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Comprehensive Economic Development Strategy

2017 Annual Performance Report

Submitted by

The Northeast Ohio Four County Regional Planning

and Development Organization (NEFCO)

January 2017

This report was prepared by NEFCO using Federal funds under award number

ED16CHI3020014 from the Economic Development Administration, U.S. Department of

Commerce. The statements, findings, conclusions, and recommendation are those of the authors

and do not necessarily reflect the view of the EDA or the U.S. Department of Commerce.

Executive Summary

The Comprehensive Economic Development Strategy Annual Performance Report is updated

annually by the Northeast Ohio Four County Regional Planning and Development Organization

(NEFCO). This update reports recent trends observed between the issuance of NEFCO’s

Comprehensive Economic Development Strategy (CEDS), which occurs every five years, and the

present time. The CEDS can be found at the agency website, www.nefcoplanning.org.

Preparation of the CEDS and the annual report maintains eligibility for the NEFCO region’s

communities to receive grant funds from the U.S. Department of Commerce, Economic

Development Administration (EDA).

Our CEDS report and its annual update describe the economic conditions, strengths, weaknesses,

opportunities, and threats of the NEFCO area. New in 2017 is the analysis of the region,

responding to the following questions: 1) Where are we going? 2) Where do we want to be? And

3) How do we get there?

The 2017 Annual Performance Report covers the period from February 2016 through January

2017. It describes changing economic conditions in the region encompassing the Counties of

Portage, Stark, and Summit; and the City of Wooster in Wayne County. Significant events and

issues that occurred over the past year to shape and direct NEFCO’s regional economic

development planning program are outlined in the report.

The regional economy continues to be relatively stable. While there are no major employment

losses over the past year, neither are there large employment gains. This stability has given

communities the ability to focus locally, whether to undertake an assessment of housing needs

for a millennial generation or to build on current assets that will retain the young workforce.

Finally, the entire region will greatly benefit from the announcement of the $500 million Hall of

Fame Village development in Canton. As a continuation from our 2016 CEDS, Stark County

remains a regional economic development focus with the construction of the Football Hall of

Fame Village and the long-term potential of the role the county will play in the oil and gas

industry.

NEFCO’s advisory committee and governing board members are involved in the agency’s

regional economic development planning program, providing feedback on the pulse of the

region, communicating their ideas of where the region is headed, and assisting staff with tasks

needed to create the conditions for strong local and regional economies. The goals and

objectives that are reviewed and approved by these members appear in this report. A list of

projects that are vital to the region portray the important role the agency plays in regional

economic development planning.

http://www.nefcoplanning.org/

- 1 -

Adjustments to NEFCO’s Strategy

Report on Changing Economic Conditions and Adjustments

24-month unemployment and per capita income in the NEFCO Region

In the last two years, the region has experienced 24-month unemployment rates that have largely

remained above 4.5 percent. Seasonal peaks occurred during summer months and the holiday

season, echoing unemployment patterns for the State of Ohio. However, since December 2014,

unemployment in the NEFCO region typically exceeded Ohio’s rate. Figure 1 portrays NEFCO

region and Ohio’s rates between December 2014 and November 2016. (Bureau of Labor

Services, January 2017).

Figure 1

Source: Bureau of Labor Statistics, January 2017

4.0%

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Unemployment Rates in the NEFCO Region 2014-2016

NEFCO region Ohio

- 2 -

Table 1 portrays calculations of economic distress for NEFCO’s counties and major cities. Local

governments may qualify for EDA assistance based on the economic distress of a census tract or

a community’s per capita income. The data shown in Table 1 are based on the Bureau of Labor

Statistics data available in January 2017 and the American Community Survey’s estimates of Per

Capita Income for a single point in time between 2011-2015.

Table 1

Economic Distress in the NEFCO Region

Unit of Government

24-Month Unemployment % (BLS)

ACS PCI 5-yr est. (2011-2015)

% of U.S. PCI

Portage County 4.9 $ 26,042 90.0%

Kent 5.0 $ 19,420 67.1%

Stark County 5.3 $ 25,547 88.3%

Canton 6.2 $ 16,665 57.6%

CT 7018 $ 9,961 34.4%

CT 7003 $ 13,093 45.3%

Summit County 5.0 $ 28,896 99.9%

Akron 5.7 $ 20,872 72.1%

Wayne County 3.9 $ 23,695 81.9%

Wooster 3.9 $ 23,566 81.5%

Ohio 4.9 $ 26,953 93.2%

U.S. 5.1 $ 28,930 Sources: American Community Survey; Bureau of Labor Statistics, January 2017

Shaded cells indicate statistics that qualify communities as distressed and that meet EDA's

eligibility for funding. City names in bold indicate economically-distressed communities. A

community’s Per Capita Income must be less than 80% of U.S. PCI to be eligible and its

unemployment rate must be greater than 1% of US (based on 24-month unemployment). Cells

without data indicate statistics not provided at this geographic level by the Census Bureau.

Major cities may be considered economically-distressed based on either their 24-month

unemployment rates or per capita income. The BLS data indicate show that the larger cities

experience the most economic hardship in the region; however, residents in smaller communities

that lack large employers may have low per capita income.

Employment Trends

The Federal Reserve Board of Cleveland examined trends in population and private employment

in its 17 Metropolitan Statistical Areas, which include the Akron and Canton MSAs (Figure 2).

The Akron MSA consists of Summit and Portage Counties, while the Canton MSA is composed

- 3 -

of Stark and Carroll Counties (the latter outside of the NEFCO region). The study found that

population continues to decline in many of the MSAs. Manufacturing employment has

rebounded since the Recession, but it is still below 2001 employment levels. Education and

health services sectors exhibit strong employment, but many workers in these sectors are earning

wages below the national average (September 23, 2014).

Figure 2

Source: Employment Trends in Two Sectors Show a Region in Transition, Federal Reserve Bank of Cleveland,

February 23, 2014.

TeamNEO’s quarterly Cleveland Plus economic publication covers 18 northeast Ohio counties.

