Thinking long term,
managing short term
Connecting Your Community
Presented By:
Dana Baker Dbaker@gvnw.com
Bruce Nuzum BNuzum@iadg.com
Deb Lucht debl@minburncomm.com
www.gvnw.com
Thinking long term,
managing short term
Connecting in Your Community
• Dana Baker
– Collaborative effort for connecting your community
– Introduction of speakers
• Bruce Nuzum
– Financial Opportunities
• Deb Lucht
– Case Study of Collaborative Efforts
• Postal and Telephone
www.gvnw.com
Thinking long term,
managing short term
What Creates Connections in Your Community?
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Thinking long term,
managing short term
What Creates Connections in Your Community? (Cont.)
• High-capacity broadband networks only one tool
• Where you live and how you get around
• Your Communities team of collaborative leaders
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– Manufacturers, application developers, telecom providers
– Users who utilize broadband services and other smart energy
efficient technologies and resources
– Rural focused National and State Associations
– Federal and State Agencies (USPS, HHS, and many others)
• Continuous development and evolution
• Incorporating applications and services across various
platforms throughout your community
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Thinking long term,
managing short term
Economic and Community Development
Connections
• Economic development is about wealth creation for all.
• Economic development is a process and it is occurring
all the time.
• Economic diversity sustains communities and regions
throughout economic cycles.
• Economic development is where public policy and free
enterprise intersect.
• Positive economic development creates an environment
in which communities and citizens prosper and improve
their quality of life.
www.gvnw.com
Thinking long term,
managing short term
Practical Application and Collaboration
Education
Public Safety
Network
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Thinking long term,
managing short term
Baby Steps to Begin Connecting the Dots
• Meet with:
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Utilities Electric/Water Cooperative, etc.
School District
Local/Regional Economic Developer
Federal & State Government agencies
Local Chamber of Commerce
• Strategic plan participation/development
• Follow the money
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Thinking long term,
managing short term
Build on the Character and Preserve
• When you’ve seen one rural community…. you’ve seen
one rural community!
• Develop Economic development strategies that use your
community’s best assets.
• Youth/Entrepreneur initiatives
• Protect valuable farm land
• Enhance the existing community
• Build new neighborhoods
www.gvnw.com
Thinking long term,
managing short term
NTCA- SRC Initiative
• NTCA held meetings with key national associations and
government agencies to listen, share, and create
common long and short term initiatives and goals.
• Advisory Committee Members and Participants
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Discovery Education
National Rural Electric Cooperative Association
Rural School and Community Trust
Veterans Health Administration’s Office and Rural Health
National Rural Economic Developers Association
And many others
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Thinking long term,
managing short term
NTCA- SRC Initiative
• As a result NTCA has developed the Smart Rural
Communities Initiative and has highlighted 3 main areas
of focus.
– Healthcare
– Public Safety
– Education
• The Goal is to Provide a road-map and resources to
rural communities
• And to help identify and reward collaborative efforts
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Thinking long term,
managing short term
How to Connect - Advanced Medical Care
• The focus will be on leveraging Rural Development
programs particularly Community Facilities REDL&G and
Business programs.
– Expand access to affordable healthcare to rural Critical Access
Hospitals and clinics through telemedicine and health IT
services.
– Implementation of the Affordable Care Act will be the main
driving force.
www.gvnw.com
Thinking long term,
managing short term
How to Connect - Public Safety and Critical
Infrastructure
• Educate first Responders, state agencies, and rural
infrastructure leaders on how Rural Development can
support emergency communications and promote public
safety goals.
– State and County officials are currently developing strategic
plans in accordance with First Net (federal nationwide public
safety broadband network)
– Rural stakeholders (telecom, electric, water) must be involved
– Potential new revenue stream
– Potential new expense with no revenue
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Thinking long term,
managing short term
How to Connect - Education
• Supporting the growth of youth and the mentoring of
these next generation rural stakeholders.
– Work with organizations such as local school districts, colleges
and universities, nonprofits, and youth leadership organizations to
promote youth retention.
