Economic Development Strategic PlanningJim DamicisSenior Vice PresidentCamoin Associates

April 28-29,2016

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Strategic Project/Initiative Identification & Implementationoverview of principal stages of the project cycleproject identificationproject assessment project implementation

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principal stages of the project cycle

identification

assessment or appraisal

implementation

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ways to gather ideas

prior and existing plans and documents

utilizing existing meetings

one-on-one discussions

focus groups

soliciting input through email/social media

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project identification consider range of alternative projects & programs

identify projects & programs in light of:o strategic economic development goalso objectiveso strategies established earlier

broadly evaluate project proposals

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broad criteria Does it help achieve a goal or objective?

Does the community have the resource & capacity to undertake the program?

noteolimit depth of analysis osimply decide if further consideration is

warranted

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project assessment individuals who identify proposals should prioritize project options

stakeholders should establish set of standards or criteriao identify the best possible projects o recognize both the positive & negative impacts

conduct research to assess feasibilityo initial or first phase: assess which proposals to pursue, &

prioritize o second phase: in-depth feasibility study

ingredients for a successful project:

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project worksheets

basic description

relation to strategic plan (in terms of goals)

economic development benefits

regional benefits & issues

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project worksheets

resources available for execution

additional resources required

potential barriers to overcome

conclusions about project feasibility

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project feasibility section

funding

capital cost

required municipal/gov’t body proceedings

government support

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after collecting project information...

quantify information

• tally scores for each program

input data into matrix

• higher scores reflect higher feasibility

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assessing alternatives

priorities impact

feasibility - time- cost-social/political- technical

cost-benefit analysis

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priorities

projects that reflect plans goals & objectives rank higher

review alternatives individually

compare alternativeso likely effects o how well it meets the specific goals

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impactdetermine positive & negative o local economy o regional way of life

all ventures have advantages & disadvantages

estimate degree of impact of each

rank projects with greatest net effects as top priorities

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economic feasibilitytimeo 1-2 year projects rank highero longer completion time increase uncertainty

costo operating expenses and financing capacityo opportunity costs

expensive & time consuming proposals with low returns should be designated low priority

cost-benefit analysis determines economic viability

used to assess a single project or for comparison

can be used to determine most efficient use of

resources

processo identify & calculate costs & benefits o calculate the net impact

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sunk costs

project costs do not include sunk costs

costs, prior to implementation, may includeo existing infrastructureo buildingso serviceso supplies

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benefits all revenue that results from project operation

measured by increase in output or cost savings

examples of project revenues o municipal taxeso fees or charges for services o sale of remaining equipment

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direct & indirect costs

direct costs & benefits result specifically from the project

indirect costs & benefits result because of ripple effects

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social/political feasibility

Rank highly proposals with a great degree of community support from public officials, business leaders, & residents. Social support can make or break a program alternative.

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technical feasibility Can the region handle a project of this magnitude?

Do the right people with the right skills exist in the to carry out the project?

Is the technology available?

Is the experience & knowledge there?

Are the resources available?

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sample vertical matrixCriteria/Proposed Project Project

1Project

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in line with present goalsexploits opportunitydepends against a threatlength of time to measure impactfinancing availablepolitically acceptablehas stakeholder supportnecessary skills/staff/space

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action plans tasks involved

o sequence with respect to other tasks.

who or what organization is responsible for each task

realistic timetables for the completion of different activities

expected impacts or results of the action

funding requirements, including identification of sources

performance benchmarks

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sample implementation matrix

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implementing programs

need for flexibilityo leave room for changes & delayso develop strategy for problem resolution

keeping the plan aliveomarketing, market, marketing

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amending programs & successive planning efforts

revisit & update annually

confirm or adjust

opportunities or threats require immediate actiono new grant program, plant closing, natural

disaster

Jim Damicis, Senior Vice President – Principal - Camoin Associates• Immediate Past President, Northeastern

Economic Developers Association• IEDC, Economic Development Research

Program, International Economic Development Council

• Collaborator – Communities of the Future• 25+ Years Experience in Economic and

Community Development

jim@camoinassociates.comwww.camoinassociates.comTwitter: @jdamicisLinkedin:  www.linkedin.com/in/jdamicisBlog:  www.camoinassociates.com/blog/

• Comprehensive Economic Development Strategies (CEDS)

• Stakeholder Engagement• Workforce Development• Market Analysis & Financial Feasibility• Evaluation & Benchmarking Indicators• ED Communication & Marketing