Governor s Growth Agenda

Transcription

1 Iowa is Working Debi Durham Director Iowa Economic Development Authority Governor s Growth Agenda 1

2 10/1/2015 2

3 10/1/2015 Project Industry Sectors and Breakdown 3

4 Results Total Capital Investment: $11,991,722,639 Iowa Economic Development Authority Business Assistance Awards, January 2011 through September 2015 Projects Awarded by 4

5 ESOPs Benefits Economic benefits to businesses and to the state Many owners are facing retirement and need a succession plan ESOPs can be a valuable retention tool Incentives can equalize an ESOP against a strategic buyer during an ownership transition by reducing the owner s risk Incentives Formation Assistance 7 awarded to date $500,000 available to establish a program to encourage the formation of ESOPs in Iowa Funding of up to $25,000 will be used to help businesses interested in ESOPs defray the upfront costs of feasibility studies Capital Gains Deduction Iowa taxpayers can deduct 50% of the net capital gain from the sale of stock to a qualified Iowa ESOP that owns at least 30% of the company stock Lisa Connell Lisa.Connell@iowa.gov B2B Connections Working to develop a B2B portal to connect businesses with Iowa suppliers and services Supply chain development Michigan model QCI, IT developer, awarded contract 5

6 Battelle: By the Numbers Iowa s areas of weakness represent points of emphasis for stakeholders and opportunities for policymakers to effect positive changes Proposed FY16 Tax Credit Programs IEDA is proposing the creation of a new incentive for the production of Renewable Chemicals from biomass feedstocks Proposed Structure: Incentivizes the production of high-value building block chemicals Must be produced from biomass feedstocks such as starch, sugar, oil, lignin, etc Must create higher value products from the feedstocks (not available for the production of ethanol, biodiesel, or animal feed) Features: Part of IEDA s business tax credit cap (no proposed increase) Annual award amounts limited to $1 million for start-ups and $500,000 for established businesses Credit would be refundable, but NOT transferrable Only available to a company for five years 6

7 10/1/2015 Workforce Housing Tax Credits Provides transferrable income tax credits and sales tax refunds to housing developers who develop eligible housing projects for workers Eligible projects include those that are: Developed on a brownfield or grayfield site Repair or rehab dilapidated existing housing stock Is an upper story project New construction in a community with demonstrated workforce housing needs Unit cost cap of $200,000, or $250,000 for historic preservation project Awarded $20 million in FY15 and FY16 Nichole Hansen Nichole.hansen@iowa.gov 7

8 Iowa Downtown Resource Center Assists communities around the state in revitalizing their downtowns or commercial districts Fee-based, technical assistance services including: Design assistance Business improvement planning Organizational and board building Promotion Information exchange offered: Access to examples of revitalization projects and activities Sample contracts Qualified consultants in landscape architecture, structural engineering, and much more Jim Engle Main Street Iowa Net business gain in MSI districts occurred in all 29 years of the state Main Street program 4,400 business starts, expansions and re-locations Added two new Main Street Communities in 2015 Centerville, Grundy Center Open 4 Business competition State Winner: Building Grounds, Woodbine Next year: Celebrating 30 th Anniversary Michael Wagler michael.wagler@iowa.gov 8

9 Apprenticeships Apprenticeships Expansion of the 260F job training program tripled the amount of state funding allocated for apprenticeships Support is increased from $1 million annually to $3 million by providing additional funds and reforming and streamlining administration of the program In FY15: 69 applications received $3.156 million awarded Training 4,767 registered apprentices Sherry Timmins Home Base Iowa Broad-based support: 21 HBI Communities 15 HBI Champs (educational partners) Over 900 Home Base Iowa businesses, pledging 10,000 jobs for veterans Veterans Hired: 1,300+ Marketing outreach: National advertising began in January In-person outreach to military bases around the country Coverage in Military publications Jason Kemp

