The Growing Divide Between the Haves and Have-Nots

The Growing Divide Between the Housing Haves and Have-NotsPhoto by Brian Babb on Unsplash

Affordable Housing is a Critical Part of Economic Development

Most economic developers occupy a privileged position in the community. They get to rub shoulders with academic administrators, corporate executives, government officials, media representatives, and other influencers. They might serve on the board of directors for a local charitable organization, or take a leadership role in philanthropic fundraising for arts and cultural programs. What doesn’t always get their attention are current trends in income and economic inequality, the growing divide between the “haves” and “have-nots,” and what they can do about it.

A case in point is affordable housing.

Lara Fitts, President and CEO of the Greater Richmond Partnership, writes:

“A few months ago, I was talking with a fellow economic development professional who asked me, why I cared about affordable housing because in his words, ‘affordable housing isn’t economic development.’ In his view, economic development is meant to help companies facilitate job creation, enhance the community’s tax base, and provide opportunities for increasing household incomes. However, what happens when a community is so successful in its economic development efforts that the supply of housing decreases and prices escalate so quickly that jobs and income growth don’t keep up?”

The truth of the matter is that affordable housing is a critical part of economic development.

Quality of Life

To ensure they’re able to attract skilled workers, companies are increasingly interested in localized quality of life factors in the site selection process. In Area Development’s “34th Annual Survey of Corporate Executives and 16th Annual Consultants Survey,” quality of life ranked 4th, behind only highway accessibility, availability of skilled labor, and labor costs and ahead of 24 other site location factors like state and local incentives and accessibility to a major airport. Baked into the quality of life recipe is a key ingredient — an employee’s ability to secure adequate housing.

Phoenix-Mesa-Scottsdale MSA
Homeownership Market
Richard Mulligan | The ED Advisor Source: Area Development, 34th Annual Survey of Corporate Executives and 16th Annual Consultants Survey

Affordable Workforce Housing

Consider for a moment how housing affects a business’s competitiveness strategy — indeed, a region’s competitiveness — in terms of attracting and retaining talent. When employees can’t afford to live near their place of work, employers have to spend more money on relocation expenses, wages, and face higher turnover rates. Where employees choose to live is also impacted by the work situation of their spouse, partner or significant other; commute times (the average is 25-35 minutes); neighborhood characteristics; schools; and safety.

Now ask yourself, when you’re considering a job offer, how long does it take before you start to factor in salary, housing options, and commute time? Then, for the sake of argument, imagine that you have accepted a position on the same pay scale as an “essential worker” — police officer, firefighter, nurse (LPN), or public school teacher. Your income falls within 60 to 120 percent of area median income. Mortgage lenders impose a limit of 28 to 30 percent of household income for principle, interest, taxes, and insurance (PITI). Given these parameters, what are your housing options?

The Growing Divide Between the Housing Haves and Have-Nots
Richard Mulligan | The ED Advisor Source: The National Housing Conference (2020)

The homeownership market appears to be out of reach — aside of being able to tap into a second income or some other type of financial assistance. This assumes prospective homeowners are looking to buy a medium-priced home in the Phoenix-Mesa-Scottsdale MSA, which has an affordability index of 6 (on a scale of 1 to 10; 1 is the most affordable, 10 is the least affordable), per Kiplinger (2020).

Phoenix-Mesa-Scottsdale MSA
Rental Market
Richard Mulligan | The ED Advisor Source: The National Housing Conference (2020)

This leads a prospective employee to the rental market, where a 1- or 2-bedroom apartment or other residential rental property becomes financially palpable. Even under these more favorable conditions, the 3-bedroom option is too expensive.

The State of the Nation’s Housing

The Joint Center of Housing Studies of Harvard University’s report, “The State of the Nation’s Housing 2019,” provides an overview of pre-coronavirus pandemic housing trends. Their researchers found that despite household growth returning to a more normal pace during the past decade, housing construction wasn’t able to maintain the same rate of progress, keeping pressure on home prices and rents and eroding affordability.

