4th quarter 2011           

Economic development 101: The economic development process

When a community goes through an analysis of its strengths, weaknesses, opportunities, and threats (SWOT), it faces the challenge of matching its strengths and
opportunities with existing or new strategies. To move forward, the essential action steps of organizing, planning and execution are necessary to implement the strategic plan.

Long- and short-term strategies
Every strategy must be organized and task-assigned. Once organized, a prospective project’s feasibility must be evaluated along with the financial, technical and human resources needed for implementation. For example, a downtown development strategy frequently requires physical improvements and the promotional and business recruitment activities on the front end.

Substantial projects, such as industrial parks, office complexes, hotels and convention
centers take several years to construct and become operational, and may take many more years to have a major impact on the local economy. Sometimes too much emphasis is placed on short-term gains, such as tax incentives and other credits to businesses, rather than focusing on the far-reaching benefits of such activities.

Making it happen
After organization and planning, strategy execution begins. For a business recruitment
strategy, this can include attendance at industry trade shows, contacts with site selectors, and development of marketing brochures, websites and other programs.

Like everything else, economic development requires money. Funding needs to be
addressed for staffing, business development, and long-term investments in infrastructure.

Community
One of the key elements in economic development success is community capacity.

As a rule, there are seven primary elements of community capacity for business development: a business development strategy; staff and team development; industrial land and infrastructure; targeted industries; marketing; prospect and lead management; and if all goes well, ability to close the deal.

Property
Industrial land and infrastructure are critical to economic development success.
Ideally, a community has control of available land that is competitively priced and is properly zoned with the necessary infrastructure. On a scale of zero to 10, this is a “10” on the list of economic development prerequisites.

This is why Volusia’s County and city governments have placed so much emphasis on the creation of “shovel-ready” industrial parks. The county’s DeLand Crossings Industrial Park, Parktowne in Edgewater, Ormond Beach Industrial Park, and the new industrial park at the DeLand airport are prime examples. Very few developers here have been willing to invest in the economic development potential of their own properties.

In spite of successful, cohesive marketing and business recruitment efforts, the whole
process grinds to a halt if there is no place for a new company to call “home”. Developed and available infrastructure is a key element in the planning strategy because most companies won’t wait the two to three years it takes to make an industrial site ready for building or plant construction.

Civic attitude
No matter how strategic a community is in selecting its direction, and how sophisticated
it is in terms of optimizing community capacity, the intangible of “civic attitude” will
go a long way to achieving economic development goals. If a community’s attitude is apathetic, and there is a lack of unity, and a reluctance to progress, these intangible signs are clear to an economic development prospect. The same can be said of a community that is upbeat, cohesive, friendly, helpful, organized, and focused.