Devising an Economic Development Plan as a Revitalization Tool

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There are manyrevitalization strategies for downtowns, which many are at the following site, http://tylertopics.com/cityhallcommons/topiclist/d100.strategies.html

however, thereis one major factor that many small towns need to be focusing on these days, aneffective economic development plan.

Some mayquestion whether economic development is really necessary for downtown revitalization?Yes, an active economy is the source of community wealth and well-being.

 

Economicdevelopment is necessary for a community to renew itself and grow. Many smalltown and rural communities are losing people, jobs, and quality of life due to economicinstability. Unfortunately, small towns are not self-sustaining, and it is noeasy task to maintain economic quality, good jobs, good public services, and abroad tax base.[1]

 

There aredisturbing trends in America making overcoming economic weakness harder andharder

1.     The formulation of large discount tradestores has created a steep decline in retail trade in small towns.

2.    A new global economy has brought greaterinternational competition for low-wage industries and many have moved theiroperations abroad, resulting in loss of an economic base in small town America.

3.    The reduction of economic developmentgrants by the federal government is resulting in small towns having to footmore of the bill for their economic development efforts.

4.    Small town banks are a critical sourceof financing for local residents by filtering savings into local businesses andby purchasing locally issued municipal bonds. However, the deregulation offinancial institutions along with the move toward interstate banking does notbenefit small towns. Larger urban banks and money market funds can offer moreattractive interest on deposits that small local banks ultimately drawing awaylocal capital.

 

These trendsresult in small town downtowns across America realizing the need of takinginventory of their economic assets and setting economic goals and objectives bycreating an economic development plan as a part of their towns comprehensive revitalization plan.

ECONOMICDEVELOPMENT OBJECTIVES:

…     To promote a positive corporate identitythat positions the town as a business friendly community with a superiorquality of life

…    To create employmentopportunities suited to the local labor group

…    To expand anddiversify the tax base

…    To support smallbusiness development, expansion and retention

…    To attract newinvestment that meets social, environmental and economic objectives

 

KEYS TO ASUCCESSFUL ECONOMIC DEVELOPMENT PLAN:

 

• Small town communities must take advantage of local resources such as their location, physical setting, financial resources and citizens. This includes the readiness on the part of local banks, businesses, and private citizens to donate their time and money.
• A strong comprehensive planning effort must be implemented to guide growth and to improve the community. Local responsibility and problem solving are the foundations of long-term success.
• Leadership is essential. Economic development cannot be willed. Only through a consensus can a town form a coordinated economic development effort. Not much will happen unless influential leaders and the public are willing to work for community economic development.
• Economic development takes time, patience and commitment. Town leaders must be held to keeping economic development efforts alive and on track in both the short and long term.
• Seek key individuals, such as local bankers, utility executives, accountants, real estate brokers, attorneys and small business owners to serve on the economic development committee.
• Small town communities should be persistent in pursuit of state and federal grants (some assistance can be found at the following site http://www.nal.usda.gov/ric/ruralres/economic.htm.)
• Be creative in your economic development plans ñ creativity just might bring unexpected results!

 

 

INITIALSTEPS IN DEVISING AN ECONOMIC DEVELOPMENT PLAN:

 

…    Identify the community's economicperformance over the past 20 years.

ß      Research unemployment trends, retailsales, community income and property taxes.

…    Determine the community's competitiveadvantage; in the form of a survey or questionnaire

ß      What goods and services does thecommunity produces better than others in the region or the state?

ß      How much does it cost to produce acertain good or service?

Which goods and services are notavailable in your community; why are they not, and can they realistically beoffered locally?

ß      Why do some residents shop in theircommunity and others do not?

 

FORM ANECONOMIC DEVELOPMENT MISSION AND STRATEGY:

 

Define aspecific mission and strategy. The mission should remain in effect until it ischanges are accomplished. A mission is simply a statement which summaries theeconomic purpose of your community for a period of time and how that purposecan be reinforced. Ask the following questions to develop your mission:

 

ß      What do we do bestin our community?

ß      How can we adapt bestto the changes happening around us?

ß      What is necessary to address some of theproblems: more resources, better organization, new ways of thinking, betterunderstanding of our challenges?

ß      Is the way we live or how we do businessmaking the problems worse?

ß      Make a list of words or concepts thatshould define your mission.

 

STRATEGIES:

An economicdevelopment plan should try to include certain strategies:

…     A strategy to stop the economic lossesfrom goods and services by establishing a public information program, work withmerchants and services providers, and develop a public relations campaign.

…     A strategy to encourage new andappropriate local endeavors and businesses, such as business incubators.

…     A strategy to invest in the revitalization and infrastructure of the townís central business district, such as historic building faÁade improvements and renewing public facilities.

 

Ultimately, acommunity should be educated and informed of how trends are affecting theeconomic performance in their town and how these trends could influence currentand future economic development efforts. The community should be involved inthe decisions of what economic goals and strategies are realistic. It isimportant to provide a schedule for implementation and completion of projects. Finally, there is the need to show visual accomplishment of efforts of economicrevitalization.[2]

 

Some resourcelinks for economic development:

http://www.downtowndevelopment.com/.Downtown Research & Development Center.December 1, 2002.

http://www.plannersweb.com/sprawl/solutions_sub_downtown.html.Strengthening Downtowns andTown & Village Centers, SPRAWL GUIDE. December 1, 2002.

http://www.nal.usda.gov/ric/ruralres/economic.htm.Economic and Rural Development Resources.December 1, 2002.

 

Created by:

Lynda Neese

December 11,2002