DED PRESENTATION SPRING NEDA CONFERENCE May 3, 2007 Kearney, Nebraska

1. DED PRESENTATION SPRING NEDA CONFERENCE May 3, 2007 Kearney, Nebraska

2. Personal Thank You Nebraska Friends!

3. DEFINING ECONOMIC DEVELOPMENT The sole reason government invests in, or assists with, private business, industrial and entrepreneurial activities is because it expects to increase the public welfare as a result. Primary Project Investment: DED supports the premise that new primary jobs generate new secondary jobs and related services. Thus, DED’s long-standing policy is to make strategic public investments in private businesses, not-for-profit enterprises and community development projects that create or retain primary jobs and/or will foster new capital investment in the State. Primary jobs: those jobs where the goods or services manufactured or processed by Nebraska workers are generally exported and/or sold outside of the state brining in dollars from outside of the state; jobs that create new wealth. In addition, primary jobs include research and development jobs that are funded by non-Nebraska financial resources (federal government or an international company). Local or regional retail jobs seldom fall into this category since retail sales are almost exclusively local or regional (in-state). Secondary jobs: those jobs where the goods or services manufactured or processed by Nebraska workers are generally sold locally or regionally (in-state) to individuals and to export and non-export businesses.

4. EVALUATING DED IMPACT • Successful economic development initiatives should: • grow stronger communities by supporting solid public infrastructure and high quality, affordable, housing options that stimulate long-term community sustainability and future economic growth • stimulate the creation and retention of high quality, primary employment opportunities that improve per capita incomes and lead to a better quality of life for Nebraska residents • generate additional wealth creation potential for Nebraska residents • attract human and financial capital from outside of the State • assure grow a readily available, top quality, skilled workforce to meet the ever-changing needs of business and industry, thereby retaining Nebraska’s best and brightest youth and attracting additional workforce and population to Nebraska’s communities

5. STAFFING CHANGESRichard Baier

6. STAFFING CHANGES • New Housing Position • New Administrative Functions – CDBG & Job Training • Bob Doty • New Position • Christa’s Maternity • Tourism Marketing Position

7. LEGISLATIVE UPDATE

8. Legislative Action • DED Budget • Job Training (Call to Action) • Program Reauthorization • Advantage Clean Up • Elimination of NICA • Value-Added Ag • Building Entrepreneurial Communities Act • Tax Cuts • Other

9. LEGISLATIVE PLANNING – 2008 SESSION • Focus Group Meetings • Issues Meetings • Local Trends • Candidate Recruitment

10. CDBG PROGRAM UPDATE

11. CDBG Issues • Federal Funding Status • Need for Prioritization • Ethanol - $350,000 for Infrastructure • Business Development - $400,000 (250,000 loan/150,000 forgivable) • Multiple Community Projects – DED Sets the Amount • Reuse Fund Status – Local and State Plan Changes • Spec Buildings • Anti-Pirating

12. HOUSING • Part of ED Process • Know the Resources • Know Your Real Need • Focus on Making a Profit • Replicate Successes

13. NEBRASKA ADVANTAGE

14. Nebraska Advantage Act (1/1/06-4/30/07) • 100 Applications • $3.62 Billion – 9,291 Jobs • Bio/Medical 23 Proj $2.30 Billion 1,550 Jobs • Mfg/Processing 41 Proj $295.6 Million 1,846 Jobs • Financial Services 12 Proj $176.1 Million 3,433 Jobs • Telecom/Other Services 24 Proj $844.1 Million 2,462 Jobs • By Location • Omaha MSA 50 Projects • Lincoln MSA 15 Projects • Balance of State 35 Projects

15. Other Nebraska Advantage Programs (1/1/06-4/30/07) • Rural Development Advantage • 43 Projects • $63.66 Million • 175 Jobs • Microenterprise Advantage – Over Limit • 855 Applications (399 in 2007) • Research and Development Advantage

16. Customized Training Advantage (7/1/05-4/30/07) Available = $15 Million/Biennium Under Contract 2005-06 $10.0 Million 63 Projects 26 Lincoln/Omaha 37 Balance of State 6,375 Jobs Average Starting Wage = $13.23 Outstanding Offers $3.35 Million 21 Projects 5 Lincoln/Omaha 16 Balance of State 1,945 Jobs Average Starting Wage = Unknown

17. Incentive Reminders • Job Training • Don’t Commit Amount in Advance • Amount Consistent Among Communities • New Wage Rates Forthcoming • Use of Community Colleges • Research & Development – Availability • Include Revenue – Timelines Vastly Improved • Regulatory – Include DEQ & DOR Early • New Wage Rates for LB 312 Programs • 2006 • Neb Ave Wage 60% NAW 75% NAW 100% NAW 125% NAW • Annual $32,419.46 $19,452 $24,315 $32,419 $40,524 • Hourly $15.59 $9.35 $11.69 $15.59 $19.48 • Comp % 3% 4% 5% 6%

18. ED Certified Communitiesand LB 840 Communities

19. EDCC • Certifications Awarded • Ord • Holdrege • Norfolk • Auburn • Fremont • South Sioux • Grand Island • Much Better Applications • Target Marketing Efforts CONGRATULATIONS Nebraska City North Platte Ogallala

20. LB 840 COMMUNITIES • Know Your Program • Invest Your Funds

21. RDC ADMINISTERED PROGRAMS(BECA and VALUE-ADDED AG)

22. BECA and VALUE-ADDED AG • BECA • 3 Rounds • 34 Applications – 29 Grants • $500,000 Committed • Value-Added Ag • 74 Applications – 49 Funded • $4.0 Million Requested • $1.7 Million Committed

23. NEBRASKA ED MARKETING

24. DED MARKETING • Positive Press • Top 10 of “Most Livable State Award”, Morgan Quinto Press, 2006 • 7th of “The Best States for Business”, Forbes Magazine, 2006 • Top 10 of “Pro-Business States”, The Pollina Corporate 2007 Top 10 Pro-Business States • 2nd for the “State’s Healthcare Cost Quotient”, Expansion Management Magazine, 2006 • 2nd in the “State Liability Systems Ranking Study”, U.S. Chamber Institute for Legal Reform, 2006 • Partnership Opportunities • Special Events • Advertising Specials – New Focus

25. WEB SITE UPDATE

26. LABOR FORCE

27. WORKFORCE STATUS • 16,000 New Jobs in 2006 • Increased Awareness of Pending Shortage • Strong Local Efforts • DED Focus on Technology • Work with Colleges/Universities • Targeted Recruitment – Alums & Out-of-State • Leveraging Underemployed • Need to Know Workforce – Impacts on Recruitment

28. GENERAL ISSUES

29. GENERAL ED ISSUES • Confidentiality and Ethics • Diplomats Events • B&I Day • Passport – 9/29 • Consultants & Prospects • Existing Company Corp HQ • Successful Alums and Former Residents • NCIP Focus – Strategic Planning • I-80 Planning Effort - NIZC

30. GENERAL ED ISSUES • Coordinate with Cheryl on Projects • Research on Mega Sites • Research on Telework Opportunities • Know Your Telecomm • Do Your Corp HQ Calls • Training Opportunities

31. QUESTIONS&ANSWERS