A year-end analysis predicts increased manufacturing productivity through 2025. Computer

manufacturing in particular is expected to increase by 104 percent through 2025. According to

TeamNEO, the top15 manufacturing sectors, which make up 50 percent of all manufacturing

sectors, portray a diversifying northeast Ohio manufacturing economy. From 1990 to 2015,

manufacturing productivity in our region grew by 92 percent. TeamNEO attributes this increase

to the steady shift from traditional manufacturing to advanced manufacturing. An August 2016

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study outlined the region’s potential to support an additive manufacturing cluster. The number

of UticaShale wells originally permitted, drilled and in production for each quarter has declined.

A StatsAmerica analysis of industry cluster data provides a snapshot of the region’s competitive

advantages. The calculation of a location quotient is a tool to identify where a region has a

greater concentration of activity in a sector than the national average. Location quotients greater

than 1.0 indicate a location’s economic strengths. Tables 2 and 3 on the following pages depict

industrial clusters in the NEFCO region which exhibited location quotients greater than 1.0.

Location quotients for a “Manufacturing Supercluster” confirm the region’s manufacturing

strength. This supercluster aggregates metals, machinery, computer/electronic products,

electrical equipment/appliances, and transportation equipment. One example of the region’s

concentration, primary metals manufacturing establishments and employment are nearly four

times the national average. Other strengths include chemical products and advanced materials

(statsamerica.org).

- 5 -

Table 2: Location Quotient – Employment, 2012

Geographic

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Portage 3.20 2.81 0.86

0.72 0.52 1.42 2.98 1.78 0.71

1.25 1.93

4.90 0.81 1.89

0.82 1.07

Stark 0.95 5.30

1.25 0.56 7.16 0.98 2.08 1.32

1.84

1.20 1.41 1.16 1.21 2.25

Summit 1.11 2.53

0.54 1.05 1.30

1.64 0.67

0.87 1.19

1.58

2.16 1.29 1.32 1.06

0.64

Wayne 0.94 4.47 1.05 3.73 0.83 9.97 3.59 2.00

1.91 1.66 1.34 4.19 1.79 0.84 2.82

0.76

NEFCO 1.26 3.57

1.02 0.85 3.75 1.03 1.94 1.01

1.45

1.63

2.11 1.17 1.79

0.35 0.50

LQ: less than 1.0

LQ: 1.0-1.9

LQ: 2.0-2.9

LQ: 3.0 and above

Source: www.statsAmerica.org, 2017

http://www.statsamerica.org/

- 6 -

Table 3: Location Quotient – Establishments, 2012

Geographic

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Portage 4 3.13 1.07 1.48 2.67 1.13 3.50 1.01 2.61 0.89 3.62 1.10 2.88 3.20 1.47

Stark 2 2.51 1.45 1.04 4.59 1.02 1.84 0.93 2.52 2.15 0.53 1.82 1.33 2.06

Summit 1.5 2.37 1.07 1.16 3.03 2.43 1.11 1.04 2.44 3.12 2.34 1.35 2.18 1.17 1.30

Wayne 1.5 2.69 1.22 2.58 1.59 6.57 5.63 1.85 2.01 0.64 1.02 2.31 1.69

NEFCO 2 2.53 1.29 1.20 3.78 1.34 2.32 1.03 2.44 2.86 2.29 1.28 2.24 1.10 1.00

LQ: less than 1.0

LQ: 1.0-1.9

LQ: 2.0-2.9

LQ: 3.0 and above

Source: www.statsAmerica.org, 2017

http://www.statsamerica.org/

- 7 -

Changes within the District Organization

There are no changes in the administrative process of NEFCO’s partnership planning grant.

However, a personnel change will require the assigning of a new staff member to manage

NEFCO’s regional economic development planning program. NEFCO maintains a well-balanced

mix of representation from EDA’s desired target groups (private sector, higher education,

chambers of commerce, non-profits organizations, and workforce development) within its

regional planning program, and NEFCO will tap into its Regional CEDS committee to assist

during this transition. Tables 4 and 5 show the composition and affiliations of NEFCO’s

Regional CEDS Committee and General Policy Board.

Table 4

2017 Regional CEDS Committee

Name Representing Title EDA category

Brent Hendren City of Akron

Mayor's Small Business

Center Public Sector

Tom Wilke City of Kent Economic Development Dir. Public Sector

Jonathan Millea City of Wooster Economic Development Dir. Public Sector

Rafael Rodriguez City of Canton

Community Improvement

Corporation Private Sector

Brad Ehrhart Portage County President Private Sector

Bob Nau Stark County Director Public Sector

Dennis Tubbs Summit County Deputy Director Public Sector

Betty Aylsworth

Ohio Agricultural Research

& Development Center Program Coordinator

Institution of

Higher Education

Shawn Starlin

Wayne Economic

Development Council Project Manager Private Sector

Gregg Cramer Greater Akron Chamber

Vice President, Economic

Development Private Sector

Chris Johnson Stark Development Board Vice President Private Sector

Patricia Grospiron JumpStart, Inc.

Network Development

Director Private Sector

Scott Wagner

Barberton Community

Development Corporation Executive Director Private Sector

Larry Lallo

Mercy Economic

Development International

Corporation Executive Director Private Sector

CEDS 2017 City and County Coordinators

Portage County – Todd Peetz, Portage County Regional Planning Commission

Stark County – Rachel Forchione, Stark County Regional Planning Commission

Summit County – Bob Genet, Summit County Department of Community and Economic Development

