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Economic Development

            The state of Washington is facing a call to action to strategically position our state and local communities to compete successfully in a changing economy-- sustain our economic vitality and environment,  and increase the wealth and prosperity of our residents and businesses.  To meet this challenge we must differentiate our state from other states by creating communities that are comprehensively prepared for economic development.

The Washington State Legislature recognized this in 2002 when the Economic Development element became a required element of Comprehensive Plans under RCW 36.70A.070 which states:

 "An economic development element establishing local goals, policies, objectives, and provisions for economic growth and vitality and a high quality of life. The element shall include: (a) A summary of the local economy such as population, employment, payroll, sectors, businesses, sales, and other information as appropriate; (b) a summary of the strengths and weaknesses of the local economy defined as the commercial and industrial sectors and supporting factors such as land use, transportation, utilities, education, work force, housing, and natural/cultural resources; and (c) an identification of policies, programs, and projects to foster economic growth and development and to address future needs. A city that has chosen to be a residential community is exempt from the economic development element requirement of this subsection."

Some communities are taking the initiative and creating and adopting this element.  Some counties already have processes and documents that could serve as the economic development element--the Community Economic Development Strategy.  Over the coming months, Growth Management staff will develop a guidebook to assist communities with implementation of this element. Until that time, we intend to provide information and resources to assist communities with their economic development planning.

Economic development begins with information gathering. This falls into five broad categories:

  1. Political Services and activities that are directly influenced by government entities such as taxes and regulations and that will determine the cost of doing business in the community.
  2. Social: Quality of life issues such as housing costs, crime rate, climate education and social and cultural attractions that will have an effect on a person’s lifestyle.
  3. Human capital and leadership the social structures, individuals and groups that provide local leadership, direction and inspiration as well as the "doers" who care and believe in their communities.
  4. Economic: Business, labor and financial information that will help companies understand the competitive environment and assess their ability to succeed in the community.
  5. Physical/Environmental: Basic facilities needed to function as a business entity such as land use planning, transportation, real estate and utilities.

For more details on information gathering and planning consult these sources:

Learning to Lead: A Primer on Economic Development Strategies- Provides a general overview of the major issues related to economic development. The intent of the book is to help decision-makers make informed choices regarding their community strategies.
Published: 1999
Cost: $7.25

Community Wisdom
This light hearted but educational look at economic development provides tips, ideas and thoughts on strategies that are being used successfully in communities around the country. Each page discusses a different subject and is presented in such a way that you cannot help but learn something new and be entertained at the same time.
Published: 2002
Cost: $3.50

An award-winning guide to regional economic data on the Web - a Web site supported by the Economic Development Administration

Gathered information compliments the next activity--asset mapping.   Asset mapping is similar to traditional Strength, Weaknesses, Opportunities and Threats analysis with several significant distinctions. Under the traditional SWOT analysis strength and opportunity factors may not have been linked together. Asset mapping builds relationships between the aforementioned information gathering and planning categories to identify synergies, links and gaps in information, resources or capacity. Asset mapping is a dynamic process.

For more details on SWOTs and asset mapping consult these sources:

  • Part of a series of four workbooks the Laboratory’s Rural Education Program is developing to support community education, the Mapping Community Assets Workbook shows readers how to approach community development from a positive, creative perspective, one that builds on strengths and resources.

Strategic planning is the next step in preparing an economic development element.  There are five elements to a strategic plan. They are:

  • A better understanding of what the community is
  • A sense of what the community desires to be
  • Milestones to determine the progress of the community
  • Clear and effective means for achievement
  • Knowing when the community has succeeded

Strategic planning enables a community to evaluate its present condition, estimate its future situation and develop a strategy that deals with both.  The plan provides the focus that is necessary to carry out the community vision based on quantifiable data and observational analysis based on understanding your strengths, weaknesses and opportunities.

