,casestudies,and bestpractices.ThefindingspresenteddrawonL95/xknowledgeofbestpractices,itsworkdevelopingand deliveringdozensofprofessionaltrainingcoursesannually,anditsfieldexperienceworkingwiththousandsof economicdevelopmentpractitioners.BasedonwhatIEDClearnedthroughoutthisstudy,andwithstrong considerationgiventotheinputofthecommunitystakeholderswhoparticipatedinthiseffort,IEDChereby submitsfivekeyrecommendationsthataresummarizedbelow. Recommendation1:EstablishmentofaPublicPrivatePartnershipEDO Duringthewebinarpresentationandsitevisitmeetings,IEDCprovidedstakeholderswithinformation onvariousEDOstructures,includingpublicprivatepartnerships(PPPs).Subsequently,asIEDC conductedinterviewsandfacilitatedfocusgroupdiscussions,itbecameclearthatamajorityofthose providinginputwereproponentsoforganizing{zxnewEDOasaPPP.Thisorganizationalstructure providesmultipleadvantagesthataredetailedinthefinalreport. 3 Recommendation2:ServicesthattheNewPublicPrivatePartnershipwillProvide OncetherewasaconsensusregardinghowthenewEDOwouldbestructured,thediscussionturnedto theexactnatureofthenew95hxmissionandobjectives.IEDCrecommendsthatresponsibilityfor economicdevelopmentmarketingandattractionbetransferredfromtheChamberto{zxnewPPP EDO.AfterdetaileddiscussionswithIEDC,thefourprimarySalinastakeholders(theCity,theCounty,the SalinaAirportAuthority,andtheChamber)agreedthatsuchanarrangementwouldbeacceptabletoall parties.ThenewPPPshouldprovideafullsuiteofbusinessattractionrelatedservices. theroleofaneconomicdevelopmentcommunications IEDCalsorecommendsthatthenewEDOtakeon liaisonwithregionalandstateeconomicdevelopmentorganizations.Anothervitalfunctionofthenew EDOshouldbetoserveintheprojectmanagementroleforstrategiceconomicdevelopmentplanning andexecution. Recommendation3:EstablishandFundaRealisticBudget IEDCrecommendsthat{zxnewPPPhaveabudgetofnolessthan$400,000peryearwithathree tofiveyearfundingcommitmentinordertoprovideorganizationalstabilityandarealisticopportunity forsuccess.Thefundinglevelof$400,000shouldallowforthefollowingstaffing. PresidentandCEO MarketingandBusinessDevelopmentManager EconomicDevelopmentResearchCoordinator AdministrativeAssistant(parttime) Recommendation4:HireanExperiencedEconomicDevelopmentLeaderasCEO IEDCrecommendsthattheWorkingGroupconductanationwidesearchforaCertifiedEconomic 1 Developer(CEcD)withstrongmanagementandmarketingexperience.IEDCstronglyrecommendsthat thisindividualbeemployedatoraboutthesamelevelasthe-Òz·äxotherimportanteconomic developmentleaders,suchastheCityManager,theChamberPresidentandCEO,andtheExecutive DirectoroftheSalinaAirportAuthority. Recommendation5:ConsiderHiringaFundraisingConsultanttoEstablishtheNewEDO UndertakinganextendedfundraisingcampaignmaybedifficultfortheWorkingGrouptomanage. Therefore,IEDCrecommendsthattheWorkingGroupconsiderhiringanexperiencedeconomic developmentfundraisertoassistinsecuringenoughfundingtoensurethenew95hxoperationforat leastthreetofiveyears.Formoreinformationoncapablefirms,pleasevisitL95/xConsultantDatabase: . http://www.iedconline.org/consultantdatabase/ 1 Formoreinformation,pleasevisit:http://www.iedconline.org/webpages/professionaldevelopment/becomecertified/. 4 I.Introduction Inthespring2014,representativesofSalina,KansascontactedtheInternationalEconomicDevelopmentCouncil (IEDC)witharequestforinformationregardinghowtheircommunitycouldbestestablishaneweconomic developmentorganization.Afterseveralconferencecalls,IEDCwasformally-·©-·;7Þz·wjointfunding fromtheCityofSalina,theSalinaAirportAuthority,SalineCounty,andtheSalinaAreaChamberof/;©-; toassistlocalstakeholdersinevaluatingtheneedforvarioustypesofservicestobeofferedbyaneweconomic developmentorganization(EDO).ThecontractalsostipulatedthatIEDCwouldconductobjectiveinterviewswith localstakeholdersfromavarietyofbackgroundsbeforemakingrecommendationsastotheformationofanew EDO. L95/xmissionwastoundertakeanacceleratedstudythatincludedmeetingwithpublicandprivatesector officialsfromboththecityandcountytodiscusstheireconomicdevelopmenteffortsandkeychallengestothe -Òz·äxeconomy.Afterinitialbackgroundresearch,theprojectbeganinearnestonWednesday,July2, 2014whenIEDCproducedanddeliveredawebinarfortheSalinaWorkingGroup,whichhadbeenpreviously establishedtooverseethecontractualprocess.Thewebinar,whichwasopentomembersofthepublic,drew45 attendeesandfeaturedapresentationfromIEDCPresidentandCEOJeffreyFinkle,CEcD.Then,IEDC interviewed20stakeholdersviatelephoneandscheduledasitevisittoSalina,whichtookplaceTuesday,July23 throughThursday,July25,2014.Duringthisvisit,IEDCfacilitatedeightfocusgroupsessionswithstakeholders fromawidearrayofprofessionsandbackgrounds.Onthefinaldayofthesitevisit,IEDCpresentedits preliminaryfindingstothestakeholdersandcommunity. ThisreportpresentsL95/xcompletefindingsandrecommendationsregardingthebestorganizationalstructure andfundinglevelfor{zxnewEDO,aswellasanumberofgeneralstrategies,casestudies,andbest practices.IEDCissubmittingthisreportinthehopesthattheinformationitcontainswillbevaluabletoboth SalinaandSalineCountyandthatitwillbeusedtohelpestablishanewEDOthatwillprovideeconomic developmentserviceslongintothefuture. ProjectMissionandScopeofWork Forseveralyears,theCityof{z·m;·w;©withtheSalinaAirportAuthorityandSaline/Ò·ä-·©-·;7 theSalinaAreaChamberofCommercetoprovidearangeofeconomicdevelopmentservicesforthe community.TheCity,County,andAirportAuthorityeachenteredintoannualcontractswiththeChamberthat specifiedtheirrespectivescopesofworkandcompensationlevels.TheChamberprovidedtheseeconomic developmentserviceswithateamcomprisedofaDirectorofEconomicDevelopment,abusinessretentionand expansionspecialist,aworkforcespecialist,andthesupportofthe/w,;©xPresidentandCEO. 5 Inlate2013,however,theCityofSalinadecidedtowithdrawitssignificanteconomicdevelopmentfundingfrom theChamberasaresultofitsdissatisfactionwiththe/w,;©xperformanceonlocaleconomicdevelopment contractswiththeCity.Then,anEconomicDevelopmentWorkingGroupbegantoexplorealternativesolutions. Whenthe/w,;©xindividualcontractswiththeCity,County,andAirportAuthorityexpiredinDecember 2013,allpartiesagreedtoexplorethepossibilityofcreatinganeworganizationtoprovideeconomic developmentservicesforthecityinthefuture. Afterexploringavarietyofalternatives,theWorkingGroupcontractedIEDCtoprovideneutralfacilitation servicesbasedonL95/xlonghistoryofprovidingtechnicalassistance,thefactthatitisarecognizedsourceof professionaltrainingandcertificationofeconomicdevelopers,anditsknowledgeofbestpracticesandthelatest trendsinthefieldofeconomicdevelopment.ItisalsoworthnotingthatIEDCmanagestheAccreditedEconomic DevelopmentOrganization(AEDO)program,whichevaluates,certifies,andrecognizeshighperformingEDOs 2 acrossNorthAmerica. ProjectMethodology ThisprojectwasstructuredasanexpertadvisoryprocessalongthelinesofwhatIEDChaspreviouslyusedto delivertechnicalassistancetolocalcommunities.Preparationandbackgroundresearchforthisprojectinvolved gatheringandanalyzinginformationregardingtheeconomyofSalinaandSalineCountyinadditionto conductingstakeholderinterviews.Then,IEDCPresidentandCEOJeffFinkleandEconomicDevelopment AssociateTyeLibbyconductedasitevisittoSalinaduringwhichtheyfacilitatedstructureddiscussionswith stakeholdersrepresentingawidevarietyoforganizations.Presentedbelowisasummaryoftheprojectsteps. BackgroundresearchontheeconomyofSalinaandSalineCounty AnIEDCproducedanddelivered{L·©7Ò-·ztoEconomic5;Ý;¦;·|webinarpresentation customizedfortheclients Areviewofpreviouslycontractedeconomicdevelopmentservices Sitevisitpreparationanddevelopmentofaschedulewithlocalinput Telephoneinterviews Sitevisitwithindividualinterviews,facilitatedfocusgroups,andpublicinput Apresentationofinitialrecommendations Draftandfinalreports ThefindingspresentedinthisreportdrawonL95/xknowledgeofbestpractices,itsworkdevelopingand deliveringdozensofprofessionaltrainingcoursesannually,anditsfieldexperienceworkingwiththousandsof economicdevelopmentpractitioners. 2 Formoreinformation,pleasevisit:http://www.iedconline.org/AEDO. 6 RegionalEDOsandTheirRoles Inordertofullyunderstandthepotentialroleof{zxnewEDO,itisimportanttofirstknowwhich organizationsarecurrentlyprovidingsomeeconomicdevelopmentserviceswithintheCityofSalinaandSaline County.Thissectionprovidesabriefdescriptionoforganizationsinvolvedineconomicdevelopmentlocally. LocalandRegionalEconomicDevelopmentPartners CityofSalina TheCityofSalinaevaluatesalleconomicdevelopmentincentivesrequestsandmakesrecommendationstothe SEDICregardingincentivesauthorizations.Inaddition,theCityprovidesdetailedfinancialreviewsofprospect ¦©E©andactivelyparticipatesincommunityconversationsregardingeconomicdevelopment.TheCityalso createdtheLeeDistrictBusinessImprovementDistrictandisresponsibleforfundingtheentityandappointing itsboardmembers. SalinaAirportAuthority(SAA) Originallyformedin1965,theSalinaAirportAuthorityisresponsibleformanagingtheSalinaMunicipalAirport andtheSalinaAirportIndustrialCenter,whichishometomorethan80businesses.SAApartnerswiththeCity ofSalina,SalineCounty,andtheSalinaAreaChamberofCommerceinitsbusinessretention,expansion,and attractionefforts.TheSalinaMunicipalAirportistheonlycommercialserviceairportservingSalina/Saline Countyandthe22countyareathatcompromisesNorthCentralKansas.Theairportalsoservesasakeybusiness aviationandpilottrainingfacility.Formoreinformation,pleasevisit:http://www.salinaairport.com/. SalinaAreaChamberofCommerce Organizedin1911,theSalinaAreaChamberofCommerceisnonprofitorganizationwhosemissionistobuilda healthyeconomyandimprovethequalityoflifeinitscommunity.TheChamberdefinesitsprimaryroleasthat of{;-z-7;Ý;¦;··w;creationofnewjobsandpayrollsinthe-Òz·äu|The/w,;©x membershipiscomprisedofmorethan1,200firmsand1,450members.Formoreinformation,pleasevisit: http://www.salinakansas.org. SalinaEconomicDevelopmentIncentivesCouncil(SEDIC) TheSalinaEconomicDevelopmentIncentivesCouncil(SEDIC)consistsofsevenmemberswhomeetquarterly(or asneeded)toreviewguidelines,developpolicies,andmakerecommendationstotheCity,County,orotherlocal governmentbodiesregardingtheuseofpubliceconomicdevelopmentincentives.Theseincentivesarefunded viaaspecialquartercentsalestax.Formoreinformation,pleasevisit:http://www.salina ks.gov/content/14532/3348/default.aspx. KansasDepartmentofCommerceBusinessandCommunityDevelopmentDivision(BCDD) TheKansasDepartmentofCommercecombineditsBusinessDevelopmentandRuralDevelopmentdivisionsin March2012inordertocreatetheBusinessandCommunityDevelopmentDivision(BCDD).Thedivision{·©zÝ; 7 toimprovetheKansaseconomythroughthecreationandretentionofjobsandcapitalinvestment,aswellas improvingthequalityoflifeinKansas-Òz·z;u|BCDDoffersprogramsandservicesinthefollowing categories. BusinessandCommunityDevelopmentAssistance BusinessandCommunityFinanceandIncentives BusinessRecruitmentandRelocation ExportAssistanceandMarketing RuralOpportunityZones Formoreinformation,pleasevisit:http://www.kansascommerce.com/index.aspx?NID=90. SalinaDowntown,Inc.(SDI) Establishedasanonprofit;©-w·xassociationin1975,SalinaDowntown,Inc.(SDI)wasoneofthefirst businessimprovementdistrictsinKansas.SDIisa501(c)(6)nonprofitorganizationthatrepresentslocal businessesinanefforttoimprovedowntownSalina.SDIsupportssmallbusinessesthroughseveralincentives programs. FaçadeImprovementt©m©wzprogramfocusesonimprovingtheexteriorofexistingbuildings andconstructingnewcommercialbuildings. NewBusinessRecruitment[wzprogrampromotestherecruitmentofnewbusinesses,orthe relocationofexistingbusinesses,intodowntownSalinaviarevolvingloanfund(RLF).Theavailabilityof fundsvariesannuallybutapplicationsrequestingaminimumloanof$1,000andmaximumloanof $5,000areaccepted. ClusterMarketingD©·w;;smallgrants(minimum$250andmaximum$1,000)promotethe cooperativemarketingoftwoormoreLeeDistrictbusinesses. Projectht9bt©;-·OPENprovidesentrepreneurialeducationandbusinesssupporttoentrepreneurs whoalreadyownorwanttostartabusinessinSalineCounty.ProjectOPENincludesentrepreneur 3 trainingandbusinessdevelopmentservices. SDIalsomanagestheLeeDistrictDowntownBusinessImprovementDistrict(BID),whichwasestablishedbycity ordinanceintheearly1980stocollectannualassessmentrevenueforprogramsmanagedbySDI.TheBID currentlygeneratesabout$82,000inannualassessmentrevenue,whichisapproximately37%of{5Lxoperating 4 revenue. Formoreinformation,pleasevisit:http://www.salinadowntown.org/. 