DEPARTMENT OF
ECONOMIC DEVELOPMENT
BRIEFING
Lincoln,
North Platte & Scottsbluff
December 12, 2013
www.neded.org
AGENDA
9 a.m. Welcome & Introductions – Catherine Lang, Director
9:30 a.m. Economic Dev. Overview – Gary Hamer, Deputy Director
9:45 a.m. Business Dev. Division – Dan Curran, BD Div. Director
10:30 a.m. Break
10:45 a.m. Research Division-Dave Dearmont, Research Director
11:10 a.m. Community Dev. Division – Lara Huskey, CD Div. Dir.
11:40 a.m. Wrap-Up, Q & A
12 – 1 p.m. Lunch, provided by NPPD
OBJECTIVES
• Discuss economic development:
What is it?
• Review DED programs & how to
access them
ECONOMIC DEVELOPMENT OVERVIEW
WHAT IS ECONOMIC DEVELOPMENT?
• Process that leads to creation & growth of
businesses, jobs and communities
• Measurable criteria: quantity, quality,
sustainability and geographic location
• Focus on businesses and jobs in primary
industries (state level)
• Local perspective is not always the same as the
statewide perspective
DED’S GOALS
• Strive to create
community &
economic growth
• Make Nebraska a
better place to live,
work, raise a family
and grow a
business
• Accomplished by
focusing efforts on:
– Aggressive community
development
– Business retention &
expansion
– New business attraction
– New business creation
– Promoting our Great State
– Special emphasis on the
creation of new primary
jobs & wealth creation
DEFINING PROJECTS TO INVEST IN
• Primary Project Investment
– New primary jobs generate new secondary jobs
– Make strategic public investments
• Primary Jobs
– Where goods or services manufactured by Nebraska workers are sold outside
of state bringing dollars from outside state
– Create new wealth
– Includes research and development funded by non-Nebraska sources (federal
or international)
– Seldom includes local or regional retail
• Secondary Jobs
– Where goods or services manufactured by Nebraska workers are sold locally
or regionally (in-state)
HOW CAN E.D. BE INFLUENCED
• Business activity occurs at the location of highest
profitability
• Critical factors: transportation, labor quality &
availability, quality of life, sites, buildings and incentives
• How economic development is done:
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Product development
Business start-up support
Business retention and expansion
Business recruitment
Evaluating DED Impact
Successful economic development initiatives should:
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Grow stronger communities by supporting solid public infrastructure and high quality,
affordable housing options that stimulate long-term community sustainability and
future economic growth
Stimulate creation and retention of high quality, primary employment opportunities
that improve per capita incomes and lead to a better quality of life for Nebraska
residents
Generate additional wealth creation potential for Nebraska residents
Attract human and financial capital from outside the State
Grow a readily-available, top quality, skilled workforce to meet the ever-changing
needs of business and industry, thereby retaining Nebraska’s best and brightest youth
and attracting additional workforce and population to Nebraska communities
MARKETING NEBRASKA
In-State, Nationally and Internationally
Promoting Opportunities—
• Quality of Life / Place and Cost of Living
• Business Retention, Expansion and Recruitment
• Entrepreneurship
• People Retention and Recruitment
• Jobs
Facebook, Twitter and YouTube
DED ANNUAL BUDGET
MAJOR AID PROGRAMS
Community Development Block Grant (CDBG)
Affordable Housing Trust Fund (AHTF)
Business Innovation Act
HOME
Site and Building Development Fund (SBDF)
Customized Job Training
Invest Nebraska
Civic, Cultural & Convention Center Fund
DED INITIATIVES
• Battelle Report
What is needed in Nebraska is not just new economic development tools
to raise value added, but a concerted effort to deepen the level of
connections between industry, higher education and talent in the state
• Focus on Three Major Initiatives:
– A Nebraska Talent Advantage Initiative to connect college
students/former Nebraskans with employers and to establish incentives for
high skilled talent to stay in, or return to, Nebraska
– A Nebraska Innovation Initiative to assist and enable growth-oriented
emerging and existing companies in Nebraska to succeed
– A Nebraska Industry Cluster Initiative that includes tailored, industrydriven initiatives for workforce development, retention, expansion and
business attraction targeted to Nebraska’s industry clusters
BUSINESS DEVELOPMENT
Field Service
6 Field Service Representatives located across the state. Serve as
front line for promoting DED programs and connecting point
between businesses and resource providers.
Business Recruitment New business and industry recruitment. Market the state
and its assets to prospective businesses.
Innovation
Manage new programs on business start up, research and
development, new products and innovation, university
partnerships.
