The Economic Development 500

What Does It Take To Win The Race……. And Assessing The Region’s Chances

May 5, 2010

CB Richard Ellis | Page 2

What is Economic Development Success?Presentation Disclaimer

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.

CB Richard Ellis | Page 3

TABLE OF CONTENTS

OBJECTIVES

I. The Field (Economic Challenges)

II. What Does it Take to Win the Economic Development Race?

Build the team

Race at a great track

Scout the competition

Get fans to the race track

Finish strong at the end of the race

When you win…. CELEBRATE!

III. What Winners are doing

IV. Sangster’s Top Ten

The Economic Development 500 – What Does It Take To Win The Race

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Business Trends

Section I- The Economic Challenge

Corporate DownsizingCorporate DownsizingNeed for Flexibility

Closures and Lay-offs

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What does this mean for you?

Pressure to Retain Existing Businesses Intense competition for fewer project opportunities

(Supply & Demand) Increased scrutiny by your investors, partners, and

elected officials (… and media!)

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Workforce

Quality of Life

Operating Environment

Economic Incentives

Accessibility

Cost

What Drives Location Decisions?

Strategic Location Drivers

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Location Decision Trends

Can I Attract, Recruit, and Retain the Talent and Expertise To Be Successful?

There Is A “Need for Speed” – sometimes• Must be responsive• Must have product/inventory

Incentives – Flexibility Is Important – “One size does not fit all”• Creative• Performance-based• Front-end loaded

It’s About COST! – Every facet of the Location Decision Process is competitive. Locations must offer a cost-competitive business environment

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Project Activity/Trends

Industry Activity• Biotech/Life Sciences• Medical and Healthcare Services• Advanced Manufacturing• Logistics/Supply Chain Rationalization• Alternative/Renewal Energy

Project Activity• Continue to See Significant Inquiries• Planning Cycle – 9-18 months• Consolidation/cost reduction initiatives driving activity• Some caution in exercised in “pulling the trigger”

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Section III - Strategies for Winning

Build the Team

• Have a plan (vision for winning)

• Hire strong leadership (owner, driver, crew chief)

• Build around your team’s strengths

• Attract strong talent (support team – Pit Crew)

– In-migration

–Retention of your best and brightest

–Workforce development

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Race at a great track• Infrastructure

–Water / Sewer–Utilities–Roads

• Real Estate options• Accessibility

Section III - Strategies for Winning

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Get Fans to the race track• Creative marketing/branding• Communication• Flexible Incentives• Superior website• FAM tours

Section III - Strategies for Winning

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Section III – Strategies for Winning

Scout the Contenders

• Who is your competition?

• What are their strengths?

• What are they doing that you aren’t?

• How do you differentiate?

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Section III- Strategies for Winning

RACE HARD FROM START TO FINISH!!!!!

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Section III- Strategies for Winning

Focus on fundamentals• Responsiveness• Credibility• Honesty

Be consistent (minimize your errors)• Accurate information• Community visits

Make your move as the race unfolds• Learn from past experiences

Race hard from start to finish

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When you win CELEBRATE!• Great way to kick-off a long-term relationship• Celebrating benefits both parties• Goodwill with company• Involves all stakeholders• Opportunities to engage potential investors• Be strategic in planning

Section III- Strategies for Winning

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Build the Team• Build around the team’s strengths• Attraction strategies become more targeted• Use strengths /assets to sell tickets• Organizational development• Self-assessment

Attract and Retain Strong Talent• Young professionals networks• Ex-patriot programs• Road shows• Direct marketing• Close alignment & partnerships with Colleges / Universities

Workforce Development• Targeted programs as early as middle school / high school• Local industry leaders driving curriculum / skill development• Workforce studies examining generational differences

Section IV – What Winners are doing

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Section IV – What Winners are doing

Race at a great track• Regional approach to planning

–Transportation–Water / Sewer

• Inventory of real estate options–Existing–Greenfield–Specialized Developments (Technology / Biotech/Advanced

manufacturing)• Accessibility• Public Policy aligned with economic development

strategies• Airport management is on the economic

development team

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Section IV – What Winners are doing

Scout the Competition• Constantly benchmarking against perceived

competition• Benchmarking against “best in class”• Using a broad range of sources to determine what

the competition is doing–Consultants–Prospects

• Requesting extensive debrief sessions when unsuccessful

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Get people to the race track• Social Media

Social Media

Section IV – What Winners are doing

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Section IV – What Winners are doing

Get people to the race track• Creative and flexible incentives

–Cash is king–Customizable (one size does not fit all)–Performance driven vs. clawbacks

• Streamlined applications / approvals• Expedited Permitting

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Section IV- What Winners are doing

When you win … CELEBRATE!• Work closely with the company to ensure that the

celebrations meet their objectives–No surprises–Sensitivity to culture and environment

• Flawless Execution (attention to detail)• Creative ideas laced with local flavor

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Sangster’s TOP TEN

Best Practices to Help Position You To Compete

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Align local and regional strengths and assets with economic development vision and strategies

Quality jobs mean different things to different communities

“We’re going after Biosciences here.”

Sangster’s TOP TEN

10. Don’t Pretend to be something you aren’t

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It’s critical to establish public policies to support your economic development vision• Transportation• Infrastructure• Education• Culture

Perceptions ARE reality – especially negative ones

Sangster’s TOP TEN

9. If you don’t know where you’re going, it’s pretty hard to get there

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Offer a variety of innovative incentive tools to meet unique needs of projects• Flexible• Customizable• Streamline application and approval

processes

Sangster’s TOP TEN

8. Put innovative tools into your toolbox

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Quality of life is NOT a major differentiator

You MUST be able to communicate what differentiates you from your competition

It’s all about JOBS!

Sangster’s TOP TEN

7. We’re different – we promise!

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Economy rich and diverse enough to provide opportunities for two professional households

Strong K-12 educational opportunities

Environment where housing and income are in equilibrium

Trip to work is a manageable commute

Communities that welcome diversity

Sangster’s TOP TEN

What is “quality of life” anyway?

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Take a regional approach to marketing and promoting your community

The regional organization is MY FRIEND

Everyone wins when the region wins – sounds trite, but it’s true

Sangster’s TOP TEN

6. All for one and one for all (There is no “I” in Team)

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Assemble a strong team/network of public and private sector members that are advocates for your mission

Engage the team in every aspect of your plan• Strategic planning• Trade missions• Community visits with prospects• “FAM” trips

Sangster’s TOP TEN

5. If you want to WIN, you have to have quality players on the Team

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Invest in building and maintaining relationships with prospects and those who influence and source projects• Target strategic relationships – everyone has limited

resources• Face time is important – building trust and credibility• Get decision-makers to your community

Sangster’s TOP TEN

4. Show me the love

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Take a seamless and integrated approach when coordinating project resources• Regional• Local• State• Utilities

With compressed process and decision times, coordination is critical – can be a filter

Sangster’s TOP TEN

3. We’re ONE big, happy family

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Invest in developing a superior website• Easy to navigate• Current and accurate information• Maps and visuals• Detailed contact info (who to call)

Personal touch – high level of response with current information

Sangster’s TOP TEN

2. Good information can put you on the map

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Branding can be a differentiator• KCADC - OneKC• Indy Partnership• Charlotte USA• Austin – The Human Capital

Target, Target, Target• Strategic advertising• Familiarization tours• Frequent “touches”

Sangster’s TOP TEN

1. Become a word in the dictionary… the next

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Jonathan Sangster

Senior Managing Director

Consulting & Economic Incentives Practices

CB Richard Ellis

404.923.1228

jonathan.sangster@cbre.com