Factors contributing to the continued shortfall in housing supply include relatively weak household growth since the Great Recession, with the national vacancy rate for both owner-occupied and rental units falling to 4.4 percent, its lowest point since 1994. Influencing the slow construction recovery is a wariness on the part of builders and lenders, who haven’t forgotten how difficult it was to work through the housing boom of the early 2000s, which created an excess supply of homes. Labor shortages, complicated by an economy nearing full employment, and the rising costs of land and materials made it unprofitable for developers to build for the middle market. Instead, home builders chose to build in the higher end of the housing market, where they’re able to cover their expenses. Regulatory restrictions on higher-density development and not-in-my-backyard (NIMBY) opposition made it even more challenging to provide affordable housing products.

In terms of housing income and affordability, cost burdens have continued to move up the income scale. National Association of Home Builders (NAHB) economists have calculated that more than half of U.S. households — 63 million to be precise — are unable to afford a $250,000 home. In a similar vein, the Federal Reserve Bank of St. Louis determined that national house price indices have outpaced increases in per capita income and inflation since 2012.

NAHB/Wells Fargo Housing Opportunity Index
Richard Mulligan | The ED Advisor Source: National Association of Home Builders (2020)

One of those indices is the NAHB/Wells Fargo Housing Opportunity Index, which measures the share of homes that would have been affordable to a family earning the average median income, based on standard mortgage underwriting criteria. The index utilizes two major components — income and housing cost — and reveals how housing costs have worsened in recent years.

City of Dallas

The City of Dallas (pop. 1,343,573) — our nation’s ninth-largest municipality — has Housing and Neighborhood Revitalization, the Office of Economic Development, and Planning and Urban Design organized under the direction of Michael A. Mendoza, Chief of Economic Development and Neighborhood Services. This underscores the interdependence that exists between community development, economic development, and planning.

Dallas’ Housing Policy Toolkit consists of the following:

Market Value Analysis

The Market Value Analysis (MVA) is a data-driven tool that helps residents and policymakers analyze the local real estate market at a census block level. It is built on local administrative data and validated by local experts. This analysis was prepared by The Reinvestment Fund. Public officials and private actors utilize the MVA to more precisely target intervention strategies in weak markets and support sustainable growth in stronger markets.

Nine market types are identified on a color-coded spectrum of residential strength or weakness, along with the number of Census Block Groups in each market type. Included are multiple tabs for key indicators — median sales price, sales price variance, percent owner occupied, percent vacant homes, percent new construction units, percent rehabilitation units, percent foreclosure filings, and percent code violations.

The MVA also provides tabs to other geographic data for mapping purposes — reinvestment areas, bond projects, City land, tax increment finance (TIF) districts, public improvement districts (PIDs), New Markets Tax Credits, Opportunity Zones, Community Development Block Grant (CDBG) eligible areas, R/ECAP areas, DISD and RISD elementary schools, and DISD and RISD middle schools.

Comprehensive Housing Policy

Dallas’ Comprehensive Housing Policy is guided by the Market Value Analysis and identifies a housing shortage of approximately 20,000 units. Six out of ten families are housing cost-burdened (spend more than 30 percent of income on housing), making it difficult to build asset wealth and break multi-generational cycles of poverty.

Three overarching goals drive the policy: (1) Create and maintain affordable housing units throughout Dallas; (2) Promote greater fair housing choices; and 3) Overcome patterns of segregation and concentrations of poverty through incentives and requirements. Various housing and financial assistance programs, ranging from creation of a Housing Trust Fund to the adoption of an ordinance amendment that allows homeowners to build and rent Accessory Dwelling Units (ADUs) are contemplated in the housing policy.

Strategic Economic Development Plan

Complementing Dallas’ Housing Policy Toolkit is the Draft Strategic Economic Development Plan (2019). During the stakeholder engagement phase, respondents to an online residential survey identified affordable housing as a leading issue (ranked #3 behind quality of public schools and City infrastructure). The market assessment phase determined that Dallas has the second largest share of homeowners whose monthly owner costs are 30 percent or greater than household income, when compared to Chicago, Atlanta, Denver, Phoenix, Austin, Houston, San Antonio, and Fort Worth.

The Strategic Action Plan phase outlines four overarching goals, one of which is “Opportunity for All: An Equitable and Inclusive Economy.” Under this goal, interested parties will find “Strategy #1: Revitalize South Dallas/Southern Dallas,” that devotes a significant amount of attention to “Affordable Housing.” This is a best-practice example of how affordable housing policies are harmonized with Dallas’ economic development initiatives.