– Scholarship programs
– Internship programs
– Business Incubation
– City Council
– Community Boards and committees
• Make Smart schools an initiative priority
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Thinking long term,
managing short term
Tools to help you Connect Your Community
• Rural Guidebooks
– Putting Smart Growth to work in Rural Communities
– Essential Smart Growth Fixes for Rural Planning, Zoning, and
development
• http://www.telecompetitor.com/images/TheSmartRuralCo
mmunity.pdf
• NTCA white papers by Jesse Ward
– http://www.ntca.org/images/stories/Documents/Advocacy/Issues/
Broadband/TheSmartRuralCommunity.pdf
• Jesse Ward NTCA explanatory presentation
– http://prezi.com/gvolppxxk9rz/src/?auth_key=356bbf861a0fcf7b1
971706dede7822f6883188d
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Thinking long term,
managing short term
Tools - Associations
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NREDA- http://www.nreda.org/
NADO- http://www.nado.org/
NACo- http://www.naco.org/Pages/default.aspx
NTCA- http://www.ntca.org/smart-ruralcommunity/smart-rural-community.html
• NRECA- http://www.nreca.coop/Pages/default.aspx
• NRTC- http://www.nrtc.coop/pub/us/
• CFC/RTFC – CoBank- http://www.cobank.com/
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Thinking long term,
managing short term
Tools- Federal/State Agency
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Federal:
– USDA- http://www.rurdev.usda.gov/Home.html
– HUD- http://portal.hud.gov/hudportal/HUD
– EPA- http://www.epa.gov/
– DOT- http://www.dot.gov/
– DOC http://www.commerce.gov/
• EDA- http://www.eda.gov/
• NTIA -http://www.ntia.doc.gov/
State:
– Iowa Area Development Group - http://www.iadg.com/
– Renew Rural Iowa- http://www.renewruraliowa.com/news.aspx
– Iowa USDA RD - http://www.rurdev.usda.gov/IA_bc_grant.html
– Iowa Farm Bureau, Rural Vitality http://www.iowafarmbureau.com/public/110/in-your-community/ruralvitality
– Iowa Network Services -http://www.iowanetworkservices.com/
www.gvnw.com
Thinking long term,
managing short term
USDA Support
• There are MANY ways to leverage the resources of
Rural Development Funding in order to accomplish the
program goals and facilitate partnerships
• Main Goals of USDA Smart Development Funding
– Identify and fund specific opportunities for growth
– Education and supporting the Next Generation of Stakeholders
– Healthcare and Public Safety
• Http://www.epa.gov/smartgrowth/pdf/2011_11_supportingsustainable-rural-communities.pdf
• http://www.ntia.doc.gov/press-release/2013/ntia-broadbandadoption-toolkit-shares-best-practices-across-us
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Thinking long term,
managing short term
Bruce Nuzum
• Involved with the Iowa Area Development Group for over
16 years and in the Vice President of Finance
• He handles Economic Development / Financial
Packaging on behalf of IADG member Rural Electric
Cooperatives, Municipal Electric Companies, and
Independent Telephone Companies throughout the state
of Iowa.
• He has authored 146 successful USDA REDLG
applications securing $52 million for Iowa's Rural Electric
Coops, their communities and businesses.
www.gvnw.com
CONNECTING THE FINANCIAL
OPPORTUNITIES IN YOUR
COMMUNITIES
Discussion Topics
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Planning for the Future
What are the Financial Tools?
Who do I need to know and support?
Collaboration Example
Planning for the Future
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Economic Development is a Long Term Effort
Many Ways to Define Success
Local Effort
Planning and Preparation are Key!
IADG Values
We believe RESEARCH and
PLANNING should drive
economic development.
We provide and support
EDUCATION and
TRAINING for our economic
development partners and
staff.
We invest in MARKETING
and PROMOTION to create
awareness, understanding,
and opportunity.
We share our knowledge and
experience by providing timely
TECHNICAL ASSISTANCE and
PROJECT FACILITATION.
We foster COLLABORATION
and PARTNERSHIPS and
encourage community-based
philanthropy.
We serve as a catalyst for
INNOVATION and
ENTREPRENEURSHIP.
