Transcript What does all this mean to cities?

Making it in Massachusetts:
Tools for Cities to Attract and Retain Businesses
Special thanks to today's sponsor:
Project Team
Principal Investigators
David Soule, Ph.D.
Senior Research Associate, Center for Urban and Regional Policy
Shelley McDonough, Sociology Department and Kennedy School of Government, Harvard
University
Barry Bluestone, Ph.D.
Russell B. and Andrèe B. Stearns Trustee Professor of Political Economy
Director, Center for Urban and Regional Policy, Northeastern University
Research Associates
Charles Coffin, Center for Urban and Regional Policy
Acknowledgements
Attleboro
Kevin J. Dumas, Mayor
Michael Milanowski, Attleboro Redevelopment Agency
Brockton
John T. Yunits, Jr. Mayor
Nancy Stack-Savoie, City Planner
Chelsea
Jay Ash, City Manager
Fitchburg
Dan H. Myott, Mayor
Daniel Curley, Fitchburg IDC
Haverhill
James J. Fiorentini, Mayor
William Pillsbury, Community Development Director
Holyoke
Michael J. Sullivan, Mayor
Jeffrey P. Hayden, Director, Office of Economic and Industrial Development
Lawrence
Michael J. Sullivan, Mayor
Frederick Carberry, Community Development
New Bedford
Frederick M. Kalisz, Jr., Mayor
Robert Luongo, New Bedford Economic Development Council
Pittsfield
James M. Ruberto , Mayor
Deanna Ruffer, Community Development Director
Revere
Thomas Ambrosino, Mayor
Frank Stringi, Community Development Director
Springfield
Charles V. Ryan, Mayor
Robert O’Brien, Senior Financial Advisor to the Mayor
Worcester
Michael O’Brien, City manager
Julie Jacobson, Assistant City Manager
Financial and Program Partners in
Phase 2
NAIOP Foundation
Massachusetts Chapter of NAIOP
NSTAR
12 cities
Executive Office of Environmental Affairs -Smart Growth Technical Assistance Grant
Office of Commonwealth Development
Massachusetts Department of Business and
Technology
Fundamental Proposition
Cities have the ability to create their own
destinies, but they can benefit from having
sophisticated partners to help them develop
the tools and information needed to compete
successfully.
Deal Breakers
Deal Makers
Action Steps
Deal Breakers/Deal Makers
1. The economy is changing so fast, we need to work together.
Self-Assessment Tool
2. Cities suffer from negative perceptions.
Website Evaluation
3. City sites have problems.
Overlay Districts
4. The permitting process is a stumbling block if it is unpredictable.
Pre-Permitting
5. Money is important (incentives) but not until the deal is ready.
District Improvement Financing
Lead Actors
State Governments
City Governments
Regional Agencies
Business
Universities
Public/Private Partnerships
What did we do?
Survey 4,000+ corporate real estate and
development professionals on location
decisions:
NAIOP (National and Massachusetts Chapter)
CoreNet Global
Strong consistent response
2 parts to the survey:
Rate importance of 34 factors
Open-ended section
What topics did we ask about on
the survey?
Permitting Processes
Labor
Development and Operating Costs
Business Environment
Transportation and Access
Quality of Life/Social Environment
Which of the 34 factors received
the highest scores?
On-site parking
Rental rates
Availability of appropriate labor
Timeliness of approvals and appeals
Which of the 34 factors received
the lowest scores?
Municipal minimum wage law
Access to rail
Informative municipal website
Strong trade unions
When asked what they thought was most
critical, what did respondents tell us?
Proximity to major highways, airports, and
transportation routes
Rents, land costs, and lease costs
Availability of appropriate labor pool
Permitting, approvals, and appeals
processes
Amenities and services nearby
Pro-business/development friendly city
What does all this mean to cities?
The usual suspects (taxes, incentives,
etc.) aren’t necessarily the most
important.
There are a number of factors that
matter to firms that cities can do
something about (permitting, attitude).
What does all this mean to cities?
There are things that matter to firms
making location decisions that are
tougher for cities to address directly
(labor, location), but cities need to
recognize them and develop strategies
to deal with them in order to win.
What does all this mean to the
commercial real estate industry?
Cities are attractive opportunities for
development.
They need help staying on your radar screen.
They need to partner with you to compete in
the 21st century.
With your practical advice and insight, cities
can tailor effective responses to opportunities
in different sectors.
Where do we go from here?
Self-assessment tool for cities
Evaluation of city websites for information
required by location specialists
21st century economic development training
seminar for municipal professionals and policy
officials
How can others help?
Appendix: Survey Items
Permitting Process
• Predictability / clarity
• Timeliness of approvals / appeals
• Permitting ombudsman
• Zoning by right
• Fast track permitting
• Municipal reputation for economic development
• Municipal website
• Awareness of strong neighborhood organizations
Labor
• Availability of appropriate labor pool
• Competitive labor costs
• Existence of municipal minimum wage law
• Existence of strong trade unions
Development / Operating Costs
• Property tax rates
• Local tax incentives
• Land costs
• Rental rates
• Quality / capacity of infrastructure
• Brownfield contamination
Business Environment
• Critical mass of similar firms in area
• Municipal reputation as a good place to work
• Proximity to research institutions and universities
Transportation & Access
• Public transportation
• Onsite parking for employees
• Access to major highways / airports
• Access to railroads
• Proximity to restaurants and shops in area
• Traffic congestion
• Undesirable abutting land use
Quality of Life / Social Environment
• Municipal reputation as a good place to live
• Affordable housing for employees
• Crime rate in the area
• Physical attractiveness of area
• Availability of cultural / sports amenities
• Quality of local primary and secondary schools