10/13/16 Breakout Session II Defining and Designing Collective Placemaking Impacts

Indiana Communities Institute • Ball State University • www.bsu.edu/ici

Primacy of Place andEconomic Resiliency

David TerrellDirector, Indiana Communities Institute

Director of RUPRI Center for State Policy, Rural Policy Research Institute

Ball State University


This Talk• Legacy economic development policy in a

modern context• Re-thinking ED policy in the 21st century• What this means for local officials• The value-added discussion

– operating in a conservative policy environment


The Value-Added DiscussionWe need to answer these questions:

So what?Why?

What’s stopping us?


What Is Primacy of Place?• A community’s strategic decision to

dedicate resources to improving life experiences for residents, businesses and visitors.

• Purposeful policies that focus on building infrastructure and provide services that lead to better quality of place and higher levels of human capital.


Talent• Attraction• Retention• Development


20th Century Economic Development Policy

• Luring investment and jobs• Locally based• Incentives, infrastructure & job training• Assumes people move to jobs• Transactional/commodity mindset


Birth of Manufacturing Firms with 500+ Employees, USA


Figure 1, Share of US Consumption in Goods and Services 1929-2013

Source: Bureau of Economic Analysis, National Income and Product Accounts, Author’s Calculations

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Durable

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Capital to Labor Ratio in US Manufacturing


Indiana’s Manufacturing Paradox

• 88% of U.S. manufacturing job loss in 2000-2010 is due to productivity gains, not to offshoring

• For Indiana in the coming decade: – 125,000 new manufacturing job openings per

year due to turnover and retirements– 70,000 new entrants into the labor force– Skills gaps


Cumulative Job Growth in Footloose/Non-Footloose Firms,

USA


Why did you move here and select your home?

Source: American Housing Survey

1989 1995 2001 2007 20130.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

job

Polynomial (job )

schools & public services


New Paradigms – Job Creation

• Job creation does not necessarily lead to

population growth.

• Capital investment in equipment does not

necessarily tie to greater job creation.

• Most new jobs are not in footloose

industries.


New Paradigms – Footloose?• Most new jobs are not in footloose industries.

• Households have a lot more choices about where to live.

• Most current (traditional) economic development

efforts and resources target footloose jobs (20 th

Century Model).

• The benefits of this model are declining and costs are

increasing.


We should consider…

► Shifting policies towards those that attract households,

which are very footloose.

► These are… school quality, safe & livable communities, and

recreational amenities


21st Century Economic Development Policy

• Luring people (talent attraction, retention,

and development)

• Locally based (traditional ED becomes regional)

• Quality of services, amenity based

• Assumes jobs move to people

• Value-added mindset – “The value proposition”


Key Components of Primacy of Place

– Arts, culture, and tourism

– Community design

– Community collaboration for educational

excellence

– Community well-being

– Municipal governance

– Community readiness for change


Operational Parameters– Collaboration – Non-traditional partners

– Strategic mindset and action

– Regional value-added

– Policies to match stated priorities

– Resiliency mindset

– Meaningful community conversations

(priorities and requirements)


Priorities and TimingFully Integrated Talent

Attraction (Programs &

Capital

Investment)

Amenities Development

(Quality of Place Development)

Education, Social Service ‘Safety Net’

Infrastructure, Safety, & Health


What does this mean? i.e….• Tax policies and local revenues have

changed in the last 30 years – but local tax incentives fundamentally have not.– What is the real impact?

• When the electorate wants jobs…. What do they really mean?– Can we train an electorate?– How do we lead our constituents?


More Questions…• If amenity development is critical, where do

we find the resources?– How do we lead the discussion?– Is there a value discussion that is more

important?• What is the right fit for traditional business

attraction at the local level?• What activity should be regional?• Where does local fit in the regional mix?


Conclusions• Jobs move to where the people want to

live• People want good schools and amenities• Primacy of Place matters• We need to answer the “Whys”• We need to demonstrate value-added

– To our citizens– To our region


Questions?

David TerrellDirector

Indiana Communities InstituteBall State [email protected]

812-599-2201

mailto:[email protected]

Presentations & Public Speaking

10/13/16 Breakout Session II Defining and Designing Collective Placemaking Impacts