The Role of Elected Officials in Community and Economic Development

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2 The Role of Elected Officials in Community and Economic Development Economic Development for Cities There are 536 cities in Georgia, with 250 of those cities having less than 1,000 residents. Another 219 cities have between 1,000 and 10,000 citizens. Although these numbers may surprise some folks, the reality is city officials do not, in most cases, have the tax base to devote a lot of financial resources to economic development initiatives. That is why it is important to have an economic development strategy that is reasonable and represents the interests of the mayor, council and citizens. More importantly, the strategy should be coordinated with the economic development strategies of other governmental entities including chambers of commerce, development authorities and convention and visitors bureaus. And, of course, resources should be allocated for economic development activities that support these combined strategies for the most effective and cost efficient use of government funds. The Strategy The first step in developing an economic development strategy is gathering input from council members, citizens and other interested individuals and organizations. Ideas and information gathered should then become part of the economic element of your comprehensive plan. After adoption of your government s comprehensive plan, the economic development element of that plan should become the strategy that the community follows and supports. With limited resources to finance economic development efforts, it is important that municipal officials partner with other governments and organizations to ensure successful implementation of the strategy. Special Knowledge is Required Every elected official should have knowledge of (1) the essentials of development, (2) the players that can assist and support a community s strategy, and (3) the tools that are available to assist with economic development projects. Economic Development related raining is available through GMA in partnership with the Georgia Academy for Economic Development. The Georgia Academy for Economic Development offers a regional program that introduces elected officials to the following concepts, strategies and resources: The three essentials of development are leadership development, community development and economic development. The players may include bankers, educators, attorneys, existing business representatives, local, regional and statewide economic development professionals, regional development centers, state agencies and others. The tools include, but are not limited to, Downtown Development Authorities, Development Authorities, financing programs, quality growth principles, incentives, hotel/motel taxes, Freeport, city business improvement districts, tax increment financing, infrastructure, affordable workforce housing, education and workforce training programs, business retention initiatives, entrepreneurial development programs and publicly owned available land or buildings. The Handbook for Georgia Mayors and Councilmembers 1

3 Development Essentials How do you, as an elected official, ensure that your city has the three essentials of development? Leadership is generally considered the key component for successful economic development. You should encourage the implementation of formal leadership development programs, both youth and adult. Every city does not need a program, but there should be an annual program in every county. Elected officials should participate in these programs as a class participant and an alumni presenter. Elected officials should develop programs to recognize citizens that participate in local leadership programs and should look to class graduates when making appointments to boards and leadership positions in the community. In building a strong leadership base in your community, you have to encourage inclusiveness, not exclusiveness. The more that you can encourage the recruitment and participation of all sectors of your community, the more successful you will be in implementing your economic development strategy. Community development is the second essential of economic development. Community development includes social infrastructure, physical infrastructure and workforce development. Social infrastructure includes the provision of basic human services, effective and efficient governance and educated, capable and visionary leadership. As an elected official, you don t have to have a PhD, but you do need to participate in training opportunities provided by your association, colleges and universities that give you the training and knowledge that you need to be an effective municipal official. Water, sewer, stormwater, gas, electricity, transportation networks, telecommunications, and fiber optics are all essential parts of physical infrastructure. As a municipal official, you must ensure that all of these amenities are provided in the most efficient manner possible at the lowest cost available. Dependable, efficient and cost effective infrastructure may be the key ingredient in reaching your economic development goals. Finally, having a strong K-12 educational system, opportunities for post secondary training and degrees and workforce training to meet the specific needs of employers are more ingredients that must be considered when developing your strategy. The third essential for a successful strategy is the economic development component. Business retention and expansion, entrepreneur development, small business support, financial incentives and new business recruitment are all parts of a complete strategy. In addition, tourism development and downtown development are effective strategies for many cities. As an elected body, the city council must have an understanding of the issues that impact your existing business base. Recognition that your existing businesses are the most important element in this mix is vital! There are tools that can help a community determine the impacts of local government policies on local businesses. Your comprehensive plan economic element should identify niches in your community that an entrepreneur can successfully fill. Identification of your community s assets can help you determine appropriate targets for business recruitment. New business development can include everything from film and movie, heritage and nature based tourism, recreation and natural resource development, retirement, and alternative agriculture opportunities to downtown development. Without a strong, vibrant downtown many of these alternatives may not even be possible. The importance of investing and maintaining a strong downtown business core is discussed later, as is economic development financing. It s a process, not an event There are many resources that local, regional, state and federal organizations can provide to support your economic development efforts. It is incumbent on you to educate yourself about The Handbook for Georgia Mayors and Councilmembers 2

