fundamentals of strategic planning presented by doug svensson, aicp applied development economics,...
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Fundamentals of Fundamentals of Strategic PlanningStrategic PlanningFundamentals of Fundamentals of
Strategic PlanningStrategic Planning
Presented by
Doug Svensson, AICPApplied Development Economics, Inc.
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Presentation OutlinePresentation OutlinePresentation OutlinePresentation Outline
Purpose and benefits of a strategic planUsing a SWOT to focus on key issues Setting a vision and policy frameworkAssessing market opportunitiesAllocating resources with an action planMeasuring progress
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Purpose and BenefitsPurpose and BenefitsPurpose and BenefitsPurpose and Benefits
Helps to identify economic goals and build community consensusCreates information baseline and identifies key indicatorsProvides road map for actionCreates focus for strategic partnershipsBuilds community capacityProvides targets for funding and investments
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Strategic Plan ProcessStrategic Plan ProcessStrategic Plan ProcessStrategic Plan Process
SWOTPublic EngagementVision and Goal SettingAction PlanEvaluation and Adjustment
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SWOT AnalysisSWOT AnalysisSWOT AnalysisSWOT Analysis
S—StrengthsW—WeaknessesO—Opportunities-external trends that create possibilitiesT—Threats-external trends that bring more challenges
IDENTIFYING STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS
STRENGTHS WEAKNESSES
NEUTRAL
Internal Factors
External Factors
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How to collect the dataHow to collect the dataHow to collect the dataHow to collect the data
Key informant interviewsSurveys of businesses and householdsAvailable Data
Employment Trends – EDDSocioeconomic Trends – Census (ACS/PUMS)Real Estate Trends – Broker reports/Loopnet
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Benchmark ComparisonsBenchmark ComparisonsBenchmark ComparisonsBenchmark Comparisons
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Capitola Santa Cruz Scotts Valley Watsonville
Perc
enta
ge
Cities
Under 20 20-39 40-59 60+
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Benchmark ComparisonsBenchmark ComparisonsBenchmark ComparisonsBenchmark Comparisons
0%
10%
20%
30%
40%
50%
60%
Capitola Half Moon Bay
Monterey Morro Bay Pismo Beach Sausalito
Perc
enta
ge
Cities
Under 20 20-39 40-59 60+
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SWOT FindingsSWOT FindingsSWOT FindingsSWOT Findings
StrengthsCentral LocationAmenities & AttractionsHistoric InterestHigh Household IncomesRedevelopment Agency and ProjectsFreeway InterchangesCarlton Hotel
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1. UCSC2. NMFS/NOAA3. Wildlife Center CDFG4. CSU MLML5. ES NERR6. Hopkins Marine Station7. MB Aquarium8. MBARI9. NPS10. UC Sea Grant Program11. SW Fisheries FMFS/NOAA12. NRL, Marine Meteorology13. Fleet Numerical USN14. National Weather Service (NOAA)15. MBNMS (NOAA)16. NURP (NOAA)17. Seymour Center (UCSC)18. USGS19. CSUMB DSEP20. CDFG Marine Region21. NOAA MPA Center
Building on Community Strengths: Building on Community Strengths: Monterey Bay Crescent Ocean Research ConsortiumMonterey Bay Crescent Ocean Research Consortium
1
4
3 5
76
8
9
16
15141312
11
10
17
21 20
19
18 2
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Major Marine Science Facilities in Major Marine Science Facilities in the Monterey Baythe Monterey Bay
Major Marine Science Facilities in the Monterey Bay
1. IMS, Long Marine Lab UCSC $25,000,000 2. NMFS/NOAA $12,300,000 3. Wildlife Center CDFG $1,750,000 4. CSU MLML $28,000,000 5. ES NERR $1,150,000 6. Hopkins Marine Station $8,900,000 7. MB Aquarium $50,000,000 8. MBARI $44,000,000 9. NPS $16,000,000 10. UC Sea Grant Program $600,000 11. SW Fisheries FMFS/NOAA $2,900,000 12. NRL, Marine Meteorology $20,000,000 13. Fleet Numerical USN $20,000,000 14. National Weather Service (NOAA) $3,000,000 15. MBNMS (NOAA) $2,400,000 16. NURP (NOAA) $500,000 17. Seymour Center (UCSC) $950,000 18. USGS $9,000,000 19. CSUMB DSEP $6,800,000 20. CDFG Marine Region $2,400,000 21. NOAA MPA Center $1,400,000
TOTAL:(2120 Faculty, Staff, Graduate Students) $255,000,000
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Strengths in the Tahoe Basin Strengths in the Tahoe Basin EconomyEconomyStrengths in the Tahoe Basin Strengths in the Tahoe Basin EconomyEconomyCluster Core Industries and Suppliers Support Two-Thirds of Tahoe Basin Private Sector Economy
Other (includes local-serving businesses), $1.54 billion per year
Environmental Innovation, $827 million per year
Health & Wellness, $357 million per year
Visitor Services, $1.98 billion per
year
Total Basin Economy = $4.7 Billion per Year
Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.