3 http://www.salinadowntown.org/#!incentives/c6ej 4 http://salinadowntown.com/wordpress/wpcontent/uploads/2011/01/BoardElection2012.pdf 8 NorthSalinaCommunityDevelopment(NSCD) EstablishedonOctober21,2010,NorthSalinaCommunityDevelopmentisanorganizationofcitizensand businessownersthataimtoenhancethenorthSalinacommunityandprovideanattractivelocationfor economicdevelopment.NSCD{E-Ò;ondevelopingpartnershipswithprivatedevelopers,businesses,state andfederalagencies,nonprofitandculturalorganizations,andneighborhoodm©Ò¦|inordertocarryoutits mission.Formoreinformation,pleasevisit:http://www.northsalina.org. NorthCentral(Kansas)RegionalPlanningCommission Since1972,theNorthCentralRegionalPlanningCommission(NCRPC)hasprovidedbasicplanningservicesto membercountiesandcitieswithina12countyregion.The©mzé·zxmissionis{·identifywhatgapsinthe region'shumanresourcebaseorcapitalinfrastructureendangerfuturebusinesssuccessorprivateinvestment; thento-©;·;7sometimesz¦;;·;·w7mz;thatfillthosegaps,therebyenhancingregional economicopportunityandcommunity7;Ý;¦;·u|Tothatend,NCRPCassistsprivatebusinessestoidentify marketpotentialandfinancialresources,inadditiontomaintainingitsownrevolvingloanfund.The organizationalsooffersaccesstotheU.S.SmallBusiness!7zz·©·zx(SBA)504and7(a)loanprograms.For . moreinformation,pleasevisit:http://www.ncrpc.org/services/business_fin_02sba_7a.html UtilityEconomicDevelopmentPartners WestarEnergy ThelargestelectricutilityinKansas,WestarEnergyservesnearly700,000residential,commercial,andindustrial customers.Inregardstoeconomicdevelopment,Westarworkswithlocalchambersofcommerce,state economicdevelopmentagencies,andotherstoprovidesiteselectionassistance,energystudies,andcost comparisons.ItshouldbenotedthatWestarrepresentativesalreadyhaveaworkingrelationshipwithmanyof {zxeconomicdevelopmentstakeholders.Formoreinformation,pleasevisit: http://www.westarenergy.com. KansasGasService KansasGasServiceisthelargestnaturalgasdistributioncompanyinKansas,operatingin82counties.Though establishedinitscurrentformin1997,thecompanyhasbeenknownbyvariousnamesoverits85yearhistory ofservingcustomersinKansas,westernMissouri,andnortheasternOklahoma.KansasGasServicehasanactive economicdevelopmentprogramthat{Þ©withlocalandstateeconomicdevelopmentofficialstobringnew businessesandjobstoKansasaswellashelpingestablishedKansasbusinessesgrownandexpand."Formore information,pleasevisit:http://www.kansasgasservice.com. 9 WorkforcePartners Eachofthefollowingeducationalinstitutionsplaysaroleinworkforcedevelopment,whichisakeyfactorin businessattraction,retention,andexpansion. KansasWesleyanUniversity KansasStateUniversitySalina SalinaAreaTechnicalCollege BrownMackieCollege UniversityofKansasSchoolofMedicineSalinaCampus ItshouldalsobenotedthattheSalinaAreaChamberofCommerceemploysastaffmemberwhoisinvolvedin localworkforcedevelopmentissues. 10 II.TypesofEconomicDevelopmentOrganizationsand Governance Economicdevelopmentorganizationscomeinmanyshapesandsizes.Inordertohelpdeterminewhichformof economicdevelopmentorganizationisbestsuitedto{zxneedsandobjectives,IEDCstudiedanarrayofthe mostcommonEDOstructuresutilizedtoday.Presentedbelowaresomeofthemostcommonstructures. TypesofPublicEconomicDevelopmentOrganizations Independentagencies o Regularlocalgovernmentdepartments o Partofoneormorelocaldepartments o Partofthelocalgovernmentmanagerorä©xoffice o TypesofPrivateEconomicDevelopmentOrganizations PurelyprivateEDOs(rare) o ChambersofCommerce o CommunityDevelopmentCorporations o PublicPrivatePartnerships Duringthe{L·©7Ò-·ztoEconomic5;Ý;¦;·|webinarpresentationandsitevisitmeetings,IEDC providedstakeholderswithinformationontheseEDOstructures.Subsequently,asIEDCconductedinterviews andfacilitatedfocusgroupdiscussions,itbecameclearthatamajorityofthoseprovidinginputwereproponents oforganizing{zxnewEDOasapublicprivatepartnership.Therefore,whentakingthissentimentinto consideration,alongwiththenew©mzé·zxfundraisingneeds,IEDCrecommendsthat{zxnew economicdevelopmentorganizationshouldbeincorporatedasapublicprivatepartnership. PublicPrivatePartnerships Theintentofformingapublicprivatepartnership(PPP),alsosometimescalledapublicprivateorganization (PPO),istosystematicallyandformallyjoinpublicandprivatesectorresourcesandpowersinformulating and/orimplementingeconomicdevelopmentpoliciesandprograms.PPPsaresuccessfulwhenlongterm commitmentsaresharedbetweenthelocalgovernment,businesses,andcommunityorganizationsofdifferent types.EconomicdevelopmentfocusedPPPsaredesignedtopursuecommongoalsrelatedtoa-Òz·äx businessenvironment. PPPsarebuiltonthepremiseoftheinclusionofthekeyelectedofficialsandbusinessleadersinacooperative efforttobuildthelocaleconomy.Dependingonthenatureoftheeconomicdevelopmentservicesprovided,and dependingonfundingsources,thecompositionofthe©mzé·zxboardofdirectorsmayofteninclude economicdevelopmentofficialsaswellas: 11 Electedofficialsorheadsofgovernmentfromthecityand/orcounty; Ownersorexecutivesofprominentlocalbusinesses; Banksorotherfinancialinstitutions; Realestatedevelopers; Businessservicefirms; Utilities; Portsauthorities; Industryassociations; Chambersofcommerce; Businessservicesfirmssuchasaccountingandlawfirms;and Publicorprivateuniversities,colleges,ortechnicalschools. PPPstypicallyhavegreaterflexibilitytoconducteconomicdevelopmentactivitiesthanpublicEDOsbecauseof theirmixedfundingsourcesandbecausetheleadershipoftheboardofdirectorsisnotsubjecttopublic elections.Suchorganizationsareusuallyestablishedasnonprofitcorporations(either501(c)(3),501(c)(4),or 501(c)(6).Fundingincludesbothprivateandpublicrevenuesandmayincorporatestateandfederalfundsin additiontolocalgovernmentfunding.Underidealcircumstances,PPPsarefunded50percentpubliclyand50 percentprivately.Becausetherecentrecessiongenerallycausedthecontractionofpublicbudgets,however,it isnotuncommontoseePPPfundingsplit6040percentbetweenprivateandpublicsources. EDOsstructuredasPPPsmaybeestablishedaspublicbenefitcorporationsorauthoritiescreatedbyalocal ordinanceorlegislativeact.Assuch,theyarenotpartofthestructureofgovernmentandhave,atleastin principle,somedegreeofautonomy.Thepublicprivatemixwithintheseorganizationsnormallyincludesboth boardrepresentationandfunding,butitmayalsobereflectedinthe©mzé·zxhierarchy,statedobjectives, orstaffing. Theseinstitutionsstraddletheboundarybetweenthepublicandprivaterealms,andtherearedistinctions betweeninstitutionsthattakeamoreprivateapproachandthosethattakeamorepublicapproach.For example,inamorepublicorientedorganization,theboardmaybecomposedofpublicandprivate representativesforanorganizationthatispubliclyfunded.Inamoreprivateorientedorganization,theboardof directorsmaybeallprivateforanorganizationthatisbothpubliclyandprivatelyfunded. Publicprivateorganizationsdifferbylocalitydependingonanumberofvariables,suchasthe: Uniqueeconomicchallenges,assets,andopportunitiesofthelocality; h©mzé·zxfunctions; Geographicscaleofitsoperations; Levelofpublicprivatecommitmenttoeconomicdevelopment; Representationofthepublicandprivatesectorsintheorganization; 12 h©mzé·zxfinancialresources;and h©mzé·zxdevelopmentpowersandlegalconstraints. Successfulpublicprivateeconomicdevelopmentorganizationsgenerallyhave: Aclearlydefinedmissionthataddressestheconcernsofboththepublicandprivatesectors; Consensusamongmembersregardinghowtoimplementtheirmission; Thecommitmentofboththepublicandprivatesectors,whichisreflectedbyanadequatelevelof fundingtoachievethe©mzé·zxgoals;and Avalidationsystemdesignedtomonitorperformanceobjectivesandmeasuresuccess,determineany necessaryprogrammodifications,andjustifycontinuedsupportandfunding. RoleofthePublicPrivateEconomicDevelopmentOrganization PublicprivateEDOstypicallyfulfillmultiplerolesbasedontheneedsoftheircommunitiesandtheleveloftheir funding.CommonrolesofsuchEDOsoperatinginNorthAmericaincludethefollowing. PolicyLeadershipandLiaison Theorganizationcanprovidebroadbasedleadershipincreatinginitiativesandprojectstofoster economicdevelopment.Whenfunctioninginthisrole,itmayalsotaketheleadasanadvocatefor economicdevelopment,communicatingtheneedforactioninanefforttobuildcitizensupport.Inthis role,the©mzé·zxeffortscanincludeoverallstrategydevelopment,advocacy,andfacilitationof discussionregardingimportanteconomicissues. InamuchlargercitythanSalina,forexample,theDetroitEconomicGrowthCorporation(DEGC)is contractedbytheCityofDetroitandtherebymanagesthe-z·äxeconomicdevelopmentefforts,which arefundedbyprivateandfoundationcontributions,grants,andcontracts.Theprofessionalswhowork forDEGCactasthestaffforanumberofpublicauthorities,andboardmembersareappointedbythe mayorandapprovedbyDetroitCityCouncil. StrategicPlanning Economicdevelopmentorganizationshelpdrivethecommunitytocreateacomprehensiveeconomic developmentstrategyorplan,whichisanimportantpartofthe95hxleadershipfunction.Thestrategic planningfunctionisvitaltoestablishingthevisionforeconomicdevelopmentandprovidingaroadmap forthewayforward.Thecontentsofsuchplansvary,buttheytypicallyincludeasnapshotofthe economyandadiscussionoftrends,adiscussionofstrengths,weaknesses,opportunities,andthreats (SWOTanalysis),ananalysisoftargetindustries,andstrategiestomakethemostofavailable opportunities.Effectivestrategicplansusuallyincludespecificimplementationplansthatoutlinevarious projectsandinitiatives,thenecessaryfunding,thetimeframerequired,andinformationonwhowillbe responsibleforvariousefforts. 13 BusinessAttraction/Recruiting Business··©-·zcalledbusiness7;Ý;¦;·ztheprimaryfocusofthemajorityofpublic privatepartnerships.However,therangeofassistancetheyprovidevariesm©;·äE©recruitmentto incentiveEÒ7zm7mayincludeadvertisingorotherservicesdesignedtopromotenewand expandingbusiness. SomeEDOsalsogatherandanalyzestatisticsfortheirjurisdictions,aservicethatisessentialtosite selectors.PPPscanprovideacentrallocationforsiteselectorstoaccessthisdata,whichshouldbe madeavailablethroughthe95hxwebsiteand/orcustomizedpresentationsthattheEDOpreparesfor thebusinessestheyaretryingtoattract. BusinessRetentionandExpansion Businessretentionactivitiesprimarilytrytopreventcompaniesfromrelocatingoutofthecommunityby diagnosingproblemsearlyandcreatingahealthybusinessenvironment.ThesecondfocusofBREisthe expansionandgrowthofthebusinesseswithinthecommunity.Creatingtools,policies,andincentives forthegrowthofbusinessesalreadylocatedinthecommunityisofparamountimportanceinattaining thisgoal.Creatingbusinesstobusinessnetworks,directories,andprogramstoenhancethelocal marketarenew,vigorousfocusesofEDOs,andtheycouplewellwiththeworkforcedevelopmentissues ofmanycommunities.NewelectronicsurveyingtoolsallowEDOstomorerapidlybecomeawareof{©;7 flagzÒ;|ormarketopportunitiesastheysurfaceduringtheBREsurveyprocess. AreaImprovement/Redevelopment Somepublicprivateorganizationstargettheireffortstoaparticulargeographicareaofacity,suchas thedowntownoraspecificneighborhood,inordertofosterredevelopmentactivities.Becauseofthe oftenpoorconditionofsuchtargetareas,theseorganizationstendtofocusonphysicaldevelopment butmayalsoactasabusinessrecruiter.Effortsusuallyincludemarketingtheirtargetarea,facilitating thepackagingofpublicandprivateresourcesinredevelopmentactivities,andinfrastructureand structuralimprovements. Forexample,theMilwaukeeEconomicDevelopmentCorporationworksincollaborationwiththeCityof MilwaukeeandtheRedevelopmentAuthorityoftheCityofMilwaukeetoassistthedevelopmentand environmentalremediationofcommercialandindustrialproperties.Anumberofresourcesare availabletoassistwithlocatingpropertiesandfinancing/fundingenvironmentalcleanup. 