10 The Iowan Project An online, virtual State of Iowa Alumni Association All it takes to become a member is to have a connection to Iowa and to place your pin on the map NEW - CDBG Transportation Program Provides transportation services to job activities for individuals and adult students to educational training opportunities Cities or counties with population under 50,000 are eligible The majority of those utilizing the transportation must be low-tomoderate income and must live in the non-entitlement city/county Max award is $150,000 and requires a 1:1 cash match (can include funds from businesses, local/state/federal government Service and retail businesses are not eligible and funds can only be used for operational expenses Nichole Hansen Nichole.hansen@iowa.gov 10

11 10/1/2015 Angel Investor Tax Credit Programs IEDA is currently authorized to issue up to $2 million in investment tax credits per year for investments in qualifying businesses and community based seed funds Together, these two credits are sometimes referred to as angel credits Improve Angel Investor tax credit program Increase credit percentage from 20% to 25% Make credits refundable Focus the credits on individual angel investors, not institutions Simplify eligibility and eliminate the community-based seed fund feature Cap individual credit level at $100,000 per year and simplify cap structure Reduce carry-forward period from five years to three years 11

12 Iowa s Public Entrepreneurial Funding Continuum Innovation Fund Projects 12

13 Jordan Hobfoll Iowa is behind the nation in SBIR Awards. From , Iowa averaged $18,885 annually in SBIR awards compared to $72,343 for the nation. 13

14 SBIR/STTR Program Pre-Award Support Proposal Idea Review No-cost 1-hour review with an expert SBIR consultant for feedback on SBIR ideas Reviews ideas at earliest phase Third-Party Proposal Assistance Provides 2/3 cost reimbursement for third-party services directly related to preparing SBIR/STTR Phase I and II proposals Pre-Proposal Technical Review No-cost opportunity for technical feedback from professional reviewers on planned Phase I proposal concepts. Fully protected by non-disclosure agreements SBIR/STTR Program Post-Award Support 2-Part Financial Assistance Phase 1 Financial Assistance at $50,000 (2 parts) Part 1: Initial match at 20,000, Up to $5,000 additional for support related to Phase 2 proposal preparation Part 2: Additional $25,000 Grant disbursed after Phase 2 proposal submitted Must apply before Phase 1 submission Phase I to Phase II Consultant Support Additional program for Phase 1 award winners that have never received a Phase 2 award (included as part of commitment to match) Expert SBIR/STTR consultant to help companies from pre-award to Phase 2 proposal submission Proposal Review Panel (Starting 2016) Consists of at least 2 reviewers providing feedback on proposal 14

15 10/1/2015 Crowd Funding Insurance Commission Allows a crowd of investors to help fund businesses Iowa entrepreneurs and investors can now connect to finance start-up businesses Beginning January 1, 2016, entrepreneurs can raise up to $1 million/12 mo. period Investors can invest up to $5,000 in a new start-up opportunity Additional sales may also be made to Iowa resident institutional investors and Iowan s who qualify as accredited investors Entrepreneurs are required to register with the Iowa Securities bureau Solicitations will be made through approved crowdfunding portals 15

16 Proposed FY16 Programs Transportation Funding Legislation to increase funding for transportation infrastructure in Iowa is moving through the Iowa House and Senate Two bills, one for each Chamber Both propose an increase of the gas tax by $.10/gallon Broadband Funding The Governor proposed Connect Every Acre legislation to provide widespread internet access to our citizens, farms, schools, businesses and communities The bill provides property tax incentives for broadband infrastructure, including a 100% exemption for three years Authorizes a new grant program ($5 million) to specifically target improving internet access across the state of Iowa Certified Site Program Next submission date January

17 2015 Certified Site Program Changes Waiver for counties that do not have a 4-line highway in their county to participate in the General Industrial Site or Park categories Minimum documented availability of 3 years Was previously 2 years Telecommunications fiber is now required 2016 Certified Site Program Changes Repayment Agreement Communities entering Step 3 of the program will be required to enter a contract for repayment with IEDA. (Contract document will be issued during Step 2, must be returned at time of Step 3 invitation in order to participate in Step 3.) If a site is certified and then sold for something other than industrial purposes, the state will be reimbursed by the community/applicant for the consulting costs paid by IEDA to McCallum Sweeney Consulting. Site Size Requirements for Parks Keep the total available acreage the same as current standards (General Industrial Parks 100+ acres available, Super Parks 500+ acres available), but decrease the size of the single largest site required within the parks (from 50+ acres to 20+ acres for General Ind. Parks, from 250+ acres to 100+ acres for Super Parks). The single largest site would need to be 100% developable (current standard is 80%). 17