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Business Recruitment - Business Recruitment - TargetingTargetingBusiness Recruitment - Business Recruitment - TargetingTargeting
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SWOTSWOTSWOTSWOT
WeaknessesLack of Consensus on Growth & DevelopmentUnder-utilized Strip Malls/DowntownDifficulty Recruiting Young, Creative Workers; High Housing CostsHigh Share of Government Jobs & Workers
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During This Past Decade During This Past Decade Tahoe Lost:Tahoe Lost:During This Past Decade During This Past Decade Tahoe Lost:Tahoe Lost:
More than 9,500 residents (-15% for 2000-2008 or more than 1,200 per year)
Approximately 2000 Jobs (-6% for 2000-2007), with further job loss in 2008 and 2009
Almost 2,800 primary school students (and future workforce; -22% for 2000-2008)
2 elementary schools and one middle school in South Shore
(Sources: TRPA, ADE, CSU Chico, California and Nevada Depts. Of Education)
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Change in Free & Subsidized Change in Free & Subsidized School LunchesSchool LunchesChange in Free & Subsidized Change in Free & Subsidized School LunchesSchool Lunches
Change from 2005-2006 school year to 2009-2010 school year
School District
Total Additiona
l StudentsLeaving
# of Free or Sub. School
Lunches
Increase in % of Sub.
Lunches as Proportion of
Total StudentsLake Tahoe Unified -554 -15 51% to 57%Tahoe Truckee Joint Unified -353 105 32% to 38%Subtotal CA. -907 90 42% to 48%Zephyr Cove, Douglas Cty. -13 24 17% to 22%Incline Village, Washoe Cty. -129 61 19% to 28%Subtotal NV. -142 85 19% to 26%Total -1,049 175 38% to 44%Source: Ca. Dept. of Education, School Fiscal Services as of April 1, 2010, Free/Reduced Meals Data Program and Calworks data file. Nevada Dept. of Education, Child Nutrition and Health, 2010
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Housing AffordabilityHousing AffordabilityHousing AffordabilityHousing Affordability
$59,100$45,900
$54,972
$32,000$39,800
$47,200$59,400
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Nurse Tahoe City
Teacher Tahoe City
Police Officer Tahoe City
Teacher Washoe County
Teacher SLT Fire Fighter SLT Police Officer SLT
Incline Village / Washoe County - $114,000
Tahoe City Area / Placer County - $61,200
City of South Lake Tahoe - $45,000
Note: Assumes 20% downSources: ADE, Inc., school districts, Lake Tahoe School, City of South Lake Tahoe, Placer County, Deb Howard & Company, RPM Mortgage, Reno Gazette Journal, Chase International Data
Tahoe City Area
Washoe County
South Lake Tahoe
Income Needed to Afford Median-Priced Home Compared to Entry-Level Salaries 2010
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Identifying OpportunitiesIdentifying OpportunitiesIdentifying OpportunitiesIdentifying Opportunities
Job GrowthRetailTourismInstitutional sectors
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Market Opportunities: Market Opportunities: California ClustersCalifornia ClustersMarket Opportunities: Market Opportunities: California ClustersCalifornia Clusters
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Cluster Framework:Cluster Framework:Dovetail with SWOTDovetail with SWOTCluster Framework:Cluster Framework:Dovetail with SWOTDovetail with SWOT
Leading Industries
(core of the cluster)
Support Industries
(suppliers of components, raw materials, support services)
Economic Foundations
Technology Human Resources
Capital Regulatory & Tax Climate
Adv. Physical Infrastructure
Quality of Life
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Rural Economic DevelopmentRural Economic DevelopmentRural Economic DevelopmentRural Economic Development
We are here
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Leakage of Business-to-Leakage of Business-to-Business TransactionsBusiness TransactionsLeakage of Business-to-Leakage of Business-to-Business TransactionsBusiness Transactions
Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.
