Economic Recovery and Resilience

NADO Annual Training Conference

August 26, 2013

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ECONOMIC RECOVERY FUNDAMENTALS

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Fundamental economic recovery concepts: Investment of time, energy, and resources pre-disaster is key. Integrating resiliency planning into economic, workforce, and

community development could yield benefits pre- and post-disaster. Primacy of private sector, as well as state/local government, in

defining and implementing economic recovery. Post-disaster economic recovery initiatives should consider and

address the unique needs of the community. Some could include, but are not limited to: Community Planning Cash Flow Business Resumption Finance and Insurance Workforce Development

ECONOMIC RECOVERY CONCEPTS

Economic Development Small Business Marketing and Communications Assessment and Evaluation

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• Economic Resiliency Seeks to:– Mitigate the potential for future economic injury;– Promote a faster “up-time” for economic anchors (e.g. key businesses and/or

industries); and,– Enable a stronger capacity to troubleshoot vulnerabilities within the regional

economy• Post-Disaster Resilience Opportunities

– Integration of community planning, hazard mitigation planning, and economic development.

– Regionalism – leveraging regional assets and mitigating systemic risk– Sector-based workforce development – Promoting local hiring – Targeted assistance for small and disadvantaged businesses– Promoting diversification and innovation

ECONOMIC RESILIENCY OPPORTUNITIES

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• Examples of post- disaster economic resiliency, in practice:– Diversify the industrial base (both geographically and across industries)– Enhance business retention and expansion programs – Focus efforts on strengthening existing high-growth businesses– Increasing the availability of “baseline” business information– Increasing the communications connections between local government,

emergency management, utilities, and the business community– Engaging the business community to participate in, and support, resilience

efforts– Working with the business community to link community resilience and

business continuity

ECONOMIC RESILIENCY OPPORTUNITIES

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NATIONAL DISASTER RECOVERY FRAMEWORK BASICS

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• NDRF Background:• Base document finalized in September 2011• Describes and institutionalizes agency-wide approaches to prepare for, plan

for, and manage disaster recoveries. • Seeks to provide a structure for all Federal agencies to participate in on-going

disaster planning and recovery that would facilitate problem solving, improved access to resources, and foster coordination among state and Federal agencies and nongovernmental partners and stakeholders.

• Commerce/EDA Role:• The Department of Commerce (DOC), through the Economic Development

Administration (EDA), leads the Economic Recovery Support Function (RSF) of the NDRF.

NDRF BACKGROUND

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• Sustainability and Resiliency in Recovery– NDRF seeks to create a higher order of interagency/intergovernmental

coordination over a longer span of the recovery continuum– Pre-disaster activities focus on integrating resiliency practices into day-

to-day operations– Recovery continuum starts at the moment of the disaster and scales

up as the response roles diminish

Recovery Continuum

NDRF BACKGROUND

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The mission of the Economic RSF is to integrate the expertise of the Federal government to help local, state, and tribal governments and the private sector sustain and/or rebuild businesses and employment, and develop economic opportunities that result in sustainable and economically resilient communities, after significant natural and man-made disasters.

Key role for Economic RSF is to facilitate economic recovery, not drive it.

WHAT IS THE ECONOMIC RSF?

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• Federal Partners:– Coordinating Agency

• Department of Commerce/Economic Development Administration (DOC/EDA)

– Primary Agencies:• Department of Homeland Security/Federal Emergency Management

Agency (DHS/FEMA)• Department of Labor (DOL)• Small Business Administration (SBA)• Department of the Treasury (TREAS)• U.S. Department of Agriculture (USDA)

– Supporting Organizations:• Corporation for National and Community Service (CNCS)• Department of Interior (DOI)• Environmental Protection Agency (EPA)• Department of Health and Human Services (HHS)• Department of Housing and Urban Development (HUD)

ECONOMIC RSF PARTNERS

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• Federal Partners:– Additional Agencies with ad hoc engagement:

• Federal Deposit Insurance Corporation• Appalachian Regional Commission• Delta Regional Authority

• Common State/Regional/Private Sector Partners:– Economic development organizations– Workforce development organizations– Chambers of commerce– Development authorities– Utilities– Institutions of higher education– Regional planning commissions– Councils of government– Economic Development Districts– Financial institutions– State insurance agencies

- State taxation and revenue agencies

- Elected officials- Planning organizations- Community development

organizations- Critical infrastructure

owners/operators- Other?

ECONOMIC RSF PARTNERS (CONT.)