City of Wooster – Jonathan Millea, Economic Development

- 8 -

Table 5

2017 NEFCO Governing Board Roster

NAME AFFILIATION

TYPE OF

REPRESENTATIVE

Portage County

James Bierlair Portage County Soil and Water Conservation Government

Joe Diorio Portage County Health District Government

Vicki Kline Portage County Commissioner Government

Todd Peetz Portage County Regional Planning Commission Government

Gene Roberts Portage County Water Resources Government

John Zizka Freedom Township Trustee Government

Dan Morganti City of Kent Government

Stark County

Keith Bennett Stark County Engineer Government

Linda Chain Lexington Township Zoning Inspector Government

Peter Ferguson Medical Private

Chris Johnson Stark County Development Board Private

Doug Lane North Canton Area Chamber of Commerce Private

David Maley City of Massillon Economic Development Government

Vince Marion City of Louisville Government

Joe Mazzola City of Alliance Government

Richard Regula Stark County Commissioner Private

Jim Troike Stark County Sanitary Engineer Government

Joe Underwood Stark County Regional Planning Commission Government

Dan Moeglin City of Canton Government

Vacant

Summit County*

Alan Brubaker Summit County Engineer Government

William Judge City of Barberton Government

John Lund Consultant Private

Jim Nelson Bath Township Government

Ilene Shapiro Summit County Executive Private

Dianne Sumego Black and Veatch Corporation Private

Michael Weant Summit County Dept. Sanitary Sewer Services Government

To Be Determined

To Be Determined

Bob Hoch City of Akron Councilman Private

Daniel Horrigan City of Akron Mayor Government

John Moore City of Akron Government

Russel Neal City of Akron Councilman Private

Jason Segedy City of Akron Government

Veronica Sims City of Akron Councilwoman Government

Helen Tomic City of Akron Government

City of Wooster

Bob Breneman City of Wooster Mayor Private

Associate Member (non-voting)

Betty Keener Village of Apple Creek Mayor

*Appointments pending 1/17/2017

- 9 -

Changes within the Region

The $500 million development of the Pro Football Hall of Fame Village in the City of Canton

continues to hold the promise of the next major economic development driver for the region.

Announced in 2015, plans include the construction of hotels, a conference center, a sports and

entertainment complex, an assisted living facility, a youth sports facility, a center for excellence,

NFL-themed rides/virtual experience, and a Main Street with restaurant/retail establishments

(Pro Football Hall of Fame website). The project will attract multiple businesses and significant

levels of private investment in the local and regional economies. To supplement this project,

Canton has begun infrastructure projects designed to benefit the region while jumpstarting local

investment interest.

The Federal Reserve Bank of Cleveland reports a stable economy. While its area of coverage

includes Ohio and portions of three other states, many of these trends are indicative of northeast

Ohio: a slight growth in economic activity, stable manufacturing plant production, reductions in

auto manufacturing, an improved housing market, and continued difficulty in job placement with

growing reliance on temporary employees (Fourth District Beige Book, November 30, 2016).

In recent years, there has been much interest in strengthening the region’s urban centers, creating

sustainable and walkable communities, and addressing urban blight and vacancy. These were

some of the challenges raised by the Northeast Ohio Sustainable Communities Consortium

(NEOSCC), an organization leading a regional visioning effort funded in 2010 by the U.S.

Department of Housing and Urban Development, and an activity in which NEFCO helped to

lead. The vision presents various scenarios for future choices in transportation, land use,

housing, economic development, environmental planning, open space/farmland preservation in a

12-county region. Key members of the Consortium have continued discussions on the

implementation of this vision document.

A combination of the mild weather and low cost of petroleum continues to affect the oil and gas

industry, and the anticipated ripple effects of Utica shale development in adjacent counties and

eastern Ohio have not fully materialized within the NEFCO region. Stark and Portage Counties

have experienced most of the activity related to the extraction of this natural resource. Despite

the slow-down, some leaders remain optimistic about the economic impact of shale. Others are

concerned about the potential environmental impacts of injection wells and fracking.

A Regional Assessment

Key economic development professionals and planners were polled to develop the following

strategic framework, which will guide NEFCO’s future economic development activities.

Where are we going?

Facing a stable regional economy, leaders are working to diversify their local communities.

Leaders’ “thinking outside the box” have been the driving force behind recent innovative

projects to imagine our communities for future generations. With our region’s reliance on

manufacturing, the slow economic recovery is still concerning. However, initiatives that

encourage entrepreneurship and livable and sustainable communities are promising indicators

that decision makers recognize the need to change and address a different economic future. In

particular, there are opportunities to help scaleup or gazelle companies to grow faster. The region

is also growing in research and development opportunities, many tied to shale/oil and polymers,

- 10 -

and spurring interest in national and international research facilities. Logistics has always been a

strong presence in the region and, after some losses over the past years, this industry has begun

to improve.

Where do we want to be? Responses to this question ranged from the creation of attractive, thriving, inclusive, value-added

and vibrant communities to those that position the region to be a major economic player.

Collaboration and working toward the greater good of the region, not just on behalf of one

community gaining at the expense of another, was a common theme. Leaders have suggested

that they would like to be at the forefront of technological research and early stage development.

One possible activity to support this goal is the construction of technology campuses. A future

where the region’s legacy cities are strengthened rather than abandoned, and the use of land near

existing infrastructure to promote efficient economic growth were preferred. Concentrating

resources to boost the existing infrastructure might also include high-speed connections to attract

and retain businesses. Creating livable wage jobs and making sure that the workforce has the

needed skills to fill these jobs are highly desired initiatives.

How do we get there?

Identify and share resources. Fund opportunities for growth

Identify our weaknesses and address these

Assist communities develop their own vision while looking for common themes and

opportunities to partner

Encourage collaboration in general, and with the higher education network to support

community vision, boost entrepreneurship, and match students to available careers

Encourage private sector to support education, training and entrepreneurial activity; more

partnerships between public/private entities

Increased communication between public/private sectors so that local governments can

better respond to needs

Support actions to fund infrastructure projects

Assist strong communities with resources to complete infrastructure needed for business

parks that attract technology clusters

Redevelopment funding and local regulation that provides incentives to redevelop urban

cores and boost the local economy; support clean/green initiatives in the region

Funding that assists the location of midstream and downstream companies close to gas

pipelines in our region

Staff/Capacity of District to support the CEDS

NEFCO maintains sufficient capacity to support regional economic development planning efforts

for the four-county area. Three full-time staff are involved in economic development activities,

with one of those members chiefly responsible for the economic development program. A

change to staffing of the program is anticipated in 2017 to fill a vacancy created in January 2017.

