Jim DamicisSenior Vice PresidentCamoin Associates

March 23-24, 2017Denver, CO

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Economic Development Strategic Planning

Project Identification

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Overview of Project Cycle

Project Identification

Project Assessment

Project Implementation

Agenda:

Identification

Assessment

Implementation

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Principal Stages of the Project Cycle

Existing plans and documents

Utilizing existing meetings

One-on-one discussions

Focus groups

Input through email/social media

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Ways to Gather Ideas

Consider range of alternative projects & programs

Identify projects & programs in light of: Strategic economic development goals Objectives Strategies established earlier

Broadly evaluate project proposals

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Project Identification

Does it help achieve a goal or objective?

Does the community have the resource & capacity to undertake the program?

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Note: Limit depth of analysis

Decide if further consideration is warranted

Broad Criteria

• Individuals who identify proposals should prioritize project options

• Stakeholders should establish set of standards or criteriao Identify best possible projects o Recognize both positive & negative impacts

• Conduct research to assess feasibilityo Initial or first phase: assess which proposals to pursue,

& prioritize o Second phase: in-depth feasibility study

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Project Assessment

Market Feasibility

Financial Feasibility

Citizen/Political Feasibility

Organizational Capacity

Technical Feasibility

Ingredients for a Successful Plan

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8. Conclusions about project feasibility

7. Potential barriers to overcome

6. Additional resources required

5. Resources available for execution

4. Regional benefits & issues

3. Economic development benefits

2. Relation to strategic plan (in terms of goals)

1. Basic description

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Project Worksheets

Funding

Capital costRequired municipal/gov’t body proceedings

Government support

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Project Feasibility Section

Details to Consider:

Quantify information

• Tally scores for each program

Input data into matrix

• Higher scores reflect higher feasibility

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Steps After Collecting Project Info

Priorities Impact

Feasibility - time- cost-social/political- technical

Cost-benefit analysis

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Assessing Alternatives

Projects that reflect plans, goals, & objectives rank higher

Review alternatives individually

Compare alternatives likely effects how well it meets specific goals

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Establishing Priorities

Determine positive & negative local economy regional way of life

All ventures have advantages & disadvantages

Estimate degree of impact of each

Rank projects with greatest net effects as top priorities

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Measuring Impact

• 1-2 year projects rank higher

• longer completion time increase uncertainty

Time Estimate

s• Operating expenses and

financing capacity• opportunity costs

Cost Estimate

s

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Economic Feasibility

Expensive & time-consuming proposals with low returns should be designated low

priority

Determines economic viability Used to assess a single project or for

comparison Can be used to determine most efficient use of

resources Process

Identify & calculate costs & benefits Calculate the net impact

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Cost-Benefit Analysis

Project costs do not include sunk costs

Costs, prior to implementation, may include Existing infrastructure Buildings Services Supplies

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Sunk Costs

All revenue that results from project operation

Measured by increase in output or cost savings

Examples of project revenues Municipal taxes Fees or charges for services Sale of remaining equipment

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Benefits

• Result specifically from the project

Direct costs

• Result because of ripple effects

Indirect costs

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Direct & Indirect Costs

Rank highly proposals with a great degree of community support from public officials, business leaders, &

residents.

Social support can make or break a program alternative.

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Social/Political Feasibility

Can the region handle a project of this magnitude?

Do the right people with the right skills exist in the to carry out the project?

Is the technology available?

Is the experience & knowledge there?

Are the resources available?

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Technical Feasibility

Criteria/Proposed Project Project 1

Project 2

Project 3

Project 4

in line with present goalsexploits opportunitydepends against a threatlength of time to measure impactfinancing availablepolitically acceptablehas stakeholder supportnecessary skills/staff/space

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Simple Vertical Matrix

Tasks involved• sequence with respect to other tasks.

Who or what organization is responsible for each task

Realistic timetables for the completion of different activities

Expected impacts or results of the action

Funding requirements, including identification of sources

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Action Plans

Camoin Associates 24

Sample Implementation Matrix

Need for flexibility Leave room for changes & delays Develop strategy for problem

resolution

Keeping the plan alive Marketing, market, marketing

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Implementing Programs

Revisit & update annually

Confirm or adjust

Opportunities or threats require immediate action New grant program, plant closing,

natural disaster

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Amending Programs & Successive Planning Efforts

Contact Informationo jim@camoinassociates.como www.camoinassociates.como Twitter: @jdamiciso Linkedin:  www.linkedin.com/in/jdamiciso Economic Development Navigator: 

www.camoinassociates.com/navigator

Economic Development

Contact Information