14 Incentivesand/orFinancingforNeworExpandingBusinesses Anumberofpublicprivatepartnershipsareformedtofacilitaterealestatedevelopmentandreuse 5 financing.Someofferarangeoffinancialandnonfinancialincentives.Inrecentyears,gapfinancing hasbecomesomewhatofanartformwherebyleveragingfederal,state,local,privateandothersources offinancehasbeenthekeytoclosingdeals.Forexample,WisconsinBusinessDevelopmentwas organizedtoassistsmallbusinessesingainingaccesstocapitalinordertogrowtheirbusinesses, providejobopportunities,andinspiretheircommunities. Aswithmostorganizations,the95hxmissioncan,andusuallydoes,changeovertime.Thiscanbedueto membershipchanges,politicalchanges,oreventssuchasthelossofamajoremployeroradeclining economy.Somerolesofpublicprivatepartnershipsarediscussedbelow. RolesofPublicPrivatePartnerships TherearetworolesthatthePPPEDOmayplay,andtheyareusuallyreflectedinthe©mzé·zxform. Normally,theorganizationisdevelopedasanimplementerofeconomicdevelopmentprojects.However, theorganizationcanalsobeutilizedasaplanning,technicaladvisory,policydevelopment,orinformation dispersalorganization,whichinturnleadstotheimplementationrole. PolicyPlanningOrganization Intheroleofapolicyplanningtool,theorganizationmayhelpsetlocaldevelopmentobjectivesand policies,suchasdowntownredevelopment,whichinturncoordinatespublicandprivateeffortstoimprove thecentralbusinessdistrict.Theorganizationmayfacilitatecommunicationbetweenpublicandprivate leaders,serveasasourceofprivatesectoradviceontechnicalaspectsofdevelopment,recommend specificactionstocopewitheconomicproblems,orsetgeneraldevelopmentpriorities. Thespecificfunctionsandrolesoftheorganizationinpolicydevelopmentandplanningmayinclude: Developingconsensusonproblemsandsolutions; Providingpolicyadvicetoelectedofficialsoreconomicdevelopmentrelatedadvicetootherlocal organizationsandinstitutions;and Providingrecommendationsontheimplementationofeconomicdevelopmentactivities. Ifstaffassistanceisavailable,theorganizationmayassumeamuchmoretechnicalrolethatmayinclude: Reviewingandevaluatinglocal,state,andfederallegislationfromthelocaleconomicperspective; Examiningother··;winnovativedevelopmentideasandrecommendinglocalactions; 5 L95/xEconomicDevelopmentResearchPartnersprogramhasproducedanumberofresearchreportsthatdiscuss currenttrendsandbestpracticesonthesetopics.Formoreinformation,pleasevisit:www.iedconline.org. 15 Planning,research,andanalysis; Analyzingfiscalimpactsandprovidingmarketstudiesandcostbenefitreviews; Maintainingandupdatingadatabasetoevaluatechangesinlocal,county,state,regional,and/or nationalconditions(e.g.,availablelandandbuildingsbytype,classification,zoning,leaseterms, etc.); Analyzingandevaluatingmanpowerdevelopmentincentives(e.g.,wagesubsidies,traininggrants, andtheresourcesofthe-z·äweducationalsystem); Analyzingandreviewingincentivemechanismstomaximizecapitalleverage(e.g.,taxabatements, grants,loans,etc.); Developingstrategiestoachievedevelopmentobjectives(e.g.,determineadescribablebusiness mix,newlocations,andrelocations); Analyzingpotentialbusinessdevelopmentproblemsandopportunities; Identifyingandadoptingeconomicgrowthindicators;and Developingcapacitytopresentpolicyorientedimpactanalysis. PPPEDOscanoffervaluableassistanceincreatingpublicdevelopmentpolicyandareagoodwaytodirectly involveprivatesectorleadersintheprocess.However,iftheorganizationisnotresponsiblefordirectly implementingtheprogramstheyrecommend,theremustbeaconnectionbetweenthe©mzé·zx recommendationsandthelocalmÝ;©;·xpolicysettingandprogramimplementation. ImplementationOrganizations PPPEDOsareusuallyquasipubliccorporationsbecausetheyarelegally,andusuallyphysically,outsideof localgovernment;yet,theyinvolvepublicfundingandtheymaytakeonsomerolestraditionallyreserved bythepublicsector.Theycanbeindependentprivatesectorcorporationsthatserveapublicpurposeand havebothpublicandprivatesectorrepresentativesontheirboardsofdirectors,ortheycanbeinstitutions thatareenabledbycity,state,orfederallegislationtousepublicpowersorspecialfinancingtools.The publicprivatemixwithintheseinstitutionsmayoccurinboardrepresentation,funding,objectives,and/or staff.Theirfinancingandimplementationfunctionsandrolescanincludefinancier,developer,and informationserviceprovider. PPPEDOStructureandGovernance Inmostinstances,thePPPEDOoperateslikeaforprofitorganization,butelectedofficialsareappointedtothe boardsothatthepublicsectorhasinputintotheorganization'soperations.Itmayalsoincludeelectedofficials intheboardcomposition.Often,publicmoneyisusedtoinitiallyfinancetheorganizationwhileprivatefunds areraised,andonceprivatefundingisestablished,thebudgetcontinuestoreflectthedualfundingsources. Someorganizationsreachapointwhenfundingisselfperpetuatingandnolongerrequirespublicfunding,but 16 thisisrarelythecase.Ifthisdoesoccur,theorganizationresemblessomethingclosertoaprivatecorporation withdifferingrulesofoperationandaccounting. MostPPPEDOsaregovernedbyamixed(publicprivate)boardofdirectorsthathiresanexecutivedirectoror president.Asstatedabove,theirboardsarecomposedofbusiness,labor,andcivicgrouprepresentativesaswell asexofficiomembersfromlocalgovernment.Theseboardsprovideausefulinstitutionalsettingforimproving coordinationbetweenpublicandprivatesectors,whileprovidingadditionalcapitalcommitmentsfromthelocal businesscommunityinadditiontopublicfunds,resultinginmorecapitalleverage.Boardmembersareusually selectedbasedontheirabilitytoinfluencetheallocationofresourcesorfortheirspecificexpertise. ThereareseveraladvantagestoPPPEDOshavingboardmembersfromthepublicandprivatesectors.Through theboardofdirectors,theEDOstaffhasdirectaccesstobothpublicandprivatetalentandresources. Executivesoffinancialinstitutionscanofferadviceonfinancingtoolsandparticipateinreviewingbusiness proposalsandloanpackages.Businessrepresentativescanadviseontheinvestmentclimateandprovide contactswithotherlocalandnationalbusinessexecutivestonewandexpandingbusinesses.Publicofficialscan assistwithdevelopmentproblemsthatmayariseinthelocalgovernmentreviewandapprovalprocessand assisttheEDOstaffinmeetingspecificclientneedsthroughtheuseofthe-z·äwstaff.Thus,theboardgives theEDOstaffadirectextensionofboththepublicandprivatesectorsandthey,inturn,assistineffortsto influenceprivatesectordevelopmentinthecommunity. PPPEDOsgenerallyhavethelegalpowersnormallyassociatedwithprivateenterprisesandgovernments,such asthepowertoenterintocontracts.However,theyaredependentonlocalgovernmentforcertainassistance. TheseincludesuchmattersasthepowertocondemnlandortoreceivefundingfromSpecialImprovement Districts,PILOTS,orTIFfundedprojects.Inaddition,localgovernmentsarethesourceofissuanceofcertain typesofbondstofundprojectsorassistbusinessdevelopment. MostPPPEDOsareestablishedasprivatenonprofitcorporations.Thismayallowthemtoconductactivities eitherprohibitedtolocalgovernmentundermoststateconstitutionsorwhichthelocalitywillnotnormally allowduetopublicpolicyorlocalregulations.Manyactivitiesarebuiltaroundtheabilitytousefundingfrom boththepublicandprivatesectors. PPPEDOsmayusecapitalrevolvingfundsmanagedundercontractbylocalgovernmentsandmaydisburse fundsasgrants,inadditiontoloansandinvestments.Insomeinstances,theorganizationmaymanagecapital portfoliosfinancedbylongtermgrantsfromlocalgovernments.Thesegrantscantaketheformofanannual contractbetweenthecityandtheEDO,whichmustberenewedannually,usuallyfollowingareviewofthe activitiesoftheyearandtheuseofthepublicfunding. 17 BoardofDirectors Mosteconomicdevelopmentorganizationsthatarenotinthepublicsectoraregovernedbyaboardof directors.Theboardofdirectorsiscomprisedofvolunteerswhoarelegallyandfinanciallyresponsibleforthe organizationbysettingpoliciesandapprovingbudgetsoftheorganization.Publiceconomicdevelopment organizationsdonothaveaboardofdirectors,butmanyofthestrategiesdiscussedinthischapterare applicabletoimprovinginteractionwiththeelectedofficialsthatsometimesperformananalogousroletothat ofacorporateboardmember. Theboardisusuallyasubsetofthe©mzé·zxmembershipandfrequentlyincludesrepresentativesfrom affiliateorganizations.Boardmembersaregenerallyelectedornominatedbyvirtueoftheirtitle,position,or politicalinfluenceandleadershipwithinthe95hxcommunity.Termsaredetailedinthebylaws,andthreeyears isthecommontermlength.FoundingPPPEDOmembersareoftenreelectedasboardmembersorremain directorswithnolimitontheirtermofoffice. RoleoftheBoard EDOsdependupontheirboardofdirectorsforcredibility,definitionoftheirmission,managementassistance, vision,andstabilityoffunding.Thepracticalmeansbywhichtheyaccomplishthisinclude: Financialoversight; Strategicplanning; Raisingfunds; Developingpolicy; Managingcommunityrelations; Monitoringandevaluating; Hiring/firingexecutivedirector/CEO; Developingtheboardofdirectors;and 6 Providingcounsel. Ideally,theEDOboardshouldbringtotheorganization: Knowledgeandexpertiseabouteconomicdevelopmentandthecorporateworld; Leadershipandmanagementtechniques; Accesstofinancialcapitalthroughlocal,regional,national,andinternationalnetworks;and Statusandpoliticalclout. 6 Hummel,JoanM.{·©·zm7wÒzmb¦©Ez·h©mzé·zr{;-797z·z,(Minneapolis,UniversityofMinnesotaPress,1996). 18 RoleofBoardOfficers Acombinationofstatelawandnecessitywillguidethestructureoftheofficersoftheboardofdirectors.This structuremustbereflectedintheprogram'sbylaws.TypicalrolesarePresidentoftheBoardofDirectors,Vice President,Treasurer,Secretary,andExecutiveDirector.Eachcarriesoutadistinctsetofroles.Belowisaquick listofsamplejobduties. ThePresidentoftheboardofdirectors: Coordinatestheboardofdirectorsandexecutivecommittee; Assuresorganizationalcompliancewithbylawsandpolicies; Createscommittees; Assignscommitteechairs; Setsmeetingagendaswithexecutivedirector; Coordinatesmeetings; Servesasprimarycontactbetweentheboardandthe©mzé·zxstaff; Isresponsibleforcommunityrelations; Reportstotheboardofdirectors; Trainsthenextpresident;and Participatesincommitteesasanexofficiomember. TheVicePresidentoftheboardofdirectors: Participatesasavotingmemberontheboardofdirectorsandexecutivecommittee; Mustbereadytoassumetheresponsibilitiesofthepresidentshouldthatbenecessary; Providessupporttothepresidentasrequested;and Participatesincommittees. TheSecretaryoftheboardofdirectors: Keepsalltheorganizationalrecordsrequiredbylaw,includingthoseofpoliciesandmeetings; Attendsallmeetingsoftheboardofdirectorsandexecutivecommittee; Approvesandsendstoboardmembersmeetingminutes(within30days); Periodicallypresentsbylawsandpoliciestotheboardofdirectorsforrevision;and Participatesasavotingmemberontheboardofdirectorsandexecutivecommittee. TheTreasureroftheboardofdirectors: Sharesmanagerialoversightoforganizationalfinances(fundsandaccounts)withtheexecutivedirector; Developsthe©mzé·zxannualbudgetwiththeexecutivedirectorandpresentsittotheboardof directors; Participatesasavotingmemberontheboardofdirectorsandexecutivecommittee;and 19 Chairsthefinancecommittee. RecruitingBoardMembers Typically,oneormoremembersoftheboardpersonallyknowthepeopletheywouldliketorecruitas prospectiveboardmembers.Thus,inquiringabouttheirwillingnesstoservecanbedoneinformally.Theinitial discussionisnonethelessimportant.Itisimportanttoplanenoughtimeatthefirstmeetingtodiscussthe criteriaforchoosingthemformembership,theircontributionsinskillsandcounsel,thetimecommitment involved,thetenureofmembers,andthecommitteeswithwhichtheymaybecomeinvolved.Atthistime,any possibleconflictsofinterestshouldbediscussed.LE-·rL95/wzmwä©;-;7·w·;Þ95h,©7 ;,;©··;7Ò©E©;;9·wz-©w¦Þ;,z©©··;7zÝ;9·wz-©w¦·;EL95/xEÒ©ä;©ä -E;©;-;uwzÞzw;¦;Ò©;·w··w;,©7Þ·w;z©,Ò7©z;¦©z©·,;mzzm·w;z©7Ò·z;u Membersareselectedbyelection,specialdesignation,orappointment.Beingelectedmeansthatthe nominationcommitteehasputforththenameformembershipandtheboardofdirectorshasvotedforthe z7zÝz7Òxmembership.Specificdesignationdependsonthenumberofpositionsallotted,typicallyfoundin the©mzé·zxbylaws,toaparticularofficeinthecommunity.Theofficeholderfillsthismembership, withoutconsiderationtotheindividual.Directappointmentscomefromaquotaofmembershipassignedto individualsororganizations,whicharetobefilledattheirdiscretion. BoardSizeandComposition Thesizeanddiversityoftheboardshouldcorrespondwiththescopeoftheprogramsoftheorganizationand representstakeholderconstituencies.Otherconsiderationsincluderegionalorracialrepresentation.Thereisa tradeoffbetweenthenumberofmembersandtheirabilitytobefocused,achieveaconsensus,oractdecisively andeffectively.Iftheboardbecomesoverlylargeandunwieldy,anexecutivecommitteeorothercommittees couldhelpfacilitatework.Conversely,ifasmallboardunderrepresentsrelevantconstituencies,itmaynotbe abletoeffectivelyachievebuyinofanadequatelylargeproportionofitscommunity. Boardcompositionisaffectedbydifferentfactors: Expertise(fundraising,strategicplanning,finance,research); Linktoconstituencies; Communityleadership;and 7 Commonvalues. RightsandPowersofBoardMembers Therightsandpowersofmembersoftheboardofdirectorsaredictatedbythebylawsofanorganization.The majordistinctionsbetweenmembersoriginatefromvotingrightsandofficesintheboardofdirectors. 