BUSINESS DEVELOPMENT

BUSINESS DEVELOPMENT ACTIVITIES Business Retention and Expansion New Business Recruitment Workforce Development Entrepreneurship & Business Assistance International Financial Assistance Community Assistance Activities

BUSINESS RETENTION & EXPANSION BR&E is a strategy to work with existing businesses - Synchronist is new software program Interview business leaders on business climate Ability to analyze comparative information within the industry 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

WORKFORCE DEVELOPMENT

Economic development model has modified. Traditionally, businesses recruited to attract people — people followed jobs. People now move for a variety of reasons — including jobs, family and quality of life. Along with business recruitment, communities need to also focus on labor/people recruitment. The Department helps communities develop population attraction strategies.

BUSINESS RECRUITMENT  Develop prospects through leads, consultants, referrals, trips, trade shows and company direct contacts  Screen and host prospects  Work with the Nebraska Diplomat program for recruitment efforts  Market and promote Nebraska Advantage

BUSINESS ASSISTANCE ACTIVITIES Manufacturing Extension Partnership: Provides consulting services to help manufacturers with business and technical challenges: Engineering Management/financial Efficiency/quality training Environmental Human resources Dave Wright –

BUSINESS ASSISTANCE ACTIVITIES One Stop Business Assistance: An information resource center for business owners and entrepreneurs. Steve Williams

BUSINESS ASSISTANCE ACTIVITIES Financial Assistance: - Nebraska Advantage -Customized Job Training -Community Development Block Grant (CDBG)

BUSINESS ASSISTANCE: CDBG Assistance— Economic Development Loan: Fills a financial gap or locational consideration 51% of new hires must be LMI Maximum of $500,000 per project Local government is applicant Low interest performance-based loans Public works grants Application cannot exceed 50% of project costs

Available land and buildings (LOIS and NEDI) must be listed and available Tax Increment Financing Local government funds for marketing and recruiting CDBG Re-use funds LB 840 LOCAL RECRUITMENT TOOLS

Local Option Municipal Economic Development Act “LB840” More flexibility - local communities complete authority over uses and funding Local option sales tax OR property tax Must be spent as intended and approved by voters –Steps: prepare plan, public review, local election –Requires two ballot issues, ED plan & tax amount Amendments require new ballot issue Can be divided by vote (sample uses) - Economic development- Property tax relief - Infrastructure- Other city purposes

Restrictions NO municipality shall appropriate more than: –The amount approved by the voters –0.4 percent of the actual valuation of the municipality for LB840 $1,000,000 (2nd class cities & smaller) $2,000,000 (1 st class cities) $3,000,000 (Lincoln or Omaha) Local Option Municipal Economic Development Act “LB840”

Eligible activities Public works improvement grants to qualifying businesses Payment of salaries to run the program Job training grants and loans Loans, grants, and loan guarantees for qualifying businesses Purchase or option to purchase real estate Business recruitment activities Local Option Municipal Economic Development Act “LB840”

Eligible Business - Cities Population 2,500+  A qualifying business is ANY corporation, partnership, or sole proprietorship which derives its principal source of income from any of the following….  Manufacturing  Research and Development  Telecommunications  Tourism-related Activities  Housing Rehab and Construction  Processing, storage, transport, sale of services, or sale of goods which are sold or traded in interstate commerce  Headquarter facilities for one of the above Local Option Municipal Economic Development Act “LB840”

Cities/Villages Population 2,500 (or less) A qualifying business is ANY corporation, partnership, or sole proprietorship Can retail be assisted? Cities between 2,500 and 10,000 population may spend 20% on retail (no more than 40% in one year with no more than 20% in a 5 year period) Local Option Municipal Economic Development Act “LB840”

LB840 Communities *Norfolk *Stromsburg *La Vista Local Option Municipal Economic Development Act “LB840”

Economic Development Certified Community Program

EDCC CRITERIA Benchmarks include:  Organizational capacity  Business Retention & Expansion program (BR&E)  Target market Certification is for five years  Workforce issues  Infrastructure  Local financing  Building and site availability  Local website  Location One Information System (LOIS)  Nebraska Economic Development Info (NEDI)

EDCC BENEFITS 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 tax credit points Eligible to apply for investment opportunities in targeted sites

NEBRASKA’S ED CERTIFIED COMMUNITIES

Further Information :

BUSINESS DEVELOPMENT

LOCAL CIVIC, CULTURAL, AND CONVENTION CENTER FINANCING FUND

Background 1999 legislation created the Local Civic, Cultural, and Convention Center Financing Fund…to support the development in Nebraska municipalities of civic, cultural, and convention centers, particularly those that attract nonresidents from outside of the state.

Eligible Projects The fund may be used for the construction of new centers or the renovation or expansion of existing centers. Not to be used for planning, programming, marketing, or advertising.

Definitions of eligible projects

CIVIC CENTER A community center, where residents of a community gather for cultural and social activities of sufficient appeal to attract many nonresidents. May include areas for physical recreation, it is not primarily a gymnasium or sports facility

CULTURAL CENTER A place of intellectual and artistic activity and the works produced by it, which are of sufficient appeal to attract many nonresidents as well as residents of a community. Special libraries, museums, and/or theaters are in cultural centers.

CONVENTION CENTER A meeting place that includes an auditorium or other area for large audience assembly, an exhibit hall, a facility for on- site food preparation and service, a directly connected parking facility or area, and an administrative office, which together attract many nonresidents as well as residents of a community.

Eligible applicants Most Nebraska municipalities are eligible and may apply for a grant in competition with other municipalities

Not eligible… City of Omaha Atkinson, Bancroft, Beaver City, Blue Hill, Brownville, Cairo, Creston, Dannebrog, Firth, Gering, Humphrey, Kennard, Odell, Papillion, Randolph, South Sioux City, Stapleton, Tekamah, and Tobias

Property must be owned and located within the municipality applying for grant Can contract out the operation/management of facility.

Grant amounts No grant should amount to more than 50 percent of the total cost of construction, renovation, or expansion 1:1 match with at least 80% match as cash The minimum amount for a grant request is $20,000

The maximum amount, based on population: Population of 100,001 to 299,999, $1.5 million Population of 40,000 to 99,999, $750,000 Population of 20,000 to 39,999, $500,000 Population of 10,000 to 19,999, $400,000 Population of 1 to 9,999, $250,000

Criteria for Evaluating Grant Applications Attraction Impact Socioeconomic Impact Financial Support Readiness Project location

Grant Schedule Complete and return preliminary application. Final application form sent after 9/15 Final application returned by 10/31 DED will evaluate final application forms soon after they are received.

2009 Annual Report =com_content&view=article&id=2&Itemid=47

For further information… Tom Doering (402)

WRAP UP Q & A Department of Economic Development