Small Ball vs. Long Balltmleconomicdevelopment.org/wp-content/...Facilitation & Coaching...

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DUMAS, TEXAS STRATEGY FOR SUCCESS Mike Running, Executive Director of Economic Development

Transcript of Small Ball vs. Long Balltmleconomicdevelopment.org/wp-content/...Facilitation & Coaching...

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DUMAS, TEXAS

STRATEGY FOR SUCCESS Mike Running, Executive Director of Economic Development

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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

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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

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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!

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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

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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!

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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.

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Flagship Programs

• Business Growth & Development Program

• Community Development Program

• Re-Du-It-in Dumas Program

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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

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BG&D Process

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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Economic Impact Analysis

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Economic Impact Analysis

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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)

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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.

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Methods Seem To Be Working

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Thank you!