A key emphasis of NEFCO’s program is to assist entities in the region with questions and

guidance needed to benefit from EDA’s grant programs and initiatives. The map on page 12

illustrates the level of EDA dollars invested in the region since the 1980s.

- 11 -

Matching funds that support NEFCO’s economic development program are committed for the

current fiscal year through June 2017, after which NEFCO’s General Policy Board will consider

the FY2018 budget.

- 12 -

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Report on Economic Development Activities

The following activities were undertaken to support and implement NEFCO’s CEDS Update:

Shale Energy Strategy

A report on NEFCO’s partnership with The Ohio State University and three other Economic

Development Districts in Ohio to develop a Utica shale strategy for the shale-rich area of the

state addressed has been completed. However, the group continues to discuss ways to collaborate

in order to reduce the negative consequences of the oil and gas industry on local communities.

Funded under the EDA’s “Investing in Manufacturing Communities Partnership,” the strategy

suggested areas of business expansion that would occur under a shale boom, and recommended

ways to create a sustainable shale economy. The strategy also identified potential business

activities complementary to the shale development industry that could survive a shale bust cycle,

proactively addressing the eventual reduction of shale development activities by diversifying the

regional economy.

Bits and Atoms Innovation Center

After being awarded with an EDA Public Works grant in 2014, the City of Akron’s plans for the

location of the Bits and Atoms Innovation Center changed. As a result, it was required to re-

apply for EDA funds, and Akron was awarded with a $2.5 million grant in 2016. NEFCO’s

assistance to the City will allow it to remodel a portion of a University of Akron to house the

Bits and Atoms Innovation Center. This new location will create a visible space in the heart of

downtown and will strengthen the partnership between the University and Akron. The Center

will assist the public with product development and provide maker space and other supportive

services to encourage entrepreneurship and innovation.

Former Chrysler Stamping Plant redeveloped

NEFCO’s involvement in an EDA-funded strategy after the closure of the Chrysler Stamping

Plant in Twinsburg assisted the City with the redevelopment of this 34-acre plant. In 2016,

redevelopment of this brownfield property attracted the interest of two businesses. Amazon has

opened a 24,000 square-foot package handling facility and National DCP will open a 81,000

square-foot supply chain center for Dunkin Donuts.

Disaster Resiliency Planning

NEFCO continues to compile information on disaster resiliency planning and how this is being

implemented in the NEFCO region. Efforts will continue throughout the year to study the State

of Ohio’s disaster management plan and how the plans of local and/or regional governments

complement the State’s priorities.

Performance Evaluation by EDA

NEFCO staff participated in a performance evaluation by EDA in 2016.

Economic Development Conditions within the Region

Staff closely monitors the effects of economic changes on the region. Significant closures are

reported to the Economic Development Representative (EDR), and, when appropriate, meetings

are requested to discuss projects that will assist a community with efforts to address economic

challenges.

- 14 -

Media References

Media references to potential and funded EDA projects, along with updates on their outcomes,

were provided to the Economic Development Representative for Ohio.

Involvement on Regional Committees

NEFCO staff serve a member of the Technical Assistance Committee (TAC) for a regional

transportation planning agency. Additionally, as a TAC member, assistance is provided to help

Summit County communities with the implementation of the Ohio Public Works Commission

infrastructure projects program.

Six years ago, NEFCO began its involvement in a twelve-county effort funded by the U.S.

Department of Housing and Urban Development under the Partnership for Sustainable

Communities. In 2014, the Northeast Ohio Sustainable Communities Consortium (NEOSCC)

issued the VibrantNEO 2040 Regional Vision, and NEFCO’s General Policy Board adopted this

vision document in 2014. As a member of the NEOSCC, NEFCO provided guidance and

expertise, and continues to participate in the next phase of this regional effort to develop a

sustainable future for Northeast Ohio. Throughout the process, the NEOSCC engaged residents,

elected officials and experts in the 12-county region to identify choices to make now to create a

vibrant, resilient and sustainable future.

Updates and communication

Staff communicates opportunities and provides updates on issues that affect the region on at least

a monthly basis to its members. NEFCO’s monthly General Policy Board meetings provide a

forum for this communication. Time-sensitive information on new initiatives and other

information are e-mailed to economic development and planning professionals. Agency

newsletters are published almost quarterly and distributed throughout the region, communicating

public events, meetings of importance to the region, and the dates of the public General Policy

Board meetings. NEFCO’s board meetings also provide opportunities to feature speakers on

topics selected by staff and board members.

Planning assistance

NEFCO assisted areas officials, community leaders, and professionals with various projects of

importance to local communities. Since the publication of the 2013 CEDS Update, NEFCO has

met with representatives of Congressmen Tim Ryan; Senator Sherrod Brown; the State Auditor’s

office; the Cities of Akron, Barberton, Canton, Massillon, North Canton, New Franklin, Norton,

Ravenna, and Wooster; Copley Township; Ravenna Township; the Austen Bioinnovation

Institute in Akron; the Greater Akron Chamber; JumpStart, Inc.; MAGNET; Portage

Development Board; Portage County; a private consultant; Stark Development Board; academics

from Kent State, University of Akron, and Stark State College; and other entities seeking EDA

assistance.

Implementation assistance

NEFCO has provided letters of support for members and other entities whose projects and goals

complement NEFCO’s. Staff continues to assist local governments with the implementation of

infrastructure investments and programs. In 2016, NEFCO participated in the Ohio Public

- 15 -

Works Commission infrastructure projects program as a Technical Advisory Committee member

of Summit County’s District 8 Public Works Integrating Committee.

Technical Assistance

NEFCO staff provides information to the public and private sectors on critical issues affecting

the region. Some examples of this assistance includes updated Census data and notification of

when new information is released, federal and state legislative updates, and funding notices.

NEFCO’s administration of a U.S. Environmental Protection Agency-funded brownfields

assessment grant has made the agency a critical resource for brownfields redevelopment

planning. Additionally, staff’s close relationship with the U.S. EPA and the Ohio EPA allows

NEFCO to assist its members in obtaining quick answers to questions on environmental issues.

