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What IS effective Economic Development?

What IS effective Economic Development?. Are We Growing our Economic Pie?. Missed opportunities: Apple Processing Plant looking to a west Michigan location – Ionia County was given their needs criteria Shoe Manufacturer looking site to expand in Northeast Grand Rapids area.

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What IS effective Economic Development?

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  1. What IS effective Economic Development?

  2. Are We Growing our Economic Pie? • Missed opportunities: • Apple Processing Plant looking to a west Michigan location – Ionia County was given their needs criteria • Shoe Manufacturer looking site to expand in Northeast Grand Rapids area. • These are two opportunities that we “heard through the grapevine” within just the last few months! Montcalm County was not privy to the specific criteria these businesses are seeking. • Imagine what happens when one town hears about it, and sends information, then another town hears about it and sends information – while a third City may meet the criteria better than the first two, but didn’t even know about it…etc. We look unprofessional and disorganized. Montcalm County loses. • Meanwhile, neighboring counties have compiled data of sites, infrastructure, workforce information and more at their fingertips. They are prepared to move quickly.

  3. Our current model is failing to aggressively grow the tax base; It should be creating financial wealth.

  4. Are we now operating effectively? • Our current operating budget is supported by membership dues. • 2011-12 membership income: $81,750.00 • 2012-13 membership income: $49,000.00 • Our members recognize that we do not have the correct structure in place • What is broken? How can we fix it?

  5. It’s time to bring in the experts Montcalm Alliance

  6. What would a partnership with The Right Place (TRP) look like? As with any good partnership, both parties bring their strengths to the table.

  7. What does The Right Place (TRP) offer? • A full-time Economic Development Manager (EDM), dedicated to replenishing and growing base jobs • Consistent communication with key decision makers • Relationships with site selection professionals • Presence at state & regional meetings • Participation in relevant conferences & trade shows (manufacturing, food processing, agriculture, etc.) • A regional perspective/shared best practices • Access to industry specific specialists • Payroll, budgeting, & administrative services • Professionally developed marketing materials • Annual report on activity and return on investment

  8. What do we provide? • A Montcalm Co representative on TRP board. • A job description for our Economic Development Manager. • Active participation in selecting our EDM. • A completely equipped office located in Montcalm County • Direction for EDM (along with TRP) • The funds for our Economic Development Manager and other services • Identified assessment criteria to be measured and tracked.

  9. Our EDM will…. • Provide assistance to client businesses to achieve: • Business retention • Business expansion • Recruitment/site location • Participate in relevant conferences, trade shows, and meetings. • Maintain thorough list of assets & business resources available in Montcalm Co. • Target identified sectors & promote Montcalm County as a business location. • Connect businesses with assets and resources. • Report regularly on activities, focusing on predetermined measurable data. Jen Wangler Ionia County Don Schurr Gratiot County

  10. Potential data to be reported: • # of contacts made • Potential, current, & completed projects • Jobs retained • New jobs • Investments made • Business counseling referrals made

  11. What can this DO for Montcalm? In 1976, Gratiot County utilized PA 88, creating consistent funding for Economic Development In 2011, Ionia County partnered with The Right Place. Let’s take a closer look.

  12. 580 - jobs retained • 90 - jobs created • $1,901,900 - new wages • $28,476,000 - private capital investment • This is after one year of partnership with The Right Place. Typically speaking, programs take several years to develop.

  13. 70 – Average jobs created per year. • $48,062,182 – NEW tax revenue • $3,647,148 – tax dollars invested • That is roughly a ratio of 13:1 for return on investment. • For over 30 years, Gratiot County has been consistently retaining jobs, creating new jobs, and generating a healthy return on tax dollars invested.

  14. How can Montcalm catch up? • While up to .5 mils are allowable under PA 88, we propose a .1 millage, generating $163,000. • The cost per parcel comes to $3.17/year.

  15. We have the opportunity to stop the “shrinking pie” • Do you want to keep going to the public to fund a millage for 911 services? • To fund improved security measures in the courthouse? • When we grow the tax base with base local jobs, we can provide these services. • No one wants “new taxes”. The Alliance has been charged with recommending a more robust approach to Economic Development support in our County. We are asking for consistent funding. • We will report regularly on the metrics we define & determine our own return on investment.

  16. $38,000 $162,000

  17. The Montcalm Alliance asks that the Economic Development & Resources Committee recommend to the full commission, the placement of .1 mils on the tax roll to support the plan to align with the Right Place as presented.

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