VLGMA 2018 Summer Conference June 22, 2018
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1 VLGMA 2018 Summer Conference June 22, 2018 VEDA History Late 1970s - research began, looking to North Carolina as an example Fall formed committee to begin planning May 1982 organizational meeting held; dues of $25 established September 28, 1982 Charter night banquet Cardinal Award established Membership has grown from 100 members in 1980s to more than 600 in 2007 Membership decreased to ~476 in 2014 Membership is ~527 as of March
2 Mission Statement The Virginia Economic Developers Association is the voice in Virginia for shaping economic development public policy and a primary source of strong and effective education and networking for economic development professionals. VEDA Objectives To increase the effectiveness of individuals in the practice of economic development in Virginia. To provide a conduit for exchange of information among the members by verbal, written and electronic means. To establish and im plem ent a m ethod of providing input to programs for economic development in the Commonwealth of Virginia. To offer suggestions and recom m endations to insure the Commonwealth of Virginia s competitive position in economic development. To prom ote the standards of professionalism among economic developers in the Commonwealth of Virginia. To encourage the pursuit of professional education through programs offered by organizations within and without the Commonwealth of Virginia. 2
3 7/5/18 Board Governance Executive Committee o P re sid e n t o V ice P re sid e n t o Tre a su re r o S e cre ta ry o Im m e d ia te P a s t P re sid e n t Directors o N in e o S ta g g e re d th re e y e a r te rm s Ex-Officio Directors o Virginia Economic Development Partnership o Virginia Port Authority o Virginia Department of Housing & Community Development o Virginia Small Business Development Center o Virginia Chamber of Commerce o Virginia Community College SystemWorkforce Development o VEDA Legal Counsel o VEDA Executive Director 2018 Leadership Distribution 3
4 VEDA Committees Community Economic Development Awards Communications Legislator of the Year Award Membership Mentor-on-Call Professional Development Program Scholarship Sponsorship Young Professionals Group VEDA Awards & Recognition Community Economic Development Awards 2018 Prince George County City of Danville Suffolk, Franklin/ Southampton County and Isle of Wight County 2017 Alleghany County, City of Covington, Town of Clifton Forge City of Lynchburg Arlington County Roanoke County (HM) Opportunity SWVA (HM) 2016 Town of Rocky Mount City of Charlottesville City of Virginia Beach Shenandoah Valley Region 2015 Shenandoah Valley Region 2014 Town of Marion Caroline County Middle Peninsula/Northern Neck Regions 2013 Bedford County City of Fredericksburg Shenandoah Valley Region 2012 Highland County City of Williamsburg City of Danville City of Richmond 2011 Caroline County Region Roanoke County Winchester-Frederick County Economic Development Commission Fairfax County Economic Development Authority 2009 Caroline County Shenandoah Valley Region York County 2008 City of Franklin City of Lynchburg Hampton Roads Region 2007 Bland County Russell County Rockingham County City of Newport News 4
5 VEDA Resources: Cardinal Community Assistance Program Assisting communities facing extraordinary economic needs, to review options and initiate a development strategy Unbiased review of a community s economic development situation through the eyes of development practitioners with decades of state, regional, and local experience Dialogue with local business, economic and political leadership Review data/profiles/information provided by the community o o o o o Economic base situation Description of existing economic development effort Self analysis of product/readiness for development/deficiencies Identified potential opportunities Community s desires/priorities/commitment Cardinal Team then spends one day in the community in meetings One-half day sharing thoughts, analysis and recommendations VEDA Public Policy The Public Policy Committee is comprised of the VEDA Executive Committee; the VEDA Public Policy Chair; and the VEDA Public Policy Liaison. The Committee meets weekly during the General Assembly session and monthly during the rest of the year. 5
6 VEDA Public Policy Public Policy Agenda Developed and approved by the Board of Directors in the summer; finalized in fall and printed for distribution Economic Development General Assembly During the Virginia General Assembly Session. Includes Board and selected economic development leaders. Legislative Reception Held the evening before VEDA Day at the General Assembly in Richmond VEDA s Public Policy Liaison Troutman Sanders Strategies, Clark Lewis and Mike Woods VEDA Awards & Recognition Legislator of the Year Award Delegate Chris Jones 2017 Senator Frank Ruff Delegate Matthew James Delegate Steven Landes 2012 Delegate Kathy Byron Delegate Kirkland Cox Delegate Matthew Lohr Senator Walter Stosch
7 State for Business Forbes, 2007, 2008, 2009, 2013 CNBC, 2007, 2009,
8 STRENGTHS Top 10 for educational attainment, higher ed, and K-12 Attractive small sites (<25 acres) in some regions Mid-Atlantic location contiguous to Washington, D.C. Below-average state/local tax burdens for existing firms Impressive Port of Va., NOVA airports, and spaceport Diverse range of high-quality employers and HQs Impressive range of federal labs, higher ed research WEAKNESSES Lack of customized workforce incentive program offering; insufficient CS pipeline Meager inventory of large sites (especially 100+ acres) and certified sites Site development timeline/cost challenges due to lack of investment and topography Uncompetitive state/local tax burdens for new investment Metro, traffic congestion challenges in NOVA; road limitations in rural Va. High reliance on federal governmentrelated activities Limited commercialization of intellectual property relative to our assets 15 Employment Growth in Virginia Has Been Highly Uneven Across Regions ( ) 16 8
9 In the Wake of Sequestration, Virginia s 5-Year Growth Rankings Plummeted 36th 42nd 46th Total E m ploym ent Gross State Product Median Earned Income 17 With Slower Growth, Virginia Recently Began Experiencing Net Domestic Out-Migration 15, , 000 5, ,000-10,