Evaluation of Progress on Action Plan and Goals

Progress toward achieving goals and performance measures

1. Support programs that diversify local and regional economies and which build a strong

regional economy capable of recovering from natural disasters and economic setbacks.

Shale energy strategy funded by EDA -- NEFCO was involved in the last year of the

development of an EDA-funded shale energy strategy for a 25-county, shale-rich region of

eastern Ohio. Staff shared information with professionals and leaders in our region and

participated in meetings and calls with project partners. The partnership culminated in a day-

long meeting to present individual shale strategies which are included in a separate section of

this Annual Performance Report. Meetings between NEFCO staff, researchers from The

Ohio State University Extension, NEFCO’s Regional CEDS committee, and interested

parties provided a forum to discuss trends and issues related to shale energy development.

The strategy, funded in 2013 by EDA, provides a sustainable approach to job

creation/retention by developing a business inventory and training for local officials faced

with a growing shale industry.

Economic development work group for a 12-county vision – NEFCO participated in

efforts to continue to support and implement VibrantNEO 2040, a vision document

completed by the Northeast Ohio Sustainable Communities Consortium (NEOSCC) with

assistance from local governments and regional entities such as NEFCO. Funding ended in

2014; however, staff attends regular meetings to discuss the implementation of this vision

across northeast Ohio.

2. Encourage the development of industries that support Northeast Ohio’s economic

clusters – One way in which NEFCO determines the merit of a potential project is to

evaluate how it addresses existing northeast Ohio clusters. NEFCO refers to a list of targeted

industries that are specific to the four-county region and which are identified as priorities by

JobsOhio, the State’s private, non-profit, corporation created to lead Ohio’s economic

development efforts.

Support the efforts of the State’s economic development organization – Through another

federal program managed by NEFCO, staff has met with members of TeamNEO and

- 16 -

JobsOhio, the state’s private economic development organization and its local contact.

NEFCO learns of the state’s new initiatives and conveys this information to members.

3. Build intergovernmental and public-private partnerships that place a high value on

working cooperatively to address the region’s needs – NEFCO’s General Policy Board

and Regional CEDS committee represent the collaboration between public and private

sectors within the region as they make decisions affecting the regional economy. The private

sector makes up the majority of NEFCO’s Regional CEDS committee. This is especially

valuable in guiding NEFCO’s shale energy strategy activities, funded in part by an Investing

in Manufacturing Communities Partnership grant awarded to The Ohio State University.

Through activities funded by EDA’s partnership planning grant and by a U.S. EPA grant,

NEFCO has formed trusted partnerships with private developers, property owners, regional

chambers, and development organizations. Through these public-private efforts, NEFCO has

been a leader in creating and retaining jobs through economic development projects.

4. Promote the redevelopment of blighted, underused, or vacant and environmentally-

challenged sites with high market potential -- NEFCO has been involved in many

activities that directly address this goal. The NEOSCC identifies the remediation and reuse

of vacant industrial sites as a priority. NEFCO also is the lead recipient of FFY 2012 and

FFY 2014 U.S. Environmental Protection Agency Brownfields Assessment Coalition grants,

which fund the assessment of brownfield properties, and recently applied for a FFY 2017

grant. As the manager of the Summit Brownfields Revitalization Program, NEFCO is

directly involved in activities to encourage brownfields redevelopment. NEFCO’s

involvement in brownfields assessment and redevelopment has led to the reuse of several

Summit County properties, and the provision of ongoing technical assistance to an auto-

closure community that received an EDA grant. Staff also provides technical assistance to its

members and to others in northeast Ohio, informing the public and private sector of how

these EPA grants can help jumpstart redevelopment. To date, no projects have led to

applications for EDA grants; however, it is still relatively early since NEFCO’s involvement

precedes remediation. NEFCO will continue outreach efforts to inform Summit County

communities of this opportunity to jumpstart brownfields redevelopment and promote

sustainable development through the reuse of existing underused properties and facilities. To

date, NEFCO has been actively involved in the environmental assessment of over 20

properties, leading to the generation of over $41 million in private investment and the

creation or retention of over 250 jobs.

5. Support existing programs that build human capital – NEFCO continues to assist its

communities with obtaining assistance to create and retain jobs and strengthen the regional

economy through economic diversification and innovation. Recent assistance was provided

to the City of Akron with its application for an EDA grant to fund the remodeling of a

building for the Bits and Atoms Innovation Center and to the City of Canton for an

infrastructure funding request. This project, which was funded in 2016, will promote

entrepreneurship through the provision of maker space and education to the general public.

6. Promote programs that support sustainability and quality of life for the region – Many

of NEFCO’s programs directly promote sustainable development. Participation on a

transportation advisory committee for the Akron Metropolitan Area Transportation Study,

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the assessment of brownfields in Summit County and provision of brownfield technical

assistance to the region’s communities, and NEFCO’s participation on a steering committee

to develop a food hub support the goals of encouraging sustainable development and

walkable communities.

Northeast Ohio Sustainable Communities Consortium – NEFCO has participated in this

effort to identify how to implement recommendations from VibrantNEO’s final report.

Schedule of Goals for 2017 and Program of Activities

2017 Goals and Objectives

The following Goals and Objectives have been reviewed and approved by NEFCO.

Support programs that diversify local and regional economies and which build a strong

regional economy capable of recovering from natural disasters and economic setbacks.

Objectives: • Encourage programs and projects that create and retain jobs

• Support technology and entrepreneurial development by attending pertinent meetings

• Support efforts that will make the region more globally competitive

Encourage the development of industries that support Northeast Ohio’s economic clusters.

Objectives:

• Support projects that contribute toward strengthening the region’s targeted industries adopted

by the NEFCO General Policy Board

• Support activities that complement targeted as well as other existing industries in the region

• Whenever possible, efforts of the Summit Brownfields Revitalization Program will

complement those of JobsOhio to create opportunities for businesses in targeted industries

Build intergovernmental and public-private partnerships that place a high value on

working cooperatively to address the region’s needs.

Objectives:

• Support projects that are consistent with a general plan of the appropriate unit of government

• Support collaborative efforts in order to reduce duplication in services and resources

• Seek opportunities to collaborate and pool organizational resources.

