1. CONFIDENTIAL www.mcguirewoodsconsulting.com 9 th Annual Focus Northwest Florida Christopher D. Lloyd October 16, 2010 Economic Development Policy Trends Update

2. 2 McGuireWoods Consulting Public affairs approach to projects Establish long term relationships, not short term gains Largest firm in Virginia, offices in North Carolina, South Carolina, Georgia, DC, Illinois Nationwide project coverage

3. 3 Corporate Trends Increasing internal competition for capital investment funds Shorter timeframes for corporate decision making Devaluation of tax credits More attention to long-term project costs (especially property taxes and energy costs) Increased use of internal training resources Increased use of out-of-town contractors and project managers Increased attention to DMBE contracting Desire flexibility in performance agreements for market fluctuations Increasing importance of infrastructure incentives

4. 4 Policy Drivers Polls tell elected officials that “jobs” is the top priority Some recognition that economic development leads to future revenue growth Increased linkages between education and economic development Significant federal resources (ARRA, general federal spending)

5. 5 Policy Developments Conversion of tax credits to performance based grant programs Increased use of state investment “funds” to spur corporate growth Expansion of existing programs to encourage job retention, retraining, new capital investment (absent jobs) Increased use of state funds to leverage local government resources Industry specific incentives – increased targeting Increased flexibility on eligibility criteria

6. 6 Business Expansion | Federal Public Affairs | Strategic Communications & Grassroots Mobilization State & Local Government Affairs | Emerging European Markets Atlanta Charlotte Charlottesville Chicago Columbia Norfolk Raleigh Springfield Tyson’s Corner Washington, D.C. | Bucharest, Romania www.mcguirewoodsconsulting.com THE END