Cluster Initiative Councils will serve as primary directors to communicate business
needs/solutions for industries to compete and innovate in a global
economy
International
International recruitment, export assistance, joint venture
partnerships, Governor trade missions. China and Japan offices.
Business Development Field Staff Regions
Western
Starr Lehl
505A Broadway, Suite 400
Scottsbluff, NE 69361
308-631-7780
starr.lehl@nebraska.gov
Northeast/North Central
Sheryl Hiatt, Field Service Manager
PO Box 272
Spencer, NE 68777
402-340-6180
sheryl.hiatt@nebraska.gov
East Central
Pat Compton
4735 Avenue E
Kearney, NE 68847
308-440-5960
pat.compton@nebraska.gov
Central/South Central
Andrea McClintic
PO Box 1569
Kearney, NE 68848
308-440-1490
andrea.mcclintic@nebraska.gov
West Central/Southwest
VACANT
Hispanic/Latino Business Consultant
TO BE ANNOUNCED
East/Southeast
Lynn Kohout
PO Box 94666
Lincoln, NE 68509
402-440-2599
lynn.kohout@nebraska.gov
BUSINESS RETENTION & EXPANSION
• BR&E is a strategy to work with existing businesses
• Interview business leaders on business climate
• Demonstrate appreciation of business to local economy
• Identify opportunities for growth and expansion
• Help existing businesses solve problems
• Helps DED build program strategies to respond to needs of
businesses
BUSINESS ASSISTANCE ACTIVITIES
Financial Assistance
Types Of Assistance:
Nebraska Advantage
Job Training
Community Development Block Grant
Nebraska Progress Loan Fund
Site and Building Development
ECONOMIC DEVELOPMENT CERTIFIED COMMUNITY
• Benchmarks include:
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Organizational capacity
Business Retention & Expansion program (BR&E)
Target market
Workforce issues
Infrastructure
Local financing
Building and site availability
Location One Information System (LOIS)
BENEFITS OF BECOMING AN EDCC
• Better positioned for economic development opportunities
• Identified and documented as ready for economic development
• Marketed to business and industry
• Publicly recognized as economic development leaders
• ED CDBG points on scoring
• Eligible to apply for “Downtown Revitalization”
• NIFA housing tax credit points
BUSINESS RECRUITMENT
• Actively recruit new businesses for increased
investment and employment opportunities
• Activities:
– Working with Consultants to develop enhanced
understanding of Nebraska and benefits
– Focused efforts on targeted industries
– National/International recruitment trips
– National Real Estate associations and industry trade shows
BUSINESS RECRUITMENT
WORKING WITH PROSPECTS
• Help define prospective location criteria, timetable and
expectations of client
• Provide Request for Information (RFI) to selected
communities that meet criteria
• Coordinate unified Nebraska response to RFI
• Preparation of Incentive information including Nebraska
Advantage, CDBG and Customized Job Training
LOCAL RECRUITMENT TOOLS
• Available land and buildings must be listed in LOIS
and available
• LB 840-Local Option Municipal Economic
Development Act – use sales/property tax for
economic development
• Tax Increment Financing
• Local government funds for marketing and recruiting
DED TALENT INITIATIVES
Intern Nebraska
• Strengthen connections between students and companies
• Address high demand, skill shortage areas
• Provides financial assistance to companies in Nebraska who
are creating new internships.
•Grant awards may be up to 50% of the cost of the
internship for eligible projects up to $5000 per internship.
•Businesses that hire students receiving Federal Pell Grants
may be awarded a grant of up to 75% and an additional
$2500.
internNE.com
DED INNOVATION INITIATIVES
Planning Grants (SBIR Phase 0)
Small businesses that qualify under the Small Business Innovation
Research (SBIR) program for the purposes of planning for an
application under the SBIR Program. Maximum Grant
Amount $5,000
Matching for SBIR Grants (Phase 1 and Phase 2)
Small businesses that qualify for funding under the SBIR program –
Phase 1 or Phase 2. 65% of the federal grant with a
maximum of $100,000
DED INNOVATION INITIATIVES
Prototyping Grant
Business with no more than 500 employees or to individuals for the
purposes of creating a prototype of a product stemming from
research and development at a business operating in Nebraska or a
public or private college or university in Nebraska. Maximum
Grant Amount $50,000 (50% Match)
Commercialization Investment
Business with no more than 500 employees or individuals for the
purposes of commercializing a product/process. Maximum
Grant $500,000 (50% match)
DED INNOVATION INITIATIVES
Research and Development
Businesses using faculty or facilities of a public or private college
or university in Nebraska for applied research or
development of new products or use intellectual property.