The link between affordable housing and economic development is stronger than many practitioners might realize. Too often, the creation and implementation of a diversified housing program is viewed as something that has or should be relegated to a separate community development or human services department. As a result, limited thought is given to the impact of affordable housing on local economic development. However, the relatively high ranking of quality of life in site selection, the prominence of affordable housing in quality of life assessments, and the high priority that citizens place on having a safe and decent place to live should give economic developers pause for thought.

Economic developers have the privilege of attending high-profile groundbreaking ceremonies for assisted corporate locates and other business projects. Those on the guestlist often read like a “Who’s Who” list of C-level executives, elected officials, and other dignitaries; people who reside in the top five percent income stratum. Behind the scenes are the assembly line laborers, call center operators, construction journeymen, distribution warehouse specialists, public sector “essential workers,” and retail associates who reap much smaller financial rewards. We owe it to them to make sure they share in the community’s economic growth.

Making affordable housing a reality, especially in locations that are close to work, maximizes their ability to build wealth.

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Business Retention and Expansion

Business Retention and ExpansionPhoto by 123RF

Economist Joseph Schumpeter (1883-1950) is best known for his economic theories on business cycles, capitalism, and for introducing the concept of entrepreneurship. In Capitalism, Socialism, and Democracy (1942), Schumpeter coins the term “creative destruction,” which describes the “process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” The term easily applies to economic development organizations (EDOs) and their approach to business retention and expansion.

Where Are Jobs Being Created?

Economic development leaders understand the importance of new and existing businesses. They are keenly interested in existing companies, which create 75 percent of new private-sector jobs. They are also attentive to the 25 percent of new private-sector jobs that come from the churn of new startups minus business closures (U.S. Bureau of Labor Statistics, 2020).

Employment From Establishment Dynamics, 2010-2018
Richard Mulligan | The ED Advisor Employment From Establishment Dynamics, 2010-20218

Click on graphic to enlarge

EDO concerns about existing businesses and employment are reflected in the implementation of business retention and expansion programs. Business Retention & Expansion International, in partnership with Eric Canada, CEO, Blane, Canada, Ltd., offer the following definition for such activities:

“In economic development, business retention and expansion is a program designed to strengthen the connection between companies and the community while encouraging each business to continue to grow in the community. Through direct interactions, events, and research, the program seeks to gain insight into business practices, planned future actions, as well as the challenge of targeted companies. Then, to turn this ‘business intelligence’ into value added services, programs, and/or products that address individual and shared company opportunities and problems” (2018).

Properly executed, business retention and expansion programs cultivate a strong business climate and create satisfied CEOs that become effective cheerleaders and tireless goodwill ambassadors for the community. At the same time, business prospects evaluate the community’s economic suitability and receptivity for business through conversations with these same CEOs.

The business retention and expansion toolbox includes business surveys, business walks, industry roundtables and focus groups, and other activities. The level of community engagement adopted by EDOs is a reflection of their social, economic, and cultural environment.

Business Surveys

One technique for soliciting feedback about a community’s business climate is the implementation of business surveys. This requires EDOs to build a database of existing businesses and determine the types of businesses that will be approached (e.g., high-wage firms, firms in select geographic areas, or firms in targeted industry clusters). Hard copies of the surveys are mailed to local businesses and recipients are given two options to provide feedback — online through a SurveyMonkey link or completion of a printed copy of the survey. The information collected protects the confidentiality of respondents and the survey results are reported in the aggregate, helping EDOs to better serve the needs of existing employers.

Business Visitations

Complementing business surveys are volunteer- and economic developer-led business visitations. Visits are focused on interviews with C-level executives to learn how the community might help their company. The interview solicits information about the firm’s plans for expansion or relocation, which is helpful in identifying growth opportunities and at-risk companies. Follow-up is critical and can take the form of a letter or phone call that responds to issues raised during the interview.

Capturing and analyzing the data obtained from business surveys and visitations is an important component of business retention and expansion programs. A variety of software packages are available to help manage survey data and provide insights into local businesses and their economic potential, including:

Bludot

Bludot offers modern, cloud-based software that allows users to view and manage all businesses in the community with one platform. A relatively new product on the market, Bludot is now live at 14 cities located in California, Florida, and Maryland. Bludot recently offered 3 months free usage of their software for any cities that want to support and engage with their businesses during the COVID-19 pandemic. The firm has received funding from the Alchemist Accelerator and GovTech Fund, is a startup partner with City Innovate, and a member of Stanford StartX.