4 these resources. Remember that economic development is a process, not an event. There has to be a long-term commitment of time and resources from a broad cross-section of your community. You must work to ensure that you have the three essentials of development to ensure sustainable economic development success. Without a plan that has the buy-in of your citizens, players and partners, you cannot sustain development. Your goal is to create wealth for all of your citizens and to guide growth and development with a plan that creates and retains wealth while encouraging reinvestment in your community. To learn more about special economic development training opportunities and leadership skill development, visit or contact Corinne Thornton at (706) Downtown Development in Georgia Downtown development has proven to be an essential part of a community s overall economic development strategy. It can be argued that a healthy and vibrant city or town center is one of the most important elements of an effective economic development program. Even if people do not live in the city-proper, polls have shown that people identify with their nearest city or town and view it as their hometown. These same polls have shown overwhelmingly that people value a safe, vibrant and healthy downtown. The downtown area of a city is often the largest employer in a city it is almost always in the top three! The collection of retail, office, governmental and service workers located in downtown can be from the low hundreds in a small town to over a thousand in a larger city. And these jobs are by their very nature diversified, so that most downtowns remain a strong and flexible employment center. Downtown is also critical in the development of classic and cultural tourism. Studies have shown that small towns and historic places are second only to beaches in terms of the most desirable places to visit, and a city s downtown and surrounding neighborhoods are the embodiment of the history and culture of a community. Downtown is also a ready-made business incubator, particularly for small service-based businesses that need limited space at an affordable rate. And since 80% of all workers are employed in small businesses across America, downtowns continue to provide reasonable space for the emerging small businesses that form the backbone of the American economy. All across Georgia, downtowns are experiencing a housing boom, with everything from smallscale upper floor rehabilitations for apartments to the construction of major new developments in and around downtown. In the smallest to the largest of cities, investors are discovering the benefits of investing in our downtowns and people are discovering the joys and benefits of living downtown. Finally, investing in downtown development has returned some significant dividends statewide. Since 1980, in the approximately 100 Georgia Better Hometown and Main Street Cities, 9,900 net new businesses and over 47,000 net new jobs have been created in cities under 50,000 in The Handbook for Georgia Mayors and Councilmembers 3

5 population, for a total public and private sector investment of over $2.6 Billion! That is reason enough for city leaders to continue to nurture the heart and soul of their city its downtown. Technical Assistance for Downtown Development The Department of Community Affairs' Office of Downtown Development coordinates the Georgia Main Street and Better Hometown programs. These programs assist Georgia cities and neighborhoods in the development of their core commercial areas. Assistance provided by the Office of Downtown Development emphasizes community-based, self-help efforts grounded in the principles of professional, comprehensive management of core commercial districts. Communities are expected to work within the context of historic preservation and the National Main Street Center's Four-Point Approach to Downtown Revitalization. For more information on the Four-Point Approach, please see: Another service available through the Department of Community Affairs (DCA) Office of Downtown Development is the Urban Georgia Network. This network was created to assist larger urban areas that are not eligible for Main Street or Better Hometown designations but have similar problems and opportunities. The Urban Georgia Network provides a forum for networking and information sharing on common urban issues. The network encompasses downtown programs, authorities, business improvement districts, community improvement districts and other organizations that develop and manage the larger, urban downtown centers in Georgia. While the Office of Downtown Development focuses its assistance primarily on designated Main Street/Better Hometown cities and members of the Urban Georgia Network, assistance is available to all of Georgia s cities. Assistance is available for board development training and community-wide meetings to help focus your city on economic development through downtown revitalization. Facilitated sessions and statewide training on various topics including historic preservation, tax credit incentive programs and other financial assistance are also offered. Elected Officials Role in Downtown Development Elected officials can and must play an active role in encouraging downtown development. The following is a list of steps local officials can take to help foster and sustain meaningful downtown development activity. Encourage Public Discussion on the Need for Downtown Revitalization If no downtown revitalization effort exists, begin a series of public meetings to discuss the need for revitalization. Invite speakers from nearby successful Georgia Better Hometown or Main Street cities to share their stories, and invite speakers from GMA, DCA, UGA or other partner organizations to discuss resources available to assist your community in starting-up a revitalization effort. Build a Public/Private Partnership to Support Downtown Development Bring together key members of the community, representing both the public and the private sectors, to discuss downtown revitalization. Build an initial public/private leadership group to explore the various ways a revitalization effort can be started and sustained over time. This The Handbook for Georgia Mayors and Councilmembers 4

