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U.S. Department of Commerce Wisconsin Department of Workforce Development " A legal entity/organization directed by a board of directors and/or members, for the purpose of creating new jobs and income growth. $,What is an economic development corporation?--$&$Difference between Chambers and EDC:%%$3Chambers are experts in group purchasing, retail, downtown issues and event planning. EDC are expert problem solvers for business. Best Scenario: Have a synergistic relationship between Chamber and EDC 70% of Wisconsin EDCs have good working relationship with Chambers 20% of EDCs are part of local Chambers44,5"Traditional Roles of Wisconsin EDC##$Most have been involved in ED since early 1980s Focused on marketing of an area to attract new manufactures. Industrial, commercial or residential development Manufacturing recruitment ($New Roles of Wisconsin EDC:>Address certain problems within the business community, deal with solutions and set up strategies Serve as central information reservoir Have technical expertise in regulatory issues, funding sources, available land/real estate, environmental regulations and zoning laws Build working relationships with policy makers?Z?Survey of Wisconsin EDC:Estimate that there are 800-900 ED organizations through the state 60 of 72 Wisconsin counties have countywide EDC Polk County has seven local development organizations (5County Economic Development Corporations in Wisconsin66 Adams County Rural and Industrial Development Commission Ashland Area Development Corporation Barron County Economic Development Corporation Burnett County Development Association Chippewa County Economic Development Corporation Clark County Economic Development Corporation Columbia County Economic Development Corporation Dodge County Economic Development Corporation Door County Economic Development Corporation Dunn County Economic Development Corporation Eau Claire Area Industrial Development Corporation Fond du Lac County Economic Development Corporation Grant County Economic Development Corporation Green County Economic Development Corporation Iron County Development Zone Corporation Jefferson County Economic Development Corporation Juneau County Economic Development Corporation La Crosse Area Development Corporation Lafayette County Development Corporation Lincoln County Economic Development hP` | /    b  R8$/'1-1--,2,..(1.&)$080:^0`0000J0Kx 0z 0 0 0 = 0?m0n000(0*P0R{0| Marathon County Development Corporation Marinette County Association for Business and Industry Milwaukee Economic Development Corporation Momentum Chippewa Valley Oconto County Economic Development Corporation Oneida County Economic Development Corporation Outagamie County Economic Development Pierce County Economic Development Corporation Racine County Economic Development Corporation Regional Economic Partnership (Southeast WI) Richland County Economic Development Corporation Rock County Planning and Development Agency Rusk County Economic Development Corporation Sauk County Development Corporation Shawano County Economic Progress, Incorporated St. Croix Economic Development Corporation Washington County Economic Development Waukesha County Economic Development Corporation Waupaca County Economic Development Corporation Waushara County Economic Development Corporation Winnebago County Economic Development Corporation BP . U *  *0'+0)_,0a-0.0/000-10.\20^30405060G70Il80n90:0;0"<0$S=0U>0  Economic Development Strategies:!!$Attract new employers: Efforts include creation of promotional material Attending trade shows, Participating in State promotional efforts, Building infrastructure for new employers B" -!rWest Central Wisconsin Fastest Growth Occupation Projections-2010 Source: Wisconsin Dept. of Workforce Development sB1   Economic Development Strategies:!!$Improving the efficiency of existing firms. Business retention and expansion program Assisting with the procurement of job training funds Sponsoring business seminars Encouraging collaborations and industry clusters0,Z" Z,  Economic Development Strategies:!!$Improving the ability to capture dollars: Retaining retirement income in the community Increasing the amount of purchases made locally Providing more services locally,*}" *} PSources of Personal Income- Polk County (in thousands $) Source: 2000 US Census(Q'$   Economic Development Strategies:!!$Encouraging the formation of new businesses Assisting and encouraging local entrepreneurs to form businesses Formation of investment capital, Revolving loan funds Creating business incubators Building shell spec buildings,," , Economic Development Strategies $XIncreasing aids received from broader government: A large portion of community s income comes from University, Vo-tech schools, transfer payments, ag-land conservation, military contracts, aid for infrastructure improvements. Grant writing and sponsoring federal procurement seminars is a strategy..2ZZJ"#Survey of Wisconsin EDC Strategies:$$, Polk County Commuting Patterns$7,466 residents, 38% of local workforce travels outside county for a job. Only 2,875 workers travel into Polk County to work Net loss of workers = 4,591 3 in 5 workers travel to Minnesota City of New Richmond-most popular destination Z+T2000 Polk County Commuting Patterns Source: Wisconsin Dept. of Workforce DevelopmentU$ 1 1"aWest Central Wisconsin Most Opening Occupations Source: Wisconsin Dept. of Workforce Development,b/1  9How does County EDC interact with other local ED efforts?::$~County EDC serves as a link between numerous other ED groups and provides focus for regional efforts Think and Act Regionally Wisconsin EDC BudgetsRange from all volunteer to 1.5 million dollars Median of $124,000 per year Estimated $200 million dollars a year spend to operate ED organizations in Wisconsin  Wisconsin EDC MembershipCan consist of representatives from other local ED organizations; i.e. civic groups, local governments Determined by who funds the EDC Typically a mix of community, county, and corporate fundingWisconsin EDC Funding Sources:$%Alternative Funding Sources:Reinvest fees from managing RLF back into EDC Require companies that receive assistance to become members Charging companies to be included in a resource directory Charging for consultative services-market driven/performance basedWisconsin EDC Staff SizedSmall budgets = Small Staffs, averaging 2.8 FTE s "23%Wisconsin County ED Directors Salary:&&$Full-time with salary in $45-55,000 range Salaries range from $25,000- $85,000 Long tenures Been in ED for 12-13 years Been in current position avg. 8 years&\A\A Board of Directors!Again, typically made up of representatives appointed by the organizations which provide funding for the EDC. Representation based on percentage of funding support Average 14 members in size Top executives are recruited to this board Movement away from elected officials dominating boards "" EDC CommitteesTypically appointed by EDC President with approval of the Board Formal Committees include: Executive Finance Membership Personnel Special Committees&[:[:Cooperating ED Partners:'Measuring Success of EDC:FDifficult to document. This is because the success of a project hinges on the cooperation between communities and other public agencies which play different roles in economic development Also, the changing nature of ED from business attraction to business collaboration and networking makes it difficult to quantify success. ,FZZF#Measuring Wisconsin EDC Success  8Some considerations relating to formation of County EDC:99$Potential employers often look at a County or region before they look at specific communities. Benefits from the location of a new employer extend beyond the resident community (Up to 70% of the employees in a plant will often live outside of the community of their employment). Few communities have the financial resources to hire paid staff to promote economic development opportunities.Z*9Other considerations relating to formation of County EDC:::$Industry and government (Department of Commerce, Forward Wisconsin, utilities, etc.) have a difficult time dealing with numerous economic development organizations. One initial contact for a region, might stream-line the process and lead to more business contacts The formation of a corporation does not guarantee results. In Wisconsin, some have done very well and some have performed rather poorly. Performance has been tied to the director or changes in the board of directors. :PPP9Other considerations relating to formation of County EDC:::$kThe only way to reduce taxes is to cut local services; reduce the costs of providing services; or create new development to share the tax burden. Many forms of development however, create more service demands then they generate from additional tax base. A regional corporation can promote cooperation between communities, competition, or a combination of both. lk9Other considerations relating to formation of County EDC:::$ Requires the dedication and passion of a number of community leaders committed to the merits of the organization. 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