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EDC Status Report

Prepared for the Franklin County Council August 21, 2012

The Economic Development Mission

Economic Development Is Not Altruistic

Three Levers of Budget Issues

Residential Tax Base Cannot Cover Cost of Services

Expand Tax Base With Low Political Risk

Franklin County Must Become Self-Sustaining

Economic Development Is Not Altruistic

The private sector will find ways to create value and economic activity on its own. Business owners dont necessarily need or even care about local communities except for incentives Economic Development is about fostering and managing community development and government resources

Three Levers to Budget Issues

Increase income Decrease expenses Go into the hole

Expand Tax Base
Increase taxable activity Increase taxes and fees Add new taxes and fees

Cut Costs
Invest in operating efficiencies to create ROI Cut services

Operate At Deficit
Invest in operating efficiencies to create ROI Cut services

Residential Tax Base Cant Cover Cost Of Services

Cap on property tax No cap on costs of services / inflation Substantial lag between real-world costs and legislative action Doing nothing will cause or compound deficit

Expand Tax Base With Low Political Risk

Economic Development can invest in private enterprise Invest in bringing and expanding already taxable activity Use tools to expand infrastructure and develop community Attract and foster commercial activity Create jobs not just for votes but for expansion of tax base Improve and Increase Government Services

Franklin County Must Become SelfSustaining

Delivery of basic services is a still major budgetary problem Dont have all the vehicles in place for self-funding yet Raising questions with state and regional partners with grant requests Redevelopment District TIF District Wheel Tax LOIT

EDC Challenges

EDC Plagued With Problems Damage Control with IEDC and Regional Groups EDC is Back to Basics Shift To A Project-Based Effort GO TEAM GO!!!

EDC Plagued With Problems

Lack of core EDC Mission No game plan No team focus or approach Poor communication No formal project or operations management All things to everyone with extremely limited resources Scattered priorities Lack of measurable metrics / performance No ability to attach ROI to budget investment Little to no results

Damage Control with IEDC and Regional Groups

Franklin County has a very real Public Relations Problem EDC operation and actions served to alienate regional and state partners:

State House IEDC Lawrenceburg Hoosier Energy Brookville Lake Wastewater District Town of Brookville MBC Group Deufol

Negative impact on future grant and funding opportunities

EDC Is Back To Basics

Adopted formal Mission Statement Adopted formal working By-Laws Adopted County Personnel Policy Working to structure formal policy and management process for operation of office like:

Accurate time keeping Travel requests approved in advance Line item budget expenditures approved in advance Board reviews and signs off on claims Better management oversight of operations by Board

Working to establish core mission & measurable goals

Shift To A Project-Based Focus

Identify specific projects with measurable activities and goals Contain budget and resources around specific project objectives and support Attach ROI to money invested vs. open-ended freefor-all Evaluate requests for additional activity and determine impact / benefit


Community involvement first and foremost EDC becomes Offensive Coordinator vs. Strong Man Gladiator Establish Advisory Board Projects cannot be completed by one individual Limits investment in resources to just what is needed at the time Requires Alignment of Focus and Strategy Requires Communication Still requires detail-oriented coordinator with solid communication skills

EDC Opportunities

Build Support For Local Business Help Facilitate IEDC Efforts At Local Level J&J Facility Capital Access Programs Hotel/Conference Center Development Economic Development 101 Changes in EDC Board & Office Hire Team Coordinator

Build Support for Local Business

Retain and grow jobs we already have today Meet and greet local business owners

Many local business owners didnt even know who former EDC Director was

Help develop and facilitate Marketing & Public Relations for area business Facilitate more capital access and financing opportunities

Public Private

Identifying and Facilitating Grant opportunities Bring stronger SBDC / CDC presence to Franklin County Need to promote services to local business

Help Facilitate IEDC Efforts

IEDC already spending tax dollars for marketing Spending thousands of dollars on seminars and conferences yielded nothing Provide local TEAM coordination effort, project management, communication Improve effort to promote area development opportunities with IEDC Fill J&J building by getting out of IEDCs way They do all the work, you get all the credit Need a more professional website current site is inadequate per IEDC

J&J Facility

IEDC considers the property one of the best in Indiana right now Wastewater will continue to be limitation for use of facility Brookville Lake Wastewater District is clear in their capacity thresholds Funding for upgrades to system could be between $3-5 million USDA funding for water infrastructure is a wildcard Need to adopt a strong TEAM approach Need a great marketing package

Capital Access Programs

Established this as a goal in January in the Challenges & Opportunities document Instructed former director to begin working towards accessing capital access grants at the beginning of the year Continuing to develop opportunities for capital investment Number one thing necessary to attract and retain business capital RBEG moving forward with USDA/Larry Adams More capital = more businesses

Hotel / Conference Center Development

State & regional support for initiative Perceived as low risk project MUST BE A TEAM EFFORT Evaluating area several sites Put horse before the cart getting capital commitments Engaged in serious discussions with regional Broker/Dealers and Developers

Control real estate Conduct Feasibility Study Raise Capital / Engage Developer Use EDC to prime the pump

Economic Development 101

Facilitate basic education effort about need for, and benefits of Economic Development Improve marketing & PR efforts for EDC mission and services Participate in local and regional efforts, represent Franklin County interests and opportunities Hold local workshops for business / elected officials Expand community involvement in EDC mission and objectives

Changes In EDC Board & Office

Continue to develop professional organization and TEAM effort Dennis Kolb resigned from the EDC Board

Hans Beck appointed as a Brookville replacement Board seats:

Michael Hiles President Jim Black Vice President Hans Beck - Secretary

Frank Thompson has resigned the Director position as of August 9, 2012

Hire A Team Coordinator

Will likely not replace Director position right away Need to get operation in order and priorities set Looking to create detail-oriented Coordinator position to help manage admin and coordinate team efforts Lower initial core operating budget but will shift budget methodology to project focus

Michael Hiles, President