10 Since 2009, Virginia Has Dropped About Six Places in National Business Climate Rankings Ranking change Chief Executive - 8 CNBC - 6 Forbes - 4 Site Selection Virginia s Drop in Major Business Climate Rankings Can Be Tied to Three Main Factors BUSINESS COSTS New rankings of some business costs (e.g., tax burdens on new investment) place Virginia in a relatively negative light ECONOMIC CLIMATE AND GROWTH With federal sequestration and Virginia s reliance on federal spending, Virginia experienced a slowdown in growth PERCEPTIONS OF CEOs While still positive overall, CEO perceptions of Virginia s business climate declined after
11 Robust State Growth Every Region Wins Best State for Business Top State EDO Super Collaborator 21 Virginia Business Ready Sites Program 11
12 208 Sites of 100 AC or Greater THE VIRGINIA BUSINESS-READY SITES PROGRAM (VBRSP) HAS TWO COMPONENTS: CHARACTERIZATION AND DEVELOPMENT Characterization Purpose: Assess existing levels of readiness and next steps for development for Virginia s 100+ acre sites Process: Characterization grants (of up to $5,000 per site) are awarded to sites selected from an applicant pool by a private sector-led working group Development Purpose: Fund targeted development efforts to move identified sites to higher tiers of readiness Process: Development grants (of up to $500,000 per site) are awarded to sites selected from an applicant pool by a private sector-led working group 24 12
13 VIRGINIA BUSINESS-READY SITES PROGRAM: TIER DESCRIPTIONS FOR SITE READINESS Tier Description Raw land with interested seller Not zoned for economic development, but Comp Plan in d ic a te s a p p ro p ria te n e s s. Site controlled and marketed for development Option agreement with commitment to a competitive sales price Zoned industrial/commercial, due diligence completed Wetlands survey with ACOE approval within last 5 years Geotechnical borings Boundary and topographical survey Cultural resources review Endangered species review Phase I ESA Quantified estimated costs of development Certified as infrastructure- ready Infrastructure in place or deliverable w ithin 12 m onths All permit issues identified and quantified Estimated development in vestm en ts n/a $50-100k (from T ier 1 to T ier 2) $1-2k per acre (from T ier 2 to T ier 3) $25-100k per acre (from T ier 3 to T ier 4) 5 S hovel R eady Most permits in place Site ready for site disturbance permit n/a 25 WE NOW HAVE 39 SITES CHARACTERIZED ACROSS FIVE TIERS OF DEVELOPMENT PREPAREDNESS (AND 8 MORE IN PROCESS) Tier Level Number of sites Tier 1 Site under possible control, planning work underway 1 Tier 2 Site under control/contract, due diligence underway 8 Tier 3 Due diligence and zoning complete 10 Tier 4 Infrastructure in place/deliverable and permits delineated 15 Tier 5 Pad ready, all permits in place
14 Top-ranked state workforce development programs (GA, LA) offer fully customized, turnkey solutions Available Workers with Relevant Skills VEDP and VCCS can partner to create one of America s best programs in less th an th ree years Step One: Business Analysis Interview s w ith client subject matter experts Documentation of existing operations to be replicated (if applicable) Development of customized workforce plan Available Transitional Workforce Certificate Holders Special Recruitment Step Two: Recruitment Website Announcement Job Fairs Advertising Town Hall Meetings Step Three: A Screening B Auto-Banding C D Then: Interview s Role Play Background Checks Step Four: Pre-Employment Training Focused on candidate selection Evaluates desired skills, competencies and aptitudes Job simulation based on task analysis of client processes Step Five: Post- Employment Training Focused on skill and knowledge building Developed based upon client performance objectives Transfers client critical knowledge of process and High-Quality, Fully Trained Employees Provides performance observation opportunity procedure Allows for hands-on practice of process Every project is delivered by a mix of full-time employees (roughly one-third) and specialized contractors (roughly two-thirds) who are assembled to meet the needs of the particular client 27 Examples of benefits to community colleges of VEDP and VCCS creating a customized workforce incentive program Strong relationships with new and expanding business establishments Tighter linkages with state economic development efforts Direct exposure to and engagement with the next generation of industry technologies Greater demand for community college programs (certificates, degrees, and/or custom training) Opportunity to strengthen workforce training programs, equipment, and facilities Opportunity to highlight community college strengths Opportunity to create more workforce success stories and community college testimonials` 28 14
15 VEDP and GO Virginia alignment ROUGH DRAFT VEDP leads VEDP/GOVA Collaboration GOVA leads Marketing, branding, and lead generation Biz recruitment and project mgmt. for target industry sectors (e.g., IT, advanced manufacturing, BPO, distribution) One- stop shop for prospects, with close lo c a l/re g io n a l c o o rd in a tio n a n d a lig n m e n t Proactive business retention and expansion program for large/m edium - sized firm s, in partnership with localities Custom workforce recruitment/training in c e n tiv e p ro g ra m fo r firm s, w ith V C C S Trade developm ent services Administration of business incentives Research / business intelligence State/local economic competitiveness Site intelligence and developm ent (VEDP will focus on site intelligence and m anaging site database; GOVA could fund site developm ent) Cluster development (V E D P could focus on la rg e r firm s ; G O VA c o u ld focus on cluster scale- up in itia tiv e s ) Design of human capital developm ent strategies, in c lu d in g v a rio u s in itia tiv e s to fully leverage higher education s econom ic developm ent potential Design of targeted, regional product developm ent initiatives (e.g., broadband strategy for a region) Workforce development initiatives for sectors/regions Research and technology com m ercialization initiatives Initiatives to encourage capital and/or business form ation (?) Funding for development of regional growth plans Incentives to encourage regional collaboration GO Virginia and VEDP both are focused on increasing growth in traded-sector employment and earnings 29 15
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