Economic Development Greater Lafayette Progress, Inc. Not-for-Profit C 3 Membership Based Organization 2003 Budget: $644,000 Employees: 5 $$ from cities, Cou, CVB, programs

Mission Statement  The Mission of Greater Lafayette Progress, Inc. is to promote economic development and continued growth and well being of the Greater Lafayette community.  Greater Lafayette Progress will strive to retain and expand existing business and industry, to attract and encourage new business and industry, to capitalize on technology and innovation, to work closely with Purdue University and to promote entrepreneurship 2

Basic Job Theory  Agriculture  Sell product or service outside of the economic region Greater Lafayette region includes Tippecanoe, Benton, Carroll, Clinton, Montgomery, Fountain, Warren and White Counties  Retail/Government/Tourism 3

Basic Job Multiplier  Bucket Theory Money In Money Multiply  Money Out Economic Development, Community Development, Commercial Development What are the factors influencing the location decision? 4

Property Tax Payment  Formula for Property Tax Assessed Value*Rate=Tax Amount  Formula for Tax Rate Certified Levy/Assessed Value=Tax Rate  Formula for Total Tax Bill Total Tax Rate for each Taxing Authority  SIA Tax Payment 5

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Competition  Over 11,000 economic development organizations Not-for-profit Local Economic Development Organizations (LEDO) County Governments City Governments Chambers of Commerce 8

OEM Facilities  25 OEM facilities studied: 13 in the South, 12 in the Upper Midwest  Total company investment in facilities: $13.8 billion  Total jobs created or renewed: 48,697 ($283G/job)  Total incentives received: $3.2 billion—equal to 23% of total Investment  Average incentives per facility: $126 million  Average incentive per job: $64,757 9

Community Strengths and Weaknesses Community Audit of the Greater Lafayette Region The Competitive Environment Selecting a company’s location is a critical choice Competition for business attraction and investment is intense A wide range of global locations with strategies and incentives Advanced technologies = More global mobility The region must maximize its competitive advantages in comparison to competing locations 10

Community Strengths and Weaknesses (2003)  ■Strategic Geographic LocationCompetitive Advantage  ■Transportation InfrastructureCompetitive Advantage  ■Employers/Economic BaseCompetitive Advantage  ■WorkforceCompetitive Advantage  ■Ed Institutions, Research Centers /Training FacilitiesCompetitive Advantage  ■K-12 EducationCompetitive Advantage  ■UtilitiesCompetitive Advantage  ■Industrial and Commercial PropertiesCompetitive Advantage  ■Economic Development ClimateCompetitive Advantage  ■HousingCompetitive Advantage  ■Quality of LifeCompetitive Advantage  ■TelecommunicationsAdvantage  ■ImageAdvantage  ■Local and State TaxesCompetitive /Competitive Disadvantage  ■ Financial Incentives and ResourcesCompetitive /Competitive Disadvantage  ■ Research ParksNo Rating 11

Recruiting  Be Prepared Demographics, Community Resources, Site Information, Community Leadership Support, Local Governmental Support, Incentive Programs  Resources/Partners Cinergy, Norfolk Southern, Indiana Department of Commerce, Realtors, Site Selection Companies 12

Local Tools for Development  Economic Development Income Tax (EDIT) Job Training, Site Prep, Site Purchase, Infrastructure assistance  Tax Abatement Phase in of personal and/or real property taxes  Tax Increment Finance Create fund to support job training, site prep, site purchase, infrastructure assistance. 13

Tax Abatement  Real Property Taxes New Buildings/Building Expansions  Personal Property Manufacturing equipment, R&D equipment, Laboratory equipment 14

Tax Increment Finance (TIF)  TIF is a financing tool which captures increases in assessed value from new development  Can capture increases in real property and, at times, depreciable personal property assessed value. 15