Promote the redevelopment of blighted, underused, or vacant and environmentally-

challenged sites with high market potential.

Objectives:

• Hold public meetings in 2017 to inform communities and individuals of the Summit

Brownfields Revitalization Program

• Continue to refine the brownfields assessment program and participate in training and

education related to brownfields assessment

• Work with entities experienced in brownfields clean-up to better serve recipients of U.S.

EPA assessment program

• Explore the possibility of applying for a U.S. EPA brownfields revolving loan fund to better

assist communities with redevelopment of brownfields

• Support projects that preserve greenspace, either through innovative design or through

- 18 -

measures taken to ensure more compact development

• Consider public health outcomes of brownfields redevelopment and work toward the

assessment of properties to improve public health

Support existing programs that build human capital. Objectives:

• Continue as a board member of the Great Lakes Regional Training Initiative in order to

identify gaps in economic development training and to provide opportunities for University

Centers and Economic Development Districts to more effectively serve Region 5.

• Promote projects that create and retain living wage jobs

• Gain an understanding of the region’s programs and resources for workforce development by

attending a minimum of one meeting per calendar year

• Support the continued growth and success of programs that train or develop workers and

entrepreneurs

• Support programs that address the lack of job opportunities in Northeast Ohio

• Consider activities that will implement recommendations of the shale strategy to improve

communities heavily involved in the oil and gas industry

Promote programs that support sustainability and quality of life for the region.

Objectives:

• Support economic development possibilities tied to the local food industry and activities that

improve the local food infrastructure

• Assist with efforts to structure next steps for the Northeast Ohio Sustainable Communities

Consortium (NEOSCC); help to move toward implementation of measures recommended by

the NEOSCC to create a sustainable region.

The goals listed above provide a structure for NEFCO’s economic development activities. The

following table portrays NEFCO’s anticipated schedule for meeting these goals. Progress

toward meeting performance objectives outlined in the 2016 CEDS is ongoing. To obtain

information needed to meet objectives, staff contacts appropriate local entities for these data,

which are then reported to EDA in the Government Performance and Results Act report.

- 19 -

2017 Schedule for Goals and Action Items

Action

Plan

Element Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Goal 1: Diversify and build a resilient regional economy

Disaster resiliency planning A, C, F

Develop viable projects for

the 2017 CEDS D, E, F, G

NEOSCC participation

A,B,C,D,

E,F,G

Monitor changes in the

regional economy A,D,F

Continue shale energy

strategy A,D,F,G

Assist communities

responding to economic

restructuring and layoffs A, D

Identify communities facing

economic distress and notify

those eligible for EDA

assistance A,D,F

Goal 2: Support industries that strengthen NE Ohio's economic clusters

Attend meetings that

support

technology/entrepreneurial

development A, E, G




assistance A,D,F

Support JobsOhio program A,D

Share Census Bureau

information and updates A,D,E,G

Action Plan Elements

A: Promote economic development and opportunity

B: Foster effective transportation access

C: Enhance and protect environment

D: Maximize effective development and workforce consistent with existing workforce investment strategies

E: Promote technology

F: Balance resources through sound management

G: Utilize adequate funds and other resources

- 20 -

Action

Plan


Goal 3: Work cooperatively with public-private interests




assistance A,D,F

Follow up/implementation

of Shale energy strategy A,D,F,G

Pursue cooperative effort to

identify vacant industrial/

commercial properties

A, B, C,

F, G

Publish NEFCO Forum

newsletters

A,B,C,D,

E,G

Goal 4: Promote the redevelopment of vacant and blighted properties

Explore the use of EDA

funds for viable projects

identified in NEFCO's

brownfields inventory

A, B, C,

D, F, G

Explore regional interest in

applying for a USEPA

brownfields revolving loan

fund; form Coalition A, B, C, G

Receive training and

updates in brownfields

redevelopment C, F, G




assistance A,D,F

Build brownfields database;

assess properties B,C,F,G

Pursue cooperative effort to

identify vacant industrial/

commercial properties

A, B,C, F,

G









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Action

Plan


Goal 5: Support programs that build human capital

Share Census Bureau

information and updates A,D,E,G



Network with Great Lakes

Regional Training Initiative

partners A, D, G

Support JobsOhio program A,D

Goal 6: Promote sustainability and an increased quality of life for the region



Implementation of strategy

for Twinsburg to address

auto plant closure A,B









- 22 -

Table 6 2017 Regional Projects

Project Location NEFCO Member Projected Jobs

Created/Retained

Brimfield Water Line Brimfield Township Portage County 50+

Mats Road Bridge Mantua Village Portage County 50+

Ravenna Water Line Ravenna Township Portage County 50+

Richville Drive Economic

Development corridor

City of Massillon Stark County Not available

Stark County Farm

Economic Development

Project

Village of Navarre Stark County Not available

Mahoning Road Economic

Development Corridor

City of Canton Canton Not available

Cleveland-Massillon Road

Project

Village of Clinton Summit County Not available

Cochran Road Industrial

Park

City of Cuyahoga

Falls

Summit County 475

Gateway Sanitary Sewer and

Water

City of Norton Summit County 50-100

Greenwich Road Sanitary

Pump

City of Norton Summit County 50

Regional Justice Center City of Barberton Summit County 10-20/80

Water Line Extension New Franklin Summit Count 40 retained

Munroe Road City of Akron Akron Not available

Akron Road Industrial Park

Connector

City of Wooster Wooster 400

BioHio Research Park City of Wooster Wooster Up to 50

Note: Projects on the list are organized by county and are not ranked.

- 23 -

Vital Projects

The process of identifying and prioritizing projects, programs and activities that address the

NEFCO region’s needs and enhance economic competitiveness relies on assistance from county

and city coordinators. These coordinators solicit their local governments and communities for

economic development projects in need of funds that are not typically eligible under other

federal and state programs. The projects identified in this CEDS represent the preferences of the

economic development and/or planning departments of NEFCO’s dues-paying members. In

many cases they have been approved by a member’s governing body (County Executive/

Commissioners and city/county councils).