ExecutivePulse

ExecutivePulse is promoted as a Customer Relationship Management (CRM) solution for economic developers, public-sector agencies, and community stakeholders. The product can be used for business recruitment, foreign-direct investment, business retention and expansion, entrepreneurial development, workforce development, and related initiatives. Recent case studies listed on the firm’s website include the Province of Albert, Canada; Birmingham Business Alliance; British Columbia Economic Development Association; Fresno County Economic Development Corporation; Philadelphia Works; Cornerstone Alliance (Southwest Michigan); Province of Ontario, Canada; Commonwealth of Pennsylvania; and San Bernardino County, California.

Gazelle.ai

Gazelle.ai is an “AI-Powered Business Intelligence Growth Platform” designed to identify fast-growth companies for business development. Extremely useful for business attraction and recruitment, the platform also has the ability to identify growth companies in the EDOs own backyard. Client resources include articles, infographics, press releases, podcasts, and webinars.

Synchronist Suite

Developed almost 20 years ago, Synchronist Suite is the granddaddy of crowdsourced economic development software. The platform revolves around business interviews, interview validation, objective analysis, predictive analysis, and key performance indicators. Synchronist provides insight into customer relationship management; each company’s value, growth potential, level of risk, and satisfaction; quality of a market’s retail, education, health care, arts/culture, and other local services; talent development; project tracking; research; and training. The “Synchronist User’s Forum” is held annually to network, share best practices, conduct how-to sessions, and discuss ongoing research projects.

Business Walks

Business walks provide a day dedicated to learning more about local businesses through face-to-face interviews on the business’ turf. They allow teams of community leaders to canvass multiple businesses in one day, covering more ground than traditional business visitations. The teams utilize short, streamlined surveys of predetermined questions to identify issues and bring resources to bear on those issues, and to diagnose firms on the brink of expansion or those at risk. Successful business walks are held in communities throughout the United States and Canada.

Regardless of technique, business retention and expansion programs work best when integrated into the EDOs economic development strategy, business attraction and recruitment, and entrepreneurial development initiatives.

Industry Roundtables and Focus Groups

Anatalio Ubalde, CEO, SizeUp and GIS Planning Inc., has written a thought-provoking article that identifies 10 business retention and expansion innovation trends. He considers industry roundtables and focus groups a superior method of collaborative problem solving. He makes the argument that “the business survey should die,” and outlines their shortcomings when it comes to dealing with the “acting as fast as business” expectations of modern companies. In his opinion, business surveys are not agile enough to anticipate fundamental marketplace shifts.

“The business survey should die.”

Anatalio Ubalde, CEO, SizeUp and GIS Planning Inc.

Business walks help to expand the retention and expansion footprint, but require that EDOs follow up quickly to address the issues raised by businesses. If EDOs are incapable of responding quickly, Anatalio believes they are better off not proceeding with a business walk.

Deliver Direct Value

Ubalde finds there is an inherent conflict between EDO job creation metrics, businesses that are focused on increasing productivity and reducing labor costs with technology, and workforce development. Going forward, the focus of business retention and expansion needs to change. If EDO and local business meetings are to be successful, economic developers have to deliver direct value to local businesses. Delivering direct value means viewing business relationships as a two-way street. Instead of gathering business intelligence and responding in-kind, Ubalde contends that EDOs should use Internet-delivered technology to proactively deliver assistance to a broader constituency of local businesses. This takes the form of data and information that helps them better understand company performance, find customers, and improve operations.


A market-driven economy is going to produce a certain amount of “churn” or “creative destruction” over time. In fact, strong economies are characterized by high rates of churn and high rates of economic growth. The challenge for economic development professionals is determining how to help businesses survive and grow in the midst of inevitable change, while mining business intelligence data.


Editor’s Note: “Beyond the Survey: How EDOs Add Value Through Business Retention and Expansion” explains how EDOs are moving from basic survey and visitation models to more comprehensive, value-added models. The paper outlines the various ways EDOs are serving businesses, measuring their activities, and promoting them in the community.

