Economic Development and the Value of Place

Economic Development and the Value of Place

What is Economic Development? 2 6/26/2015

3 6/26/2015

Economic Development Cycle Business Activity Quality of Life Jobs Wealth Income

Economic Development Approaches 1.Retain and grow existing businesses Economic gardening 2 nd stage companies Growth oriented companies Local vs. traded sector 1.Attract new businesses Strong multiplier effects Pay high wages Create additional job growth

Tax Rates and Economic Growth

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What Businesses Desire Land and built space Local infrastructure and local services Labor and entrepreneurship Access to suppliers and consumers

How can Government Support? Developable land and built space Entitlements zoning brownfield redevelopment land assembly land cost write-down building improvements

How can Government Support? Developable land and built space Local infrastructure and local services Building utilities Off site networks reasonable SDCs

How can Government Support? Developable land and built space Local infrastructure and local services Educated and skilled labor force Quality public education Workforce training Placemaking Labor value Diversity in workforce

How can Government Support? Developable land and built space Local infrastructure and local services Educated and skilled labor force Access to suppliers and consumers Regional branding Marketing attributes Encouraging clustering Supply Chain Land assembly

Economic Development Framework Jobs People Housing

New York Times Magazine Recent Headline Source: Kelsey Dake and NYT Magazine

Which one of the following statements comes closer to your point of view?

Response A Response B Focus on making this area a great place to live, with things like our parks, restaurants, public transit, and land use, and it will attract people and business to stay and move here. Focus on creating jobs and attracting business; we need jobs to create a great place to live.

Portland, OR - DHM Survey September 2014 80% 70% 60% 50% 40% 30% 20% 46% 49% 10% 0% A: Placemaking B: Create Jobs Don't Know Placemaking Create Jobs Don t Know Source: DHM Research PGE/PBA Survey, September 2014

Which economic development strategy comes closer to your point of view?

Response A Response B This area can have a strong economy based on small, locally owned businesses. Our economic development priority should focus on developing small, locally owned businesses in the area. This area cannot have a strong economy based on small, locally owned businesses. Our economic development priority should focus on attracting, retaining, and expanding larger businesses that create large numbers of family wage jobs.

Portland, OR - DHM Survey September 2014 80% 70% 60% 50% 40% 30% 62% 20% 10% 31% 0% A: Small Business B: Larger Businesses Don't know Small Business Big Business Don t Know Source: DHM Research PGE/PBA Survey, September 2014

Source: New York Times http://www.nytimes.com/1999/06/09/us/fighting-sprawl-oregon-county-makes-deal-with-intel-to-limit-job-growth.html?pagewanted=print Man Bites Dog

The Portland Paradox 140% Real GMP Per Capita 130% 120% 110% US Metro Average 100% 90% 80% Source: Bureau of Economic Analysis

The Portland Paradox 140% Real GMP Per Capita 130% 120% GDP and Income Disconnect 110% US Metro Average 100% 90% Personal Income Per Capita 80% Source: Bureau of Economic Analysis

The Second Paycheck Percent of Income Willing to Pay for Natural Amenities 4.0% 3.9% 2.9% 2.7% 1.7% Heat (eliminate) Cold (eliminate) 10% + Sun 10% + Slope Closer to Coast Source: Albouy, David. Are Big Cities Bad Places to Live? 2012

Natural Amenities vs. Local Amenities Placemaking Local Amenities Measure value of local amenities though real estate prices - Capitalized value of amenities Difficult to study nationally - Amenities differ regionally - Data collection difficult

Natural Amenities vs. Local Amenities Valued local amenities in numerous markets: Access to Public Transit Walkability Retail Density Education Quality Proximity to CBD Proximity to Parks

Single Family Home Prices Portland MSA 2014 Do not use without permission

Portland, OR - DHM Survey September 2014 Placemaking by Demographic Group REPUBLICAN HIGH SCHOOL OR LESS 23% 33% Mean Response 46% AGE 55+ 40% RESIDENT 10+ YEARS 46% RESIDENT 0-5 YEARS 58% AGE 18-34 61% 0% 10% 20% 30% 40% 50% 60% 70% Source: DHM Research PGE/PBA Survey, September 2014

Creative Class Highly educated business models encouraging creativity Will select location over jobs Non traditional office space or work hours

St. Louis 30 6/26/2015

St. Louis Population Growth 31 6/26/2015

St. Louis Economic Growth 32 6/26/2015

St. Louis Economic Growth 33 6/26/2015

Economic Growth Comparison 34 6/26/2015

Lots of Negative Perceptions 35 6/26/2015

Ferguson 36 6/26/2015

St. Louis County 90 Municipalities 37 6/26/2015

Challenges and Opportunities 38 6/26/2015

Challenges and Opportunities 39 6/26/2015

Some Assets 40 6/26/2015

Policy Questions 1. Placemaking vs. Job Growth 2. Small vs. Big Business 3. Natural Amenities 4. Local Amenities 5. Comparative Advantage

Thank you. Questions? 42 6/26/2015