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Denton 360 - Sept. 2021 - Economic DevelopmentESCITY OF DENTON ECONOMIC DEVELOPMENT Denton Economic Development •Economic Overview •Financing Tools •Strategic Plan •Return on Investment OVERVIEW 3 What is Economic Development? No single definition incorporates all the different elements of economic development for every community. Economic development is a purposeful process that influences growth and restructuring of an economy through policies and programs to enhance the economic well-being of a community. Through economic development, we focus on creating, retaining, or reinvesting capital and human resources in a defined area. The City of Denton Economic Development Department works to: •Expand Denton’s economy through location of new businesses and the retention and expansion of current employers. •Foster Denton’s thriving culture of business, technology, and artistic creation and innovation. •Attract, develop, and retain skilled and talented workers to support existing and future employers. •Build relationships with Denton businesses and residents through outreach, education, and engagement.. Who are Economic Developers? •Financial or economic analysts •Brokers or real estate agents •Business consultants •Workforce developers •Business leaders •Chambers of Commerce •Communicators •Property developers •Elected officials •Bankers and financial institutions •Site selectors •Government employees •Non-profit employees •Private sector employees •Community members •Employers •Job seekers •Industry/trade associations Denton Economic Development Structure City of Denton Economic Development Denton Chamber of Commerce Denton Main Street Association TWU UNT Denton ISD SBDC NCTCWorkforce Solutions of NCT Stoke Denton Business Community Denton County Regional Chambers Small Business Administration Economic Development Administration Denton Economic Development Structure City of Denton Economic Development Denton Chamber of Commerce Denton Main Street Association TWU UNT Denton ISD SBDC NCTCWorkforce Solutions of NCT Stoke Denton Business Community Denton County Regional Chambers Small Business Administration Economic Development Administration Economic Development Partnership History 1987 –The City and the Denton Chamber of Commerce enter into a formal agreement to establish a joint economic development program 1996 –Local economic development sales tax election does not pass 2001 –City Council selects economic development as one of its top priorities 2003 –Strategic plan adopted, organizational plan established, and Economic Development Partnership between the City and the Denton Chamber of Commerce created Denton’s Economic Development Partnership City –Primary Chamber –Primary Incentive negotiation,policy, and administration Fiscal & economic impact analysis Labor and data analytics Development districts Business engagement in City initiatives Relationship building with developers, brokers, and local industry Business recruitment & attraction Business to business networking Private investor relations Small Business Development Center Joint –City Led Joint –Chamber Led Business retention & expansion Technical &advisory support Marketing Business training &education Cooperative Efforts Strategic Plan implementation Workforce & talent development Community engagement Small business & entrepreneurship Regional coordination and partnerships What We’ve Been Up To Thinking About the Future Attracting New Businesses Assisting Existing Businesses Responding to the Pandemic Creating Community Partnerships ✓Adopted a new strategic plan. ✓Studied the Downtown TIRZ performance and possible projects. ✓Assisted with a housing study. ✓Responded to requests for information. ✓Received approval of updated tax abatement and incentive policy. ✓Created and received approval of new tech/entrepreneurship incentives. ✓Formed Denton Business Allies. ✓Revamped BRE program. ✓Shared information and resources with businesses in need. ✓Facilitated expanded information and referral service. ✓Created Business Resource webpage. ✓Developed new agreements with Denton Chamber of Commerce and Denton Main Street Association. ✓Continued support of Stoke Denton. ✓Formed an Economic Development Work Group to focus on working together. Getting Creative ✓Received $28,000 grant from the Texas Commission on the Arts for a memorial to the Denton Women’s Interracial Fellowship. Expanding Programs ✓Expanded Downtown Reinvestment Grant program to make ADA improvements eligible expenses. Helping Startups ✓Created and received approval of new tech/entrepreneurship grants to support growing startups. Financing Tools 11 Economic Development Programs and Tools Texas Tax Code ▪Chapter 311 (Tax Increment Financing Act):is an economic development tool that functions by dedicating future incremental tax revenue (or portions thereof) to public improvements or projects within a defined Tax Increment Reinvestment Zone (TIRZ). ▪Chapter 312 (Property Redevelopment and Tax Abatement Act): is an tool that exempts all or a portion of the property value for real and/or business personal property taxes. Economic Development Programs and Tools Local Government Code ▪Chapter 372 (Improvement Districts in Municipalities and Counties): Public Improvement Districts (PIDs) are an economic development tool used to fund public improvements or infrastructure in a defined area by assessing fees based on benefits received. ▪Chapter 375 (Municipal Management Districts): are created to promote, develop, encourage, and maintain employment, commerce, economic development, transportation, housing, tourism, recreation, arts, safety, and the public welfare in the district’s boundaries. MMDs can collect property taxes or an assessment from property owners. ▪Chapter 380: provides legislative authority that allows municipalities to provide grants or loans to promote economic development. Economic Development Programs and Tools Government Code ▪Chapter 2303 (Enterprise Zones): The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment in economically distressed areas of the State. STRATEGIC PLAN 15 16 CORE RESILIENCY Protect the City’s core economic base and major employers by retaining businesses and providing them with the support necessary to continue doing business in Denton FUTURE FOCUSED Position Denton for future growth by understanding trends and adopting a proactive approach to economic development. INCLUSIVE GROWTH Enhance economic opportunity for all residents by utilizing different strategies that recognize