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EDOs Digital Response: COVID-19

EDOs Digital Response to COVID-19Photo by Brian McGowan on Unsplash

Economic development organizations (EDOs) are pivoting to digital technologies as the centerpiece of their disaster response to the COVID-19 crisis. The coronavirus pandemic has had a devastating impact on small businesses and workers. EDO’s are making a concerted effort to make real-time data publicly available, and help businesses navigate the complexity of COVID-19 relief and recovery efforts.

Business Resources

The most prominent digital response is the creation of EDO website pages that provide accurate and timely information on COVID-19 resources. Typically displayed are links to CARES Act funding, application assistance, and other financial resources. EDOs are pushing to get federal dollars in the hands of local businesses impacted by official stay-at-home orders, and the employees that work for them.

EDO COVID-19 resource pages are also designed to help businesses reopen (personal protective equipment, social distancing), stay open, operate safely, and build community support. The pages serve as a crisis information hub — a collection of finance, buy local campaign, charitable donation, testimonial, online education offering, and public health dashboards.

COVID-19 GIS Mapping Tool

Last month, GIS Planning released a free, interactive GIS data tool to map the spread and impact of COVID-19 for U.S. economic developers. The data tool is a customized version of the company’s Mapping Intelligence Component, displaying national and county-level data for the coronavirus alongside Chmura’s Economic Vulnerability Index. EDOs and chambers of commerce across the U.S. are invited to post the free tool on their websites. This allows them to get interactive, mobile-responsive data to their regional stakeholders. The COVID-19 data comes from The New York Times and is updated daily. 

Restore Your Economy

RestoreYourEconomy provides up-to-date information on COVID-19 and its economic impacts. The website is managed by the International Economic Development Council (IEDC) with support from the U.S. Economic Development Administration (EDA) and IEDC’s Economic Development Research Partners program.

The website offers a host of digital material on COVID-19 topics: IEDC research, reopening the economy (by industry), financial programs, insights and guidance from economic development professionals, business and worker assistance, member surveys, crisis communication management, and webinars. EDOs also have access to COVID-19 survey and website templates that can be customized.

RestoreYourEconomy is an excellent source for sharing best practice information with public and private stakeholders who are looking to rebuild their economy.

SizeUp

SizeUp is a Fintech Internet service company dedicated to providing powerful business intelligence. They are taking a lead role in working with EDOs to better serve local small businesses and entrepreneurs with their digital software products.

During the months of March and April, SizeUp completely waived the setup fees to have their SizeUp Local Business Intelligence (LBI) product added to EDO websites. This allows local businesses to access SizeUp LBI for free directly from the EDO website.

EDOs taking advantage of this opportunity include the Greater Sacramento Economic Council, Maricopa, Town of Gilbert, and Arizona Public Service. Local businesses utilizing the SizeUp LBI product are able to benchmark performance, identify customers and suppliers, and find the best places to invest their advertising budget.

SizeUp also makes articles and white papers available for download. This includes Coronavirus Economic Development Case Studies and National Survey Results, a report that provides case study examples of how economic developers and policy makers are taking action in response to the COVID-19 crisis. Each initiative is intended to mitigate the devastating economic impacts of state lockdowns and stay-at-home orders on workers, families, and businesses. Featured sections in the document focus on transition work, online local business and entrepreneur assistance, engaging commercial property owners, corporate site selection, social distancing bingo, fashion and sports repurpose manufacturing, utility companies creating their own stimulus, swapping companies temporarily, the business of food, and tech industry partnership.

Business Attraction and Site Selection

Site Selection After COVID-19: Predictions From the Experts, a recent survey conducted by the Site Selectors Guild, an association of the world’s foremost professional site location consultants, in partnership with Development Counsellors International (DCI), provides insights on how COVID-19 impacts corporate location strategy.

Survey findings indicate that 52 percent of companies interviewed are pausing site selection projects, and 45 percent are moving forward with projects. Those surveyed also predict there will be a shift in global manufacturing and supply chain strategy, an uptick in on-shoring to North America, an increase in remote work that will shrink the demand for office real estate, and forsees the emergence of life sciences, logistics, and advanced manufacturing as “hot” industry clusters. Survey respondents encouraged EDOs to prioritize helping displaced workers find employment, closely followed by talent/workforce attraction initiatives. EDOs were also advised to keep up the communication with companies and site selection consultants.

