Economic Development Recovery and Resiliency Playbook - Flipbook - Page 17
Tools for Economic Development
Local governments also have other levers and tools available for technical and traditional economic development beyond
developing programs and initiatives as noted earlier. CALED defines technical economic development activities as those that
the public sector undertakes to prepare and assemble land for the purpose of economic development investment. Traditional
economic development activities are actions that help businesses thrive through business retention and expansion, business
creation, and business attraction. Many partners and programs are available to help communities undertake economic
development activities. Appendix 1 in this Playbook is provided to help track and understand these tools and partners.
For many, the most prominent technical economic development tool in California is tax increment financing (TIF), which is a
financing and real estate tool used to revitalize blighted areas through the use of funding generated by a gap in the current
property value and the property’s potential value if new development and investment were to occur.
In 2011, the California Legislature approved several TIF tools, including Enhanced Infrastructure Financing Districts (EIFDs)
and Community Revitalization Investment Authorities (CRIAs), which are currently the primary economic development TIF
tools in California. While both have useful powers, local governments are turning more to EIFDs to further their economic
development goals.
Many tools are available to jurisdictions when it comes to implementing traditional economic development programs; however,
the most important tool is efective local leadership. By being inclusive, listening to residents’ needs, creating a long-term vision
for the community, capturing that vision in a strategy, and championing and funding the work needed to meet the metrics
identified in the strategy, communities create the future and quality of life that their residents desire.
The City of Needles ofers an example of this type of efective local leadership. Its city leaders worked over the past decade to
embrace cannabis-related businesses in an efort to raise revenue for community benefits and support the creation of quality
jobs for residents. The city embarked on this endeavor in 2012 — four years before recreational cannabis became legal statewide
— because local leaders saw the need to be prepared for this opening and recognized a way to increase economic opportunity
for their residents.
Along with strong local leadership, local governments may find the following tools helpful.
Economic Development Element of a General Plan and Economic Development Strategy. Because economic
development does not happen overnight, cities need to thoughtfully plan for their future and chart their course in a document
that current and future leaders can reference to maintain focus and use as benchmark to measure success.
Data. Knowing your competitive advantages and disadvantages is critical in helping existing businesses and competing for new
businesses. Ofen, this boils down to knowing your demographics and the key assets in and around your community. You will
use this data to develop the business case for your jurisdiction.
Permitting. Many local governments have done an excellent job of streamlining their permitting processes with the
understanding that doing so not only ensures compliance with local ordinances, but also provides value to developers and
businesses. Many cities post their fee schedules and processes online, and some even allow developers and businesses to
see where they are in the process through an online portal, providing certainty and transparency related to permitting. Some
jurisdictions have reduced or eliminated certain fees in an efort to stimulate economic development.
Zoning. Land use and zoning are important tools in a jurisdiction’s toolbox to encourage economic development. Many
communities see the benefit in creating a small area General Plan, incorporating density bonuses, and adding to and capturing
value through how property is zoned.
Infrastructure. The availability and adequacy of public infrastructure is ofen a make-or-break issue for economic
development projects. Communities can prioritize their investments in infrastructure improvements that generate the highest
returns from private real estate development and business investment.
Land Assembly. Piecing together the land needed for a priority economic development project can take many years and
significant investment to complete; consequently, local governments are ofen in the best position to take on a long-term
property assembly and disposition strategy.
Economic Development and Its Role in Resilience and Recovery
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