Facilitation Skills for ASaP 1 Improvement Facilitator Training Session 2.
Small Ball vs. Long Balltmleconomicdevelopment.org/wp-content/...Facilitation & Coaching...
Transcript of Small Ball vs. Long Balltmleconomicdevelopment.org/wp-content/...Facilitation & Coaching...
DUMAS, TEXAS
STRATEGY FOR SUCCESS Mike Running, Executive Director of Economic Development
About Us • 15,000 City, 23,000 County
• 45 Miles North of Amarillo (pop. 200,000)
• 72% Age 25 or Older with HS Degree or Better
• 2.98% Unemployment
• Type B Economic Development Corporation
• 14 Soreheads, 5 Conspiracy Theorists, & 8 C.A.V.E. People
Our Challenges • Proximity to Amarillo • Low Unemployment • Lack of Commercial Real
Estate • Technology Access • No New Business Activity • No New Leads or Prospects • Lack of Vision…Content With
the Status Quo • No Recent Success Stories • Poor Marketing & Branding
Perceptions
• “All Talk, No Action” • “Don’t Care About Locals” • “What’s Economic
Development?” • “Where is Dumas?” • Poor Previous Investments • Lack of a Skilled Workforce • Poor Marketing • Apathetic- Lack of Vision,
Drive & Understanding • Even our Logo was Hurting!
We Needed a Plan of Work
• Create a New Identity • Define What “Our” Economic Development Was • Identify What “Our” Success Indicators Were • Where to Find Opportunities • How We can Increase Our Presence • How to Improve on Our Image • Ways to Increase Small Business Success • Determine if We Can Recruit Outside Businesses • What Can Be Done to Slow Leakage & Increase Local
Sales • What Tools Do We Need to Help Us Grow
MONEYBALL!
• Oakland’s small market & low revenues did not allow them to compete with the larger, wealthier markets in attracting star players. They were forced to find an unconventional way to compete.
• Their statistical analysis found that the on-base percentage was a better indicator of success than the high priced aspects of homeruns.
• This strategy was in direct contrast to conventional baseball wisdom.
• Dumas needed to be unconventional!
Defining Moneyball in Dumas
• Inventory: Identify Our Local Assets • Define Dumas: “Our” Economic Development & “Our” Success Indicators • Business Retention: Invest In & Assist Local Firms • Economic Gardening: Aggressive Small Business Development Program • Seek Opportunities: Study Our Community & Local Industries For Needs & Trends • Identify ROI: Identify the ROI in Everything; Economic Impact Analysis • Add to the Toolbelt: Learn the Tools and Practice the Tactics of Others • Diversify: Identify New Industry Opportunities • Invest in Education: Partner With the Schools • Fill the Voids: Identify Growth Inhibitors & Fix Them • Network: Lead Mining Where the Action Is • Marketing: Increase & Improve Marketing & Branding • Recruit: Produce a Targeted Industry Recruitment Campaign • Fill the Gaps: Identify Leakage & Slow It Down • Community Improvement: Invest in Local Events & Entities
Our Comprehensive, Unconventional Plan of Work.
Flagship Programs
• Business Growth & Development Program
• Community Development Program
• Re-Du-It-in Dumas Program
Business Growth & Development
Economic Gardening – Difficult to compete with Amarillo in attracting bigger
businesses – Entrepreneurs drive economies – Create jobs by supporting existing companies in our community – Seek out start-ups and provide tools to insure success – Provide assistance to reduce the risk of failure – Organize an effort to meet as many local business owners,
operators, and industry leaders – Create trust & friendships as best we can – Listen to them discuss their business, trends, needs, and plans – Many did not know existing local firms could perform services
they typically outsourced – Identify opportunities to connect businesses to leads &
opportunities
BG&D Process
BG&D Tools
Facilitation & Coaching
– Facilitator contract, once per week
– Reviews the small business projects
– Helps produce financials, pro forma, P&L
– Forms professional opinion
– Discusses client & project with me
– Determination is made on next steps & resources
– Facilitator continues to work with client regardless
BG&D Tools
Marketing & Internet Technology Assistance
– In-Kind Trade & Contract for Consultant Services
– Referrals from myself and/or Facilitator
– Free Consultation
– Build website, establish social media presence, provide POS assistance, graphic design
– Ongoing services contract with client
– Incentivize services
BG&D Tools
B2B Networking Assistance
– Host networking receptions
– Maintain local service listing spreadsheet
– Identify leads & opportunities
– Connect local businesses to leads
– Shop & spend local encouragement
– New business spotlights
– Trade & industry show invites
BG&D Tools
Contract & Loan Assistance Program
– Access to Banking & Governmental Programs Consultant; fee based (1/4% of value)
– Consultant is former SBA official and former commercial lending officer
– Register & enroll businesses for programs to make them eligible for federal, state, industry & specialized contracts
– Access and network of regional lending institutions
– Navigate SBA programs
BG&D Tools
Site & Feasibility Analyses
– Industry & sector site analysis to determine profitability, demand, & opportunities
– Performed internally with existing subscriptions or contracted out
– Determine Potential Market Index (PMI) or Gap Analysis
– Analyze local sales tax data to determine sales potential
BG&D Tools
Skills Development Program
– Amarillo College-Moore County Campus (MCC)
– MCC Career & Technical Training Center
– Internal training assistance grants
– Skills Development Fund
– OSHA & safety training assistance
Community Development Program
Quality of Life Improvements – For our purposes, quality of life values include health,
safety, diverse recreational and cultural opportunities, a sense of community, a sense of place, and a sense of beauty.