ZoomProspector

Due to COVID-19 causing massive disruptions — cancelled executours, postponed familiarization tours, government travel restrictions, investors pausing to reconsider their strategic footprint — site selection consultants have been unable to undertake personal site visits to local communities. Until the pandemic subsides, EDOs are facilitating virtual site selection by showcasing properties with GIS Planning’s ZoomProspector. This digital tool gives site selection consultants the ability to access information on commercial and industrial sites, directly on EDO websites. Consultants are able to research and analyze properties and communities, collecting data on demographics, workforce, GIS, business/industry, education, and wages from the comfort of their office. Personal site visits will eventually resume, but prior to those occurring, EDOs capable of using technology to stay connected will have a competitive advantage.

Zoom

Because of COVID-19 social distancing requirements, EDOs are utilizing Zoom digital conferencing software to meet and work together. Zoom conferencing software helps people maintain human connections, irrespective of geographic location. EDOs are finding value in cost-effective, modern communications that cover video, audio, web, and chat, and easily scales to their needs.

Editor’s Note: To avoid “Zoombombing,” users need to be careful about sharing meeting links publicly. Instead of posting a meeting link to a Facebook group or in a promotional tweet, distribute information via a more private method, such as email. Meetings should be set to “private.” Be careful not to use your personal meeting ID. In its place, use a one-time meeting ID to make the meeting more secure.


COVID-19 has become an economic and health crisis like no other. The world is entering uncharted territory, but as the old saying goes, “Thinking will not overcome fear but action will” (Stone, 1962)

High performance economic development organizations are finding leadership opportunities in COVID-19. They are aligning expectations. They are focusing on strengths, successes, opportunities, and collaboration. They are providing accurate, real-time information. They are staying positive, and above all else, they are communicating, communicating, communicating.

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2020 Economic Development Week

2020 Economic Development WeekPhoto by IEDC

2020 Economic Development Week is the brainchild of former Board Chair, Barry Matherly, International Economic Development Council (IEDC). Conceived in 2016, IEDC states the purpose of Economic Development Week is to “increase awareness of local programs that create jobs, advance career development opportunities and increase the quality of life in communities everywhere.” More than 450 campaigns have been created throughout the U.S. and Canada in the past four years, generating millions of impressions, hundreds of news stories, blog entries, videos, events and other marketing endeavors.

Economic Development Week is May 4-9, 2020. This year’s events happen to fall in the midst of the coronavirus pandemic, quarantines, social distancing practices, and the Great Lockdown. So how have economic development organizations chosen to celebrate the importance of economic development this year? The ED Advisor takes a look at national, international, state, and regional activities from the Arizona perspective.  

National / International

International Economic Development Council

IEDC is offering free webinars and salon discussions throughout the week (register at iedconline.org/EDW). Here is the lineup on their calendar:

May 4: “How to Fund Your Organization Through the Pandemic and Beyond” (Webinar)

May 4: “Partnerships on a Regional Level” (Salon Discussion)

May 5: “Reinforce Your Small Businesses and Commercial Districts” (Webinar)

May 5: “Economic Development on a State / Provincial Level (Salon Discussion)

May 6: “Rethinking BR&E in the COVID-19 Era” (Webinar)

May 6: “Workforce Engagement” (Salon Discussion)

May 7: “#EconDev Talks: Answers (I’m an Economic Developer, Ask Me Anything)

May 7: “Emerging Entities in Economic Development” (Salon Discussion)

Available for download is the 2020 Economic Development Week Toolkit that offers suggestions on how to build hype in community — letters to the editor of newspapers, press release templates, sample artwork and social media posts — among other ideas.

Arizona

Arizona Association for Economic Development

The Arizona Association for Economic Development (AAED) has prepared their own 2020 Economic Development Week Toolkit, which includes mini-interviews, webinars, resources, and features Arizona communities on their social media channels and website. This year’s theme is “Resilient Arizona Communities.” First mini-interviews out of the chute feature Mignonne D. Hollis, Executive Director, Arizona Regional Economic Development Foundation; and John Heiney, Head of Communications, Economic Development, and Tourism, City of Prescott. Other mini-interviews and a webinar are scheduled later in the week.