the diverse needs and assets of different communities, especially those in south and east Denton. ENTPRENEURIAL SPIRIT Cultivate the City’s entrepreneurial ecosystem by investing in quality of place and catalyzing innovation that will continue to attract creative professionals to Denton. CULTURAL VITALITY Strengthen Denton’s cultural vitality by continuing to promote arts and music while also marketing the City as DFW’s cultural hub. GUIDING PRINCIPLES 17 ACCELERATE RECOVERY FOSTER GROWTH STRENGTHEN COMMUNITY INCLUSION Coordinate short-term economic recovery efforts from the COVID-19 pandemic by aggregating information, collaborating with regional partners, and allocating resources to top priorities. Attract long-term economic growth aligned with community priorities by focusing on four strategic growth areas: connectivity, creativity, sustainability, and competitiveness. Align economic, workforce, and community development efforts to meet critical community needs and to strengthen community inclusion. GOALS 1 2 3 ACCELERATE RECOVERY 18 1 ▪Economic Recovery Nerve Center Forming a cross-functional team to provide resources and responses related to COVID-19 economic fallout. ▪Taking the Pulse of the Business Community Understanding the short-term and long-term needs of Denton’s business community. ▪Virtual Business Retention Supporting and retaining existing businesses through the economic recovery period. ▪Workforce Collaborative Strategies to coordinate Denton’s workforce and talent pipeline. ▪Inclusive Economic Recovery Targeted provision of support to communities experiencing disproportionate impact from pandemic. ▪Regional Collaboration Continued partnership with regional economic and workforce partners. FOSTER GROWTH IN STRATEGIC AREAS 19 2 Denton is a transportation and logistics hub for the DFW Metroplex. Denton’s unique culture is driven by a growing entrepreneurship and creative community. Denton is positioned to be a global leader in renewable and green technology. Denton will become more economically competitive with planned investments. CONNECTIVITY COMPETITIVENESS SUSTAINABILITY CREATIVITY 20 Denton is a transportation and logistics hub for the DFW Metroplex. CONNECTIVITY MAJOR STRATEGIES ▪Expand business retention and expansion (BRE) ▪Continue to attract new investment ▪Build on existing successes in the Westpark Industrial Park ▪Create a Logistics and Supply Chain Management Center of Excellence 21 Denton’s unique culture is driven by a growing entrepreneurship and creative community. CREATIVITY MAJOR STRATEGIES ▪Launch an accelerator to support the growth of existing companies ▪Create a supportive ecosystem for edtech companies ▪Recruit growing startups in the DFW Metroplex ▪Promote Denton’s creative brand in marketing materials and in the press 22 Denton is positioned to be a global leader in renewable energy and green technology. SUSTAINABILITY MAJOR STRATEGIES ▪Integrate some economic development efforts and incentives with Denton’s Sustainability Plan ▪Target environmentally conscious businesses for attraction and recruitment efforts ▪Adopt Sustainable Development Goals (SDGs) and align metrics ▪Incorporate sustainability efforts into marketing materials 23 Denton will become more economically competitive with planned investments COMPETITIVENESS MAJOR STRATEGIES ▪Dedicate staff and resources to the Cole and Hunter Ranch projects ▪Continue to promote downtown development ▪Incentivize the creation of professional office space ▪Prioritize digital marketing efforts and materials STRENGTHEN COMMUNITY INCLUSION 24 3 ▪Workforce Collaborative Strategies to coordinate and strengthen Denton’s workforce and talent pipeline. ▪Housing Affordability Collaboration with Community Development department to build and preserve affordable housing. ▪“Grow Your Own” Talent Initiative Support of youth career and entrepreneurship programs as well as university graduate retention. 25 Tracking our Progress Coordinate short-term economic recovery efforts from the COVID-19 pandemic by aggregating information, collaborating with regional partners, and allocating resources to top priorities. Accelerate Recovery Foster Growth Strengthen Community Inclusion 1.1 Build a cross-functional team to coordinate resources and response 2A.1 Enhance BRE Program by expanding goals and outreach 2C.1 Connect Denton’s sustainability goals through economic development 3.1 Convene businesses, training providers, and nonprofits 1.2 Take the pulse of the business community 2A.2 Focus on attraction through relationships and external marketing 2C.2 Target environmentally conscious businesses in attraction efforts 3.2 Work the Community Development on affordable housing initiatives 1.3 Provide virtual business retention, support, and assistance 2A.3 Continue developing Westpark industrial area 2C.3 Think globally, act locally by linking sustainable and economic growth 3.3 Create a “grow your own” talent initiative 1.4 Focus on workforce development and the local talent pipeline 2A.4 Create a logistics and supply chain management Center of Excellence 2C.4 Market Denton’s sustainability as a business advantage 1.5 Ensure recovery efforts are inclusive of all communities 2B.1 Connect entrepreneurs, capital, talent, and networks 2D.1 Dedicate staff and resources to Cole and Hunter Ranch developments 1.6 Maintain partnerships and collaborate for regional recovery 2B.2 Increase access to capital and funding for entrepreneurs 2D.2 Focus on investments in Downtown Denton and foster growth 2B.3 Build successful ecosystems and foster collaboration 2D.3 Incentivize development of professional office space 2B.4 Support the growing EdTech cluster through promotion and partnerships 2D.4 Remained focused on keeping up with infrastructure needs 2B.5 Recruit growing startups looking to expand or relocate 2D.5 Use digital marketing channels to tell Denton’s story 2B.6 Promote Denton’s creative brand through marketing and recognition RETURN ON INVESTMENT 26 Net Revenue Report Benefits of the City’s investment of $22 million in tax incentives Net Revenue Report Denton County ▪Since 1999, Denton County has invested $1 million in tax incentives ▪Net property tax revenue from incentivized projects: $7.5 million Denton Independent School District ▪Since inception, Denton ISD has invested $622 thousand in tax incentives ▪Net property tax revenue from incentivized projects: $52.3 million THANKS! Staff Contact: Erica Sullivan Economic Development Program Administrator Economic Development Department 940-349-7731 Erica.sullivan@cityofdenton.com