rose m. washington tulsa economic development corporation tulsa, oklahoma (918) 585-tedc
TRANSCRIPT
Rose M. WashingtonTulsa Economic Development Corporation
Tulsa, Oklahoma
(918) 585-TEDC
www.TEDCnet.com
DISCUSSION POINTS
• About TEDC• The Shoppes on Peoria• FORWARD
TEDC: Intro• not-for-profit, economic development corporation
organized in 1979• CDBG sub-recipient and partner• certified CDFI, SBA micro enterprise lender and CDC • progressive lender to promising businesses• serve small companies that create measurable,
sustainable economic impact
TEDC: Clients• represent most industries• positively impact workforce• fall outside of conventional credit
standards• locate in target areas• are considered disadvantaged
Value of Small Business
Employ just over half of the country’s private sector workforce
Represent 97.3 percent of exporters Represent 99.7 percent of employer firms Locally, hire more LMI individuals Means of economic self-sufficiency for
business owners and employees Mechanism to revitalize LMI communities
Shoppes on Peoria-Overview
Place-centered community, economic and business development initiative
$4 million CDBG-funded retail project in one of Tulsa’s most “studied and planned” LMI areas
Site acquired by City’s development authority 12 years ago to eliminate slum and blight
Site became high priority in 2006 through NTEDI Great location – main corridor, highway access, near
downtown Retail highest and best use
Shoppes on Peoria-Purpose
redevelop LMI area primarily residential in nature
fill opportunity gap & reduce leakage create economic momentum by encouraging
business starts create jobs primarily for LMI individuals restore community hope and pride deliver on promise to rebuild higher quality
version of that which had been demolished
FORWARD©
FORWARD© is a comprehensive economic development system that uses franchising as an approach to creating business starts in targeted communities.
FORWARD©
FRANCHISING
OPPORTUNITIES
REINFORCED
WITH
ASSISTANCE
REWARDS
DEVELOPMENT
Snapshot of Franchises in OK
12,000 franchise establishments 16% of all companies with employees 140,000 direct jobs $3 billion in payroll $9.5 billion in output
Why Franchising as a Strategy?
Economics: job creation, sales tax generation, business growth
Opportunity: minority ownership is greater among franchise businesses; single unit, multi-unit, area development, master franchisor
Variety: more than 75 industries operate within franchising format
Demand: many goods and services needed by public sold through franchises
Why Franchising as a Strategy?
Cost: more affordable means of accelerating business expansion – economies of scale
Access to capital: easier; lenders perceive franchises as less risky with proven practices
Credentials: pre-established; symbol of quality, consistency, service, value
Support: extensive training; capacity building; in business for self, not by self
FORWARD©: The Participants
Satisfactory behavior/values assessment Complete business planning course Be franchise approved or have legitimate business
model Work PT in like business if no industry experience Work full-time in new business Commit 7-10 years at retail site Comply with TEDC lending criteria Agree to monthly coaching, mentoring, technical
assistance and fiscal oversight
FORWARD©: Site I
• To be developed and owned by CBO• Banfield site -- 3 acres at Peoria and Reading
Streets• Single-level, 15,000 square feet of rentable space• Outdoor community gathering and play space• 2 out-parcels for private development• $3,988,805 development and construction costs
FORWARD©
: The Investment
$4,262,305.18
+$150,000 average per business
(loan, equity, some combination thereof)
Outcomes Project built on time and within budget 12 bays, 75% leased, 50% occupied: Little Caesars
Pizza, Sole Mates Shoe Boutique, Cricket Wireless, Tropical Smoothie Café, Oklahoma Wellness Center, UPS Store, Paradise Donuts/Java Daves, Sweet Lisa’s Soul Food, beauty salon
50 jobs created to date, nearly 100% held by local residents
Expected – 100 jobs created and $5,000,000 in direct output annually
Finale
The Shoppes on Peoria and FORWARD brought together the power of human and financial capital to help transform Tulsa’s north community into a vibrant, desirable place where people want to live, work and play.
In partnership with the City of Tulsa, a dozen community based organizations and over a hundred citizens, this project has promoted positive, sustainable impact through geographic-specific economic development.