Document Sample
economicdevelopment6.23.11 Powered By Docstoc
					Economic Development
Economic development includes:
    Multiple perspectives, not one shared understanding of what economic
      development is
    “Successful” economic development can be “economic
      gardening”/entrepreneurship & independent contractor growth
    Urban compact development, sustainable development, and sustainable
      community development is in the interest of economic development
    Growing from within
    Gain a greater community understanding of the relationships between a healthy
      community if opportunity for all and local E.D. efforts
    Define potential benefits of a more deliberate collaborating behavior, local ED
      efforts and health community/quality of life initiatives
    Identify new /future work and living options (work from home, entrepreneurship)
      and education skill set and training needed for our seven industry clusters just
      announced by Governor Nixon for Missouri

Resilience of the Columbia economy.
Historically as well as currently Boone County and Columbia have had lower
unemployment than the State of Missouri and the United States. Bureau of Labor
Statistics data for the most recent quarters show Columbia with lower unemployment
than the state as a whole and the majority of several hundred metropolitan areas.

Central place function.
The City has a “daytime population” estimated at approximately 26 percent greater than
the resident population. This is an indicator of economic centrality in the region – the city
grows by day as a result of net in-commuters to work; tourists and overnight visitors; and
shopping visits from outside the City limits.

Boone County and Howard County form the Columbia Metropolitan Statistical Area
(MSA), a census defined unit based on cities of greater than 50,000 population and their
dependent regions. Columbia has a “labor basin” (region that its workers commute from)
covers nine counties (Boone and all contiguous counties plus Monroe).

Economic gardening/entrepreneurship:
Regional Economic Inc. (REDI) strategy includes 1) establishing new “one stop shop” in
City parking garage storefront space; 2) relying on “angel” investors; 3) goal of capturing
1% of university graduates as entrepreneurs; 4)“cheetah” (fast growth) rate of three
percent of successful entrepreneurs

Statewide, data indicate that businesses with 1-9 jobs were the only sector experiencing
an increase in jobs 2003-2008.1

    Source REDI / University of Missouri presentation to Task Force

The Columbia Area Career Center is a technical school for high school students
(approximately 2,000 area high school students per year) and adults (nearly 4,500 per

Urban compact development:
The City uses several downtown economic development strategies. The Community
Improvement District (CID) approved by Council within boundaries of Special Business
District provides additional flexibility in the assessment of special taxes to fund
downtown improvement initiatives. The City Council has approved a Tax Increment
Finance District policy and a TIF Commission as required. Two hotel projects have been
approved to date. The H3 Design Studio North Village Eco-Arts District concept for east
gateway of downtown promotes a vision of economic development through
redevelopment with opportunities for artists, artisans, and urban agriculture.

Coordination with State Policy
The Governor of Missouri Seven promotes seven industry clusters in the recently
announced Missouri Strategic Initiative for Economic Growth:
1.      Advanced Manufacturing
2.      Energy Solutions
3.      Biosciences
4.      Health Sciences and Services
5.      Information Technology
6.      Financial and Professional Services
7.      Transportation and Logistics
The program includes 5 tactics for work force training and development.

Growing from within
Not all economic development involves pursuit of large employers outside the region.
Local economic development strategies include the development of local entrepreneurs
and small firms transplanted in Columbia. The MU Monsanto Life Science Incubator at
Monsanto Place provides lab space, shared clerical and business support services for start
up science and technology businesses with high growth potential.

University of Missouri as an economic engine:
University of Missouri students generate $255 million in off-campus expenditures per
year (additional spending is generated by Stephens College and Columbia College),
which is basic income for the City in cases where the money is earned in other areas and
spent in Columbia.

The University also generates $320 million in externally-funded research and related
expenditures (2009). Mizzou is responsible for 25% of higher education R & D
expenditures in the state. Externally funded research supports over 9,000 jobs in the state
(multiplier: Each $1 million of external funding creates 39 jobs).

Shovel-ready sites
City and REDI have created and are creating “shovel ready” industrial sites to attract new
jobs: Ewing Industrial Park (140 acres on Heller Road), Peabody Road (107-acre City-
owned site), and the Discovery Ridge University Research Park Phase I at South Farm.
“Shovel ready” sites are those that do not require a lengthy approval process or
extensions of infrastructure to accommodate construction of an industrial building. The
State Department of Economic Development markets the Ewing and Peabody Road
(“Suttter Industrial”) sites through its “certified sites” program. A near “shovel-ready
industrial site exists on Route Z (Boone County, collaboration with Columbia Area Jobs
Foundation, CAJF) CAJF is a non-profit of private sector, City, and the County to
finance land acquisition and development, using donations and concessional loans from
area financial institutions. Council has approved concessional electric rates for large
employers that are also large energy consumers.

Columbia Area Economic Development Incentive Policies:
Industrial Revenue Authority (IDA): May issue tax-exempt industrial revenue bonds for
qualifying industries (Declaration of Policies and Procedures of the Industrial
Development Authority of Boone County, Missouri)

The Boone County Chapter 100 Policy is an option for qualifying companies that need
incentives to bring or retain high-tech, high-skilled, high-paying jobs in Boone County.
The County will issue tax-exempt revenue bonds for industrial development. One of the
recent Chapter 100 projects was the ABC Labs expansion project at Discovery Ridge.
(for a listing of local and state incentives including a link to Chapter 100 Policy, click

Tourism and Special Events:
City Code 26-77 Establishes convention and tourism fund for planning, promoting,
operating and constructing tourist attractions and events that support overnight stays.
Lodging tax ballot issue (1999): Voters approved a gross receipts tax on lodging of 4
percent. One-half of the resulting revenue is reserved for a Tourism Development
Program. Columbia has more than 3,300 hotel rooms available for overnight stays.

The IBM Smarter Cities Program is an initiative of IBM to make $50 million in
technology available to 100 cities worldwide through a competitive grant program. The
program is especially geared to cities in the 100,000 to 700,000 range and seek to
transform and optimize cities use of resources through core functions and systems: city
service systems, citizen systems (public health, safety, education), business systems

(policy and regulatory environments), transportation, communication, water and energy
systems. IBM resources that may assist cities include technological skills, strategic
planning, case studies, social networking tools, and an IBM data analysis and
visualization tool called City Forward. City proposals are due at the end of the year and
must specify a problem or problems and the strategies they will use including deployment
of IBM resources.

Mizzou Advantage is the University of Missouri’s assessment of its five greatest areas of
strength or comparative advantage in higher education and research. The five areas:

   1.   Food for the Future
   2.   Media of the Future
   3.   One Health, One Medicine
   4.   Sustainable Energy
   5.   Understanding and Managing Disruptive and Transformational Technologies

The University is developing new educational programs within the five areas.

Last revised 6.17.11


Shared By: