HomeMy WebLinkAboutED P & Rs.pdf2010 -2011 Economic Development Council
Priorities and Recommendations
In the performance of its duty to advise the Bozeman City Commission on economic
development issues, the City's Economic Development Council (EDC) has developed a series of
policy recommendations that build upon our City's existing advantages and position the
community to excel by supporting and encouraging growth and expansion of existing businesses,
attracting and retaining new businesses, increasing investments and creating jobs. In order to
gauge the success of the City's economic development program over time, the EDC recommends
the creation of an annual economic development report card. The Economic Development
Report Card, or some other measure, would encourage accountability and is critical to analyzing
the outcomes of the proposed reforms and programs and thus determine the impact on the local
economy.
We recommend that the City Commission take action to adopt these and other specific reforms,
such as those being considered by the Planning Board that will further improve our City's
business climate. Equally important, we strongly believe the City Commission must identify the
promotion of economic development as long -term priority. To this end, the City Commission
should carefully monitor and measure enacted reforms, survey the effectiveness of steps taken
and continually seek additional opportunities to improve Bozeman's economic competitiveness.
The priorities and recommendations listed below occupy no particular order. In fact, each
recommendation overlaps the others in significant ways. Therefore, each recommendation
should be reviewed in the context of all others and considered collectively.
1) Ongoing financial commitment to Economic Development.
Bozeman is a premier city in the Rockies that enjoys economic `competitive advantages' in
addition to a high quality of life compared to many other U.S. cities and towns. At the same
time, City and community leaders recognize that a number of necessary and important steps
are needed to shape Bozeman as a more business - friendly community. The success of
economic development in and around the community hinges on the commitment to economic
development as a lasting and long -term priority —along with the necessary long -term
commitment of resources, time, and emphasis.
The EDC applauds the actions and reforms already taken by the City to promote economic
development. Further improving the business climate in Bozeman will produce long- Iasting
benefits for local companies, employees and families far into the future.
Areas of investment in economic development include:
a. Increased financial investment in, and available resources for, the Economic
Development Liaison working to support and strengthen the business community
from within the City Manager's office;
i. Support a five year commitment for funding of the City's Economic
Development Liaison position;
ii. Recognition that the title and placement (within the City Manager's
Office) of the Economic Development Liaison position represents a
critical Commission priority and is important to public perception of the
City's commitment to economic development; and
iii. Increase the current budgeted amount, $2,500.00 for FY 11, as soon as is
practical.
b. Approve additional general fund investment to promote Economic Gardening
principles, the entrepreneurial approach to economic development that seeks to
grow the local economy from within;
c. Host a yearly local Economic Development Conference or Summit;
i. Establish EDC Conference /Summit Subcommittee; and
ii. Conference /Summit proposed for March, 2011.
d. Fund the production of materials such as resource guides and helpful tips
brochures;
i. Establish a business resource task force in partnership with, among others,
MSU, Chamber of Commerce and the City.
e. Develop and support a dashboard of local economic indicators using locally
derived data and metrics for our community the purpose being to supplement that
which is available nationally and regionally and provide the public with relevant
and timely trends in our local and regional economy.
Some indicators may include, among others:
i. Cost of living indices;
ii. Local demographic statistics;
iii. Home prices and sales;
iv. Airport arrivals /departures;
v. Hotel /motel room nights;
vi. Various labor statistics;
vii. Yellowstone National Park visitations;
viii. Business licenses, planning and building permits;
ix. Geographic information systems (GIS);
x. Economic profiles and impact analysis;
xi. Agricultural prices;
xii. Property foreclosures,
xiii. Bankruptcies; and
xiv. Applicant and /or customer follow -up process for feedback on
development application review and other City procedures, processes and
services.
f. Increase economic development program offerings and /or incentives by:
i. Promoting revolving loan funds and Technical Assistance Grants (TAG);
ii. Assisting with business counseling, research services and /or strategic
planning;
iii. Establishing and maintaining data depositories to expand industry research
capabilities and services including data and resources available through
the Bozeman Public Library and /or captured by the City of Bozeman and
other agencies and institutions:
2
I. Utilize CoB Geographic Information Services (GIS) and perhaps
outside consultant, if necessary, to develop data services for the
business community based on data collected by the CoB and other
sources; and
2. Increase business database offerings at the Bozeman Public
Library, i.e. RefienceUSA, InfoTrac and WestLaw.