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DEPLOYMENT OF THE RSF

Tennessee – 2010 - Flooding Gulf Coast– 2010 – BP Oil Spill Alabama -2011 – Tornadoes New York – 2011 – Hurricane/TS Vermont – 2011 – Hurricane/TS

Joplin, MO – 2011 – EF5 Tornado Louisiana – 2012 – Hurricane Isaac Nationwide- 2012 – Drought NY/NJ – 2012 – Hurricane/TS Oklahoma – 2013 - EF5 Tornadoes

Ocean City, NJ Vermont

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• What happened?– Economic RSF was mission assigned and engaged on-site in NJ/NY since early

November 2012 – RSF convened regularly to focus on three basic steps:

• Conduct a Mission Scoping Assessment – In partnership with the state, capture the overarching issues as it relates to economic recovery

• Develop a Recovery Support Strategy – In partnership with the state, document the federal capabilities available to be leveraged to support economic recovery.

• Implement the Recovery Support Strategy – Undertake those initiatives identified in the Recovery Support Strategy and work with the state to facilitate the transition to steady-state operations.

– RSF activities fall into three major categories:• Technical assistance – (e.g. Peer-to-Peer Tourism Workshop)• Information sharing – (e.g. connecting the dots between disparate data

sources)• Leveraging existing resources – (e.g. working with federal program staff to

retool planned initiatives to also support immediate recovery needs)

HURRICANE SANDY RECOVERY EFFORTS

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• Information Sharing:– The ability to coordinate planning efforts could produce additional

opportunities in furthering the overall recovery effort– Knowledge of private sector needs could influence planning process, in favor

of a more expedited recovery– Trend analysis could demonstrate need for new or creative capabilities to

address recovery challenges• Resource Leveraging:

– Local governments often struggle with match requirements – private sector resources could be mutually beneficial

– Faster “response” potential– Broader, more diverse, and more resilient recovery effort – through financial

and non-financial resources

ROLE FOR THE PRIVATE SECTOR – OPPORTUNITIES FOR PARTNERSHIP

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• Disasters don’t recognize political boundaries.• Regionalized approaches to pre and post disaster economic recovery ‐ ‐

issues are key.• Regional approaches can look at the region as a whole and not a series of

interlocking , yet distinct, parts.• Regional approaches can also include the resiliency considerations of the

broader supply chain (workforce and production).• Economic development professionals can serve as well positioned post‐ ‐

disaster economic recovery “first responders.”

ROLE FOR ECONOMIC DEVELOPMENT PROFESSIONALS/PLANNERS

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• If the NDRF (from a Federal perspective) is focused on supporting state/community driven recovery, how can the State/community integrate with that effort?

• Possible Actions:– Align a similar structure for post-disaster recovery

• Establish state-level NDRF plans with RSF annexes• Build new public/private partnerships

– Adapt existing structures to interface with the Federal structure• Map existing planning and coordination efforts with the “best fit” in the NDRF • Build on existing public/private partnerships

• Design Factors:– Establish a process and designate authorities to collect, aggregate, and

communicate impact information– Anticipate timing challenges– Exercise leadership pre-disaster– Establish clear expectations– Expect resource limitations

EXTENDING THE NDRF/RSF MODEL – LESSONS OBSERVED

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• Establishing an RSF-type structure for recovery has strengths– Recognizes that implementing recovery is not a command and control

operation – it’s a matrix leadership model– Capitalizes on the assets, knowledge, and resources of a far broader set of

organizations (not typically engaged in recovery)– Establishes efficiencies of scale that might be lost if multiple organizations

pursued their own recovery strategies• Establishing an RSF-type structure for recovery has vulnerabilities

– With so many partners, maintaining a cohesive leadership core can be a challenge (and political)

– Partners with relatively small roles may have difficulty seeing the return on their involvement

– Recovery is long term (really long term), maintaining energy and focus for the long haul can be daunting for many

SUSTAINABILITY AND INTEGRATION

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EDA FUNDED DISASTER RECOVERY PROJECTS

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• Economic Development Administration (EDA) can assist communities in addressing long-term disaster relief and recovery needs. Through competitive grants to eligible applicants, EDA’s disaster recovery generally falls within three categories:

• Strategic Planning• EDA offers financial resources and technical assistance to help develop and

enhance economic development plans following a disaster. This is achieved through the funding of disaster recovery plans, strategies, and funding for disaster recovery coordinators.

• Infrastructure Development• EDA offers grant funds to build new infrastructure (e.g., business

incubators, technology parks, research facilities, basic utilities) that foster economic development to retain or attract jobs to the region.

• Capital for Alternative Financing• Through EDA’s Revolving Loan Fund (RLF) program, nonprofit and

governmental entities can apply to establish an RLF which, in turn, makes below market rate loans to businesses to help recovery.