The Greater Phoenix In Business article “Join Economic Development Week, May 4-9” shares information about AAED’s 2020 Economic Development Week initiatives.

Metro Phoenix

Greater Phoenix Economic Council

The Greater Phoenix Economic Council (GPEC) kicked off Economic Development Week with a video on their Facebook page that features GPEC President, Chris Camacho. Other Facebook posts, such as “What is Economic Development?” helps readers learn more about economic development in Greater Phoenix. GPEC’s posts are linked to the #EconDevWeek, #EDW2020, #GreaterPHX, and #GreaterPHXTogether landing pages.

Competing Campaigns

There are plenty of opportunities for other state, regional and local economic development organizations in Arizona to leverage Economic Development Week promotions in future years. Now is the time to incorporate EDW activities in annual marketing strategies for FY 2020-2021. When formulating plans, be mindful of competing campaigns that are looking to share the public relations spotlight.

National Community Development Week

National Community Development Week is April 13-17, 2020. It precedes 2020 Economic Development Week by less than one month. Created in 1986, National Community Development Week provides an opportunity to highlight the impact of the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and HOME Investment Partnerships programs in a week long celebration with Congress, program partners, program participants, and the public. The National Community Development Association published the NCDW Toolkit to help communities with the planning and implementation of their National CD Week activities. When promoting community and economic development, it is important to recognize and understand the strategic relationship between these distinct but interrelated and interdependent roles.

National Travel and Tourism Week

National Travel and Tourism Week is May 3-9, 2020. It celebrates the contributions of the U.S. travel industry during Economic Development Week. Travel and tourism professionals publicize how their businesses create jobs, bring new money into the region, and diversify the local economic base. Like similar campaigns, the U.S. Travel Association provides a NTTW Tool Kit, social media graphics, LinkedIn cover photos, talking points and other resources.   

Two years ago, Mayor Jenn Daniels proclaimed May 12-18, 2018, Economic Development and Travel and Tourism Week in Gilbert, Arizona. National Economic Development Week, hosted by IEDC, and National and Travel and Tourism Week, hosted by the U.S. Travel Association, were promoting separate campaigns that aimed to celebrate the value that each respective line of service adds to communities around the world. The Gilbert Office of Economic Development saw the value of combining forces and spoke to the ability of both service lines to enhance the quality of life for residents, create jobs and economic opportunity, and enhance wealth in their community. This is a prime example of how to merge the interests of economic development, travel and tourism stakeholders.

For creative marketing, competitive positioning is about how you’ll “differentiate” your campaign and create value for your constituents. At the same time, competing campaigns can serve as a dynamic benchmarking tool that allows your organization to shine, develop win-win partnerships, or at the very least, utilize reverse engineering tactics to improve your marketing strategy.

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If You Pay Them, They Will Come

Photo by Morgan Lane on Unsplash

If you pay them, they will come.

According to Global Workplace Analytics, there are 5 million remote workers in the U.S., which makes up 3.6% of the workforce. Moreover, remote work has grown 173% since 2005, some 11% faster than the rest of the workforce and nearly 47 times faster than the self-employed population. This is before the COVID-19 pandemic took effect. At the same time, there are 44.7 million borrowers with a total student loan debt of $1.64 trillion, far in excess of total credit card debt and auto loans. Community leaders at the forefront of attracting talent are taking note. They’re offering incentives to attract and retain skilled workers as part of their economic and workforce development efforts.

Local and state programs that pay people to move include:

Vermont Remote Worker Grant Program

Starting in 2019, Vermont’s Remote Worker Grant Program offered $10,000 over two years to eligible, out-of-state remote workers who are willing to relocate to the “Green Mountain State.” Civic leaders recognized the state’s population is aging faster than the rest of the U.S. (Vermont has the third highest median age at 42.7 years, compared to the national average of 37.8 years). Each qualifying new resident receives $5,000 a year, which can be put towards their actual relocation costs or employment-related expenses (computers software/hardware, broadband access/upgrade, membership in a co-working or similar work space).

The Vermont Legislature allocated $500,000 in grant funding, which was completely disbursed to program recipients by year’s end. Applications are not being accepted for 2020, while the Agency of Commerce and Community Development (ACCD) and Legislature take a step back to evaluate the effectiveness of the program. Stay tuned for updates.