7 Ibid. 20 Thosememberswhoareabletoparticipateontheboardofdirectorswithouttherighttovotearecalledex officiomembers.Thisdesignationisusedwhenthememberhassomethingtocontributetotheboardof directors,butalsowhenitisbeneficialtowithholdtheirpowertovote. Forinstance,thePresident/CEOisoftendesignatedasanexofficiomemberbecausehe/sheisresponsiblefor directingthedecisionmakingprocess.Atthesametime,he/shemustalsorespondtotheauthorityoftheboard ofdirectorsasanemployee.Often,publicofficialswillalsohaveexofficiostatus,astheirparticipationisvalued, butorganizationswanttosafeguardtheirautonomyfromgovernmentcontrol.Cautionshouldbetakenwhen assigningexofficiostatustomembers,particularlythosewhomayprogressivelyassumemoreofanincreased roleintheinitiativesoftheorganization,asthisstatusmayrestricttheirfullparticipationtothedetrimentof theorganization. PresidentandCEO ThePresidentandCEOoftenservesontheboardofdirectorsasanexofficiomemberandactsasalink betweentheboardandthestaffoftheorganization.He/shemaybeavotingornonvotingmemberoftheboard andisresponsibleforthefollowingfunctions: Coordinatingstrategicplanningfortheorganization; Reviewingwiththeboardofdirectorstheorganizationalpoliciesandprograms; Providinginformationandadvicetotheboardanditscommittees; Identifyingprospectivesourcesoffunding;and Actingasanintermediarybetweencommitteechairsandtheboard. 21 III.Funding&CaseStudies Funding OneofthemostcriticalaspectstoestablishinganewPPPEDOistodeterminethesourcesofitsfundingandto createabudgetthatwillprovidearealisticandsustainablemeansofachievingitsgoals.Thesevitalstepswill formthefoundationofthemanyadditionaldecisionsthatmustbemade,including: 1)Identifyingpossiblesourcesoffundingfrompartnersinboththepublicandprivatesector.Inrecent years,fundingfor{zxeconomicdevelopmenteffortshascomefromtheCityofSalina,Saline County,theSalinaAirportAuthority,andtheSalinaAreaChamberofCommerce.Eachcontributedto theeconomicdevelopmentbudgettovaryingdegreesbasedontheirindividualgoalsandbudget constraints. 2)Developingaprioritizedscopeofservicesthatcanbeachievedbasedontheanticipatedfunding.As discussedinChapterII,thereareavarietyofservicesthataretypicallyperformedbyEDOs,whichare usuallybasedontheÒ©z7z-·zxneedsandprioritiesaswellasfundinglimitations.Inthiscase,ithas beendeterminedthatthemajorityofstakeholderswouldlikethenewEDOtofocusitsattentionon attractingbusinessestotheCityandCounty. Thesestepshavebeendiscussedintheprecedingchapter.TheyformthefoundationforthetypeofEDOthat willbeestablishedinthisjurisdictionandwhatservicesitcanperform. WhatisanappropriateleveloffundingforthenewEDO?Forbenchmarkingpurposes,itisimportanttofirst reviewtheleveloffundingthathasbeenutilizedforeconomicdevelopmentactivitiesundertheSalinaChamber ofCommerceinrecentyears.ThesecondstepwillbetocomparethistotaltothebudgetsofEDOsfrom similarlysizedcommunities. SalinaAreaChamberof/;©-;xBudgetforEconomicDevelopmentServices TheSalinaAreaChamberof/;©-;xfiscalyear(FY)followsthestandardcalendarandrunsfromJanuary1 toDecember31.TheChamberprovidedafinancialstatementtoIEDCrelatingtoitseconomicdevelopment activitiesinFY2013thatshowsthesourcesoffundingandexpensesofvarioustypes.BelowisaFY2013balance sheetthatsummarizesthe/w,;©xeconomicdevelopmentrelatedactivities.b·;twz,-;w;;·7; ·z-Ò7;;,;©wz¦©;·;7©;Ý;Ò;7-·zÝz·z;rÞwz-w©;--Ò·;7E©;¦©·;äu 22 SalinaChamberof/;©-;9-z-DevelopmentDivision 2013StatementofActivities RevenueSource CityofSalina$175,100 PrivateSectorFunds 85,000 SalineCounty 30,633 ContractedServices 15,300 SalinaAirportAuthority 15,000 EntrepreneurialDevelopment 6,500 MilitaryAffairs 5,000 TotalIncome$332,533 ExpenseCategory StaffExpenses$339,678 NewBusinessAttraction 63,500 Admin.&GeneralExpenses 26,211 Building&Utilities 23,444 WorkforceDevelopment 9,450 AirServiceDevelopment 9,000 BusinessRetention&Expansion 6,750 CommercialDevelopment 500 TotalExpenses$478,533 BudgetShortfall$146,000 The/w,;©xeconomicdevelopmentexpensesexceededtotalrevenuesinFY2013.Therefore,theChamber compensatedforthisdifferencebycontributingfundsfromotherportionsofitsoverallbudget.Inthepiechart below,theIEDCconsidersthissumasa{/w,;©{Ò,z7äu|Whencombinedwith{·L-;|above,the /w,;©xtotaleconomicdevelopmentbudgetforFY2013was$478,533. KeyPoint TheSalinaAreaChamberofCommercespent$478,533oneconomicdevelopmentactivitiesin2013. 23 FundingSourcesforEconomicDevelopmentActivitiesofthe SalinaChamberofCommerce ChamberSubsidy 1% 3%1% 3% 6% CityofSalina 31% Econ.Dev.PrivateFund 18% Drive SalineCounty 37% ContractedServices SalinaAirportAuthority ComparableBudgetsfromOtherJurisdictions WhenassessingpossiblefundinglevelsforthenewEDO,itishelpfultocomparethebudgetsofotherEDOsin similarlysizedcommunities.IEDCidentifiedseveraljurisdictionsandsolicitedinformationontheirbudgetsand structurestoprovideasexamplesinthisstudy.Thefollowingisinformationonfiveorganizations,whichhave 8 beenidentifiedashighperformingEDOs. GreaterConroeEconomicDevelopmentCouncil(Conroe,Texas) GreatFallsDevelopmentAuthority(GreatFalls,Montana) TinleyParkEconomicDevelopmentDepartment(TinleyPark,Illinois) PoncaCityDevelopmentAuthority(PoncaCity,Oklahoma) HotSpringsMetroPartnership(HotSprings,Arkansas) 1.GreaterConroeEconomicDevelopmentCouncil Located40milesnorthofHouston,thecityofConroe,Texasishometoapproximately56,530residents.The GreaterConroeEconomicDevelopmentCouncil(theGCEDC)isresponsibleforeconomicdevelopmentin theareaanditsmissionis,{enhancethestrengthandstabilityofthegreaterConroeeconomythrough 8 FourofthesefiveorganizationshaveearnedaccreditationthroughL95/xAccreditedEconomicDevelopmentOrganization (AEDO)program.AspartoftheAEDOaccreditationprocess,organizationsreceiveathorough,peerreviewed organizationalassessmentthatisunmatched.Internalandexternaloperationsareexamined,structuresandprocedures areevaluated,andtheapplicantisassessedandmentoredbyeconomicdeveloperswhothemselvesworkinthefrontlines ofeconomicdevelopment.TheAEDOdesignationrecognizestheprofessionalexcellenceoforganizationsinthefield,and AEDOstatusdemonstratesthatanorganizationisaleadingauthorityoneconomicdevelopmentrelatedissues.Formore information,pleasevisit:www.iedconline.org/AEDO. 24 thesupportofexistingindustryandtheattractionofmanufacturingandservicesectorbusiness(basic industries)thatbringnewcapitalandemploymentopportunitiesintothe-Òz·äu| TheGCEDCistheeconomicdevelopmentdivisionoftheGreaterConroe/LakeConroeChamberof Commerce,whichoperatesunderathreeyearagreementwiththeConroeIndustrialDevelopment Corporation.Undertheagreement,theGCEDCactsasthe©;mzxbusinessexpansion,recruitment,and attractionarm.Itsprimaryactivityisthepromotionanddevelopmentofnewandexpandedbusiness enterprises.Inaddition,itsupportsworkforceandentrepreneurshipinitiatives,providescapitaland incentivesforbusinessdevelopment,andoverseesconstructioninits1,045acreindustrialpark. TheD95/xExecutiveDirectorreportstoa16memberboardofdirectorsthatincludesrepresentativesfrom thelocalgovernment,theChamberofCommerce,andthelocalbusinesscommunity.Theorganizationisa PPPwithastaffoffiveemployees.ItsoperatingbudgetforFY2012was$613,384,nearlyallofwhichwas fundedbyaonehalfcentsalestax. Summary GreaterConroeEconomicDevelopmentCouncil Location:Conroe,Texas PopulationServed:56,530 OrganizationType:PublicPrivatePartnership StaffSize:5 PrimaryStaffPositionsInclude:Director;DeputyDirector;AssociateDirector;ResearchAnalyst/Retail Specialist OperatingBudget:$613,384(FY2012) MajorExpenses: SalariesandBenefits:$520,265(85%) TravelandTraining:$91,755(15%) 2.GreatFallsDevelopmentAuthority TheGreatFallsDevelopmentAuthority(GFDA)isa501(c)(3)PPPlocatedinGreatFalls,Montana.Thecityis hometoapproximately58,893residents.DC5!xmissionis,{leadGreatFallseconomicdevelopment effortstopromotegrowth,diversification,andthecreationofhighwage,u|Itprovidesanumberof economicdevelopmentservices,including:existingbusinessretentionandexpansion,marketingand attractionofnewbusinesses,lending,brownfieldscleanup,andindustrialparkmanagement. GFDAemployseightstaffmembers,anditsoperatingbudgetforFY2011was$1,163,815.Itderives significantrevenues(35%)fromvarioustypesoflending,includingSmallBusinessAdministration(SBA)504 25 andrevolvingloanfunds.Approximately26%ofthe©mzé·zxbudgetcomesfromprivateinvestments, while13%comesfrompublicinvestments.Another10%ofthebudgetcomesfromanSBAgrant. TheGFDAPresidentandCEOreportstoa36memberboardofdirectors.Nineofthesemembersare appointedbypublicpartnerswhoarereviewedandreappointedannually;and,theDC5!xprivateinvestors electtheremainingboardmemberstoservethreeyearterms. Summary GreatFallsDevelopmentAuthority Location:GreatFalls,Montana PopulationServed:58,893 OrganizationType:PublicPrivatePartnership StaffSize:8 PrimaryStaffPositionsInclude:President&CEO;VPofBusinessStrategy;VPofMarketing;VPof Development;LendingOfficer;BusinessStrategist;ProjectManager OperatingBudget:$1,163,815(FY2011) MajorExpenses: SalariesandBenefits:$739,799(64%) GeneralOperations:$216,516(19%) TargetedMarketing:$129,000(11%) 3.TinleyParkEconomicDevelopmentDepartmen t TheVillageofTinleyParkislocatedapproximately30milessouthofdowntownChicagoandishometo 57,144residents.The-z·äxeconomicdevelopmentfunctioniscarriedoutbytheTinleyParkEconomic DevelopmentDepartment(EDD),whichisaunitoftheVillagegovernment.The955xmissionis,{ promoteacompetitiveeconomicenvironmentandbusinessclimatefortheattractionandretentionof industrial,commercial,andretailbusinessesinthe-Òz·äu|Inaddition,itisresponsibleformarketing thevillage,improvingitsaestheticappearance,andadvancingsounddevelopmentstandardswithinits borders. The955xDirectorofEconomicDevelopmentreportstothe15memberEconomicandCommercial Commission,whosemembersareresponsiblefor{¦©·zmandrecommendingeffectiveprogramsin economicdevelopmentfinance,marketing,businessretention,andrealestateãzzé·zu| TheEDDhasathreepersonstaff.Twoworkfulltimeandoneworksparttime.ItsFY2012operatingbudget was$296,000.Itshouldbenotedthatallofthe955xoverhead,equipment,andmajorofficeexpensesare providedfor,andsharedwith,theVillagegovernment.Iftheseexpensesweretobeincludedinthebudget, itcouldbeconservativelyestimatedthattheywouldtotalatleast$60,000annually. 