TYPES OF EDA DISASTER PROJECTS

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• Funds are awarded on a competitive basis. Successful projects will: • Support long-term economic recovery (not initial clean-up or

rebuilding efforts) • Demonstrate a nexus between the project scope of work and

applicable disaster • Show that the project will foster job creation and promote private

investment • Align with a relevant strategic, economic development, or disaster

recovery plan • Demonstrate the incorporation of disaster resiliency

EDA DISASTER FUNDING FACTORS

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Port ExpansionIn spring 2010, Rhode Island experienced one of the worst disasters in its history when flooding in the Pawtuxet and Pawcatuck Rivers reached record levels, leading to over $200 million in damage.•Location – Providence, RI• Applicant – City of Providence • EDA Investment - $1,500,000• Total Project Cost - $3,260,000• Outcome – 160 jobs created, 179 jobs retained, $1.5 million in private investment

leveraged– EDA investment funded infrastructure improvements to facilitate the expansion of

the Port of Providence. The new/expanded facilities will increase the port’s capacity to handle bulk materials for export and create opportunities for business expansion in the energy, transportation, security, and logistics sectors.

– After the 2010 floods, EDA also established the Rhode Island Business Emergency Operations Center (RIBEOC), a state-wide program aimed at promoting private sector disaster resiliency. The program includes the development and implementation of services that will help businesses prevent, mitigate, prepare for, and recovery from future disasters.

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Construction of Infrastructure for Industrial Park and Green Business Accelerator Facility

• Location – Wauwatosa/Milwaukee, WI• Applicant – City of Wauwatosa/University of Wisconsin, Milwaukee, Real Estate

Foundation• EDA Investment - $5,408,646• Total Project Cost - $12,289,655

• Outcome – 325 jobs created and $15 million in private investment leveraged– EDA investment constructs a LEED silver certified industry accelerator facility

with world class laboratories and other infrastructure for the innovation park that the city of Wauwatosa and the University of Wisconsin at Milwaukee are creating to nurture advanced manufacturing businesses.

– This blend of higher education with business initiatives will minimize technology transfer difficulties and help the region’s pillar sector of manufacturing recover from the floods of 2008 and the rise in unemployment.

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Street Reconstruction and Storm Drainage Improvements

• Location – De Witt/Saline, NE• Applicant – Village of DeWitt• EDA Investment - $1,000,000• Total Project Cost - $1,000,000

• Outcome – EDA investment funded storm drainage improvements and the reconstruction of streets that were damaged by flooding during the Midwest floods of 2008. The new construction enhanced the village of DeWitt’s business recruitment efforts by improving accessibility of the village’s main industrial area and ensuring that the area is safe from future funding.

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Gulf Coast Oil Disaster 2010 – Seafood Rebranding• Location – New Orleans• Applicant – Louisiana Seafood Promo Market Board/Louisiana Wildlife and

Fisheries Foundation• EDA Investment - $315,000• Total Project Cost - $393,750

• Outcome – Assistance to businesses affected by the BP oil spill– EDA investment supported the Louisiana Seafood Promotion and Marketing

Board, and the Louisiana Wildlife and Fisheries Foundation’s efforts to expand their commercialization (re-branding) programs, create and retain jobs, and implement an educational marketing campaign to help mitigate the damage to costal communities impacted by the 2010 BP oil spill.

– EDA also helped fund a $270,000 project that establishes a pre-oil spill baseline, based on existing data, for the region surrounding St. Mary and Vermillion parishes. Through surveys and stakeholder meetings, a post-oil spill economic and business needs assessment will be generated. This assessment will be used to create a plan to assist affected businesses and the region in recovering from the BP spill.

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Disaster Recovery Plan – 2011 Alabama Tornadoes• Location – Muscle Shoals/Colbert, AL• Applicant – Northwest Alabama Regional Planning and Development Council• EDA Investment - $100,000• Total Project Cost - $125,000• Outcome – Minimize economic dislocations resulting from natural and other

disasters, improving responsiveness and effectiveness in the recovery process.– EDA investment supported both immediate and long-term recovery following

the April 2011 tornadoes that severely damaged several northwest Alabama counties.

– The planning and technical assistance provided to impacted communities promotes economic recovery through coordination of resources, prioritization of rebuilding efforts, and regional collaboration.

– Analysis of the storm events will also help local governments develop a disaster response and preparedness plan to protect citizens, infrastructure, and businesses from future events.

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Economic RSF National Coordinator

Joshua Barnes

EDA Disaster Recovery Coordinator

jbarnes@eda.gov 202-482-2453

ECONOMIC RSF CONTACT INFORMATION