Maximum Grant $100,000 Phase I, $400,000 Phase II
Microenterprise Program
Microenterprises – micro lending and technical assistance to forprofit entities with no more than 10 full-time equivalent
employees through micro-loan delivery organizations.
Maximum Loan Amount of $50,000. (35% Match)
DED INNOVATION INITIATIVES
Nebraska Progress Loan Fund (NPLF)
Loans to small primary businesses developing, modifying,
or acquiring new technology. Loans for expanding
small businesses
Nebraska Progress Seed Fund (NPSF)
For Angel Fund Investments
• NPSF will award seed capital funds that match
other capital investments from Angel Funds.
INDUSTRY CLUSTER INITIATIVE
• Objectives:
– Private sector driven
– Resource providers to assist (government, education, services, etc.)
– Address common needs of firms in a cluster from workforce
development to technical assistance to market access
– Better organize and focus state economic development services to
advance competitive industries
– Enable more broad-based initiatives to engage colleges and
universities to address industry needs and opportunities
INDUSTRY CLUSTER INITIATIVE
• Work with key private sector individuals
to effectively facilitate industry councils.
• Councils will serve as primary directors
to communicate business needs/solutions
for industries to compete and innovate in
a global economy.
• Goal is to move the represented industry
sector up the value curve for increased
value of goods/services produced.
Manufacturing
Information
Technology
Transportation,
Logistics
Bio Fuels or
Food Processing
I
NDUSTRY CLUSTER INITIATIVE
Business retention and expansion
Using business survey tools to monitor key businesses in industry clusters to understand
business climate, industry stability and how best to develop and change government
programs to fit industry needs in areas such as workforce, education, tax climate, etc.
Innovation, R&D
Increase the amount of research and development conducted in Nebraska in order to
increase the amount of new products/services and the value of the products and services.
International trade and expansion
Assistance with new markets/exporting, forming joint partnerships with international
companies to produce new products, joint research and development, testing, etc.
Industry recruitment
Target businesses and industries that best compliment existing businesses to form local and
regional clusters that move an anchor business or industry up the value curve.
NeMAC
Nebraska Manufacturing Advisory Council
Facebook
Twitter
Pinterest
Google+
Council Coordinator
Whitney Bumgarner
whitney.bumgarner@nebraska.gov
402-471-6281
Blog
Information Technology Council
Council Coordinator
Jacob Knutson
jacob.knutson@nebraska.gov
402-471-3113
BIO Nebraska
Nebraska Logistics Council
Collaborative efforts moving forward…
Working with NDE and DOL:
Nebraska Career Clusters
Community Colleges
Universities
Private Colleges
NROC (districts)
Regional and local development groups Legislators
Other Providers
INTERNATIONAL TRADE & DEVELOPMENT
• Import/export assistance
• Business recruitment
• Promote international
partnerships
• New-to-export consulting
• Trade missions
• Nebraska Center Japan & China
Contact: Joe Chapuran at joe.chapuran@Nebraska.gov
Break
RESEARCH
RESEARCH INITIATIVES
• Labor Shed Study
• GIS—Upgrade capabilities
• Updating “A Competitive Advantage
Assessment and Strategy for Nebraska”
(Battelle study)
WHAT IS A LABOR SHED STUDY
• A Labor shed study is based on a survey sent to a random sample
of households in a region from which an employment center draws
it commuting workers
• A Labor shed study is designed to determine the characteristics of
the labor pool in a particular area
• Location of workers
• Skills, training, and education of workers
• Wages and desired wages
• Commuting preferences
• Underemployment
• Willingness to change jobs or reenter workforce
USES OF A LABOR SHED STUDY
• Survey results can be used to attract, recruit, and
retain businesses and industries
• Promoting availability and skills of local workforce
• Provides data about numbers and quality of potential
employees
• Provides data about wage levels needed to attract
potential employees
• Provides information needed to develop workforce
skills and willingness of workers to learn new skills
LABOR SHED STUDY
• Pilot project in conjunction with the Nebraska Department
of Labor’s Labor Market Information division.
• Surveys were mailed to 12,000 households in the project
area.
• Initial reports will be completed in January.
• A second study is under consideration for the metro areas
to be completed in the spring/summer of 2014.
• A third study, funds available, is under consideration for the
summer/fall of 2014.
• Currently using federal grant funds to complete pilot.