6 always needs to be done with the active involvement of property owners and merchants in your downtown. Authorize a Downtown Development Authority By state statute, every city in Georgia has the authorization to create a Downtown Development Authority (DDA) through city council action. All that is required is a resolution from council to declare the need for the authority, appoint authority members and establish reasonable downtown development boundaries to activate the authority. Start by sending representatives of the public and private sectors to the next GMA sponsored DDA training program. For more info on Downtown Development Authorities, please visit this GMA website. Create a Staffed Downtown Development Office Create the necessary public and private support to hire a downtown development manager with an adequate operating budget to facilitate and manage your downtown revitalization efforts. For cities under 5,000 in population, a part-time (20 hrs/wk) manager is adequate for the initial phases of the effort. For cities over 5,000 in population, a full-time manager is essential and recommended. Make certain that a public/private board or DDA oversees the downtown revitalization program and that your efforts are grounded in a comprehensive work plan and a managed approach. Provide Consistent Support for Downtown Revitalization Just like the economic development process, understand that downtown revitalization is a process, not a project, product or event. By working incrementally overtime, success will be achieved and most importantly - sustained. To learn more about the services offered by DCA s Office of Downtown Development, please contact Cindy Eidson, Director, Office of Downtown Development, at (404) The Georgia Cities Foundation The Georgia Cities Foundation (GCF) is a non-profit subsidiary of the Georgia Municipal Association. The goal of the Foundation is to promote economically sustainable projects and build partnerships in order to help ensure the long-term health and economic vitality of Georgia's downtown areas. This is being accomplished through the infusion of capital via a revolving loan fund program. Through its revolving loan fund program, GCF desires to assist in the rehabilitation and adaptive reuse of historic and dilapidated downtown buildings throughout Georgia, thus allowing these structures to thrive again as retail shops, offices, restaurants, theatres, and residences. The Georgia Cities Foundation works in partnership with DCA to obtain the maximum level of state financial support for GCF projects. Most of the GCF loans that have been made to cities have been matched dollar-for-dollar with loan commitments from DCA through their statefunded Downtown Development Revolving Loan Fund program. The Foundation also works closely with local banks in most of its loan projects. The Foundation s revolving loan fund program is not designed to compete with local banks; rather, the Foundation seeks to work with conventional lenders, private developers/investors, DCA, and The Handbook for Georgia Mayors and Councilmembers 5

7 others to develop a successful financing structure for each potential downtown project. The infusion of a low-interest GCF loan, when combined with conventional bank financing, results in a blended interest rate that is below market rates. The result is reduced debt service costs, which allows many project developers/investors to proceed with their good, but difficult, downtown projects that might be impossible to complete otherwise. The GCF Revolving Loan Fund program welcomes applications from cities in Georgia, in conjunction with their Downtown Development Authority, which are requesting financial assistance in their efforts to revitalize and enhance their downtown areas. For application information, please access the GCF website. Green Communities Fund The Georgia Cities Foundation s latest initiative is the Green Communities Fund. Made possible through a grant from the Georgia Environmental Facilities Authority, the Green Communities Fund provides low interest financing to business and/or property owners for energy efficient and sustainable improvements to their downtown commercial properties. As with the Foundation s downtown loan program, the Green Communities Fund program targets downtown buildings. These low interest loans range in loan size from $10,000 to $250,000. With energy efficiency as the objective of the program, the loans may be used for energy efficient improvements to existing businesses, renovations of existing buildings, as well as for improvements to planned new construction. In addition to the GCF Downtown Revolving Loan Fund and the Green Communities Fund, the Foundation also conducts an annual Heart & Soul Bus Tour, Basic Training for Downtown Development Authority members and directors, and conducts the annual Renaissance Award program. For additional information about the Georgia Cities Foundation, please contact Perry Hiott, GCF Managing Director, at (678) Georgia Downtown Association The Georgia Downtown Association (GDA) is a non-profit association that promotes the economic redevelopment of Georgia's downtown s. Through advocacy, education and marketing, GDA works to focus the public's attention on the value of downtown. GDA has a number of programs that are designed to increase the opportunities for and multiply the talents of its members. Membership in the Georgia Downtown Association includes cities, Downtown Development Authorities, businesses, professionals and other individuals interested in downtown development. In partnership with DCA and other sponsors, GDA helps coordinate the Annual Georgia Downtown Conference. The conference provides up-to-date information on downtown development techniques and strategies and includes nationally known keynote speakers, handson work sessions, topical roundtables and panels, as well as plenty of networking opportunities. The conference is open to the general public. For more info on GDA, please contact Alan Dickerson at (678) Economic Development Financing in Georgia The Handbook for Georgia Mayors and Councilmembers 6