18 2016 Green Site Certification IEDA is initiating this first in the nation Green Certification Program in an effort to proactively prepare property for users that are committed to reducing their environmental impact of development The Green Certification Program has one category Green Business Park with criteria designed for multiple users and ancillary park activities Minimum 50 acres with two sites of at least five acres Due diligence requirements similar to Industrial Certification program Required to develop and adopt covenants that recognize the importance of environmentally sensitive design in both office and industrial development A pilot round launched in July New applicants will be admitted starting in July 2016 GAME CHANGER IDOT & IEDA: Freight Optimization Quantitative Analysis Cost, Capacity, etc. Economic viability Qualitative Analysis Strategic alignment Increasing freight network resiliency Tax incentive/funding availability Job creation and local buy-in Service levels/transportation time Road mile reduction Project Implementation risks Rachel Bailey Rachel.bailey@iowa.gov 18

19 IDOT & IEDA: Freight Optimization Conceptual Architecture Overview NEW - Nuisance Properties and Abandoned Buildings Improvements to the judicial process for cities Can now acquire abandoned industrial and commercial properties through the courts Additional factors added for findings of abandonment New revolving loan fund Helps cities finance the acquisition of nuisance properties and abandoned buildings Low rates (below bond markets) Short term $6M in funding the first year Rules under review Tim Waddell tim.waddell@iowa.gov 19

20 Iowa Energy Plan Work to encourage energy, economic and environmental benefits through the goals and recommendations that form during the planning process Will synthesize both the existing state energy goals and strategies that are beneficial for the state, as well as new goals and energy strategies to position Iowa for the future Will include an assessment of current and future energy supply and demand, examine existing energy policies and programs, and identify emerging energy challenges and opportunities Chairs: Lt. Governor Kim Reynolds Pat Meyer, Pella Corp. Iowa Energy Plan The plan will include working groups focused on: Economic Development and Energy Careers Iowa s Energy Resources Transportation and Infrastructure Energy Efficiency Conservation The Process: RFP issued in July Interviews conducted in September Announcement of contractors and process will take place in October Brian Selinger Brian.selinger@iowa.gov 20

21 10/1/2015 Marketing and Public Relations Working with ZLRignition and their new partner, DCI Continuing to build IEDA brand among targeted industry business decisionmakers Developing new PR programs 21

22 Public Relations Efforts IEDA Publicity Network Enlisting economic developers to identify story ideas and respond to national media with Iowa spokespeople Sign up today Buzz Builders Social media sharing strategy Leveraging social networks of Buzz Builders to share Iowa s story across the world Coming soon! National media trips to Iowa Biosciences-focused trip in October Leveraging World Food Prize events to attract attention Tourism s Role Showcasing Iowa to the world Highlighting our events and places that make us special Introducing the unexpected This is Iowa Tour Waterloo January Pottawattamie County March Marion County/Quad Cities April Madison County May Tyden Farms June Walcott & Clinton July Hoover Site/Amana Colonies August Jefferson September Manning October Clarinda November Algona - December 22

23 Partnering Opportunities 2016 Trade Shows Date Location World Bio Markets Congress & Exhibition March Amsterdam, The Netherlands South By Southwest March Austin, Texas Advanced Biofuels Leadership Conference March/April - Dates TBA Washington, D.C. BIO World Congress April San Diego, California AWEA WINDPOWER May New Orleans, Louisiana BIO International Convention June 6-9 San Fransisco, California IFT Food Expo July Chicago, Illinois American Council of Life Insurers Annual Meeting October Washington, D.C. European Forum for Industrial Biotechnology October - Dates TBA Europe - Location TBA Property Casualty Insurers Annual Meeting October - Dates TBA Location TBA Advanced Biofuels Leadership Conference November - Dates TBA Location TBA 2016 Events Date Location John Deere Classic August Quad Cities, Iowa Strategy is about making choices, trade-offs; it s about deliberately choosing to be different. -- Michael Porter Debi Durham Director Iowa Economic Development Authority 23