UPGRADE OF GIS CAPABILITIES
• Geographic Information System
• Can map anything that is tied to an address
or GPS coordinate
• Purchased a Business Analyst package
• Business data for all states
• Better ability to map and understand industry
clusters from a geographical perspective
UPGRADE OF GIS CAPABILITIES
• Examples of uses:
• Determine spatial patterns of
businesses within industry groups
• Where are the best sites for proposed
industrial parks
• What areas are economically distressed
UPDATE COMPETITIVE ADVANTAGE STUDY
• “A Competitive Advantage Assessment and Strategy for
Nebraska”
• Aka the “Battelle study”
• The study was completed in October 2010
• Much of the available economic data ended in 2008
• Chance to see how Nebraska weathered the Great Recession
• Review the Nebraska industry clusters identified in the report
• Review the progress on the original report’s action plan items
• Cluster initiative
• Talent initiative
• Innovation initiative
COMMUNITY DEVELOPMENT
SITE AND BUILDING DEVELOPMENT
• Financed with a documentary stamp tax of $.25
tax for every $1,000 of valuation on all real estate
transfers
• Estimated approx. $2 million/year
• SBDF Plan prepared for years 2014-2015
• For Industrial-ready sites and buildings
• Commercial/retail business parks not eligible
SITE AND BUILDING DEVELOPMENT
• First Priority - Projects where a business commits to
locate at a Nebraska site
• Business Recruitment/Expansion projects
• Possible application cycle for speculative sites/buildings
• Eligible applicants
– Governmental Subdivisions
– Non-profit development organizations
501(c)(3), 501(c)(4), or 501(c)(6)
JOB TRAINING
• Provide training assistance to businesses that
retain and create quality jobs
• Typical award range: $1000 to $4,000 per job
• Non-administrative positions
• Eligible Applicants
– Businesses who engage in selling primarily to
a non-Nebraska market
NEBRASKA PROGRESS LOAN FUND
• Lower risk for private lenders to encourage
private investment
• Direct business assistance in the form of a
0% or low-interest loan
• Typical loans range from $50,000 - $500,000
• Business size 500 employees or less
Planning
CDBG – TYPES
Public Facilities
Water/Waste-Water
assistance
Tourism Development
Initiative
Housing
Downtown
Revitalization Initiative
Economic Development
Comprehensive
Revitalization
Comprehensive
Investment & Stabilization
CDBG
Eligible Applicants:
Municipalities under 50,000 and every county.
Cities of Lincoln, Bellevue, Grand Island and Omaha are
entitlement communities and receive direct CDBG funding
from HUD.
CDBG
National Objectives:
1.
Benefiting low- and moderate-income persons; OR
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2.
Primary objective of CDBG, majority of funds must meet
this requirement
Aiding in the prevention or elimination of slums or
blight
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More restrictive definition of slums or blight than what is
required for Tax Increment Financing
CDBG-PLANNING CATEGORY
• Eligible Activities:
– Community strategic planning;
– Neighborhood, Strategic and Comprehensive Planning;
– Functional Studies;
– Environmental and Historic Preservation;
– Downtown Revitalization;
– Pre-engineering studies for publicly owned
water/wastewater projects;
– Business park site/location/use feasibility studies.
• 3 funding cycles
• Maximum Grant Amount:
– $30,000 per community/ $50,000 per county
TOURISM DEVELOPMENT
• State objective: Assist tourist attractions
expected to draw 2,500 visits or more annually
from origins of at least 100 miles away.
– Historic Restorations;
– Interpretive Educational Sites/Facilities;
– Cultural and Heritage Recreational Sites/Facilities;
– Supporting Activities related to removal of
architectural barriers that restrict mobility and
accessibility to sites/facilities.
DOWNTOWN REVITALIZATION
• Eligible Activities:
Located in the designated downtown business district.
• Pre-development
• All public facility and infrastructure activities that are also eligible under
the “Community Development Public Works Category”
• Loans to businesses
• Historic restoration, rehabilitation and preservation for physical
structures and infrastructure.
• Maximum Grant Amount:
• $30,000 pre-development phase
• $350,000 project phase (includes final design and construction
components—No Project Phasing
ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE
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Direct loans to businesses
Grants to communities for infrastructure
Typically $250,000 to $500,000 per grant
Business must create jobs for low-to-moderate income people
Must meet definition of “qualified business” in Nebraska
Advantage
– research and development, manufacturing, data processing,
telecommunications, insurance, financial services, distribution, storage,
transportation, administrative headquarters, and targeted export
services.
• Starting wage of at least $9.00 per hour
COMPREHENSIVE REVITALIZATION
• Assists communities 20,000-50,000 population
Columbus, Fremont, Grand Island, Hastings,
Kearney, Norfolk, and North Platte
• 3 year funding period based on a community
developed needs assessment strategy.