26 Summary TinleyParkEconomicDevelopmentDepartment Location:TinleyPark,Illinois PopulationServed:57,144 OrganizationType:CityGovernment StaffSize:2.5 PrimaryStaffPositionsInclude:Director;EconomicDevelopment/BusinessRetentionSpecialist OperatingBudget$296,900(FY2012) MajorExpenses: SalariesandBenefits:$216,402(73%) Marketing:$4,421(1%) Programs:$8,872(3%) 4.PoncaCityDevelopmentAuthority ThePoncaCityDevelopmentAuthority(PCDA)servesPoncaCity,Oklahoma,whichhasapopulationof 24,974.The©mzé·zxmissionis,{facilitatejobgrowthinwealthproducingindustriesinPoncaCity, hwu|ThePCDAcarriesoutnumerouseconomicdevelopmentactivities,including:businessretention, expansion,andattraction;infrastructuredevelopment;marketing;andworkforcedevelopment. TheorganizationisgovernedbyasevenmemberboardoftrusteeswhoareappointedbythePoncaCity Commissionand{-·independentlywiththeAuthoritytoassignandotherwiseexpendthepublicand privatefundscontrolledbyt/5!u| Thet/5!xsixemployeesworkinanofficeleasedfromthePoncaCityChamberofCommerce.The organizationisacomponentunitofthe/z·äxgovernment,andtheorganizationisfundedbyahalfcent salestaxmeasure,whichwasoriginallyapprovedbyPoncaCityvotersin1994andhasbeenreapproved multipletimessince.Thet/5!xFY2013operationbudgetwas$958,152. 27 Summary PoncaCityDevelopmentAuthority Location:PoncaCity,Oklahoma PopulationServed:24,974 OrganizationType:Public StaffSize:6 PrimaryStaffPositionsInclude:ExecutiveDirector;DirectorofBusinessRetention&Expansion;Data Master;DirectorofPublicAffairs OperatingBudget:$958,152(FY2013) MajorExpenses: AdministrationandSalaries:$728,452(76%) Marketing:$94,000(10%) NewIndustryDevelopment:$90,500(9%) Bus.Retention&Expansion:$68,000(7%) 5.HotSpringsMetroPartnership TheHotSpringsMetroPartnership(thePartnership)isa501(c)(6)publicprivatepartnershipthatservesthe 35,478residentsofHotSprings,Arkansas.AsistercorporationtotheGreaterHotSpringsChamberof Commerce,thePartnershipistaskedwithbusinessretention,expansion,marketing,andattractionofnew businessestothejurisdiction. Thet©·;©wz¦xPresidentandCEOreportstoa27memberboardofdirectorsthatincludes representativesfromboththestateandlocalgovernmentandtheprivatesector.Theorganizationhasa staffofsevenemployees,operatingwithaFY2014budgetofapproximately$503,686. Summary HotSpringsMetroPartnership Location:HotSprings,Arkansas PopulationServed:35,478 OrganizationType:PublicPrivatePartnership StaffSize:7 PrimaryStaffPositionsInclude:President&CEO;EconomicDevelopmentManager;DirectorofFinanceand Operations;DowntownDevelopmentDirector OperatingBudget:$503,686(FY2014) MajorExpenses: ChamberContractFee:$136,132(27%) Travel/Marketing/Branding:$6,052(1%) Advertising:$4,271(1%) 28 SummaryofFindings Tohelpaccountforoutliers,theIEDCremovedboththehighestbudget(GreatFallsDevelopment!Ò·w©z·äx $1.1million)andthelowestbudget(TinleyPark955x$296,900)fromconsiderationbeforeaveragingthe budgetsoftheotherthreeEDOs.Theresultingtotalof$691,740reflectswhatIEDCbelievestobean appropriatefundinglevelforaneconomicdevelopmentorganizationservingacommunityof{zxsize. KeyPoint HighperformingEDOsservingcommunitiesofasimilarsizetoSalinahaveanaverageannualoperating budgetof$691,740. 29 IV.Recommendations InMay2014,IEDCwascontractedtoassistSalina,KansasandSalineCounty{Þz·wstrategicplanning,facilitation, research,andrecommendationstostandupaneweconomicdevelopment©mzé·z|inthecommunity. Priortothisengagement,agroupoflocaleconomicdevelopmentstakeholdershadformedtheEconomic DevelopmentWorkingGroupanddecidedtoexplorethepossibilityofcreatinganeweconomicdevelopment organization. IEDCbeganitsworkbyanalyzingboththerecentandhistoricaldetailsofthisarrangement,conducting backgroundresearchonthelocaleconomy,andinterviewingvariouscommunitystakeholders.Atthesame time,theIEDCofferedtomakeaprevisitpresentationthatwouldprovideboth{zxeconomicdevelopment WorkingGroupandtheSalinacommunityatlargewithamorethoroughunderstandingofwhateconomic developmentmeanstoday.ThepresentationalsodiscussedcurrentformsofEDOsandtheirvariousmissions, responsibilities,andfundingmechanisms.BasedonwhatIEDClearnedthroughoutthisstudy,andwithstrong considerationgiventotheinputofthecommunitystakeholderswhoparticipatedinthiseffort,IEDChereby submitsthefollowingkeyrecommendations. Recommendation1:EstablishmentofaPublicPrivatePartnershipEDO OnJuly2,2014,IEDCPresidentandCEOJeffFinkledeliveredawebinarpresentationentitled{L·©7Ò-·zto Economic5;Ý;¦;·|thatwasviewedlivebylocalcitizenswhohadconvenedintheFitzpatrickAuditorium onthecampusofKansasWesleyanUniversity.Thepresentationcoveredmanybasiceconomicdevelopment topics,oneofwhichwaspossiblestructuresfor{zxproposednewEDO. Thepresentationincludedinformationonpublicprivatepartnershipsasoneofthecommonfundingand organizationalstructuresforEDOs.Later,afterIEDChadconductedinterviewswithlocalstakeholders,it becameclearthatamajorityofpeopleweremostinterestedinstructuring{zxproposednewEDOasaPPP. ThisperceptionwasconfirmedwhenIEDCvisitedSalinaandconductedfocusgroups.Theprimaryadvantages fortheformalestablishmentofanewPPPareto: 1)Provideafreshstart; 2)Providegreaterpotentialforparticipation,whichwillbeinclusiveofvaryingperspectivesfromlocal government,businesses,educationalinstitutions,andnonprofitcommunityorganizations; 3)Focusandprofessionalizeeconomicdevelopmentservicesunderanorganizationthatissolelydedicated tocertainfunctions;and 4)Establishlongtermfundingsourcesforeconomicdevelopmentservicesthatwillinturnprovidefor growthandjobopportunitiesforlocalcitizens. 30 Recommendation2:ServicesthattheNewPPPwillProvide OncetherewasaconsensusregardinghowthenewEDOwouldbestructured,thediscussionturnedtothe exactnatureofthenew95hxmissionandobjectives.DuringthesitevisittoSalina,IEDClearnedofthe /w,;©xintentiontocontinuewithmanyoftheeconomicdevelopmentfunctionsithadbeenpreviously carryingout,includingbusinessretentionandexpansion,retailrecruitment,andairserviceexpansion.No stakeholdersopenlyobjectedtothe/w,;©xposition.Infact,moststakeholdershadexpressedsatisfaction withthe/w,;©xexistingbusinessretentionandexpansioneffortsandagreedthattheChamberhad effectivelyrecruitednewretailbusinessestoSalina.However,whenexpressedasaconcern,the-Òz·äx primaryissueseemedtobewiththe/w,;©xperceivedinabilitytoattractlargeemployersofferingquality highwagejobs. IEDCrecommendsthatresponsibilityforeconomicdevelopmentmarketingandattractionbetransferredfrom theChamberto{zxnewPPPEDO.AfterdetaileddiscussionswithIEDC,thefourprimarySalinastakeholders (theCity,theCounty,theSalinaAirportAuthority,andtheChamber)agreedthatsuchanarrangementwouldbe acceptabletoallparties. ThenewPPPshouldprovideafullsuiteofbusinessattractionrelatedservices,including: Customizedsitelocationandselection; Marketintelligenceandresearch,includingworkforceanalysisanddemographics; Assistanceidentifyingsourcesofcapitalandfinancing(incentives,taxcredits,workforcetrainingfunds); Accesstosupplychains; Marketing(includingdevelopingandexecutingamarketingplanandattendingtradeandnetworking events);and Assistancewithtrade/exporting. IEDCalsorecommendsthatthenewEDOtakeontheroleofaneconomicdevelopmentcommunicationsliaison withregionalandstateEDOs.AccordingtorepresentativesoftheStateofYxDepartmentofCommerce andvariousotherorganizationsthatIEDCinterviewed,therecurrentlyexistsonlyalimitedamountofregional economicdevelopmentcollaboration.TheCityofSalinaandSalineCountyarelocatedgeographicallybetween twolargerregionsand,assuch,donothaveastrongpresenceorvoicewitheconomicdevelopment professionalsineitherregion.Byservingasthecommunicationslink,thenewEDOcanbettersupportits communitybylearningof,andparticipatingin,regionaleconomicdevelopmentinitiatives.Theorganizationwill naturallybecomeattunedtohowothercommunitiesaremarketingthemselvesandwillbecomemoreawareof visitingsiteselectorsandcorporatelocationrepresentativeswhomaybeconsideringtheregion.Overtime,and withproperleadershipfromthenew95hxPresidentandCEO,Salinawillbeginplayingamoreimportantrolein regionaleconomicdevelopmenteffortsasaresultofestablishingthisliaisonfunction. 31 AnothervitallyimportantfunctionofthenewEDOshouldbetoserveintheprojectmanagementrolefor strategiceconomicdevelopmentplanningandexecution.Todoso,theneworganizationmustalsobeableto provideuptodatestatisticsandcurrentknowledgeofeconomicdevelopmenttrends. Recommendation3:EstablishandFundaRealisticBudget IEDCaskedtheChambertoestimatetheannualbudgetitwouldrequireforallofitseconomicdevelopment initiatives(notincludingbusinessattraction),andtheChamberrespondedwitharoughestimateof$300,000.In ordertocontinuefundingtheseeconomicdevelopmentefforts,theChamberwillundertakeafundraising campaignaimedatincreasingthe$85,000inprivatefundsthatitgatheredinFY2013.Theseprivatemonieswill helpoffsettheanticipatedlossinCityfundingthatwilllikelyberedirectedtothenewPPP.Aquestionremains astowhethertheCitywilleliminateallofitsfundingtotheChamberorprovidefundsforretailrecruitment, businessretention,andbusinessexpansion. IEDCrecommendsthat{zxnewPPPhaveabudgetofnolessthan$400,000peryearwithathreetofive yearfundingcommitmentinordertoprovideorganizationalstabilityandarealisticopportunityforsuccess.Our analysisofhighperformingEDOsshowsthisamounttobelessthanthefundinglevelforEDOsserving communitiesthatareapproximatelythesamesizeastheCityofSalinaandSalineCounty,whichwasslightlyless than$700,000annually.Yet,whenthisnewattractionfocused95hxbudgetiscombinedwiththe/w,;©x $300,000economicdevelopmentbudget,thetwoequaltheaverageoftheotherbenchmarkcommunities. Ideally,donatedofficespaceshouldbesecuredforthenewEDO,whichwouldsubstantiallyreduceoperational costs.IEDCisawarethattheSalinaAreaChamberofCommercehasofferedsuchspaceinitsbuilding,which wouldalsoallowforthepotentialsharingofcertainofficeequipment. Thefundinglevelof$400,000shouldallowforthefollowingstaffing. President&CEO.ThePresident&CEOisafulltimeemployeewhoisresponsibleforimplementingthe ©mzé·zxstrategicplanandmarketingplan,managingstaff,andstrengtheningrelationshipswithinvestors, partners,andstakeholders.Inaddition,thePresidentandCEOisresponsibleforoperationalandfiscal management.ThePresidentandCEOreportstotheChairmanoftheBoardandthe©mzé·zxExecutive Committee. MarketingandBusinessDevelopmentManager.TheMarketingandBusinessDevelopmentManagerisafull timeemployeewhoisresponsibleforprovidingexpertadvice,support,andplanningfordevelopingand administeringthe95hxmarketinginitiatives,programs,andprojects.Primaryresponsibilitiesinclude: Attractingdomesticandinternationalbusiness; Directingadvertisingandmarketingactivitiessuchasbranding,strategicresearch,writing,presenting, creativedevelopmentandproductionofadvertisingandplacement;and 32 Developing,negotiating,andimplementingpromotionsandsponsorshipsforintegratedregional advertisingcampaigns. TheMarketingandBusinessDevelopmentManagerreportstothePresidentandCEO. EconomicDevelopmentResearchCoordinator.TheEconomicDevelopmentResearchCoordinatorisafulltime employeewhoisresponsibleforassistingintherecruitmentofnewbusinessandindustrybycompiling, organizing,andmaintainingavarietyofdataregardingSalinaandSalineCounty.TheEconomicDevelopment ResearchCoordinatorwillusethisdatatoprovidewrittencontentformarketingpublications,responsesto potentialrecruitmentopportunities,andrequestsforproposals.Inaddition,theResearchCoordinatorwill preparecustomizedpresentationsforsiteselectorsandmanagethe-Òz·äxdatabaseofavailable buildingsandsites.TheEconomicDevelopmentResearchCoordinatorreportstothePresidentandCEO. AdministrativeAssistant.TheAdministrativeAssistantiseitherafulltimeorparttimeemployeewhois responsibleforcarryingoutmultipleadministrativedutiesinsupportofthePresident&CEOandtheEDOin general.TheAdministrativeAssistantwillrelievethePresident&CEO(andotherparties)ofclerical,technical,or administrativedutiesasnecessary.TheAdministrativeAssistantwillalsofrequentlyserveasaliaisonbetween thePresident&CEOandthe95hxboardofdirectors,thepublic,andotherentities.TheAdministrative Assistantmayberequiredtoconductindependentresearchandanalysisconcerningadministrativeassignments andwilloftenexerciseindependentjudgmentandinitiative.TheAdministrativeAssistantreportstothe President&CEO. Recommendation4:HireanExperiencedEconomicDevelopmentLeaderasCEO Notwithstandingtheleadershipthatwillbeprovidedbythenewboardofdirectors,effectivelyestablishinga neweconomicdevelopmentoperationwillrequireanindividualwithconfidence,knowledge,andexperience. 