EDSR INFORMATION 08-08-2011CITY S T R A T E G I E S FOR ECONOMIC D E V E L O P M E N T
INFORMATION
The Role of the Elected Official
One of the most important factors in successful economic development is strong, strategic leadership.
Your community expects that from you as an elected official. Here are 10 things
you should know about economic development to deliver that kind of leadership.
By Katie McConnell
conomic development is about jobs
and future prosperity-two things
that local elected officials and con-
stituents take very seriously. Rare is
an election speech or a campaign
platform that does not focus on the topic,.
especially in today's economic climate.
With that in mind, it is also a complex
policy area that needs long-term vision
and commitment and that suffers from
urgent calls for results, often for under-
standable reasons, like high unemploy-
ment.This makes economic development
especially susceptible to fads and short-
sighted programs.
Given the dueling need for patience
and pressure for results, leadership is con-
sistently identified as a critical factor for
success. Particularly needed are strategic
elected leaders to help develop and
communicate a common vision, provide
committed policy and regulatory support,
and motivate stakeholders into action.
Your role as a city leader
Local officials are typically generalists
out ofnecessity-keeping track of
issues as varied as parking meters, after-
school programs, and redevelopment.
With this in mind, to be a leader for
economic development, the goal is not
to become experts in all the day-to-day
details, but instead to occupy roles that
maximize the position of elected lead-
ers, and partner with other stakeholders
and staff to reach goals.
There is a basic principle that local
elected officials should keep in mind
when thinking about economic devel-
opment-there is no magic bullet or
one-size-fits-all solution for economic
development. Cities and regions have
different strengths and weaknesses, and
importing a "best practice" from one
community wholesale into another
could be a recipe for disaster.What
constitutes success will vary from
community to community based on
different visions and goals.
Ten things to know
Within this framework, the National
League of Cities (NLC) studied success-
ful city practices and interviewed eco-
nomic development professionals, elected
leaders, academics, and business organi-
zations.The goal was to understand the
pieces of information and the roles that
would be most helpful to local officials.
This work produced a list of 10 things
elected officials should know about
economic development. This list can
be useful to local elected officials in
helping them initiate conversations
with key players in the community
about economic development.
The 10 things elected officials should
know about economic development are:
1.Your local economic strengths and
weaknesses. Your community's strengths
and weaknesses, such asquality-of--life
amenities, infrastructure, and workforce,
determine the potential of your com-
munity for economic growth.This
economic profile lays the foundation for
creating a realistic vision and strategic
direction for economic success that is
unique to your community.
With the assistance of your economic
development staff and input from stake-
holders, you can identify factors within
and outside the control of local govern-
ment that impact and shape your local
economy. Identifying strengths and
opportunities is crucial, but local officials
should also pay attention to weaknesses
and potential threats.
2.Your community's place in the
broader regional economy. Competition
for tax base and jobs often puts pressure
on elected officials to go toe-to-toe
with neighboring jurisdictions.The
reality is however that local economic
success depends on regional economic
success. This is particularly true in the
global economy where economic com-
petition is from cities abroad. By working
together, your region can leverage the
collective regional assets versus just
what falls between municipal boundaries.
With a firmer grasp on how your com-
munity fits into the broader region,
you're better prepared to work with
other jurisdictions to share responsibility
for regional economic success.
It is important to note that participat-
ing in regional activities for economic
development may present some political
difficulties with constituents if the local
economic benefits are not well com-
municated. Local officials can work
with staff to craft clear; accurate messages
about how regional economic success
translates into improved employment
opportunities, tax base, or amenities to
your city and the people who live there.
3.Your community's economic develop-
went vision and goals.. A primary chal-
lenge in economic development is
choosing among many competing
priorities and activities. A clear economic
vision and goals are needed to provide a
framework for strategically assessing and
coordinating these efforts.A well-
designed visioning process will surface
an array of ideas, opinions, and objectives
from a diverse group of stakeholders. An
MINNESOTA CITIES JULY-Aucusr 2011
important role for elected officials is to
help bring people to consensus and
agreement on a common purpose that
provides clear direction for local eco-
nomic development efforts.
4. Your community's strategy to attain
its goals. Once the economic develop-
ment vision and goals are defined, it is
important that they guide and determine
your city's economic development
activities.There are many local activities
that can be used to accomplish your
city's long-term economic development
vision.The types of economic develop-
ment policies and tools pursued by
your community will depend on those
permitted by your state, as well as
how your local government perceives
its role in stimulating private sector
economic activities.
