The Community Role in Economic Development

May 18, 2013

Presented by:Building Quality

Communities

REASONS WHY WE ARE RE-REVIEWING WHAT ECONOMIC DEVELOPMENT MEANS

• Why are we holding economic development workshops for residents?

• In the CID discussion, should community be playing a leading role?

What is Economic Development

“The process of creating wealth through the mobilization of human, financial, capital, physical and natural resources to generate marketable goods and services.” (American Economic Development Council)

What is Economic Development

“The process of creating wealth for the community through the mobilization of human, financial, capital, physical and natural resources to generate marketable goods and services.” (American Economic Development Council)

So, How is Local Wealth for the Community Measured?

• Local Wealth– Property tax– Local Sales tax– Excise tax and fees– Intergovernmental Revenues

• Local Economic Development is traditionally measured by:– Amount of capital Investment (not just nbr of businesses but

the money they invest)– Number of jobs created

When these increase, we call it GROWTH

WHO PROVIDES WEALTH TO GOVT AND WHO USES IT

DeKalb County is 60% residential which means residents should account for 60% of the property tax revenue to local government. However, businesses pay about 55% of tax revenue.

THE FLOW OF WEALTH ON A LOCAL LEVEL

Government

Business Residents

TaxesTaxes

Servi

ces

Services

Jobs

Consumers

What makes Businesses locate to

an area?

Business (Qualifying) Considerations

• Spatial considerations (how many sq ft of space is needed)

• Transportation access and costs• Site improvement costs• Quantity/Density of population• Median Household Income• Infrastructure (Roads, Internet access)• Labor skills and education

Quality of Life (Eliminating) Considerations

• Appearance (beauty, cleanliness, flowers, design such as walkability, standards, ease of use such as benches)

• Infrastructure (water and sewer lines, technology lines and access, roads and streets, transportation, sanitation)

• Services (police, fire, parks, library)• Shopping and Amenities• EducationThis is known as DEVELOPMENT

Growth and Development

Conflict and tension or

Cooperation and Harmony

The Need for a Vision

How Communities Grow Wealth

Exercise I – The Flow of Wealth

Goal: To understand how businesses and the movement of money lead to wealth and services in local neighborhood economies

SAMPLE BUSINESS REVENUE

Partnering People for Economic and Community Development - www.buildingqualitycommunities.com

WHERE YOUR TAXES GO

3/4 OF EVERY

DOLLAR GOES TO

YOUR LOCAL

SCHOOL BOARD

1/4 OF EVERY

DOLLAR GOES TO

YOUR LOCAL GOVT

Partnering People for Economic andCommunity Development - www.buildingqualitycommunities.com

Fulton County Revenues 2010

Partnering People for Economic and Community Development - www.buildingqualitycommunities.com

SAMPLE OF TAXES PAID TO COUNTY GOVERNMENT

Partnering People for Economic and Community Development - www.buildingqualitycommunities.com

Fulton County Expenditures 2010

Partnering People for Economic and Community Development - www.buildingqualitycommunities.com