OEDA Basic Course 2010 “Building & Funding Successful Economic Development Organizations” J.C. Wallace Executive Director – OEDA Prepared by Mike Jacoby – Executive Director – Southeastern Ohio Port Authority Organization Types • City Department • County Department • Development Districts/Metropolitan Planning • Port Authority ORC 4582.01 to 4582.20 or 4582.21 to 4582.59 • Community Improvement Corporation (CIC) ORC 1724 • Chamber of Commerce • Community Development Corp. (CDC) • Community Foundation • Other non-profit Finding Your Niche • Goals should match up with organizational structure • Some organizations are better suited for specific goals • It’s hard to be all things to all people, especially without adequate resources Some Thoughts on Goal Setting • A good mission statement can make goal setting easier and ensure a focus within your niche. • Example: “The Southeastern Ohio Port Authority strives to enhance the competitiveness of Washington County and to be a catalyst for job creation and investment by business, industry, and entrepreneurs.” More Thoughts on Goal Setting • Ideally, your board/elected officials have been instrumental in setting organizational goals, so there is shared ownership and commitment. • Understand the difference between “outputs” and “outcomes” Goals Outputs/Tactics: Outcomes: • Increased lead • Increased sales or generation exports • Loans made • Property sales or leases • Development of new • Job Creation/Retention sites/buildings • Capital Investment • Incentive packages • Increased wages approved • Increased employment • Website visits • Redevelopment of • R&E visits blighted property • Grants received • Increased tax revenues Ensuring Shared Expectations of “Success” • Plan of Work: Put in writing mission, goals, tactics & how progress is measured. • Put in writing what support and/or resources will be needed from management for the Economic Development organization to be successful. Get approval of board or elected officials. • Plan must be achievable but ambitious enough to inspire others to get involved. Ensuring Shared Expectations for Success • Measure results • Adjust plan of work appropriately Traditional Funding Sources • General Operating Funds from property, sales, or income taxes • Dedicated permissive sales tax or property tax levy • Real estate transfer fees • Donations • Memberships Other Revenue Sources • Revolving Loan Fund admin fees • Fees for services (application & processing fees) • Real Estate Development • Business/Industrial Park and Brownfield Redevelopment • CDBG admin fees •Third Frontier Internship admin fees More Revenue Sources • Work Force Development (WIA, TANF, PRC) • Co-location with planning, engineering, building permit offices (Building permit fees) • Contributions for Site/Building Marketing efforts • Ohio Business Development Coalition for marketing cost sharing • Advertising/Underwriting on websites, newsletters Financial Management in Public Organizations Remember you are managing taxpayer money. This means: • Audits • Detailed book keeping requirements. Cash (Fund) vs. Accrual (GAAP) accounting • Treasurer and Board oversight required • Appropriations required, tracking encumbrances • Segmentation of duties required • Competitive procurement procedures • Purchase orders Building Alliances • Recognize economic development is a team sport. Playing nice with others is required. • Good relationships with the Ohio Department of Development, elected officials, and local authorities will make your job easier. • Sometimes falling on the sword is smart. • Everyone likes to be recognized for playing a role in success. Communications Understand the different levels of communication that will be required with: • The board/council/supervisor • Stakeholders • Allies • Clients and prospects • Public & press Communication Media • Websites • Newsletters • Columns • Blogs • Regular Radio or Television shows • Speeches to civic clubs • Retention & expansion visits • Remember some messages and some audiences require “face time” Public Information • Public offices are subject to the open meetings and open records laws. • Actions of public bodies must occur in public meetings. Discussions on certain exempted topics is permitted in executive session. • Generally, proprietary information submitted by an employer in connection with the relocation, location, expansion, improvement, or preservation of the business is not a public record subject to ORC 143.43 until an employer commits in writing to proceed. Ohio Ethics Laws • Ohio ethics laws govern many economic development organizations in Ohio. • Board relationships are fraught with potential pitfalls. Watch for conflicts of interest. • Learn more at www.ohioethics.gov Questions?