8 With limited resources to finance economic development efforts locally, it is important that city officials partner with other governments and organizations to ensure successful implementation of a city s economic development strategy. There are many resources that local, regional, state and federal organizations can provide to support your economic development efforts to foster business retention and expansion, entrepreneur development, small business support and new business development. Economic development financing in Georgia is largely a collaborative partnership of several state-wide partners, including DCA, the Georgia Department of Economic Development, the OneGeorgia Authority, the Georgia Environmental Facilities Authority, the U.S. Department of Agriculture - Rural Development, and the Department of Revenue. In addition, the Board of Regents, the Advanced Technology Development Center, and the Georgia Research Alliance often partner to provide support during the application-review process including scientific vetting and Georgia Tech s market analysis, equity valuation and review of business plans. Many of the State s economic development financing programs are housed in the Department of Community Affairs Office of Economic Development (OED). OED s goal is to be responsive to local government needs, especially in the area of accessing the department s economic development finance programs. DCA s economic development programs deliver more than $50 million in grants and loans annually to Georgia communities. These include two dozen financing programs, some of which DCA manages directly as well as other financing programs, such as the Georgia Cities Foundation s downtown program and the OneGeorgia Authority, in which DCA has contractual relationships. Most of OED s economic development finance programs have a rolling application cycle, meaning an application can be made at anytime as long as there are funds available. Since an application is generally only required to meet a minimum threshold level for funding, OED has taken a very proactive stance in efforts to inform local governments about the department s programs and at the same time, provide technical assistance early on in project development through the Office of Field Services (OFS) within the Community Development and Finance Division. Within the OFS are economic development field services representatives that are experts in these programs. It is important to note that often there is more than one pathway to funding a project and bringing in the experts early on in project development can be key to developing a successful financing strategy. Some of the advantages that OED brings to the overall financing picture are the strategic processes that DCA has developed. These stretch across relationships with statewide partners. These processes include: helping local governments identify their community and economic development needs; once the needs are identified, help to find which financing program best fits their overall needs; early on in project development, assessing how competitive a project may be and to the extent possible, help mitigate any shortcomings prior to the submittal of an application; during application review, OED s credit unit analyzes and underwrites projects as a critical part of the department s due diligence; on-going monitoring and technical assistance during project implementation; The Handbook for Georgia Mayors and Councilmembers 7

9 and identifying best practices to share with other communities. Examples of projects that DCA s economic development programs can fund include: Grants Infrastructure for businesses creating or retaining jobs Brownfield redevelopment (publicly-owned land) Site acquisition and site prep for rural communities (publicly-owned land) Project funding for 37 North Georgia Appalachian communities Loans Buildings, equipment or other fixed assets for businesses creating or retaining jobs Speculative buildings in rural communities Downtown development Brownfield redevelopment (privately-held land) The OED developed a very useful resource, the Economic Development Finance Packet, which is a comprehensive listing of state, federal and local programs that are designed to promote economic development and business enhancement. This information is updated periodically and these periodic updates are reflected on the DCA website. To access the most updated version of the Economic Development Finance Packet, please click here. For further information, please contact: Joanie Perry, Director, Office of Economic Development, at (404) Other Partners in Community and Economic Development in Georgia In addition to the resources mentioned, there are many other public and private organizations that support community and economic development throughout the state. A few of these organizations are listed below: Georgia Department of Community Affairs Office of Regional Services DCA has staff assigned to assist communities in all regions of the state. The regional staff serves as DCA s first point of local government/community contact for brokering, supporting and implementing departmental programs and services. Throughout the state, cities can find a DCA staff member available to help with their community and economic development interests. Georgia Department of Economic Development The Georgia Department of Economic Development is the state's sales and marketing arm and lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, developing new domestic and international markets, attracting tourists to Georgia, and promoting the state as a location for film, video, music and digital entertainment projects, as well as planning and mobilizing state resources for economic development. Georgia Department of Natural Resources - Historic Preservation Division The Handbook for Georgia Mayors and Councilmembers 8

10 A division of the Georgia Department of Natural Resources, the Historic Preservation Division assists Georgia communities and its citizens in historic preservation education and programs and the Historic Preservation Tax Credits. In addition, it works with other partners to develop and sponsor training programs on building preservation issues, provides technical assistance and administers a preservation grant program for the state. Georgia Economic Developers Association The mission of the Georgia Economic Developers Association is to provide and promote networking and professional development opportunities and to shape economic development public policy. Georgia Power, Georgia Electric Membership Corporation, MEAG Power Though many Georgia utility companies assist at the state and local level with community and economic development, three companies, Georgia Power, Georgia Electric Membership Corporation and MEAG Power, have provided significant sponsorships and direct assistance to community and economic development throughout the state. They also have staff available to assist when needed. OneGeorgia Authority Utilizing one-third of Georgia s share of the Tobacco Master Settlement Agreement, the goal of the OneGeorgia Authority is to offer financial partnerships with rural communities to create strong economies in all business sectors, allowing new and existing industries, both large and small, to flourish. U.S. Department of Agriculture USDA - Rural Development provides funding to eligible cities around the state for important local and regional economic development projects and programs. The Handbook for Georgia Mayors and Councilmembers 9