Economic Development In West ChesterBILL RIVERS, UNIVERSITY OF PENNSYLVANIA │FELS INSTITUTE MARCH 17, 2015

Goals For This Evening’s Conversation Provide Council an overview of economic development & Pennsylvania’s efforts and resources in that space; Seek direction on next steps.

Overview History & Philosophy Why Economic Development? Recurring Themes Economic Development in PA Financial Tools Next Steps

History & Philosophy 1930s – “Smokestack Chasing” 1960s – Great Society - Rural 1970s – Public-Private Partnerships (PPP) – Urban 1980s – Entrepreneurship & Medium-size Businesses Today – Blend, Any, None of Above Community Development Examples: Oakland, MD & Colquitt, GA

Economic development can encompass a wide range of ideas. It can be as narrowly or as broadly construed as the community wants.

Why Economic Development?

Why Economic Development?

Why Economic Development?

Why Economic Development?

Why Economic Development? Promote social & physical infrastructure to attract families Create/maintain diverse local economy via sustainable development Increase commercial & industrial tax base

Costs Rule of thumb: employment multipliers rarely exceed 3.0 at state level and 2.5 at local level New growth can also bring new costs (expanded public services) Need to assess economic impact and direct cost PLUS cost of supporting resulting growth

Recurring Themes Comprehensive, written plan Dedicated group Cooperation with other actors Emphasis on businesses retention Emphasis on qualified

workforce Emphasis on timely permit approval Emphasis on walkability of community Consistent brand

Recurring Themes (Bad Plans) Lack of diversification, over-emphasis on one tool (ex. tax abatements) Incongruity with other efforts (other governments, agencies, groups) Going big, overlooking small (research suggests bike paths > big visible projects) Lack of awareness of regional market trends

Research suggests a written plan and a team devoted to it are key. Ad hoc activities seem less successful.

Economic Development in PA No single master plan “Keystone Principles” established 2005 Plethora of state, regional, county & local resources 80 + local authorities/development councils Diversifying, leveraging each level’s resources is key

Keystone Principles Redevelop First Efficient Infrastructure Concentrate Development Increase Job Opportunities Foster Sustainable Business

Enhance Environment Restore Heritage Expand Housing Plan Regionally, Implement Locally Be Fair

Sampling of Economic Development Groups

STATE Dept. of Community & Economic Development (DCED)

Team PA Foundation Industrial Resource Centers (IRC) Network PA Economic Development Association (PEDA)

REGIONAL Delaware Valley Regional Planning Commission (DVRPC)

Select Greater Philadelphia Ben Franklin Technology Partners Small Business Development Centers (SBDC) COUNTY Chester County Economic Development Council

Chester County Dept. of Community Development

Chester County Chamber of Business and Industry

Chester County Planning Commission

Economic Development in PA (cont’d) Dept. of Community and Economic Development (DCED) Governor’s Action Teams Partnerships for Regional Economic Performance (PREP)

Chester County Planning Commission Landscapes2

Chester County Economic Development Council (CCEDC) VISTA 2025 Tax-Exempt Financing

Summary of VISTA 2025 Quality of place (includes urban-area emphasis for boroughs)

Attracting a skilled workforce Business attraction & retention (targeted industry clusters)

Innovation culture Critical infrastructure

VISTA 2025 Borough-Specific Examples Maintain/enhance bike paths, walkable downtowns Build/expand industry cluster partnerships:

BioPharma/Life Sciences Advanced Manufacturing Optics/Lasers IT/Information Systems

Promote locally-grown products, food co-ops

Financial Tools Local Economic Revitalization Tax Assistance (LERTA) Tax Increment Financing Community Development Block Grants See memo for more comprehensive list

Next Steps Request manager outline a borough economic development planning process Consider strategic visioning exercise (ex., Chester County Economic Development Council, DCED, etc.) Explore VISTA 2025 as basis for an economic development plan Evaluate efficacy of expanding RDA’s mission Consider creating an economic development advisory team

References • Richard D. Bingham, Robert Mier. “Theories of Local Economic Development: Perspectives from Across the Disciplines.” Sage Publications, Inc. 1993.

• Will Lamb. Small Towns, BIG IDEAS: Case Studies in Small Town Community Economic Development. UNC School of Government. N.C. Rural Economic Development Center. 2008. • Mildred E. Warner and Lingwen Zheng. Business Incentive Adoption in the Recession. Economic Development Quarterly, May 2013.• Planning for Economic Development. Municipal Research and Services Center (Washington State). Jan 29, 2015. • Economic Development, Landscapes2 Tool Kit. Chester County Planning Commission. • One City’s Response To Difficult Economic Times. By Paul Cawley. Government Finance Review, July 2009.• Jonathan Q. Morgan. Analyzing the Benefits and Costs of Economic Development Projects. Community and Economic Development Bulletin. UNC School of Government. April 2010.

References (Cont’d)• The Economic Importance of Families with Children. By Mildred Warner and Rebecca Baran-Rees, Cornell University March 2012•   Lino, M. 2010. “Expenditures on Children by Families, 2009.” Misc. Pub. No. 1528-2009. Washington, DC: U.S. Department of Agriculture, Center for Nutrition Policy and Promotion. • Florida, R., Mellander, C., & Stolarick, K. (2011a). Beautiful places, the role of perceived aesthetic beauty in community satisfaction. Regional Studies, 45(1), 33-48.

• Richard Florida. The Creative Class and Economic Development. Economic Development Quarterly. July 2014.•   Full text of Governor Tom Wolf’s budget speech. ABC News. March 3, 2015. •   GFOA Best Practices: Coordinating Economic Development and Capital Planning. • Don McEachern. “Community Branding: Beyond a Logo and a Line” (ICMA). North Star Communication Strategies. 2011.

Economic Development In West ChesterBILL RIVERS, UNIVERSITY OF PENNSYLVANIA │FELS INSTITUTE MARCH 17, 2015WRIV@SAS.UPENN.EDU