iv. Facilitating relationships and networks between existing businesses within
the City to encourage industry and business clustering and examine cross -
marketing, knowledge and resource sharing opportunities;
v. Supporting, in partnership with Montana State University's College of
Business a Business Relations Survey; and
vi. Supporting the production of Business Resource Guides and other related
materials.
g. EDC sponsored forums, roundtable discussions and surveys designed to elicit
timely and relevant feedback from the business community;
h. Brand and market the City's economic development outreach strategy and
initiative by:
i. Creating a portal or web link to an economic development site as the
'face' of Bozeman's economic development programs and partnerships;
ii. Developing an area economic development marketing and communication
strategy utilizing the internet via web pages and social networks as
primary methods of communication; and
i. Create and support additional funding mechanisms which may include, among
others:
i. Support of a bonding program to promote economic development,
business innovation and long -term growth;
ii. Promotion of the passage of a local mill levy to support economic
development;
iii. Identification of federal, state and local funding opportunities
1. SBA grants;
2. Montana's Big Sky Economic Development Trust Fund Grant;
3. Workforce Study and Training Grant(s); and
4. Leverage local economic development funds.
2) Commitment to a business - friendly process with a focus on retention and expansion
of existing local businesses.
The Bozeman City Commission's stated goal is for the City to be the most business
friendly community in the State of Montana. Staff is currently allocating existing
resources to researching improvements to internal processes. Additionally, the Planning
Board intends to make recormnendations to the Commission concerning suggestions for
improving processes which may result in more consistent, effective and timely decision -
making for all parties involved in City processes.
In addition to looking inward to improving existing processes and services, local
economic development should also look outward toward the local business community
3
and beyond to understand their needs and provide value added services that support
business growth and job retention and expansion as well as create strategies for attracting
and growing new businesses and facilitating new job creation.
Realizing the Commission's ambitious goal will require continuing internal process
reviews, as identified, and additional actions listed:
a. Streamline the development review process;
b. Identify and consolidate duplicative business related services;
c. Create economic development partnerships and encourage co- locations and
knowledge and resource pooling where appropriate;
d. Provide updated and consistent information in a consolidated resource guide and
tip and fact sheets offering economic development services from both public and
private sectors, distributed to all local public and private economic development
agencies and organizations; and
e. Continue business site visits with the City's Economic Development Liaison and
Economic Development Council representative(s).
3) Stabilize existing local incubators and create a full service business incubator
program to achieve a healthy business ecosystem.
Traditional business incubators are brick and mortar facilities that, in addition to off -site business
services, can co- locate several upstart, or phase I, businesses. This arrangement takes advantage
of business synergies and economies of scale to provide assistance and support. Typically,
incubators provide clients with flexible space arrangements, affordable rents, shared business
services (knowledge and resource pooling), development training, mentorship, financial
assistance and networking opportunities. Several local companies have been served, and some
500 new jobs created in the area due to the services offered by Bozeman's only, tech - centered
incubator, TechRanch. Additionally, business incubation services have shown to be an excellent
catalyst to diversifying local economies. Inexpensive space remains a challenge for most
business incubators.
Addressing the support for a business incubator and incubation services includes:
a. Prioritize the stabilization of TechRanch;
b. Determine the full scope of incubation services needed locally, i.e. technology,
manufacturing, retail, food service, hospitality, professional services or other
industry specific types and general business;
c. Identify what business incubation services exist locally;
d. Establish strategic partnerships with MSU that support local technology transfer
and an expansion of technology and research commercialization efforts utilizing
applied research arising from intellectual capital cultivated at MSU and other
local educational institutions;
e. Support the establishment of new local business incubators;
f. Identify ongoing funding mechanisms to assist existing incubators;
4
g. If new or expanded incubation services are necessary, identify a funding and
leadership model for such expansions;
h. Discuss and determine long -term location for business incubation services; and
i. Explore consolidation and /or co- location of incubation services with other
economic development resources.
4) Core Services and Infrastructure.
Critical to encouraging and supporting economic development in and around Bozeman is the
continued delivery of the City's core services and support of other critical services not directly
provided by the City of Bozeman. Service delivery, overall quality, timeliness and efficiency of
construction, maintenance and /or repair projects, initial right- sizing of infiastructure (to
minimize costly retro -fits) and predictable, responsive emergency response systems, access to
information based services (Bozeman Public Library), among others, all contribute to creating
and fostering supportive environments for growing and attracting business and creating jobs.