Grant Amount: $150,000 to $225,000 formula base
Leverage: $1 other funds for $1 CDBG funds
COMPREHENSIVE INVESTMENT &
STABILIZATION (CIS)
• Assists communities 5,000-20,000 population
• 3 year funding period based on a community
developed needs assessment strategy.
Grant Amount: $150,000 to $225,000 formula base
Leverage: $1 other funds for $1 CDBG funds
CRD / CDBG PROJECT STAFF CONTACTS
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Kevin Andersen…Planning, Downtown
Steve Charleston…CDBG manager
Bob Doty…Housing Program Mgr.
Brian Gaskill…Housing & Action plan
Dave Honz…ED
Carol Malcolm…CD Public Works
402.471.3775
402.471.3757
402.471.2095
402.471.2280
402.471.3763
402.471.3745
NEBRASKA AFFORDABLE HOUSING PROGRAM
Program funds used to provide for investing
funds in quality housing projects and programs in
communities so that local governments and nonprofit organizations can leverage private
financing to provide for affordable, decent, safe,
and appropriate housing as part of balanced
economic development in Nebraska.
NEBRASKA AFFORDABLE HOUSING
PROGRAM FUNDING SOURCES
• HOME Investment Partnerships Program
(HOME)
• Community Development Block Grant
(CDBG)
• Nebraska Affordable Housing Trust Fund
(NAHTF)
PROGRAM FUNDING SOURCES IN 2013
• CDBG $1.9 million
• HOME $2.7 million
• NAHTF $6.25 million
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$10.85 million available for projects
HOUSING PROGRAMS
• Homebuyer programs
• Owner-Occupied Rehabilitation
programs
• Non-profit Operating Assistance
• Rental housing
ACCESSING FUNDS
• Eligible Applicants
• Units of Government
• Non-profit Affordable Housing Organizations
– 501(c)(3) or 501(c)(4)
– Economic or Community Development
Organizations with affordable housing as part of
their mission - 501(c)3 or 501(c)4
– Tribally-affiliated non-profits
• Public Housing Agencies
HOUSING APPLICATIONS
• Annual Cycle—for homebuyer, rental, non-profit
operating assistance, and owner occupied rehab
projects
• CDBG OOR Cycle—for CDBG eligible entities for
owner occupied rehab projects
• NIFA/DED Cycles—tax credit cycles for projects that
have HOME and low income housing tax credits
• City of Omaha Trust Fund Set Aside—apply for NAHTF
housing projects in Omaha
Civic and Community Center
Financing Fund
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Civic Center
Libraries
Recreation Center
Historic Buildings
Community Center
– “Downtown District”
Kevin Andersen
402-471-3775
kevin.s.andersen@nebraska.gov
• Grant Amounts:
– No more than 50% of
total project costs
– Based on pop. Size
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40,000-99,999:
20,000-39,999:
10,000-19,999:
< 9,999:
$1,125,000
$750,000
$600,000
$375,000
COMMUNITY DEVELOPMENT ASSISTANCE ACT
• CDAA empowers the Department of Economic Development
to distribute a 40 percent state tax credit to businesses,
corporations, insurance firms, financial institutions, or
individuals that make eligible contributions of cash, services or
materials to approved community betterment projects.
• A non-profit community betterment organization (CBO) may
apply to the Department to become qualified for CDAA tax
credits. Upon approval of a project, the community
betterment organization can notify donors they are eligible for
tax credits. The donors then submit a tax credit request form
to the Department.
COMMUNITY DEVELOPMENT ASSISTANCE ACT
What projects qualify?
State Priorities
• Building the capacity of local
• Employment training
residents to address locally
• Human and medical services
defined objectives.
• Physical facility and
• Essential services to low and
neighborhood development
moderate income persons
services
• The development of lasting
• Recreational and
cooperation and public/private
educational activities
partnership efforts of area
organizations and businesses.
• Crime prevention
COMMUNITY DEVELOPMENT ASSISTANCE ACT
• A CBO may apply for and receive
$25,000 in CDAA credits per year for
up to three consecutive years
• Upon receipt, the CBO may distribute
CDAA credits to contributors at a
maximum value of 40% of the cash
or in-kind contribution
WRAP-UP & Q / A
Connect with DED Online:
neded.org
Twitter.com/DevelopNebraska
Facebook.com/DevelopNebraska
YouTube.com/NebraskaDED
DED E-newsletter
www.neded.org