PowerPoint Presentation

							  BUSINESS
DEVELOPMENT
BUSINESS DEVELOPMENT ACTIVITIES

  Business Retention and Expansion
  New Business Recruitment
  Workforce Development
  Entrepreneurship & Business Assistance
  International
  Financial Assistance
  Community Assistance Activities
BUSINESS RETENTION & EXPANSION
 • BR&E is a strategy to work with existing
   businesses - Synchronist is new software
   program
 • Interview business leaders on business climate
 • Ability to analyze comparative information within
   the industry
 • Demonstrate appreciation of business to local
   economy
 • Identify opportunities for growth and expansion
 • Help existing businesses solve problems
 • Helps DED build program strategies to respond to
   needs of businesses
WORKFORCE DEVELOPMENT
  WORKFORCE DEVELOPMENT

Economic development model has modified.
  Traditionally, businesses recruited to attract
  people — people followed jobs.
  People now move for a variety of reasons —
  including jobs, family and quality of life.
Along with business recruitment, communities need
to also focus on labor/people recruitment.
The Department helps communities develop
population attraction strategies.
BUSINESS RECRUITMENT

 Develop prospects through leads,
  consultants, referrals, trips, trade shows
  and company direct contacts
 Screen and host prospects
 Work with the Nebraska Diplomat
  program for recruitment efforts
 Market and promote Nebraska
  Advantage
BUSINESS ASSISTANCE ACTIVITIES

 Manufacturing Extension Partnership:
 Provides consulting services to help
 manufacturers with business and technical
 challenges:
             Engineering
             Management/financial
             Efficiency/quality training
             Environmental
             Human resources

          Dave Wright – 402-471-3755
BUSINESS ASSISTANCE ACTIVITIES

   One Stop Business Assistance:

   An information resource center for
   business owners and entrepreneurs.

                Steve Williams
          steve.williams@nebraska.gov
BUSINESS ASSISTANCE ACTIVITIES

 Financial Assistance:

     -Nebraska Advantage
     -Customized Job Training
     -Community Development
      Block Grant (CDBG)
BUSINESS ASSISTANCE:

CDBG Assistance—Economic Development Loan:
•   Fills a financial gap or locational consideration
•   51% of new hires must be LMI
•   Maximum of $500,000 per project
•   Local government is applicant
•   Low interest performance-based loans
•   Public works grants
•   Application cannot exceed 50% of project costs
LOCAL RECRUITMENT TOOLS
• Available land and buildings (LOIS and
  NEDI) must be listed and available

• Tax Increment Financing

• Local government funds for marketing
  and recruiting

• CDBG Re-use funds

• LB 840
Local Option Municipal Economic Development Act
“LB840”

    • More flexibility - local communities complete authority
      over uses and funding
    • Local option sales tax OR property tax
    • Must be spent as intended and approved by voters
          – Steps: prepare plan, public review, local election
          – Requires two ballot issues, ED plan & tax amount

    • Amendments require new ballot issue
    • Can be divided by vote (sample uses)
      - Economic development          - Property tax relief
      - Infrastructure                - Other city purposes
Local Option Municipal Economic Development Act
“LB840”

  Restrictions
  • NO municipality shall appropriate more than:
     – The amount approved by the voters
     – 0.4 percent of the actual valuation of the municipality
       for LB840
         • $1,000,000 (2nd class cities & smaller)
         • $2,000,000 (1st class cities)
         • $3,000,000 (Lincoln or Omaha)
Local Option Municipal Economic Development Act
“LB840”


  Eligible activities
  • Public works improvement grants to qualifying businesses
  • Payment of salaries to run the program
  • Job training grants and loans
  • Loans, grants, and loan guarantees for qualifying
    businesses
  • Purchase or option to purchase real estate
  • Business recruitment activities
Local Option Municipal Economic Development Act
“LB840”
  Eligible Business - Cities Population 2,500+
   A qualifying business is ANY corporation, partnership, or
    sole proprietorship which derives its principal source of
    income from any of the following….
      Manufacturing
      Research and Development
      Telecommunications
      Tourism-related Activities
      Housing Rehab and Construction
      Processing, storage, transport, sale of services, or sale of goods
       which are sold or traded in interstate commerce
      Headquarter facilities for one of the above
Local Option Municipal Economic Development Act
“LB840”