Table 5 lists the economic development priorities for the NEFCO region, the organization

responsible for execution, and possible sources of funding.

Table 7 – Vital Projects

Project Sources of funding Lead organization

responsible for execution Tier I Projects - Highest Priority (in alphabetical order)

BioHio Research Park State, EDA, University City of Wooster

Mahoning Road ED Corridor Local, State, EDA City of Canton

Richville Drive ED Corridor Local, State, EDA City of Massillon

Stark County Farm ED

Project

EDA, Village of Navarre,

Private Stark County Board of Trade

Tier II - Moderate Priority (in alphabetical order)

Cochran Road Industrial Park Local, State, EDA City of Cuyahoga Falls

Akron Road Industrial Park

Connector Local, State, EDA City of Wooster

Greenwich Road Sanitary

Sewer

Local, State, EDA

City of Norton

Regional Justice Center Local, State, EDA City of Barberton

- 24 -

Appendix A

Project Selection Criteria

- 25 -

CEDS Selection Criteria for EDA Construction Projects

2017

1. Economic Distress. The purpose of the Economic Development Administration (EDA) is to

create and/or retain private sector jobs and to alleviate unemployment and underemployment.

Projects located in areas of high unemployment and low Per Capita Income (PCI) will

receive more points. Unemployment for the most recent 24-month period using U.S. Bureau

of Labor Statistics (BLS) will be calculated, when possible, for the entity or county in which

the project is located. Small communities that are not covered by BLS statistics may provide

independent studies for the Committee to consider in assigning points, use the county rate, or

document distress using statistics as the Census Tract level. Applicants may use whichever

statistic gives the project more points, but only one point category can be selected.

Unemployment rate greater than 1 percentage 8 points

point above the U.S. rate /PCI is

80 percent or less than the national PCI/

Meets EDA Special Need criteria

Unemployment rate less than or equal to 5 points

1 percentage point above the U.S. rate/

PCI is 81-89 percent of the U.S. PCI

Unemployment rate equal to the U.S. rate/ 3 points


Unemployment rate less than or equal to 1 point

1 percentage point below the U.S. rate/PCI

Equals the U.S. rate


point below the U.S. rate/ Per capita income

exceeds 100 percent of the U.S. rate

2. EDA funds requested will be used to: Build or renovate a facility for manufacturing/ 10 points

industrial/business incubator use or construct

infrastructure to directly serve a manufacturing/

industrial development/expansion

Build or renovate a facility for office/ 6 points

service/information technology use

Build or renovate a facility for a retail/commercial use 2 points

Construct infrastructure to directly serve a 2 points

retail/commercial development/expansion

Construct or support an infrastructure/ 2 points

transportation project as part of a general road

network (not solely serving a development)

Build or renovate a community facility 0 points 3. EDA’s National Strategic Priorities. EDA has identified a set of national priorities. Projects

that address these priorities will receive one point for each, up to a maximum of 5 points.

Documentation is required in order to receive a point.

- 26 -

a. Clean energy

b. Green technologies

c. Sustainable manufacturing

d. Information technology infrastructure (where lacking) – for eg. Broadband, smartgrid

e. Auto industry restructuring

f. Natural disaster mitigation

g. Access to capital for small to medium-sized and ethnically diverse enterprises

h. Innovations in science, healthcare and alternative fuel technologies

4. How many full-time jobs are expected to be created and/or retained by the project over the next 9 years? (i.e. do not count part-time or contractual jobs).

50 jobs or more 6 points Up to 49 jobs 3 points 5. Quality of Jobs Created. The average hourly base wage rate of the jobs created (excluding

benefits) is at or above 200% of the federal minimum wage. 3 points

6. Environmental considerations. Assign 2 points for each criterion met below:

Project will tap into or link to existing infrastructure that is between 0 to ½ mile from the site.

Project design goes beyond basic permitting, building or zoning requirements to incorporate or preserve an environmental or historic feature on the site.

Project involves the adoption of and adherence to Leadership in Environmental and Energy Design (LEED) guidelines.

7. Reuse of land or buildings. Project is located on a brownfield site or promotes reuse of an

existing facility. Brownfields are defined by ORC 122.65 as “abandoned, idled, or under-used industrial, commercial or institutional property where expansion or redevelopment is complicated by known or potential releases of hazardous substances or petroleum.” Presence of brownfield must be documented to receive the points.

4 points

8. Cooperation. Project represents a partnership between 2 or more eligible applicants as defined by 13 Code of Federal Regulations, section 300.2 (for example, a local government, community development corporation or a university). A partnership is characterized by the commitment of money or in-kind services.

3 points

- 27 -

9. The project contributes to the region’s key industries. Projects will receive 5 points for identifying a potential tenant or client engaged in activities below. Projects will not receive any points for this item unless an applicant can identify a potential tenant, community plan or client that proposes specific activities that would fit into these categories (based on the intended/planned construction). For retention projects, consider this question on the basis of known contributions to the key industries below.

a. Advanced Materials and Polymers (eg. chemicals, plastics, liquid crystals)

b. Aerospace and Aviation (eg. R & D and manufacturing)

c. Agri-business and Food Processing (eg. food safety, ag-bio R & D)

d. Automotive (eg. manufacturing involving auto suppliers and supply chains)

e. Bioscience and Bioproducts (e.g. research, health innovations)

f. Corporate and Professional Services (eg. finance, IT)

g. Instruments and Controls (eg. production of high-tech electronic equipment used in

production, new product development and quality assurance)

h. Energy (eg. advanced and alternate energy systems and innovations, oil and gas)

i. Metals (eg. steel, aluminum)

j. Transportation and Logistics (eg. processes/products that support transportation

efficiencies)

0 or 5 points 10. Local coordination. Project being proposed is in accordance with the local plan of the area in

which it is located (plan must be submitted in order for committee to determine whether or how many points are to be awarded).

3 points may be awarded as determined by the Regional CEDS committee

11. Local support. Local share is essential to the development of a project. High priority will be

given to projects which have a high percentage of local participation as a portion of total project costs. In kind contributions must be specified. Do not include staff time.

Calculate: Local share (in-kind , public, private funds) Total Project Costs 70% or greater 6 points 50 - 69% 3 points 30 - 49% 1 point less than 30% 0 points

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12. Planning completed. Give the project two points for each step already completed in the following planning process, and be prepared to provide documentation.

a. Land/Building acquisition/Title acquired b. Engineering design studies completed c. Availability/completion of necessary environmental studies d. Construction plans drawn e. Plans approved by appropriate government agency f. Local match promised g. Local match secured

Total number of points ___________ 13. Readiness to proceed. Many projects are listed in the CEDS, but are in various stages of

their readiness to proceed with the EDA application. Priority is given to projects that are closer to applying to EDA for funding. Please use realistic measures when scoring.

Application already submitted and project is listed in 12 points NEFCO’s CEDS Actively working with NEFCO to submit 4 points application within 1-3 months Actively working with NEFCO to submit application 3 points within 4-6 months Expect to submit application within 6-12 months 1 point Not sure when application will be submitted 0 points Approved by the NEFCO General Policy Board, December 19, 2012

- 29 -

CEDS Selection Criteria for EDA Non-Construction Projects

2017

1. Economic Distress. The purpose of the Economic Development Administration (EDA) is to

create and/or retain private sector jobs and to alleviate unemployment and underemployment.

Projects located in areas of high unemployment and low Per Capita Income (PCI) will

receive more points. Unemployment for the most recent 24-month period using U.S. Bureau

of Labor Statistics (BLS) will be calculated, when possible, for the entity or county in which

the project is located. Small communities that are not covered by BLS statistics may provide

independent studies for the Committee to consider in assigning points, use the county rate, or

document distress using statistics as the Census Tract level. Applicants may use whichever

statistic gives the project more points, but only one point category can be selected.


point above the U.S. rate /PCI is

80 percent or less than the national PCI/

Meets EDA Special Need criteria

Unemployment rate less than or equal to 5 points

1 percentage point above the U.S. rate/


Unemployment rate equal to the U.S. rate/ 3 points


Unemployment rate less than or equal to 1 point

1 percentage point below the U.S. rate/PCI

Equals the U.S. rate


point below the U.S. rate/ Per capita income

exceeds 100 percent of the U.S. rate

2. EDA funds requested will be used to: Directly support the industrial/manufacturing sector 10 points

Directly support high tech/innovation industries 10 points

Support plans related to infrastructure/transportation

projects that are directly related to creating high-tech,

high quality jobs 10 points

Support businesses that will primarily be involved in the

service industry or information technology 6 points

Support businesses that are primarily retail/commercial 2 points

Support plans directly related to stand-alone infrastructure/

transportation projects unrelated to the creation of high

quality jobs 2 points

Support plans for a community facility 0 points

- 30 -

3. EDA’s National Strategic Priorities. EDA has identified a set of national priorities. Projects

that address these priorities will receive one point for each, up to a maximum of 5 points.

Documentation is required in order to receive a point.

a. Clean energy

b. Green technologies

c. Sustainable manufacturing

d. Information technology infrastructure (where lacking) – for eg. Broadband, smartgrid

e. Auto industry restructuring

f. Natural disaster mitigation

g. Access to capital for small to medium-sized and ethnically diverse enterprises

h. Innovations in science, healthcare and alternative fuel technologies

4. How many full-time jobs are expected to be created and/or retained by the project over the next 9 years? (i.e. do not count part-time or contractual jobs).

50 jobs or more 6 points Up to 49 jobs 3 points 5. Quality of Jobs Created. The average hourly base wage rate of the jobs created (excluding

benefits) is at or above 200% of the federal minimum wage. 3 points

6. Cooperation. Project represents a partnership between 2 or more eligible applicants as defined by 13 Code of Federal Regulations, section 300.2 (for example, a local government, community development corporation or a university). A partnership is characterized by the commitment of money or in-kind services.

3 points 7. The project contributes to the region’s key industries. Projects will receive 5 points for

identifying a potential tenant or client engaged in activities below. Projects will not receive any points for this item unless an applicant can identify a potential tenant, community plan or client that proposes specific activities that would fit into these categories (based on the intended/planned construction). For retention projects, consider this question on the basis of known contributions to the key industries below.

a. Advanced Materials and Polymers (eg. chemicals, plastics, liquid crystals)

b. Aerospace and Aviation (eg. R & D and manufacturing)

c. Agri-business and Food Processing (eg. food safety, ag-bio R & D)

d. Automotive (eg. manufacturing involving auto suppliers and supply chains)

e. Bioscience and Bioproducts (e.g. research, health innovations)

f. Corporate and Professional Services (eg. finance, IT)

g. Instruments and Controls (eg. production of high-tech electronic equipment used in

production, new product development and quality assurance)

(continued on next page)

- 31 -

h. Energy (eg. advanced and alternate energy systems and innovations, oil and gas)

i. Metals (eg. steel, aluminum)

j. Transportation and Logistics (eg. processes/products that support transportation

efficiencies)

0 or 5 points

8. Local support. Local share is essential to the development of a project. High priority will be

given to projects which have a high percentage of local participation as a portion of total project costs. In kind contributions must be specified. Do not include staff time.

Calculate: Local share (in-kind , public, private funds) Total Project Costs 70% or greater 6 points 50 - 69% 3 points 30 - 49% 1 point less than 30% 0 points 9. Readiness to proceed. Many projects are listed in the CEDS, but are in various stages of

their readiness to proceed with the EDA application. Priority is given to projects that are closer to applying to EDA for funding. Please use realistic measures when scoring.

Application already submitted and project is listed in 12 points NEFCO’s CEDS Actively working with NEFCO to submit 4 points application within 1-3 months Actively working with NEFCO to submit application 3 points within 4-6 months Expect to submit application within 6-12 months 1 point Not sure when application will be submitted 0 points 10. The project is submitted by a NEFCO member or by a community represented by NEFCO. 5 points Approved by the NEFCO General Policy Board, December 19, 2012

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