But First; But First; Gaining a Gaining a

Little Little PerspectivePerspective

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Cycles Come and Cycles Go

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The power of understandingyour world may not change it, but it can help make the ride a little less stressful

BalancingBalancing

Why Lake Development MakesWhy Lake Development MakesSuch Good Sense in MississippiSuch Good Sense in Mississippi

• Economic DevelopmentEconomic Development• Public Social BenefitsPublic Social Benefits• Environmental StewardshipEnvironmental Stewardship

Consider Our Consider Our Natural ResourcesNatural Resources

• Mississippi receives approximately 60 inches of rain per year

• Mississippi has a lot of rural land, over 26million acres

• Has over 83,500 stream miles in 10 major river basins– 27,463 miles are perennial

streams– 53,754 miles are intermittent

streams

» Source from 2006 section 305 (b) reportMis

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Surface Water Surface Water ResourcesResources

Pascagoula Basin 1994-06 19.60 in. (33%)

Wolf River 1971-06 27.29 in. ( 45%)

Pearl River 2000-06 17.78 in. (30%)

Black River 1936-06 18.55in. ( 31%)

Tombigbee 1982-06 23.75in. (40%)

Basin Run-off in inches/year measured at gauge stations

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State Area is 47,689 square miles

Lakes/ponds 529 sq mi 1.1%Reservoirs 171 sq mi .36%Catfish/sewage 27 sq mi .06%Post NHD(30yrs.) 33 sq mi .07%

Man-Made Water Features

Total 760 sq mi 1.6%

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The New EconomyThe New Economy

• Technology & Service IndustriesHave become The U.S. Economy Drivers

• Means Fewer Factories AndIndustries For Mississippi

• Counties Will Need New Strategies To Succeed– Residential lake

developments offer one such opportunityM

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Mississippi: Percentage of Total Jobs by major sector 1990-2007

Source: US Bureau of Labor Statistics

29.18%29.72%

31.20%

32.70%33.22%

34.12%34.64% 34.54% 34.91% 35.21%

36.00%36.64%

37.37% 37.74% 37.95% 37.85% 38.13%

24.52% 24.60% 24.57%23.87%

23.15%22.45%

21.18%20.63% 20.62%

20.20%19.29%

17.77%

16.72%16.06% 15.97% 15.78% 15.38%

14.81%

28.68%

14.0%

18.0%

22.0%

26.0%

30.0%

34.0%

38.0%

42.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

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Services Manufacturing

Mississippi: Percentage of Total Jobs by major sector 1990-2007

Source: US Bureau of Labor Statistics

29.18%29.72%

31.20%

32.70%33.22%

34.12%34.64% 34.54% 34.91% 35.21%

36.00%36.64%

37.37% 37.74% 37.95% 37.85% 38.13%

24.52% 24.60% 24.57%23.87%

23.15%22.45%

21.18%20.63% 20.62%

20.20%19.29%

17.77%

16.72%16.06% 15.97% 15.78% 15.38%

14.81%

28.68%

14.0%

18.0%

22.0%

26.0%

30.0%

34.0%

38.0%

42.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

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Manufacturing Employment as a % of Total EmploymentMonthly Non-Farm, not seasonally adjusted data

Source: U.S. Bureau of Labor Statistics

y = -0.0006x + 0.2474

y = -0.0003x + 0.1601

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

22.00%

24.00%

26.00%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Mississippi U.S.Linear (Mississippi) Linear (U.S.)

Mississippi has lost about 300 manufacturing jobs per month on average over these 16 years (57,000 jobs)

The U.S. has lost about 19,100 manufacturing jobs per month on average over these 16 years (3,663,000 jobs)

Housing Growth 1940 to 2030Housing Growth 1940 to 2030

Red indicates 16-128 Housing Units Per Sq. Km.

Boomers Moving To Pretty Places

People Are Coming to People Are Coming to Pretty PlacesPretty Places

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• Environmental – Local stream miles and wetlands converted

into lakes

– Requires mitigation to offset stream loss and wetlands loss

– Regulated by DEQ, Corp of Engineers, US Fish and Wildlife, EPA, DMR, Archives and History, Ms Wildlife, Fisheries, and Parks

– Regulatory approach is avoid, minimize, mitigate in order to maintain environmental value functions

• Economic Benefits– Capital investment by private sector

(Private Lakes)– Greatly increased property value– Increased economy with new residents– Long-term public revenues through property

taxes

Balancing Resources, Balancing Resources, Development and BenefitsDevelopment and Benefits

MISSISSIPPIMISSISSIPPILAKESLAKES

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Active Public/Private PartnershipsFor Lake Development