  Cities/Villages Population 2,500 (or less)
  • A qualifying business is ANY corporation, partnership, or
    sole proprietorship

  Can retail be assisted?
  • Cities between 2,500 and 10,000 population may spend
    20% on retail (no more than 40% in one year with no more
    than 20% in a 5 year period)
Local Option Municipal Economic Development Act
“LB840”
  LB840 Communities




     *Norfolk
     *Stromsburg
     *La Vista
Economic Development Certified
     Community Program
              EDCC CRITERIA
• Benchmarks include:
    Organizational capacity
    Business Retention & Expansion program (BR&E)
    Target market
• Certification is for five years
    Workforce issues
    Infrastructure
    Local financing
    Building and site availability
    Local website
    Location One Information System (LOIS)
    Nebraska Economic Development Info (NEDI)
              EDCC BENEFITS
• Better positioned for economic development
  opportunities - identified and documented as ready
  for economic development
• Marketed to business and industry
• Publicly recognized as economic development
  leaders
• ED CDBG points on scoring
• Eligible to apply for “Downtown Revitalization”
• NIFA tax credit points
• Eligible to apply for investment opportunities in
  targeted sites
NEBRASKA’S ED CERTIFIED COMMUNITIES
www.neded.org
 Further Information:
linda.black@nebraska.gov
       308.991.2986
BUSINESS DEVELOPMENT
        LOCAL
CIVIC, CULTURAL, AND
CONVENTION CENTER
   FINANCING FUND
           Background

• 1999 legislation created the Local
  Civic, Cultural, and Convention Center
  Financing Fund…to support the
  development in Nebraska
  municipalities of civic, cultural, and
  convention centers, particularly
  those that attract nonresidents from
  outside of the state.
           Eligible Projects


• The fund may be used for the
  construction of new centers or the
  renovation or expansion of existing
  centers.
• Not to be used for planning,
  programming, marketing, or
  advertising.
 Definitions of
eligible projects
            CIVIC CENTER
A community center, where residents
of a community gather for cultural
and social activities of sufficient
appeal to attract many
nonresidents. May include areas for
physical recreation, it is not primarily
a gymnasium or sports facility
        CULTURAL CENTER
A place of intellectual and artistic
activity and the works produced by
it, which are of sufficient appeal to
attract many nonresidents as
well as residents of a community.
Special libraries, museums, and/or
theaters are in cultural centers.
          CONVENTION CENTER
A meeting place that includes an
auditorium or other area for large audience
assembly, an exhibit hall, a facility for on-
site food preparation and service, a directly
connected parking facility or area, and an
administrative office, which together
attract many nonresidents as well as
residents of a community.
Eligible applicants

• Most Nebraska municipalities are eligible
  and may apply for a grant in competition
  with other municipalities
Not eligible…
• City of Omaha
• Atkinson, Bancroft, Beaver City, Blue Hill,
  Brownville, Cairo, Creston, Dannebrog,
  Firth, Gering, Humphrey, Kennard, Odell,
  Papillion, Randolph, South Sioux City,
  Stapleton, Tekamah, and Tobias
 Property must be owned and
located within the municipality
      applying for grant
        Can contract out the
  operation/management of facility.
 Grant amounts
• No grant should amount to more than 50
percent of the total cost of construction,
renovation, or expansion
  1:1 match with at least 80% match as cash
•The minimum amount for a grant request is
$20,000
The maximum amount, based on population:
• Population of 100,001 to 299,999, $1.5 million
• Population of 40,000 to 99,999, $750,000
• Population of 20,000 to 39,999, $500,000
• Population of 10,000 to 19,999, $400,000
• Population of 1 to 9,999, $250,000
Criteria for Evaluating Grant
         Applications
•   Attraction Impact
•   Socioeconomic Impact
•   Financial Support
•   Readiness
•   Project location
             Grant Schedule
• Complete and return preliminary
  application.
• Final application form sent after 9/15
• Final application returned by 10/31
• DED will evaluate final application forms
  soon after they are received.
      2009 Annual Report
http://industry.visitnebraska.org/index.php?option
  =com_content&view=article&id=2&Itemid=47
     For further information…

       Tom Doering
      (402) 471-3784
tom.doering@nebraska.gov
        WRAP UP

         Q&A



Department of Economic Development
           800-426-6505