Tulsa Remote

Another standout in the movement to attract remote workers is Tulsa Remote. Launched in November 2018 by the George Kaiser Family Foundation, the program is looking for 250 additional remote workers this year. Approved applicants receive $10,000 that is split between relocation expenses and a monthly stipend, with the remainder paid at the end of the first year. Participants also receive a one-year membership at a local co-working space, assistance with securing suitable housing, and community-building opportunities. Tulsa’s exceptionally low cost of living, short commutes, and affordable housing are major assets and offer a competitive advantage in comparison to other major cities.

Live Detroit

Several years ago, Live Detroit offered new residents up to $20,000 in the form of a forgivable loan that would go towards purchasing their primary residence. Eligible applicants needed to locate in Downtown Detroit or one of several neighborhoods in the central business district. They were also required to work for a specific company. The program ended in 2016, but the Downtown Detroit Partnership recently announced it is working on the next iteration of programming and expects to launch a revamped initiative in 2020.

Choose Topeka Talent Initiative

Approved in December 2019, the Choose Topeka Talent Initiative provides up to $15,000 for prospective home buyers and $10,000 for renters signing a one-year lease for relocating to their community. “Choose Topeka was created with the intention of investing in employees to live and work in Topeka and Shawnee County, so that we may foster an ‘intentional community,’ one of community support builders,” writes the Greater Topeka Partnership. Choose Topeka matches employer funds for people who are willing to live and work in the state capital. The financial rewards are sweetened with gift cards to local restaurants and attractions, discount memberships to gyms, and other incentives.

Kansas Rural Opportunity Zones

You can choose to live in one of 77 Kansas Rural Opportunity Zones that offer the following incentives to new residents: (1) Kansas state income tax waivers for up to five years (sunsets in 2021); and (2) Student loan repayments up to $15,000 over 5 years.

Opportunity Maine Tax Credit

Relocate to Maine and the State will reimburse your student loan payments through the Opportunity Maine Tax Credit. Out-of-state workers must have earned their bachelors or associates degrees after 2015 in order to qualify for this benefit, which points to a target audience of young workers. Existing residents who earned a degree after 2007 and before 2016 from a Maine school also qualify for the tax credit. Generally speaking, workers are able to deduct the total amount of money they paid in student loans for the year from their state income tax bill.

Newton Housing Initiative

For single-family homes built in 2020 and 2021 (valued at $180,000+), the City of Newton Housing Initiative provides a $10,000 cash incentive and “Get to Know Newton” Welcome Package. Homes valued between $100,000 – $180,000 qualify for a $5,000 cash incentive.

Downtown Housing Incentive Program

The City of Niagara Falls Downtown Housing Incentive Program is willing to help qualified applicants pay their student loans — up to $6,984 over a period of two years. Applicants must be willing to live in the Downtown Niagara Falls target area, which is in walking distance of Niagara Falls State Park and the Niagara Gorge.

Come Home Award

In Michigan, the Community Foundation of St. Clair sponsors the Come Home Award program. The Foundation seeks to reverse the region’s talent drain by offering recent Science, Technology, Engineering, Arts, Math (STEAM) graduates up to $15,000 to help pay off remaining student debt. Approved applicants are required to secure a job or create their own business within 120 days of receiving the award.

WORKNP.com

North Platte, Nebraska offers local employers up to $5,000 in matching funds to recruit new talent. Qualifying worker incentives for WORKNP.com include relocation expenses, down payments or deposits, equipment purchases, help with student loan repayment, specialized training certificates, and other expenses.


Fueling the relocation competition are labor force statistics and general demographic trends. People are flocking to the Sunbelt — most notably in states like Arizona, Florida, and Texas — and locating in cities like Phoenix, Miami, and Dallas. They’re moving from the Northeast and Midwest in search of affordable housing and better job opportunities. This is consistent with the decades-long domestic migration pattern in the U.S., where moves to and from the South and West dominate. Hence, the advent of economic incentives in low-growth areas to enhance the availability of skilled workers, the site selector’s most important location criteria.


Editor’s Note: The U.S. Census Bureau provides data products on domestic migration at the state, regional, and county level. For more information, click on: America Counts.

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