– Quality of life is typically about three environments: the social environment, the built environment, and the economic environment.
– People want to live happy, healthy lives, and want to be safe, and to have something useful to do, and by and large to have broad and rewarding relationships.
– These traits help the Dumas EDC in its efforts to attract new businesses to the area.
Community Development Program
Community Grant Program – Annual program
– Budgeted line item
– Excellent community outreach
– Community Grant Committee
– Award grants to programs & projects that achieve the objectives laid out
– Prefer non-profits or civic organizations
– Awarded nearly $500,000 since 2002
Community Development Program
Examples of Eligible Projects – Focus on civic & non-profit proposals for the common
good – Projects and programs that improve the area’s quality of
life – Serve a high percentage of local citizens – Demonstrate an economic benefit – Demonstrate a workforce component – Contain recreation or education value – Address an identifiable community need – Contain a high percentage of matching contributions – Improve the community’s appearance – Address a quality of life value
Community Development Program
Community Improvement Fund – Budgeted line item – Primary focus is on events and activities that help increase
economic activity n the community – Sponsorships for special events that help attract people to
the community – Start-up funds for proposed new events with the intent to
continue annually – Preference given to multi-day events – Beautification projects – Projects that help stop traffic in town – Amount provided is calculated off of the anticipated
economic impact
Re-Du-It-in Dumas Program
Revitalization and Renewal Incentive – Lack of viable commercial real estate – Underutilized properties – Vacant lots – Façade improvements – Projects that increase the ad valorem tax value – Funding based off of the economic impact associated with
local property tax values and construction impact – Incentive amount used to help cover required equity
and/or clean-up costs – Incentive provided upon issuance of C.O. – Incentive sometimes provided in annual payments
Re-Du-It-in Dumas Program
Project Examples – Former gas station vacant lot listed in environmental
trust, released for use now Golden Chick Restaurant – Fire Damaged Laundromat cleaned up, now Anytime
Fitness – Vacant dirt lot on main road, now Little Caesars – Local movie theater exterior renovation – Undeveloped lot near hotels, now strip center – Underutilized building now family entertainment
center – Condemned property to become farmers market and
parking lot
Find the R.O.I.
• Almost Any Project Will Produce an Economic Return On Investment
• Have an Impact Analysis Tool Developed
• Job Creation & Retention
• Local Taxable Sales
• Ad Valorem Taxes
• Leakage Prevention
• Local Business Support
• Community Visits
• Special Events
Economic Impact Analysis
Economic Impact Analysis
Economic Impact Analysis
PROJECT CLINIC | FISCAL IMPACT
City of Dumas
The table below displays the estimated additional benefits, costs, and net benefits to be received by the City over the next 10
years of the Project. Appendix C contains the year-by-year calculations.
Table 8. City of Dumas: Benefits, Costs, and Net Benefits Over the Next 10 Years
Amount
Sales Taxes $30,546
Property Taxes - Project, after abatement $8,647
Property Taxes - New Residential $889
Utility Revenue $36,073
Utility Franchise Fees $5,470
Building Permits and Fees $1,000
Hotel Occupancy Taxes $0
Miscellaneous Taxes & User Fees $7,601
Subtotal Benefits $90,226
Cost of Providing Municipal Services ($11,169)
Cost of Providing Utility Services ($32,105)
Subtotal Costs ($43,273)
Net Benefits $46,952
Present Value (5% discount rate) $36,509
Incentive vs. Net Benefits
Total Incentive Benefits Costs Net BenefitsCumulative Net Benefits
$15,221 $10,886 ($3,952) $6,934 $6,934
$15,221 $8,135 ($4,031) $4,104 $11,037
$15,221 $8,295 ($4,112) $4,184 $15,221
$15,221 $8,460 ($4,194) $4,266 $19,487
$15,221 $8,628 ($4,278) $4,350 $23,837
$15,221 $8,801 ($4,363) $4,437 $28,274
$15,221 $8,977 ($4,451) $4,526 $32,801
$15,221 $9,158 ($4,540) $4,618 $37,419
$15,221 $9,343 ($4,630) $4,712 $42,131
$15,221 $9,544 ($4,723) $4,821 $46,952
3.0
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
1 2 3 4 5 6 7 8 9 10
Year
Enter Incentive Description Cumulative Net Benefits Total Incentive
$15,221
Total Non-Tax Incentive
$2,537
Incentive Per Job
30.8%
Rate of Return
3.0
Payback period (years)
BG&D Success
• Visited with over 250 clients since 2010
• Provided financial assistance to 53 of those
• Helped create over 75 new jobs in the community
• Helped retain over 40 jobs
• Helped increase local capital investment by $2.3 million.
Methods Seem To Be Working
Thank you!