The appropriate support, maintenance and /or upgrades to the following core service areas as well
as support for critical indirect services are particularly important to economic development:
a. Timely and efficient road maintenance, construction and repair;
b. Predictable and affordable delivery of potable water;
c. Predictable and affordable refuse and recycling pick -up and disposal;
d. Predictable and affordable delivery of sewer services;
e. Predictable and affordable fire protection;
f. Predictable and affordable police protection;
g. Support the establishment of, or upgrade to, communication networks, i.e., high
speed and ultra -high speed internet access, by encouraging local service providers
to offer industry leading connection speeds and services; and
h. Support timely and efficient delivery of information services through the
Bozeman Public Library's unique information databases and reference services.
5) Identification and Establishment of Business Incentives.
We recommend that the City of Bozeman offer some type of financial incentive to attract, retain
and support businesses and job growth.. Local initiatives to enhance growth include a large
variety of fiscal, tax and nonfinancial tools to attract, retain and create jobs. Currently, the
following incentive programs exist in the City: a) City of Bozeman's Revolving Loan Fund (in
partnership with the Prospera Business Network), b) Tax Abatement Program for historic
preservation, c) the Business Retention and Expansion Program (Bozeman Area Chamber of
Commerce), d) North 7th Rehab Grant Program, e) the Big Sky Energy Revolving Loan Fund (in
partnership with the Rocky Mountain RC & D) and f) the Downtown Technical Assistance Grant
(Downtown Bozeman Partnership). Other incentives include a flexible rebate program that
considers rebates of certain taxes and fees to primary employers in the City, provided that the
companies meet certain thresholds, requirements and guidelines, a microloan program and /or
smart business incentives, in partnership with a local energy provider, for reducing costs through
reducing energy consumption.
Additionally. creating, strengthening and maintaining strong and effective partnerships with
public institutions and agencies as well as private businesses, represents a cost - effective method
for incentivizing economic development. Collaborative community relationships outwardly
represent a culture of working together to create solutions and inwardly build trust and
willingness to communicate and take collective, informed and mutually beneficial action.
Business incentives and partnerships should include:
a. Financial Incentives include, but are not limited to, grants, loans, tax - exempt
bonds and equity and near - equity financing;
b. Tax Incentives include, but are not limited to, tax abatements, tax exemptions,
accelerated depreciation, tax classification, tax credit, tax deferral, tax
stabilization agreement and tax increment financing or TIF (Bozeman currently
supports the Downtown TIF, North 7th TIF, Mandeville Farms TIF, Tourism BID
and could consider a Technology TIF in the future.);
c. Non - financial assistance includes, but is not limited to, professional assistance
with site development, use of land banks, establishment of industrial, eco-
industrial and technology parks;
d. Creation of enterprise zones; and
e. Broaden and deepen strategic public - private partnerships.
6) Workforce Development.
Workforce development refers to initiatives that address both the demand and the supply
side of the labor market by identifying potential areas of employment growth and
developing the skills of job- seekers to meet that demand.
Additionally, critical to a vibrant and diversified local economy is support for a local
workforce qualified to meet the labor needs of the regions businesses coupled with a
variety of affordable, market -rate and subsidized rental and owner - occupied housing
options with access to affordable transportation resources.
a. Support the efforts of MSU to create Gallatin College and expand 2 -year degree
and job training and certification programs;
b. Identify and expand human resources and capital which include customized
training, workforce studies and development and increased local educational
opportunities and partnerships;
c. Support common and alternative transportation methods and improve connectivity
both locally and regionally, i.e., bikes, cars, buses, trains and air service, among
others;
d. Support the strengthening and expansion of MSU internship programs, (Public
Administration and College of Business, among others) creating additional
opportunities for graduate and undergraduate students to gain experience in
business development and /or economic development adding value but little
overall cost to the economic development program; and
6
e. Support the creation of affordable, market -rate and subsidized rental and owner-
occupied housing that meets the needs of the local workforce.
00
Ongoing,
�
>
1 -2 years
6 -12
mos.
Less than
6 mos.
Current
• ^'
Status
o
rn
do
A
Ct
to
0
to
0
�, Q
�,
i
�
cs
0
dd
Ct
�+
Ct
U a
V W
N
Ei V
UU
VU UU�
>1
cz
ri
k„ o
--
O
,�,
r
O
a,
e�
O
o ��
cA U" o
°
o ti
W
V
z
W O
4!
V
eC
O
=
p
° ��
p V]
>,o
�t
, r
q
4; ° o o
°
• C
O
U
°�
> 0 CU Q+
�'
rn
ti
C, O f1. ,
O
U
0
W
U°
Q C +� >
�
p
0
O O
cd
O
00