business development. business development activities business retention and expansion new business...
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BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT ACTIVITIES
Business Retention and Expansion
New Business Recruitment
Workforce Development
Entrepreneurship & Business Assistance
International
Financial Assistance
Community Assistance Activities
BUSINESS RETENTION & EXPANSION
• BR&E is a strategy to work with existing businesses - Synchronist is new software program
• Interview business leaders on business climate • Ability to analyze comparative information within
the industry• Demonstrate appreciation of business to local
economy• Identify opportunities for growth and expansion• Help existing businesses solve problems• Helps DED build program strategies to respond to
needs of businesses
WORKFORCE DEVELOPMENT
WORKFORCE DEVELOPMENT
Economic development model has modified.
Traditionally, businesses recruited to attract people — people followed jobs.
People now move for a variety of reasons — including jobs, family and quality of life.
Along with business recruitment, communities need to also focus on labor/people recruitment.
The Department helps communities develop population attraction strategies.
BUSINESS RECRUITMENT
Develop prospects through leads, consultants, referrals, trips, trade shows and company direct contacts
Screen and host prospects Work with the Nebraska Diplomat
program for recruitment efforts Market and promote Nebraska
Advantage
BUSINESS ASSISTANCE ACTIVITIES
Manufacturing Extension Partnership:Provides consulting services to help manufacturers with business and technical challenges:
EngineeringManagement/financialEfficiency/quality trainingEnvironmentalHuman resources
Dave Wright – 402-471-3755
BUSINESS ASSISTANCE ACTIVITIES
One Stop Business Assistance:
An information resource center for business owners and entrepreneurs.
Steve Williams
BUSINESS ASSISTANCE ACTIVITIES
Financial Assistance:
-Nebraska Advantage -Customized Job Training -Community Development Block Grant (CDBG)
BUSINESS ASSISTANCE:
CDBG Assistance—Economic Development Loan:
• Fills a financial gap or locational consideration• 51% of new hires must be LMI• Maximum of $500,000 per project• Local government is applicant• Low interest performance-based loans• Public works grants• Application cannot exceed 50% of project costs
• Available land and buildings (LOIS and NEDI) must be listed and available
• Tax Increment Financing
• Local government funds for marketing and recruiting
• CDBG Re-use funds
• LB 840
LOCAL RECRUITMENT TOOLS
Local Option Municipal Economic Development Act“LB840”
• More flexibility - local communities complete authority over uses and funding
• Local option sales tax OR property tax
• Must be spent as intended and approved by voters– Steps: prepare plan, public review, local election– Requires two ballot issues, ED plan & tax amount
• Amendments require new ballot issue
• Can be divided by vote (sample uses)- Economic development - Property tax relief- Infrastructure - Other city purposes
Restrictions• NO municipality shall appropriate more than:
– The amount approved by the voters– 0.4 percent of the actual valuation of the municipality
for LB840• $1,000,000 (2nd class cities & smaller)• $2,000,000 (1st class cities)• $3,000,000 (Lincoln or Omaha)
Local Option Municipal Economic Development Act“LB840”
Eligible activities• Public works improvement grants to qualifying businesses
• Payment of salaries to run the program
• Job training grants and loans
• Loans, grants, and loan guarantees for qualifying businesses
• Purchase or option to purchase real estate
• Business recruitment activities
Local Option Municipal Economic Development Act“LB840”
Eligible Business - Cities Population 2,500+ A qualifying business is ANY corporation, partnership, or
sole proprietorship which derives its principal source of income from any of the following…. Manufacturing Research and Development Telecommunications Tourism-related Activities Housing Rehab and Construction Processing, storage, transport, sale of services, or sale of goods
which are sold or traded in interstate commerce Headquarter facilities for one of the above
Local Option Municipal Economic Development Act“LB840”
Cities/Villages Population 2,500 (or less)• A qualifying business is ANY corporation, partnership, or sole proprietorship
Can retail be assisted?• Cities between 2,500 and 10,000 population may spend 20% on retail (no more than 40% in one year with no more than 20% in a 5 year period)
Local Option Municipal Economic Development Act“LB840”
LB840 Communities
*Norfolk*Stromsburg*La Vista
Local Option Municipal Economic Development Act“LB840”
EDCC CRITERIA
• Benchmarks include: Organizational capacity Business Retention & Expansion program (BR&E) Target market
• Certification is for five years Workforce issues Infrastructure Local financing Building and site availability Local website Location One Information System (LOIS) Nebraska Economic Development Info (NEDI)
EDCC BENEFITS
• Better positioned for economic development opportunities - identified and documented as ready for economic development
• Marketed to business and industry• Publicly recognized as economic development
leaders• ED CDBG points on scoring• Eligible to apply for “Downtown Revitalization”• NIFA tax credit points• Eligible to apply for investment opportunities in
targeted sites
NEBRASKA’S ED CERTIFIED COMMUNITIES
www.neded.org
BUSINESS DEVELOPMENT
LOCAL CIVIC, CULTURAL, AND CONVENTION CENTER
FINANCING FUND
Background
• 1999 legislation created the Local Civic, Cultural, and Convention Center Financing Fund…to support the development in Nebraska municipalities of civic, cultural, and convention centers, particularly those that attract nonresidents from outside of the state.
Eligible Projects
• The fund may be used for the construction of new centers or the renovation or expansion of existing centers.
• Not to be used for planning, programming, marketing, or advertising.
Definitions of eligible projects
CIVIC CENTERA community center, where residents of a community gather for cultural and social activities of sufficient appeal to attract many nonresidents. May include areas for physical recreation, it is not primarily a gymnasium or sports facility
CULTURAL CENTERA place of intellectual and artistic activity and the works produced by it, which are of sufficient appeal to attract many nonresidents as well as residents of a community. Special libraries, museums, and/or theaters are in cultural centers.
CONVENTION CENTERA meeting place that includes an auditorium or other area for large audience assembly, an exhibit hall, a facility for on-site food preparation and service, a directly connected parking facility or area, and an administrative office, which together attract many nonresidents as well as residents of a community.
Eligible applicants
• Most Nebraska municipalities are eligible and may apply for a grant in competition with other municipalities
Not eligible…• City of Omaha
• Atkinson, Bancroft, Beaver City, Blue Hill, Brownville, Cairo, Creston, Dannebrog, Firth, Gering, Humphrey, Kennard, Odell, Papillion, Randolph, South Sioux City, Stapleton, Tekamah, and Tobias
Property must be owned and located within the municipality
applying for grant
Can contract out the operation/management of facility.
Grant amounts
• No grant should amount to more than 50 percent of the total cost of construction, renovation, or expansion
1:1 match with at least 80% match as cash
•The minimum amount for a grant request is $20,000
The maximum amount, based on population:
• Population of 100,001 to 299,999, $1.5 million
• Population of 40,000 to 99,999, $750,000
• Population of 20,000 to 39,999, $500,000
• Population of 10,000 to 19,999, $400,000
• Population of 1 to 9,999, $250,000
Criteria for Evaluating Grant Applications
• Attraction Impact
• Socioeconomic Impact
• Financial Support
• Readiness
• Project location
Grant Schedule
• Complete and return preliminary application.
• Final application form sent after 9/15
• Final application returned by 10/31
• DED will evaluate final application forms soon after they are received.
2009 Annual Report
http://industry.visitnebraska.org/index.php?option=com_content&view=article&id=2&Itemid=
47
WRAP UP
Q & A
Department of Economic Development 800-426-6505