9 IEDCrecommendsthatanationwidesearchbeconductedforaCertifiedEconomicDeveloper(CEcD)with strongmanagementandmarketingexperience.IEDCstronglyrecommendsthatthisindividualbeemployedat oraboutthesamelevelasthe-Òz·äxotherimportanteconomicdevelopmentleaders,suchastheCity Manager,theChamberPresident,andtheExecutiveDirectoroftheSalinaAirportAuthority. Recommendation5:ConsiderHiringaFundraisingConsultanttoEstablishtheNewEDO IEDCrecognizesthattheWorkingGrouphasprovidedadhocleadershipforthisprojectandthatitmaybe taskedwithanumberofactivitiesrelatedtoestablishingthenewEDO.However,itisevidentthatthem©Ò¦x membersarecomprisedentirelyofindividualswithfulltimejobsand/orimportantandtimeconsumingrolesto playinthecommunity.Forthisreason,undertakinganextendedfundraisingcampaignmaybedifficultforthe WorkingGrouptomanage.Therefore,IEDCrecommendsthattheWorkingGroupconsiderhiringan experiencedeconomicdevelopmentfundraisertoassistinsecuringadequatefundingtoensurethenew95hx 9 Formoreinformation,pleasevisit:http://www.iedconline.org/webpages/professionaldevelopment/becomecertified/. 33 operationforatleastthreetofiveyears.Formoreinformationoncapablefirms,pleasevisitL95/xConsultant . Database:http://www.iedconline.org/consultantdatabase/ 34 V.Metrics:HowShouldSuccessbeMeasured? Duringthisstudy,itbecameclearthatoneofthekeychallengesforlocaleconomicdevelopmentinSalinahas beenthatkeystakeholdershavedifferingviewsregardingthenatureofsuccessfuleconomicdevelopment. Thereisalsoadifferencebetweencitybasedeconomicdevelopmentgoalsascomparedtothelesspopulated areasofSalineCounty.Asdiscussedinthemeetingswiththecommunity,thisisachallengethatisnotuniqueto theSalinaorSalineCounty. ItisthereforevitallyimportantforthenewEDOtohavecleargoalsandmeasurementsinmindandtotrackthe resultsofitseffortsonacontinuousbasis.Properlymanagingexpectationsrequiresthatthe95hxboardof directors,itsmanagement,anditsstafffullyunderstandandspeakthesamelanguagewhenidentifyingthe metricsthatwillbeusedtomeasuresuccess.Theagreeduponperformancemetricsmustalsobeclearly communicatedtobothpublicandprivatesectorleaders. Whatissuccess?Aswithanytypeoforganization,goodmeasuresofsuccessforEDOsshouldbe: Focused, Simple, Missioncritical,and Achievable. Thereshouldalsobesome{·©;·-wm|thatwillencourageeveryoneworkingintheorganizationtostrivefor continuousimprovement.RecommendedmetricsforthenewEDOshouldincludebothoutputandoutcome focusedgoals. OUTPUTfocusedMetricsWhatdidtheEDOdo? Numberofsiteselectorswhohavebeencontacted NumberofsiteselectorswhohavevisitedSalinaandinteractedwitheconomicdevelopmentstaff NumberofconferencesattendedwhereSalinawasmarketed Productionandplacementofadvertisementsandcollateralmaterials Qualityofthe95hxwebsiteanditstraffic/hits Successfulsolicitationofprivatesectorcontributionstothe95hxbudget OUTCOMEfocusedMetricsWhatdidtheEDOhelpachieve? Numberofnewbusinessesattractedandthenumberofjobstheycreated Overallgrowthoftargetedindustries Realestatevacancyrateimprovements(shouldbetargetedtospecificlocations) Salestaximprovements 35 Propertytaxespaidbybusinesses Improvedemploymentrates Netgaininjobs Netgaininpopulation ManagingExpectations Manyoftheoutcomemeasureslistedabovemaytakemonths,andevenyears,totrackasstatisticsbecome available.Somestatisticsrequirefederalandstateleveldatathatisonlyavailableonaquarterlyorannualbasis. Otherdata,whichcanonlybecollectedthroughselfreportingbybusinessesorthroughtaxfilings,are generatedbycountyandcitylevelfinancedepartmentsandmayhavedifferenttimetablesforrelease. TheEDOshouldtakeresponsibilityforgatheringandtrackingstatisticsandquantitativeresultsrelatedofits actionsinordertoprovideregularreportsonitssuccess.IEDCrecommendsthattheseperformancereportsbe madeatleastquarterly,aswellasannually,onbothoutputandoutcomerelatedmeasures.Suchreportsshould includegraphicrepresentationsofdataexpressedovertimeinordertodemonstratetrends. TogainatrueunderstandingoftheperformanceoftheEDOandthelocaleconomyasawhole,itisalsovery importanttobenchmarkagainstotherjurisdictions.{zxnewEDOshouldperiodicallycomparecertainlocal statisticstootherneighboringjurisdictionsandthestateofKansasasawholetodeterminehowitsperformance compareswithothercommunities.Forexample,meaningfulcomparisonswouldincludesuchmeasuresas unemploymentrates(whichshouldalsoconsiderworkforceparticipation)andcommercialvacancyrates.Inthe longterm,thenewEDOshouldalsobeawareofandconsiderarangeofdemographicshiftsinsuchmeasuresas householdandindividualincomerates,whichareavailablethroughU.S.Censusdata. ExamplesofselfreportedbusinessdatacanbefoundonYourEconomy.org,ahighlyusefulsitethatutilizes 10 Dunn&Bradstreetdata.Thedataandtrendgraphsprovidedonthiswebsiteincludeinformationonbusiness expansions,contractions,startups,closings,andmuchmore. DefiningRoleswithMetrics GiventhatthenewEDOwillfocusonbusinessattraction,whileitisanticipatedthattheChamberwillcontinue toplayaroleinbusinessretentionandretailrecruitment,itisimportanttodevelopdistinctperformance metricsforeachorganization.Forexample,thenewEDOshouldtrackincomingbusinessesandtheexpansionof itstargetedindustries,whereasthe/w,;©xeffortsshouldconsiderexistingbusinessexpansions,closings, andretailsales.Toavoidaccidentallytakingcreditforeach·w;©xwork,itwouldbehelpfultoclearlydefinethe rolesandrespectivemetricsatthefoundingofthenewEDO.Thereshouldalsoberecognitionofthefactthat somemetricswilloverlap. 10 SponsoredbytheEdwardLoweFoundation. 36 Conclusion Understandingwhatsuccessz7communicatingit-;©ä-makeorbreakaneconomicdevelopment organization.In2013,L95/xEconomicDevelopmentResearchPartners(EDRP),athinktankmadeupofover50 leadingeconomicdevelopmentorganizations,recognizedthisfactwhenitcommissionedanationwideresearch project.Publishedin2014,the{azmitCount:MetricsforHighPerforming95h|reportidentifiedmorethan 200metricsthatarecurrentlybeingutilizedtodeterminewhetherEDOsareperformingtotheirbestabilityand meetingexpectationsintheircommunities.Acopyofthisreportwasdistributedtoeachoftheprimary economicdevelopmentstakeholdersduringL95/xsitevisit. Themetricsdescribedinthisreportareofferedasguidance.Theyarederivedfromcurrentbestpracticesinthe economicdevelopmentprofessionandarewhatIEDCbelievestobereasonablemetricsforSalinaandSaline County.AspartofthefoundationalactivitiesofthenewEDO,the©mzé·zxboardofdirectorsand managementshouldusetheirownbestjudgmentwhenconsideringfundingrequirements,theeverchanging natureofthelocaleconomy,andtheneedsofthecommunity.Thesemetricsshouldberevisitedfromtimeto timetoallowforcontinuousimprovement. 37 Appendices 38 Appendix:SampleArticlesofIncorporation 38 Appendix:SampleJobDescriptions 39 t©;z7;·/9h E ·w; 9-z- 5;Ý;¦;· /©¦©·z E 5;-·Ò© /Ò·är Lzz W, 5;-©z¦·z Reports to: Chairman of the Board of Directors Position Summary: The President of the Economic Development Corporation of Decatur & Macon County, Illinois is the Chief Executive Officer of the overall organization. Reporting to the Chairman of the Board and the Executive Committee, the President is responsible for leading, coordinating and implementing all non-retail business attraction, retention and expansion initiatives for the region. In this role, areas of responsibility include organizational pla; internal and external communications; staff management; operational and fiscal management; marketing programs; and developing, maintaining and cultivating relationships with local state and federal governments, private sector business leaders and key economic development allies. In addition, the President will act as Administrator of the Decatur Macon County Enterprise Zone and Administrator of the Decatur Foreign Trade Zone. The president will also manage and provide administrative oversi the Midwest Inland Port LLC and Decatur Fiber (Plugged-In) and will provide key leadership for the unified community marketing and branding initiative. Key Responsibilities: Coordinate the development and implementation of multi- year strategic operating plans for the overall Corporation. Develop and implement annual action plans, with proposed measures of success, to accomplish the operating plan objectives. Coordinate plans and provide leadership for all EDC activities, including serving on or providing leadership for various committees as applicable. Coordinate and be a primary lead on a comprehensive strategic development and operational plan for the Midwest Inland Port. Coordinate and be a primary lead on the development and operational plan for Decatur Plugged-In initiative. Provide management support to the Midwest Inland Port LLC Board ectors and the Decatur Fiber Board of Directors and supervise assigned staff to assure that each organization is meeting their strategic goals. Coordinate the development and full implementation of a Business Center to be housed within the EDC that will provide concierge services to businesse incorporating a network of support services provided by other organizations at the state and local levels. Develop marketing and sales initiatives and lead ongoing non-retail business retention and attraction efforts for the Decatur / Macon County region. Act as primary contact for all non-retail business attraction, retention and expansion leads. Act as Administrator of the Decatur Macon County Enterprise Zone and Trade Zone, including filing of all necessary reports and documents. Act as primary contact for the development and coordination of all incentive packages for existing business development and expansion and new business attutilizing state, local and federal as well as applicable private sector resources. Work with all applicable state, city, county, education, and business partners to support a broad-based, comprehensive and coordinated approach to regional economic development. Pro-actively communicate the efforts of the Corporation through local, regional and if applicable, national media, speaking engagements, personal visit Pro-actively undertake an outreach initiative focused on supporting ses, including hosting regular business roundtables and workshops and communication. Act as fiscal officer and be accountable for the finances and th well being of the Corporation. This includes but is not limited to preparation of operating budgets, oversight of bank and investment accounts, ensuring compliance with all applicable local, state a statutes, and oversight of corporation audits and filings. In conjunction with the Executive Committee, the President will develop an ongoing strategy to insure the financial stab overall EDC. This may include planning a multi-year EDC investment campaign. Supervise Corporation staff and implement career development initiatives for Corporation staff. Be responsible for content management of all printed and electronic materials necessary to support the Corporation mission. Insure that the EDC and the Midwest Inland Port websites are fully functional and effective. Prepare meeting agendas and ensure Corporation Board members are adequately prepared and briefed as necessary. Act as primary spokesperson for the Corporation on economic development and eco development related issues. vÒzEz-·z BA/BS Degree plus 5-10 in economic development. Masters or CED designation preferred. Knowledge of and experience in non-profit management of economic development organizations and economic development programs. Graduate of an accredited economic development program preferred Proven track record of working and winning new business locations and assisting ex businesses. Strong analytical, organizational, financial, and motivational s Ability to prepare and present concise and effective written rep and design and implement an annual business plan. Strong oral and written communication skills. Ability to plan, assign, and supervise the work of those under s and committees. Valid drivers license, and