rickey hayes economic development consultant

Rickey Hayes

Economic Development Consultant

www.retailattractions.com

Every city has retail leakage

New retail growth is good for your community

43,299 other cities are after the same thing

Current economy and development philosophy makes incentives part of development process


Five years ago….62%

TODAY….89% of all retail growth in the local setting has some type of incentive.


Five years ago…

39% Tax Exemptions or Abatements

38% Waiver of Fees

37% Sales Tax Rebates

24% Tax Credits

24% Grants

22% Loans/Loan Guarantees


Washington, D.C. Supermarket in

553,000 Population Underserved Areas

Incentive Package

1. Construction materials and equipment exempted from sales tax

2. License fees exempted

3. Personal and property taxes exempted for 10 years


First Ring Suburb Restaurants

50,000 Population Over 5,000 Sq Ft

No Drive-Thru

Incentive Package

City property tax abatement

30% for 5 years


Suburban City Downtown Retail

202,000 Population District Projects

Incentive Package

All building and permit fees

up to 2% of construction cost


Near Metro City Excessive

47,000 Population Leakage

Incentive Package

Retailer investing $5 million or more,

With annual sales of $30 million or more

50% rebate of city sales taxes for 5 years

And rebate of all development fees


Stand Alone City Upgrade Older

35,000 Population Mall

Incentive Package

A tax credit against the company’s state tax liability of up to 10% of a qualified capital

investment.


Suburban City Facade Upgrades

32,000 Population Downtown

Incentive Package

Grants of 75% of cost

Up to $4,000 maximum


Metropolitan City Downtown Building

102,000 Population Improvement Loans

Incentive Package

Direct loan of up to $50,000

At below market interest rate


What are you trying to accomplish

Define who is eligible and how much

Across the board / deal by deal

Performance standards/contract

Monitoring/penalties policies

Cost/benefit and rate of return analysis


What can cities do?

Assemble land for development

Provide public infrastructure

Make the development process as pain-free and efficient as possible

Develop innovative incentives

Improve internal development processes


Maximize your city’s strengths and minimize the weaknesses

Know what sites are available and pricing for those sites

Know what incentives your city is willing to use and what you can get approved


Clear and concise presentation

Current information

Verifiable information

Reputable third party source

Reasonable/justifiable trade area


Know how to work with:

◦ Site selectors

◦ Brokers

◦ Developers

◦ Leasing agents

◦ Retailers

Smooth development process produces positive outcome

Do what you say you will do


Brand your city to reflect where you are going, not where you have been

Modern logo

Progressive website

Effective marketing materials


Only the city can “pull the trigger” on development projects (not the Chamber or any other organization)

Make your city one that is known for “getting things done”

Smooth decision making process is integral to growth and development


Utilize public/private partnerships

Know your city and sites

Clear, concise demographics

Streamline development process

Strong marketing position

Own your development efforts


This presentation can be found at


Rickey Hayes

Economic Development Consultant

rickey hayes economic development consultant

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