Financial Opportunities
• Dispel a Myth:
There is no “Free Money”
• Good News:
Lots of Financial Tools in the Toolbox
Local Financial Tools
• Ripple Effect
• USDA Rural Economic Development Loan &
Grant (REDL&G)
• Revolving Loan Funds
• Tax Increment Financing
• Angel Investors
• Small Business Administration (SBA)
• State Programs
INS Matching Grant / Loan Programs
– 25 INS Grants totaling $242,850
– 4 INS Loans totaling $80,000
Leveraging
$1,196,618 in pre-construction funds
$4,381,000 in construction financing
REDL&G – FY 2014 Applications
Anticipated FY 2014 Funding:
$10 million in grant funding
$33 million in loan funding (plus $29 million
carry-over)
USDA Rural Economic Development Loan
$2,000,000 Max
REC/TELCO/Muni
Borrows from
RUS at 0%
interest
REC/TELCO/Muni
Loans to
recipient at 0%
interest
REC/TELCO/MUNI
IADG Member REDL Success
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67 Awards
$31 million
$357 million project investment
5,405 jobs created/retained
USDA Grant for Revolving Loan Fund (REDG)
RUS grants to RLF
$300,000 Max
REC/TELCO/MUNI
Administered RLF
$360,000
REC/ TELCO / MUNI
matches 20% with own
funds $60,000 max
REC/TELCO/MUNI
IADG REDG (RLF) Awards
• 104 IADG REDG
Awards totaling
$27.8M
• $12.5M (45%)
Education and
Health Care
• $9.7M (35%)
Industrial Parks
& Shell Buildings
IADG REDG (RLF) Awards
• 36 REDG Revolving
Loan Funds
• Capitalized at
$37.5M
• Range from $240,000
to $3,360,000
IADG RLF Partnership Report
Combined Subsequent Loans
• 440 Loans Totaling $45.7M
• Leveraging $507M in Project Investment
• Creating / Retaining over 8,200 jobs
IADG RLF Partnership Report
Average RLF Loan
– $101,000 loan
– $1.1M project
– Creates / Retains 18 jobs
Other Sources of RLF Funding
• Ripple Effect (non-RUS Borrowers)
– INS Forgivable Loan—Grant to seed RLF
• USDA RD
– Intermediary Relending Program
– Rural Business Enterprise Grants
• Economic Development Administration
• U.S. Small Business Administration (SBA)
– Microloan RLF Program
Tax Increment Financing
“TIF” Defined—
– The ability for a City or County to capture NEW
Property Taxes within the Urban Renewal Area
or “TIF District” for the benefit of the district.
Tax Increment Financing
Angel Investors
• Group of Potential Investors
– Invest in a Business
– Lease a Building to a Business
• Investment Organizations
– CMA Investors
• Small Business Administration
– Reduce Risk / May Increase Bank Involvement
• 7a Guarantee
• 504 Program
• State Incentive Programs
– Wage Thresholds
– More Tax Credits than Grant $
– Some programs are geographic
– Not Every Project Qualifies
Community Partners I Need to Know
• Iowa Area Development
Group
• Local / Regional
Development
Organizations
• Councils of Government
• Iowa Economic
Development Authority
• City Council
• Board of Supervisors
• Local Angel Investors
Example of Collaboration
Country Maid, West Bend
• REDL—Northwest
Communications
• SBA 504 Financing
• RLFs—3 RECs
• REDG—Corn Belt Power
to City of West Bend
Thinking long term,
managing short term
Deb Lucht
• General Manager of Minburn Communications,
– manages 4 telecommunication companies serving the
communities of Minburn, Woodward and Perry, Iowa
• Deb has worked in the telecommunication industry for 15
years.
– She currently serves on the Board of Directors for the Rural Iowa
Independent Telecommunications Association as past President
– Serves as a representative for RIITA on the Iowa Linked-Up
Coalition, advocating to policymakers and legislators to
understand the importance of robust broadband deployment in
rural Iowa
– As well as serving on various other boards for Rural Economic
Development groups and associations
www.gvnw.com
U.S. Postal Service-Village Post Office
• April 11, 2013 Minburn
Telephone Company became the
second VPO in Iowa
• Currently there are only 3 VPOs
in the state and 360 in the U.S.
• VPOs are located within existing
businesses under contract to the
Postal Service
• Value added service for Rural
Independent Telephone Company’s
U.S. Postal Service-Village Post Office
Benefits
• Increased foot traffic
• Convenient location
• Expanded retail access to postal
products
• Provides stability for retention of
the town’s ZIP code
• Maintains postal presence
U.S. Postal Service-Village Post Office
Products Sold & Duties Performed
• Forever stamps (booklets & rolls),
Priority Flat Rate Boxes & Envelopes
• Ask Hazmat/Aviation Security
questions and stamp mailing with
personalized security stamp
Provided to the VPO
• Exterior signage
• Window decal
• Aviation security stamp
• Display for Flat rate boxes and
envelopes
U.S. Postal Service-Village Post Office
Local and National Attention
• Local media covered the April
Grand Opening in Minburn
• Onsite visit from John
Padalino, Administrator for the
RUS in May 2013
• Wallaces Farmer Magazine
June 2013 Issue
• Rural Telecom Magazine
July-August 2013 Issue
U.S. Postal Service-Village Post Office
More Information:
• http://about.usps.com/news/electronicpress-kits/expandedaccess/about-vpo.htm
• Mary Berardi, Manager, Retail
Ph: 515-251-2415
• Ken Hron, Retail Specialist Hawkeye District
Ph: 515-251-2356