ability to insure. Ability to work with business, community and governmental leaders effectively. Knowledge of trends, developments, and techniques in the field o- profit administration. Ability to take initiative, work independently, and juggle multiple tasks. Ability to appropriately handle confidential information. Ability to deal with problems and make sound decisions. {©är /;Ò©·; Þz·w ;ã¦;©z;-;u Please submit your resume with references to Clark Smith by email only, csmith@smartsolutionsgroup.net, 515-314-9755 on or before June 3, 2014. Please feel free to call or email Clark with any questions. Smart Solutions Grou consulting firm. We are completing the preliminary search for this position. Chief Executive Officer (CEO) Key Responsibilities: Develop a professional, well documented business retention and expansion program f reaching existing businesses in the greater Oshkosh region. Provide the leadership and vision to establish a successful busi the greater Oshkosh region. Establish a comprehensive business research initiative to guide the deve growth and capital investment. Provide leadership to the development and implementation of new support business growth. Provide the leadership and vision to an entrepreneurial development program. Serve as the principal spokesperson for GO-EDC to encourage expanded economic development in the region. Direct and manage the administrative functions of the organizati development of staff resources. Build a strong working relationship with local, regional and sta and partners for an effective delivery of development services. Knowledge and Experience: Ten+ years of high visibility CEO or equivalent experience with a f-profit and/or not-for profit organization. Significant experience with industrial and commercial building d infrastructure completion. Hands-on experience developing new business prospects and managing pro successful completion. Experience developing and maintain sound working relations with elected officials, business and community leaders. Success in implementing a regional marketing initiative. Success in implementing a strong communications plan to facilitate organizational support. Knowledge of the methodology of strategizing successful programs development, government affairs, education and community initiat Proven ability to attract, retain, and develop excellent staff. The id build, strengthen and energize a high performance team that can implement and manage current and future initiatives, while provi and empowering environment. Professional experience with public relations, media relations, Successful experience forging productive alliances across privat governmental sectors and leader public-private partnerships. Experience developing strategic plans for a multi-faceted organization. Experience bringing groups and individuals together around compl Page 2 Effective Board relations; an open communicators who can provide minimize conflict and implement policy initiatives, and a clear understanding of the difference between policy and administration Substantial executive experience, responsible for the day-to-day operation of a successful economic development corporation or initiative for 10-years or more. Demonstrated track record of executing business deals, real estate tr financing and public incentive negotiations which results in suc Hands-on experience with industrial and commercial projects including financing and land acquisition. Qualifications preferred. Professional economic development certification (CEcD or other) Skills Proven consensus builder managing diverse viewpoints to an effective, positive outcome A hands-on, self-starter with vision and high energy commitment to excellence and mission Ability to communicate to all levels of management but especiall Demonstrated success in establishing program priorities, delegating, and motivating others A facilitator, who works well with groups, encourages engagement maintains focus and derives meaningful outcomes A collaborative leader willing to encourage different viewpoints and take decisive action An exceptional and persuasive oral and written communicator Strong computer skills in Outlook, Word, Excel, PowerPoint Experience with a Customer Relationship Management (CRM) system is preferred. HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE JOB DESCRIPTION POSITION TITLE: BUSINESS DEVELOPMENT MANAGER ACCOUNTABILITY: Reports to President/CEO BASIC FUNCTION: Conducts activities aimed at marketing Hampton Roads to businesses, thereby contributing to the ultimate goal of attracting jobs and capital investment to the region PRIMARY DUTIES: Responds promptly to all project related inquiries by prospects, site selection consultants, real estate brokers and Virginia Economic Development Partnership (VEDP) business development managers Prepares customized marketing packages in response to project related inquiries Coordinates with the Research Director on the completion of project related Uses Costar da parameters and develops familiarity with the real estate opportunities thr in order to make recommendations to prospects Communicates project requirements to localities Coordinates site tours for prospects and acts as host and facilitator during the visit. Coordinates and conducts marketing missions to both domestic and Communicates detailed information about the assets of the region to busi consultants during face-to-face meetings in both formal and informal presentations Conducts follow-up activities with prospects through telephone calls and email Uses ProTRACKPlus database to maintain current records of all projects and leads, prospect visits, face-to- face appointments, etc. Compiles monthly report of activities on a timely basis SPECIAL SKILLS REQUIRED: Two to five years of economic development related work experience Ability to communicate effectively, both verbally and in writing Ability to establish and maintain relationships with local and state economic development representatives Ability to effectively manage multiple projects. Flexibility to travel and to work nights and weekends as needed Must be a team player willing to assist coworkers on an as needed basis Ability to use computerized databases for project management. Proficiency with Microsoft Word, Excel, PowerPoint and LinkedIn Fluency in a second language is highly desirable EDUCATIONAL REQUIREMENTS: erence for business, economics or planning majors Rev. Jan 24, 2014 Economic Development Corporation of Lea County Coordinator of Research and Business Development Job Description Job Title: Coordinator of Research and Business Development Reports to: President & CEO Employment Status: Exempt, full-time Education Requirement: Bachelors Degree in business or related field Experience: 2 years or more in the field of general business with experience in research, writing, and project management Salary Range: Full Time Position - DOE Essential Duties and Responsibilities: The Coordinator of Research is a full-time employee whose primary responsibility is to assist in the recruitment of new bucompiling, organizing, and maintaining a variety of Lea County data and using that data to provide written content for marketing publications, responses to potential recruitment opportunities, and requests for proposals. Other duties may include, but are not limited to: Prepares and maintains CCI (Certified Community Initiative) applications and insures that CCI funds are spent in a timely manner according to the scope of work submitted to the State of New Mexico Works directly with outlying communities and assist their economic dev Prepares research and written content for marketing materials Prepares responses to Potential Recruitment Opportunities (PRO, Requests for Proposals (RFP), an other requests for information Assists with visits from site selectors Assists with business attraction and business retention and expansion activities Maintains a listing of available properties throughout Lea County suitable Researches and understands state and local incentive packages to assist with business devel Prepares technical and analytical reports Providesprofessional level staff assistance and research support to the Performs additional duties and assignments as requested Knowledge, Skills, and Abilities Required: Strong computer skills including MS Word, Excel, Publisher and Powerpoint Strong written and verbal communication skills Strong internet research skills Excellent interpersonal skills Excellent organizational skills Ability to handle multiple tasks and prioritize deadlines Strong background in research and/or statistics Benefits: A comprehensive benefit package is being offered including: heal IRA, and mileage reimbursements. Salary is based on an approved salary scale, with salary increases based on merit. Appendix:SampleCEOEmploymentContract 40 Term Employment Agreement Effective February _____, 2011 (Effective Date), the DEVELOPMENT AUTHORITY, INC., a Non-Profit Corporation ) located in, and (Employee) of , agree as follows: WHEREAS, is organized to and does provide economic developments services for the benefit of the City of and County, , as well as services for the benefit of the Trade Area; WHEREAS, also supervises the operations of Financial, Inc., a Non-Profit Corporation; WHEREAS, Employee has been employed by as its President since September 5, 2006, for a term ending on September 1, 2011; and WHEREAS, the parties mutually desire to extend the employment of Employee as President for an additional term of three years ending on September 1, 2014, and also to set forth their understandings and agreements with respect to the terms and conditions of said employment. Article I Employment Relationship 1.1 Prior Agreements. All former employment agreements between the parties, whether written or oral, are hereby terminated, null and void, and of no further force or effect. 1.2 Employment . The employs Employee as its President and Chief Executive Officer and Employee accepts the employment, on the terms and conditions of this agreement. 1.3 Services . Employee shall provide the services and fulfill the duties as Exhibit A, forth on the attached as directed by the s Board of Directors and such other duties as are necessary to act as President and Chief Executive Services (). Employee shall perform the Services no less than forty hour paid time off under paragraph 2.3 below. 1.4 Supervision . Employee shall be subject to the supervision and direction of the s Board of Directors and its Executive Committee. 1.5 Loyalty . Employee shall: (a) render the Services solely and exclusive behalf of ; (b) devote Employees best efforts on a full-time ba Term Employment Agreement Page 1 of 7 Services for and promote the business of the at the times and places directed by s Board of Directors; (c) not accept employment with any other employer or engage in other activities for profit (other than investment activity) without first obtaining s Executive Committees written consent; and (d) turn over to all money, revenues, fees, gifts, compensation, or other value whatsoever received from anyone other than arising out of, related to, or while performing the Services, including, without limitation, honoraria and other revenue received as an expert, consultant, lecturer, or author, all of which shall belong exclusively to , except as otherwise agreed to by s Executive Committee. 