Tishomingo CountyChoctaw CountyPearl River County

But Not All Lakes Are Private

Mississippi Mississippi LakesLakes

Natural Oxbow in the Delta

Man-Made

The Rural County The Rural County Lake ModelLake Model • 200-acre Lake

Designed & Engineered For Bass Fishing

• Green Space For Nature Walks

• Wildlife Viewing• Horseback Riding• Near State Or Federal

Managed Lands?– Hiking– Hunting– Other outdoor

activities• 200 Home Sites• Recreation

Subdivision Boosts Local EconomyM

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• Lake & Dam Construction Costs$750,000 - $1 Million

– Payroll & secondary generates about $371,000

– (using $1 Million)

• Lot Preparation & Infrastructure (using $3 Million)

– Roads– Water & sewage treatment– Common ground (piers, trails, etc.)– Generates about $1.4 million in county

• Construction of 200 Homes At $200,000Each - Results In $40 Million Market Value

– Generates about $22,500,000 locally

• State and/or Secondary Spin Offs - Spending About$7.5 Million

Rural Lake DevelopmentRural Lake DevelopmentInitial Economic ImpactInitial Economic Impact

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Continued Economic ImpactContinued Economic Impact

• Rural County Ad Valorem Rate Using .09486

• Homestead Exemption Is 10% Of Assessed Value (non-exempt is 15%)

• For Primary Residence:$200,000 x 10% x .09486 = $1897/yr.200 units x $1897/yr. = $379,400/year

• For Secondary Residence*:$200,000 x 15% x .09486 = $2845/yr.200 units x $2845/yr. = $569,000/year* majority of developmentM

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Development & Habitat Development & Habitat RestorationRestoration

• Create 4.8 Miles Long x 560 Feet Wide Lake From Old Channel Bed– Currently dry in

summer & full in wet season

• Prime Hunting Location– Near Panther Swamp– Near other managed

wildlife areas

• 200 Unit Sportsman Development Could Generate Over $500,000 In Ad Valorem Taxes

Dry season current situation

Lake George Project - Yazoo County

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Lake George ProjectLake George Project

• 4.8 Miles of Main Channel

• 200 Lake Front Homes

• Outstanding Hunting & Fishing

Landowners on proposed lake level

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Lake Eddins, Jasper CountyLake Eddins, Jasper County

• 500 Structures & Growing

• Last Year Lake Eddins Paid $375,000 In Ad Valorem Taxes

• 700-Acre Lake Development Made Up Of:– Retired couples– Working families– Weekenders

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A successful Rural Lake Development

Lake Eddins, Jasper CountyLake Eddins, Jasper CountyM

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The Suburban ModelThe Suburban Model

• Lake Developments Near Larger Population Centers Command Top Dollar For Waterfront

• Often Have Golf, Tennis and Other Shared Amenities

• Ad Valorem Taxes At These Developments Can Exceed $2 Million A Year

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CanebrakeCanebrakeLamar County

Balancing Development, Balancing Development, Resources and BenefitsResources and Benefits

• Converted 1.5 Miles Of Perennial Stream & 1.3 Miles of Intermittent Stream (Created 250-Acre Lake with 6 miles of shoreline)

• 1.5 miles / 27463 miles = 0.00005% of Perennial Stream Resource

• 1.3 miles / 53754 miles = 0.00002% of Intermittent Stream Resource

Canebrake in Canebrake in Lamar CountyLamar County

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Canebrake LakeCanebrake Lake

• Canebrake Generates $2,225,117/yr In Ad Valorem Taxes, Public Dollars ( Schools and County Government Services)

• $2,225,117 / 2.8 stream miles =$794,684/mile/yearIn 20 Years = $15,893,692/mile

• 700 Unit Home Development At$350,000/home = $245 Million InEconomic Activity

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• $245 Million/2.8 Stream Miles = $87.5 Million/Stream Mile/20Years

• Tax + Build Out = $103.4 Million/ Stream Mile/20 Years

Ad Valorem Revenue Keeps Going Each Year

Ad Valorem Revenue Keeps Going Each Year

Canebrake LakeCanebrake LakeM

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• The Boomer Generation Is Building Secondary Homes In Pretty Places

• Mississippi Has The Natural Resources For Beautiful Lake Settings

• Private Sector Will Invest Large Amounts Of Capital For The Build-Out

• Successful Developments Create Long-Term Revenues & Social Benefits For Local And State Citizens

Why Lake Developments Why Lake Developments in Mississippi?in Mississippi?

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Asset Development Office

www.mississippi.orgemail: jfoy@mississippi.org

Sustainable Sustainable DevelopmentDevelopmentMississippi StyleMississippi Style

NON-TRADITIONAL ECONOMIC DEVELOPMENT OPPORTUNITIES