Communities complete a comprehensive strategic plan that includes, at a minimum, the following information:

  • Vision  a statement or set of statements that describe the community’s vision for economic vitality. Ground your vision in the realities of what is possible and what is attainable. Use it as a statement to focus on the future, but mindful of the past and present.
  • Mission: a clear concise statement of purpose for the community that asks the question, ‘Why does your community exist?’  The mission identifies who you are, what you do and what you expect to do-the issues you want to address.
  • Core values: short statements that describe the cultural attributes embraced by the community.   Knowing your community’s core values helps you respond to businesses appropriately by wanting businesses that share the same values growing and locating in your town.
  • Goals: what you strive to achieve for your community. Identify at least four to five major goals. Goals provide guidance. They are mileposts that link your mission, core values, and vision with strategies. Use goals to articulate the overall expectations and intentions of your community. Describe how threats and weaknesses presented in the SWOT analysis will be resolved. Develop short-term goals, a one-year action plan and long-term goals, demonstrating the dynamic between annual and comprehensive planning.
  • Strategies: the initiatives and projects you will undertake in the pursuit of each goal.
  • Objectives: specific, quantified and time-framed performance targets. They provide a measurement of the plan’s success and serve as a reference point in the economic development process. Use Objectives to celebrate milestones. Identify one or two meaningful objectives or performance measures in order to gauge your community’s progress towards goals and the overall vision.
  • Action items: a set of defined action items (projects) and associated target dates. Include the identification of the project sponsors, total project cost, timing (pre-development activities, regulatory issues, including permits, and the investment strategy, including contingencies. Flexible action item means you can change them if factors arise that are beyond your control. Action items should be flexible enough so that you can alter them because of new opportunities or forces beyond state and local control. Include activities that promote on-going evaluation of your work.
  • Budget: Develop a budget, including possible pre-development activities, and contingencies for each action item.
  • Partners: include as many partners as possible to share the work and the benefits of a successful plan. The plan must identify community or regional partners that will help you carry out your goals as well as achieve your mission.
  • Evaluation and outcomes measurement  Build a project level review into your project development strategies, your one year action plan, as well as your long-term plan. This helps you gauge progress and outcomes.

Infrastructure Financing for Small Communities in Washington State- The methods and sources of resources available for infrastructure financing can be confusing, complicated and costly. This manual is intended to help communities make the best decisions possible for their citizens. An extensive list of loan and grant programs is provided as part of the appendix, as well as worksheets to practice calculations and organize community information.
Published: 1999

Journey to Jobs: Techniques for Successful Recruitment and Retention
Provides practical advice from some of the leading site selectors and practitioners in the country. It begins by discussing the assessment of a community and works its way through specific activities such as site development, targeting, marketing, due diligence, and economic impact analysis.
Published: 2002
Cost: $7.65

Keeping Business Healthy, Happy and Local: Business Retention and Expansion Primer
This second edition of the popular 1998 publication has not only new information on partnerships, early warning, surveys and BRE strategies but also two new chapters on workforce and telecommunications. It includes tools, ideas, and checklists that will assist practitioners in expanding and retaining jobs.
Published: 2002, Cost: $11

Organizing a Successful Downtown Revitalization Program Using the Main Street Approach- This 85-page booklet contains answers to many frequently asked questions by communities beginning a downtown revitalization program. Includes step-by-step instructions for goal setting and action plan development as well as sample budgets, By-laws, and roles and responsibilities for board and committee members. Published: 2000

Implementing projects listed in your strategic plan is an ongoing effort that can be assist with resources from the following sources:

The Infrastructure Assistance Directory
An on-line database of Infrastructure Assistance Programs provided by the Infrastructure Assistance Coordinating Council.

This section of Growth Management Services website will be updated periodically. For additional information and assistance contact:

Senior Planner, Economic Development Emphasis
CTED, Growth Management Services
P O Box 48350
Olympia, WA  98504-8350
360.725.3065 -- phone
360.753.2950 -- fax
 
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