1.6 Indemnification . Employee indemnifies against any and all liability, claims, demands, damages, and costs, of any type whatsoever, that arise out of or which are alleged to have arisen out of any fraudulent, criminal, intentional, or malicious act of Employee. This duty to indemnify and hold harmless shall survive the termination or expiration of this agreement. indemnifies Employee against any and all liability, claims, demands, damages, and costs, of any type whatsoever, that arise out of or which are alleged to have arisen out of any fraudulent, criminal, intentional, or malicious act of . This duty to indemnify and hold Employee harmless shall survive the termination or expiration of this agreement. Article II Compensation and Benefits 2.1Compensation . shall compensate Employee at an annual salary of $135,538.56 paid at the semimonthly rate of $5,647.44. Any future increase in Employees compensation shall be in the sole discretion of . An annual review of Employees performance and compensation shall be completed during the month of September of each calendar year. 2.2Taxes and Payroll Withholdings . shall deduct from all compensation paid to Employee (a) all sums required to be withheld for federal, state, and local taxes, surcharges or other mandated withholdings as determined by to be required or appropriate and (b) as requested by Employee and agreed to by . 2.3Paid Time Off. For the Term, Employee shall receive time off without loss of compensation or other benefits to which Employee is entitled under this agreement, for any reasonable reason, including, but not limited to, vacation, sickness, family care, holiday, bereavement, jury duty, and voting, which Employee may take at such times as the Employee may select and the affairs of may permit, all as more fully set forth in the Employee Benefits Program adopted by effective October 21, 2009, as the same may be hereafter amended by in its sole discretion. 2.4Employee Benefit Plans & Other Benefits . Employee is entitled to participate in any pension, 401(k), insurance, or other employee benefit plan (other than paid time off) that Term Employment Agreement Page 2 of 7 the maintains for its employees. To participate in or receive these benefits, Employee shall comply with the terms and conditions attendant to the plan. may modify the benefits and attendant terms and conditions at anytime and from time to time. Employee shall be entitled to retain all unused frequent flyer miles earned by Employee during his travel on behalf of . 2.5Automotive Allowance. Employee shall use his personal automotive vehicles in the performance of his duties throughout the term of this agreement and, as compensation therefore, shall be paid an additional $650.00 per month. 2.6 Expenses . Reasonable expenses incurred by Employee to perform the Services, which are pre-approved by , shall be paid directly by or, at Employees option, shall be reimbursed to Employee by upon presentation by Employee of an itemized account, explanation, and documentation of the expendit 2.7Employee Education and Professional Expenses . encourages and supports the continued participation of Employee in appropriate professional organizations and development and will pay the costs of such participation up to a previously approved and budgeted amount. Such reasonable expenses incurred by Employee during the Term, which have been pre-approved by , shall be paid directly by or, at Employees option, shall be reimbursed to Employee by upon presentation by Employee of an itemized account, explanation, and documentation of the expenditures in a form acceptable to 2.8Bonus . Additional compensation in the form of a bonus may be paid Em by , if in the sole discretion of such additional compensation is appropriate; provided, however, the amount thereof shall not exceed $6,000.00 during any calendar year. Article III Term and Termination 3.1Term . The term of this agreement and s employment of Employee, pursuant to the terms hereof shall begin on the Effective Date, and the term of this agreement and Term employment of Employee by shall end on September 1, 2014 (), unless terminated earlier as provided for in this agreement. 3.2Termination. may terminate this agreement and Employees employment prior to the end of the Term upon the occurrence of any of the following events: a. Without cause in the sole discretion of s Board of Directors; b. Thirty days written notice to Employee that the Services are uns determined by s Board of Directors in its sole discretion; Term Employment Agreement Page 3 of 7 c. Dissolution of d. Employees failure or refusal to perform all duties, obligations, terms, and conditions required by this agreement; or e. Employee is found guilty of, pleads guilty to, pleas for a lesser offense as a result of a charge of, or negotiates a deferred prosecution or deferred to a charge of embezzlement, theft, willful contravention of professional ethics, a felony, or a crime which , in its sole discretion, determines to negatively affect or its members. 3.3 Employee Termination. Employee may terminate this agreement and Employees employment prior to the end of the Term upon 30 days prior written notice of his intention to terminate this agreement. 3.4 Severance. In the event this agreement and Employees employment is terminated prior to the end of the Term pursuant to subsections a, b, c and d. of paragraph 3.2, shall pay Employee severance compensation and benefits for the lesser of the remainder of the Term or the six month period following Employees termination date, payable at the rate of Employee compensation at that time. During the period for which Employee is receiving this severance compensation, Employee shall not apply for, seek, or obtain unemployment benefits of any kind. 3.5 Property Return. Upon termination or expiration of this agreement for any reason, Employee shall return and deliver to all property and data of of any type whatsoever, copies and originals, including, but not limited to, all keys, cell phones, computers, planning data, personnel data, compensation data, computer software and documents in hardcopy or electronic format, that are in Employee's possession or contr Article IV Employee Nondisclosure 4.1Nondisclosure . Employee will become informed of, and have access to, valuabl and confidential information of , including, without limitation, information regarding customers of and the business, affairs, plans, employees, methods, systems and trade Confidential Information secrets of (). Confidential Information, even though it may be contributed, developed or acquired in whole or in part by Employee, shall remain the exclusive property of , to be held by Employee in tru benefit. Accordingly, Employee shall not, at any time, either during or subsequent to the Term of this agreement, use, reveal, report, publish, copy, transcribe, transfer or otherwise disclose to any person, corporation or other entity, any Confidential Information without the prior written consent of except (a) to responsible officers and employees of and other responsible persons who are in a contractual or fiduciary relationship with (b) as to Term Employment Agreement Page 4 of 7 information which becomes of public knowledge from authorized sources other than Employee, or (c) as required by law. Upon the expiration or termination of this agreement, Employee shall promptly deliver to all deliverable Confidential Information in Employees possession or control. Article V Miscellaneous 5.1Severability . In the event any provision of this agreement is determined to invalid or unenforceable, the remaining provisions shall nevertheless remain in full force and effect and shall be binding upon the parties. 5.2Applicable Law . This agreement shall be governed by the laws of the State of 5.3Assignment . This agreement is personal to each of the parties and no rights or duties hereunder may be assigned or delegated by either party without the prior written consent of the other; provided, however, that may assign its rights and delegate its duties hereunder to any affiliate or successor in interest of 5.4Notices . All notices required or permitted under this agreement shall be in writing and shall be deemed to have been duly given upon personal delivery; or twenty-four hours following deposit for overnight delivery with a bonded courier holding itself out to the public as providing this service; or forty-eight hours following deposit in the U.S. Mail, registered or certified mail, postage prepaid, and in any case addressed as follows, or to such other address as a party may designate from time to time: If to Employee: If to GFDA: 5.5Waiver . Failure by either party to insist upon strict compliance with any of the terms, covenants, or conditions of this agreement shall not be deemed a continuing waiver of the term, covenant, or condition, nor shall any waiver or relinquishment of any right or power in this agreement at any time be deemed a waiver or relinquishment of the same or any other right or power, whether or not similar. 5.6Entire Agreement; Amendment . This agreement (including any exhibits and schedules attached hereto) contains the entire agreement between the parties concerning the Term Employment Agreement Page 5 of 7 subject matter of this agreement, and supersedes all other and prior terms, covenants, representations, and agreements, whether oral or written, except contrary in this agreement. This agreement may be modified or amended only by a writing signed by both parties. Survival . Applicable provisions of this agreement, including, but not 5.7 limited to, paragraph 1.6 and Article IV, shall survive the expiration or termination of this agreement for any reason. _____ By: ________________________________ Print Name: _________________________ Office: _____________________________ Term Employment Agreement Page 6 of 7 Exhibit A Services, paragraph 1.2 Job Summary The President is responsible for accomplishing specified goals as directed by s Board of Directors and its Executive Committee. The President shall empl and keep accounting and other records of The President is responsible for: (1) day-to- day operations, (2) recruitment, and all staff relationships, (3) overseeing financial data, (4) assuring operational excellence of and (5) compliance with federal, state and local standards. The President shall also be the President of , Inc. Essential Duties and Responsibilities 1. Pro-actively direct and purse economic development initiatives to achieve the goals and objectives outlined by s Board of Directors. 2. Act as an economic development strategist and provide assistance in the development of short and long term economic and community development plans. 3. Provide professional economic development advice, assist in the application and permitting process, and serve as an advocate for economic development in the local area. 4. Maintain a liaison with various local, state and federal elected officials and agencies, coordinate projects with such officials and agencies as deemed necessary and appropriate. 5. Provide information and/or make presentations to various local, state and federal agencies, boards, commissions, civic groups, businesses, and individuals in the general public regarding economic development issues, programs, services and plans. 6. Prepare grant proposals and applications, contracts and other necessary documents as required to sustain economic development in the local area. 7. Formulate and implement marketing and business attraction strategies for the local area. 8. Coordinate the development and processing of economic develo 9. Serve as member of economic development groups or task forces that promote economic and community development as deemed necessary and appropriate. 10. Monitor and report on legislation and regulations relating to economic development to appropriate impacted parties. 11. Maintain strong working relationships with the general public, area businesses, clients, the media and others. Term Employment Agreement Page 7 of 7