Elected officials should also work
with their staff to determine a set of
expected outcomes, the necessary level
of resources (staff and budget) needed
to achieve these outcomes, and perfor-
mance metrics to evaluate and measure
them. In the context of short-term
political cycles, it may be tempting to
stray from the strategy and only con-
sider economic development in terms
of traditional, more tangible successes,
such as attracting a new, large employer.
For this reason, it is important that
elected officials and. staff agree upon, are
committed to, and accurately measure
even incremental economic achieve-
ments.This will allow political leaders
to demonstrate success and champion
all the various ways the community
supports economic activity.
5. Connections between economic
development and other city policies.
When crafting economic development
policies, it is essential to consider how
other city policies support or discourage
your economic development goals.The
scope of economic development, and
the interests and needs of the business
community extend well beyond market
access and transportation networks. For
example, social and professional networks,
education institutions, quality-of--life
amenities, and housing are all important
to your community's economic profile.
Additionally, there is an increased rec-
ognition that improvements in social
and economic equity and the natural
environment are critically important to
long-term economic success.
6. Your regulatory environment. A
community's regulatory environment
directly impacts the ease of doing busi-
ness in a city. For businesses, time is
money, and regulatory process should
allow for timely, transparent, and reliable
resolution of issues. If your city's regula-
tory policies are riddled with delays,
confusing and redundant steps, and
multiple approval processes, a prospec-
tive business may very well choose to
locate or expand. in another community.
To improve your city's regulatory
process, gather input from your business
community about their frustrations and
experiences.Working with your local
chamber of commerce or other local
business organizations may be helpful in
this process. It is also important to be
mindful not to throw the good out with
the bad. Not all development is good
development, and it is important that
your regulatory processes reflect your
long-term economic development vision
to safeguard against detrimental projects.
7. Your local economic development
stakeholders and partners. A group of
diverse stakeholders within and outside
local government contribute to economic
development.These include both large
and small businesses, economic devel-
opment organizations, education insti-
tutions, chambers of commerce, and
many others. Local officials should work
with staff to strategically identify who
needs to be involved on an economic
development project, the resources they
bring to the table, and. how to leverage
the position as an elected official to
motivate stakeholders into action.
8. The needs of your local business
community. It is important for local
elected officials to bring the same com-
mitment and enthusiasm to existing
businesses as they do to new business
prospects. Cities often create incentives
or polity packages to attract new employ-
ers and celebrate a new company with
ribbon cuttings and stories in the local
media. By similarly celebrating local
business accomplishments, you can
show the city's support, increase the
business's profile, and draw attention to
economic development success stories
that often go unnoticed.
Additionally, it is important to reach
out and communicate with your local
business community. Whether through
your local chamber of commerce, orga-
nized events, or visiting businesses indi-
vidually, local officials-can gather input
to help improve local business policies
and demonstrate that the community
cares about the. success of their businesses.
9. Your community's economic devel-
opment message. Strong communication
and a compelling message are vital to
successful economic development
efforts. An economic development mes-
sage that is based on your community's
collective vision and is conveyed. by all
key stakeholders will establish a consis-
tent community "brand" and competitive
identity to the outside world. Local
elected officials can use public speeches,
interviews, and other communications
to rally the community around their
economic development message. Pre-
senting aconsistent message will also
promote confidence in developers,.
business owners, and others who want
to be assured that. their investments in
your community will have broad sup-
port among local leaders, residents, and
key partners.
10. Your economic development stay:
To be an effective leader in economic
development, local officials must be
informed on the economic develop-
ment issues facing their region. To stay
up to date, local officials should forge a
relationship with and communicate.
regularly with the city's economic
development staff.This relationship will
allow you to gain a better understanding
of the economic position of your city,
better articulate goals to constituents
and the media, and make more
informed policy decisions.
For more details, read The Role of
Local Elected Officials in Economic Devel-
opment: 10 Things You Should Know, a
new guide produced by the NLC Center
for Research and Innovation.This
36-page guide is available on the Eco-
nomic Development page (under the
Find Ciry Solutions tab) of the NLC
website at www nlc.org. For more
information about the NLC Center for
Research and Innovation's work on
finance and economic development,
contact Katie McConnell using the
contact information below
Katie McConnell is senior associate, finance
and economic development, with the
National League of Cities. ,Phone: (202)
626-3131. E-mail: mcconnell@nlc.org.
JULY-AUGUST 2011 MSIVNESOTA CCTIES