24 New Economic Development Model Creating better private/public partnerships Restructuring IEDA and streamlining funding process Situation Analysis Iowa has made substantial economic progress over the last decade, resulting in positive trends: 24

25 Industry Cluster Performance Iowa s industry clusters are driving the state s economy and are robust, diverse and have statewide impact. Job Growth and Workforce Strengths Middle- and high-skilled occupations growing faster than the national average Producing more STEM graduates than ever before 50 25

26 Innovation and Entrepreneurship Strengths Increase in industrial and university R & D outpacing national growth Growth of activities to spur entrepreneurship showing positive results 51 Battelle: By the Numbers Iowa s areas of weakness represent points of emphasis for stakeholders and opportunities for policymakers to effect positive changes 26

27 International Initiatives 95% of the world s consumers live outside of the U.S., accounting for 70% of the world s purchasing power GOAL: Increase exports by 20% Since 2011, exports are up by 39%, to $15.1 billion State Programs: Marketing Assistance, Training and Consultation Trade Missions and FDI EB-5 program Federal Efforts: Continue to open access to global markets Reduce barriers to trade TransPacific Partnership Pact Battelle: By the Numbers Iowa s areas of weakness represent points of emphasis for stakeholders and opportunities for policymakers to effect positive changes 27

28 Workforce Challenges Education & Workforce Training Initiatives Expand Apprenticeship Programs STEM Internship Program Targeted Student Internship Program Create Jennifer Meier a K-20 industry-education career development jennifer.meier@iowa.gov partnership Home Base Iowa Military Most troubling issue for Iowa workforce is low Recruitment Effort population growth. Promote Skilled Iowa Elevate Manufacturing Create incentives for recent grads, veterans and Proposed Human Capital high-skilled Enrichment workers Center to take positions in Iowa s The critical Iowan worker Project shortages. 28

29 Innovation Funding Iowa Economic Development Authority January 2011 through August 2014 Direct Marketing to Prospects 29

30 Battelle: By the Numbers Development Ready Communities/Resources Freight Network Optimization Strategy Certified building sites Quality Advancing of life Iowa s initiatives physical infrastructure and Iowa regional Downtown development Resource capacities Center Main Street Iowa Sustainability Connect Every Acre Workforce Housing B2B Connections 30

31 Nuisance Housing Repayment Agreement Communities entering Step 3 of the program will be required to enter a contract for repayment with IEDA. (Contract document will be issued during Step 2, must be returned at time of Step 3 invitation in order to participate in Step 3.) If a site is certified and then sold for something other than industrial purposes, the state will be reimbursed by the community/applicant for the consulting costs paid by IEDA to McCallum Sweeney Consulting. Site Size Requirements for Parks Keep the total available acreage the same as current standards (General Industrial Parks 100+ acres available, Super Parks 500+ acres available), but decrease the size of the single largest site required within the parks (from 50+ acres to 20+ acres for General Ind. Parks, from 250+ acres to 100+ acres for Super Parks). The single largest site would need to be 100% developable (current standard is 80%). Apprenticeships Broad-based support: 18 HBI Communities 15 HBI Champs (educational partners) 800 Home Base Iowa businesses, pledging 10,000 jobs for veterans Veterans Hired: 1,

32 B2B Program IEDA is proposing the creation of a new incentive for the production of Renewable Chemicals from biomass feedstocks Proposed Structure: Incentivizes the production of high-value building block chemicals Must be produced from biomass feedstocks such as starch, sugar, oil, lignin, etc Must create higher value products from the feedstocks (not available for the production of ethanol, biodiesel, or animal feed) Features: Part of IEDA s business tax credit cap (no proposed increase) Annual award amounts limited to $1 million for start-ups and $500,000 for established businesses Credit would be refundable, but NOT transferrable Only available to a company for five years 32