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August 6, 2015

REGIONAL CITIES INITIATIVE

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OUTLINE

• Background• Regional Development Authorities• Plan Development• Return on Investment Analysis• Selection Process• Site Visits• Discussion

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BACKGROUND

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RESEARCH

• Assessment» Phenomenal business climate» Threat of population stagnation

• Peer Cities Study» 11 cities / 9 universal principles» Road show across state last October

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LEGISLATION

• HEA 1403:» IEDC structural framework» Improvements to RDA law

• Appropriation » $84M for biennium, sourced through

tax amnesty program

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OBJECTIVE

• Two regions attain consistent, positive national brand over next 8 years

• Become destination for talent/net in-migration state

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REGIONAL DEVELOPMENT AUTHORITY

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PURPOSE

• National leaders in economic development and talent attraction look beyond political boundaries

• Regional body acts as a central figure in both planning and executing» Under the law, an RDA must be the applicant

for Regional Cities funding

• Broad authority that regions can choose to invoke as needed

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ESTABLISHING AN RDA

• An RDA may be established by:» 1 or more counties and 1 or more adjacent

counties» 1 or more counties and 1 or more qualified cities

in adjacent counties» 1 or more qualified cities and 1 or more qualified

cities in adjacent counties

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RDA FORMATION

• The Fiscal Body of the local unit must adopt an ordinance authorizing the participation in the RDA

• If a county establishes or joins an RDA, all qualified and third class cities automatically become members of the RDA

• There is no upfront financial obligation for establishing or joining an RDA» But local public funds are necessary to receive the

state match

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BOARD

• Board member eligibility:» May not be elected official or employee of a unit» Must have at least 5 years of experience in one or

more:• Business or finance• Regional economic development• Transportation• Private, nonprofit, or academia

• Five members, as determined by written agreement among member units

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CURRENT & PLANNED RDAS

• North Central» Began planning in Nov. 2014» 3 counties / 22 cities and towns

• Northeast» 11 counties» 700 citizens completed survey

• Central» Marion County + Carmel, Westfield & Greenwood» Transit focus

• East Central» Targeting 4-6 counties» 250 people attended the 1st Regional Summit

• Southwest» 4 counties» 25 member steering committee

• Southeast» Targeting 5 counties

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REGIONAL CITIES MAKING HEADLINES

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PREPARING TO APPLY:PLAN DEVELOPMENT

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• Research has indicated that national leaders in economic development developed comprehensive plans focused on transformational growth

• The plans were developed at the community level

• State involvement was minimal, and sometimes non-existent or an impediment

• Local communities are more in tune with the unique challenges they face and the assets they have to tackle them

LOCALLY-DRIVEN PLANNING PROCESS

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• Based on the principles in the Peer Cities Study

• The IEDC Board adopted the Guidelines and will use them as a baseline in evaluating the plans

• Regions should use the Guidelines to develop and mold their plans around a unique vision

PLAN GUIDELINES

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DEVELOPING YOUR REGIONAL PLAN

• A regional development plan is a multi-faceted narrative that discusses» The region» Its current and future opportunities &

challenges» Bold vision» Specific projects that help the region

achieve excellence in quality of place

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IDENTIFYING PROJECTS TO INCLUDE IN THE REGIONAL DEVELOPMENT PLAN

• Brick and mortar projects» Projects necessary to support talent

retention/attraction and to build a national brand for the region

» Brick and mortar projects will be eligible for state funding

• Programmatic functions may be vital components of the regional development plan and should be included, but they will not be eligible for Regional Cities funds

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RETURN ON INVESTMENT ANALYSIS

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RETURN ON INVESTMENT (ROI)

• State law requires plans to have a positive return on investment for the state.

• An IEDC ROI analysis must be conducted on proposed projects before plans are submitted.» ROI tool was developed in partnership with the

Indiana Business Research Center (IBRC)» The results of the analysis need to be included

in the plan that is submitted to the IEDC

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RETURN ON INVESTMENT (CONT.)

• Project-specific details include:» Estimated timeline for the project» Project budget» Proposed funding sources» Industry—if applicable» Location of project» Number of jobs created—if applicable

• This information can be found in the IEDC Guidelines document on the Regional Cities website

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IDENTIFYING FUNDING COMMITMENTS

• Funding commitments must be identified in the regional development plan, but the commitments do not have to be executed at the time the plan is submitted» Local funding levels must be identified for each

project

• The IEDC board will look for at least a 3:2 private-public funding ratio» For every local dollar committed to an approved

project, the state will match through the Regional Cities Initiative

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Qualifying Local Funds

• Any local revenue source may be used including:» Any local revenue source

permitted by law» Distributions» Incentive payments» Local major moves money» Money received by local

communities through a local Casino development agreement

» Municipal bonds» Federal grants

QUALIFYING LOCAL FUNDS FOR STATE MATCH

Not Considered Local Funds

• Philanthropic funds

• Private funds

• University funds

• State funds

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SELECTION PROCESS

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APPLICATION WINDOW

• Applications should be submitted in PDF format.

• The application window will run for approximately 60 days, from July 1st through August 31st

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STRATEGIC REVIEW COMMITTEE• Composed of non-government, statewide leaders with

various backgrounds

• Members are appointed by the IEDC Board of Directors, which indicated a desire to add a couple members

• The committee is tasked with reviewing and evaluating regional development plans

• The IEDC and other key state agencies (OCRA, Tourism, OMB, DWD, INDOT) will support & assist the committee

• Following its review, the committee will provide recommendations to the IEDC Board

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TIMELINE

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EXECUTION OF REGIONAL DEVELOPMENT PLANS

• Following IEDC Board selection, the RDAs will enter into a contractual agreement with the IEDC

• The IEDC will publish a report on the selection process that will provide reasoning for the selection decisions

• The IEDC will provide feedback to regions that are not selected for state investment and continue to work with them as they execute the portions of the plans there were identified for completion absent state partnership

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STATUTORY CRITERIA FOR APPROVAL

• Three basic requirements for consideration under IC 5-28-37-5:» Which project have the greatest

economic development potential» The degree of regional collaboration» The level of state and local financial

commitment and potential return on investment

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STATUTORY CRITERIA FOR APPROVAL (CONT.)

• The Board may not approve an application unless:» The State Budget Committee has reviewed the

application» The Board finds that approving the application

will have an overall positive return on investment for the state

» The application has received a positive recommendation from the Strategic Review Committee

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BOARD GUIDANCE FOR THE SRC• Questions to consider as it evaluates applications:

» Does the plan establish an organizational structure that will support its execution? Who is responsible each day for ensuring the plan gets implemented?

» Does the plan build upon existing regional assets? Is it rooted in reality?

» If fully executed, does the plan contain the elements that could reasonably move the needle in establishing a consistently positive national brand for the region?

» Does the region’s local governments have adequate ‘skin in the game?’» Are the projects in the plan connected by a common theme? Do they

complement one another?» Do the stakeholders participating in the development of the plan

represent a broad cross section of the community?

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SITE VISITS

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SITE VISITS• Each trip will include a briefing with regional stakeholders,

followed by visiting 1-2 locations integral to their plan

• Videographer will be on-hand to interview key leaders and capture key locations on film

• Schedule:» Aug. 18th – North Central Region» Aug. 19th – Northeast Region» Aug. 21st – East Central Region» Aug. 24th – Northwest Region» Sept. 1st – Southwest Region» Sept. 2nd – Southeast Region

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DISCUSSION