$338 million per year
$224 million per year
$66 million per year
$0
$50
$100
$150
$200
$250
$300
$350
$400
Visitor Services Environmental Innovation Health & Wellness
In M
illio
ns
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Percentage of Retail Percentage of Retail Spending Staying in Spending Staying in AtascaderoAtascadero
Percentage of Retail Percentage of Retail Spending Staying in Spending Staying in AtascaderoAtascadero
71.1%
26.2%
82.0%
1.8%
31.7%
22.1%
81.1%
30.5%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Supermarket
Discount Store
Hardware
Apparel Stores
Sporting Goods
Specialty Retail
Drug Stores
Restaurants
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Sales LeakageSales LeakageSales LeakageSales Leakage
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$79.2
$7.9
$22.8
$6.1
$13.3
$7.1
$21.9
$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0
Total
Apparel Store Group
General Merchandise Group
Specialty Retail Group
Food, Eating, & Drinking Group
Building Materials & Home Furnishings Group
Automotive Group
Sales Leakages ($ millions)
2525
Retail Store Type PotentialRetail Store Type PotentialRetail Store Type PotentialRetail Store Type Potential
ApparelWomen’s and Men’s clothingFamily clothingShoes
General MerchandiseBig Box rather than Department stores
Specialty RetailBooksOffice SuppliesSporting Goods
FoodFine Dining
Home FurnishingsFurnitureAppliances/Electronics
AutomobileNew Cars
EntertainmentMovie TheatersArt galleriesMusic venues
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Economic Assessment: Economic Assessment: TourismTourismEconomic Assessment: Economic Assessment: TourismTourism
TABLE 1VISITOR SPENDING, 2007
Visitor Spending by Commodity Sonoma County Petaluma (Estimate)Total $1,298,500,000 $101,636,116Accommodations $239,600,000 $17,061,988Food Service $312,500,000 $37,041,900Food Stores $43,500,000 $5,156,232Ground Trans and Motor Fuel $201,400,000 $6,112,485Arts, Entertainment, Recreation $245,800,000 $5,942,493Other Retail Sales $255,800,000 $30,321,018Source: ADE, Inc., data from Dean Runyan Associates, California Board of Equalization, and U.S. Economic Census.
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Identifying ThreatsIdentifying ThreatsIdentifying ThreatsIdentifying Threats
Slow economic recoveryGlobal competitionLocal/regional competition
Business developmentInfrastructure
State budget/program cutsRedevelopment sunsetTechnological changes affecting local businessesChanging environmental standards
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Economy Community
Creating a Vision: Vital Creating a Vision: Vital CycleCycleCreating a Vision: Vital Creating a Vision: Vital CycleCycle
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Creating a Vision and Policy Creating a Vision and Policy FrameworkFrameworkCreating a Vision and Policy Creating a Vision and Policy FrameworkFramework
Use General Plan if recentInform public discussion with initial SWOT and market assessmentFocus on outcomes that meet people’s needsRespect community characterRespond to community concerns
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Downtown GoalsDowntown GoalsDowntown GoalsDowntown Goals
Atascadero’s downtown is a lively place for business, entertainment, arts, and public gatherings. Atascadero facilitates the transition of the downtown into a synergistic entertainment, cultural, and specialty shopping area.
OBJECTIVES:Colony Square successfully connects the Sunken Gardens,
Stadium Park and Colony Way to create a vibrant commercial core.The development in Downtown includes features to support the
City’s Tourism Marketing Plan in terms of creating venues for art showings, events such as the Art Walk, fine restaurants, and entertainment venues to attract tourists as well as local residents.New development in Downtown features mixed-use to increase
the intensity of activity.30
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Retail GoalsRetail GoalsRetail GoalsRetail Goals
Atascadero provides a broad range of retail stores so that residents and visitors can meet most of their shopping needs locally.
OBJECTIVES:Encourage a broad range of retailers to locate within the city.Support development of major commercial centers at the Del Rio Road
interchange.Re-capture at least 50 percent of retail leakage within five years, 75
percent of retail leakage within 10 years.Concentrate retail at major nodes along El Camino Real.Re-develop selected strip malls into R & D industrial space, Class A office
space, high density residential or a mix of these uses.Create a transit line for El Camino. For long term, consider a Curitiba-like
fixed route bus system for El Camino, connecting nodes with each other and downtown. Seek to concentrate commercial retail and office capacity in downtown
core.
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Tourism GoalsTourism GoalsTourism GoalsTourism Goals
Atascadero is the gateway and hub for visitors to the Central Coast, providing lodging, recreation, entertainment, and unique shopping and cultural opportunities.
