HomeMy WebLinkAboutItem 01 Springfield Economic Initiatives AGENDA ITEM SUMMARY Meeting Date: 5/7/2012
Meeting Type:Work Session
Staff Contact/Dept.: John Tamulonis/CMO
Staff Phone No: 541-726-3656
Estimated Time: 15 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Community and
Economic Development
and Revitalization
ITEM TITLE:
SPRINGFIELD ECONOMIC INITIATIVES
ACTION
REQUESTED:
Hear and discuss proposed new economic initiatives for Springfield that emerged
from discussions at the last TEAM Springfield meeting.
ISSUE
STATEMENT:
At TEAM Springfield January 28, 2012, the Springfield Chamber of Commerce
and NEDCO described each organization’s activities and a desire to do additional
programs in Springfield to help turn around the local economy in useful and
effective ways. The two organizations have been working with the TEAM
Springfield partners and propose new local economic initiatives described in
Attachments 1 and 2. The programs expand the growth opportunities in two
significant ways for existing firms: first by identifying, targeting and attracting the
most likely firms that would thrive here with our strong industry clusters and our
local assets, and second by assisting existing smaller firms with 30 or fewer
employees so they may grow substantially beyond their current size.
ATTACHMENTS:
1: Chamber’s Targeted Business Investment/Employment Recruitment
2: NEDCO’s Business Assistance Program Proposal
DISCUSSION/
FINANCIAL
IMPACT:
These efforts are more directly ‘hands-on’ for the targeted firms and are in addition
to Council actions to improve the general conditions (like processing of new
development applications), incentives (like reducing Systems Development
Charges by the City and Willamalane), and other actions (like approving the
Glenwood Refinement Plan, Downtown Urban Design Plan, Main Street Program)
to give a boost to the local economy and, in particular, to new development that
could create jobs locally.
NEDCO would look to funding primarily through TEAM Springfield ($20,000) and
the City ($15,000 Opportunity Fund). The Chamber would self-finance its efforts.
TO: Springfield City Council
Springfield Economic Initiative Partners
FROM: Dan Egan, Springfield Area Chamber of Commerce
RE: Targeted Business Investment/Employment Recruitment
Attracting new and expanding businesses to locate and grow in Springfield needs to be part of
Springfield’s economic development strategy. Recruitment of new businesses requires a focused and
targeted campaign that is based in our strengths as a community and the strength of our existing business
clusters.
Successful recruitment will mean more jobs and more investment for Springfield, and will help to
continue to diversify and strengthen the overall economy. The Springfield Area Chamber of Commerce
embraces this strategy and proposes to move forward with an aggressive campaign to recruit to our area
– an activity that is not being pursued effectively today.
THREE COMPONENTS TO EFFECTIVE RECRUITMENT
There are many elements and aspects to successful recruitment, but simply put, most of the activity falls
in three components that lead to the best hope of success.
Research – The Local Economic Scan
In this phase, the information that would fully and totally assess our community, our business base,
workforce, livability, taxes, power, recreation – everything that is important information and knowledge
to the relocating/new business - will be gathered and analyzed.
The Economic Scan will be periodically updated as data changes, and it will go far in creating an
accurate SWOT (Strength/Weakness – Opportunity/Threat) analysis of our present economy and
community.
Qualifying Our Clusters
In this phase the segments of our current economic base are analyzed. They are rated as to their
potential identification as a “business cluster” – a cluster that could and would produce more investment
and jobs if cultivated and used to attract new businesses into that cluster. In addition, Springfield’s
ability to compete in that cluster will also be researched and analyzed. In the end, through research and
many conversations with leaders within our clusters, one or two or more will be identified as segments
of our economy that have “targets” – targets at which we aim our very focused efforts in recruitment.
Implementation
With a solid handle on our current condition, and with the knowledge of our most competitive cluster(s),
the effort begins to market to that target, to get into the competitive game, and to continue to educate
ourselves about the critical decision points and how we can measure up to metrics relocating and new
businesses are using to make location decisions.
We are confident that, with an ongoing and dedicated effort, the result will be more business investment
and employment as many more companies come to call Springfield their home.
Attachment 1
Attachment 2
Business Assistance Program Proposal: Springfield Economic Development Initiative
Goal: The Springfield Business Assistance Program will provide resources, training and capital to small
businesses to help them expand past their current business model capabilities which will provide a boost to
the Springfield economy through increased jobs and investment. NEDCO will provide a program which will
first, assess the need of small businesses in Springfield, and second pair the Springfield businesses with the
necessary tools to grow their business opportunities.
Target: Springfield businesses with 30 employees or less
Program Components:
1.) Training
Business Growth Workshop
Entrepreneurship Boot camp
2.) Staff Coaching
Existing business needs assessment + business assistance plan
Personal financial assessment
3.) Mentoring
Technical project‐based mentors
CEO/strategic mentors
4.) Financial Assistance
Community LendingWorks Referral
5.) Networking
Peer to peer meetings
Brown bag presentations
6.) Service Provider Network
Know‐how‐network (operational)
Market experts network
7.) Physical Infrastructure
Access to GIS analysis resources
Partial list of Measureable Outcomes:
• Percent of eligible businesses who pursue and receive startup or growth capital during or after
program participation
• Percentage increase in aggregate revenue
• Change in number of people employed by current and graduated clients‐jobs created
• Square footage of commercial space leased or purchased in Springfield
• Percent of businesses who are open five years post‐graduation