OBJECTIVES:Leverage its central location and access to San Francisco, Los Angeles, and
Fresno to enhance its tourism industry. Increase the number of venues for performing arts and other cultural events,
including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. Explore the feasibility of developing Eagle Ranch into a venue for attracting
business and leisure visitors. Enhance existing attractions to accommodate larger events and more business
and leisure travelers. These include the golf course, the zoo, and the parks. Ensure that new commercial development includes space for restaurants
wherever appropriate, especially in the Downtown. Advocate for improvements to Highways 41 from Fresno and 46 from
Bakersfield.Explore and if feasible develop equestrian event center (see Sycamore Trails
Stables, San Juan Capistrano). 32
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Job GoalsJob GoalsJob GoalsJob Goals
Atascadero supports innovative businesses, particularly those in emerging environmental and information technology fields
OBJECTIVES:Focus business attraction and development on existing available
sites, using redevelopment authority/resources where possible to help remove development barriers.Support growth of economic opportunity areas, including
alternative energy, graphics, new media, food and beverage, electronics etc.Increase market area for local businesses by advocating for
safety improvements along Highways 41 and 46 to Central Valley.Support installation/enhancement of Wi-Fi, broadband
infrastructure.
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Action Plan: Allocating Action Plan: Allocating ResourcesResourcesAction Plan: Allocating Action Plan: Allocating ResourcesResources
Set action prioritiesNetwork with local/regional partnersIdentify grant funding opportunitiesIdentify public/private partnership opportunitiesSet criteria for any public incentives
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An Economic Development An Economic Development Program for Desperate TimesProgram for Desperate TimesAn Economic Development An Economic Development Program for Desperate TimesProgram for Desperate Times
Assign/hire staffNetwork existing resourcesFocus BRE program on commercial vacancy reductionEmploy technology for EDLeverage outside investment on catalyst sitesDevelop visitor serving amenitiesEnhance retail shopping mixFacilitate industry cluster developmentCoordinate with workforce development agencies
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Business Recruitment - Business Recruitment - InteractivityInteractivityBusiness Recruitment - Business Recruitment - InteractivityInteractivity
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CapitolaCapitolaCapitolaCapitola
Transition of major retail centersIntroduction of new kinds of retail and other businessesIncreased visitor services in Downtown Village
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Gonzales DowntownGonzales DowntownGonzales DowntownGonzales Downtown
South Monterey wine trailCreation of attractive designAccess both local and state funding sourcesFocus on niche market opportunities
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CerritosCerritosCerritosCerritos
Transition of the job baseUnique fiscal recommendations to transition from redevelopmentFocus on business retention and expansion Meet local-serving retail needs
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MilpitasMilpitasMilpitasMilpitas
Role in Silicon Valley and job developmentPlace branding Capacity building processRetail competitive position
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Potential Criteria for Public Potential Criteria for Public IncentivesIncentivesPotential Criteria for Public Potential Criteria for Public IncentivesIncentives
Job creation/expansionJob qualityUse of vacant buildingsFiscal return on investmentCatalyst projectsTarget industriesEnvironmental qualityCommunity planning goals
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Typical Net Fiscal ImpactTypical Net Fiscal ImpactTypical Net Fiscal ImpactTypical Net Fiscal Impact
Source: Applied Development Economics, with data from the Salinas 2000-01 budget.
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Lodging Industrial Service Commercial
Residential Retail Office Business ParkN
et R
eve
nue/C
ost
per
Acr
e ($1,0
00)
Net Fiscal Impact of Existing Land Uses
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Measuring ProgressMeasuring ProgressMeasuring ProgressMeasuring Progress
Process indicators vs. outcome indicatorsReturn on public investment
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Process IndicatorsProcess IndicatorsProcess IndicatorsProcess Indicators
Organizational developmentNumber of businesses met/assistedNew infrastructure/public facilities builtHits on ED websiteAffordable housing built
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Outcome IndicatorsOutcome IndicatorsOutcome IndicatorsOutcome Indicators
Increased jobsReduced unemploymentIncreased incomes/reduced povertyIncreased retail salesIncreased lodging taxesOther public revenue increases
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Sample Fiscal ProjectionSample Fiscal ProjectionSample Fiscal ProjectionSample Fiscal ProjectionImpact on General Fund Reserves with Implementation of General Plan
Source: Mundie & Associates 2008, Petaluma General Plan Update, “Fiscal Impacts of the Draft General Plan 2025”Note: The original chart as presented in the source document above, has been modified for Year 2010-2011 to reflect current balance of General Fund Reserves.
Existing+Pipeline+Plan
Existing Only
-$50,000
-$40,000
-$30,000
-$20,000
-$10,000
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2007-08 2010-11 2013-14 2016-17 2019-20 2022-23 2025-26
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ConclusionConclusionConclusionConclusion
Always customize the process and the product to local circumstancesUse the process to build local capacity and cement strategic partnershipsConsider the strategic plan a living document: measure progress and plan for adjustment
BUILDING THE KNOWLEDGE AND RESOURCES CLIENTS NEED TO REALIZE THEIR ECONOMIC AND
BUSINESS POTENTIAL