2015
Comprehensive Economic Development | A New Paradigm for Norfolk Q1/Q2 REPORT TO NORFOLK CITY COUNCIL l PETER H. CHAPMAN l DEPUTY CITY MANAGER
I. The Goals – Growing a Prosperous Economy By Design Long-term growth and development of Norfolk’s employment base and labor force hh A sustainable local economy that: \\ Affords
access to opportunity for all Norfolk residents \\ Fosters vibrant mixed-income residential neighborhoods \\ Supports and expands our tax revenue base \\ Harnesses Norfolk’s competitive advantages as a diverse urban center hh An environment that is favorable for, and invites investment hh A strengthened brand
\\
We are creating an amazing community where people desire to live, work and play
Snapshot of Conditions and their Implications Issues / Threats
hh High/concentrated
poverty hh Limited access to non-traditional capital for business expansions and certain types of real estate transactions hh Declining federal funding (Military – possibly another round of sequestration; HUD – declining support for traditional public housing) hh Contractions in regional economy (highlighted by the fact that Hampton Roads and Detroit were the only metro areas to lose jobs between 2013-2014) hh Flood mitigation/sea level rise
Opportunities / Strengths hh Assets
with national/international draw – Port/ Maritime, Military, but also Healthcare/ Life Sciences and Education hh Cultural amenities hh Distinct urban character – “walkable urbanity” hh Downtown Waterfront hh Transportation/transit infrastructure hh Talented workforce hh Focus on entrepreneurship/innovation hh Designation as one of Rockefeller’s 100 Resilient Cities
A Comprehensive Approach to Economic Development Programming
II. The New Paradigm: Holistic and Multi-Disciplinary Business Development
Revitalization & Redevelopment
Access to Capital & Reinvestment
Attraction, Retention, Expansion
Catalytic Redevelopment Sites
Capital Formation
International Development
Neighborhood Revitalization
Direct Lending
Emerging & DBE Tech Assistance
Downtown Development
Special Initiatives
Workforce Innovation Brokerage of Partnerships
Program & Policy Development
Business Development: Business Attraction, Retention & Expansion Target Clusters hh Healthcare hh Maritime hh Defense
/ Life Sciences
/ Supply Chain
/ Cybersecurity
hh Innovation
/ Technology / Manufacturing
hh Headquarters hh Policy
Associations
hh Creative
/ Artisanal / Film
hh Retail hh Renewable
Business Attraction Core Activities hh Direct
engagement of site and location consultants hh Rigorous research into and targeting of companies exploring relocations hh Responding to solicitations from companies seeking to relocate hh Administration of industry- and sector-specific incentive overlay zones hh Marketing missions in coordination with selected partners
Retention and Expansion Core Activities hh Administration
of financing tools to help address the capital needs of expanding businesses hh Management of a tiered Norfolk First program targeting local employers of all sizes hh Leveraging City and NRHA-owned sites for local company expansions
SWaM Core Activities
Energy/Resiliency
hh Harnessing
the City’s purchasing/procurement for small business development hh Strengthening/managing referral process and links with established technical assistance providers
Revitalization & Redevelopment: Redevelopment of Opportunity Sites in Priority Target Areas Priority Target Areas
Core Redevelopment / Revitalization Activities hh Develop
Requests for Proposals as a means of soliciting developer partners for City or NRHA-owned properties hh Work with property owners to encourage redevelopment of strategic, privately-owned assets hh Develop and implement financing strategies to help bring projects to fruition hh
Potentially Transformational Projects hh St. Paul’s Area hh Military hh Fort
Circle Norfolk
Priority Neighborhood Commercial Districts
Neighborhood Commercial Areas Revitalization: Core Activities
hh Berkley/South Main Street hh Chelsea hh Downtown Arts District hh Five Points hh Ocean View Avenue hh Park Place/35th Street
hh Administration
of loan and grant programs for façade improvement, marketing, etc. hh Technical assistance for small businesses
Financial Services & Reinvestment: hh Direct
lending utilizing federal dollars
Core Activities
hh Underwriting
of “synthetic” and bond-based tax increment financing deals
hh Capital “formation”
and acquisition
(e.g., community development venture capital, tax credits)
hh Broad Creek hh Central Business Park hh Church Street Triangle hh Downtown hh East Ocean View hh Fort Norfolk hh Hampton Boulevard hh Little Creek hh Military Circle hh Newtown Rd./ Kempsville Rd. Area hh Saint Paul’s hh Southside hh Tidewater Drive South hh Wards Corner
Workforce Innovation & Wealth Creation Core Activities: hh Assist
in designing and overseeing adult workforce development programs in partnership with external organizations
hh Conduct
research on philanthropic prospects and help draft funding proposals to support City-initiated or sponsored workforce development and social enterprise programs and activities targeting low- and moderateincome individuals (e.g., vets, public housing residents)
International Trade and Foreign Direct Investment In an increasingly globalized society, Norfolk must compete on the international level to remain competitive and capitalize on new economic opportunities. This requires developing and supporting a community of local exporters, integrating the local economy into the international marketplace and forming strategic, global relationships. International Trade supports the local economy. Businesses that export their goods and services provide more stable and higher wages for their employees than those that only serve the
domestic market. With countries such as China and India expected to experience rapid economic growth and a burgeoning middle class in the coming decades, emerging markets present significant opportunities for local exporters. Participation in the international economy requires the formation of strategic relationships among globally competitive cities. Trade missions and reverse trade missions that connect local businesses to their global counterparts provide a relevant platform for facilitating this important exchange.
III. Potential Signature Programs and Initiatives (A Partial List)
Business Development Attraction, Retention and Expansion OO Partner
with local institutions in the operation of a business accelerator
OO Create
a community development venture capital program
OO Help
launch an institute to advance commercialization of resiliency technology
OO Explore
regional funding model for arts institutions
OO Establish
a film industry recruitment demonstration project
SWaM
OO Create
a capital program for small businesses in growth sectors
OO Establish
a subcontractor’s capital program
Foreign Direct Investment OO Establish
a center to facilitate foreign investment into major Norfolk economic development projects
OO Organize
trade and reverse-trade missions through partnerships including one with United States Trade and Development Agency’s Making Global Local initiative
Export/Import OO Create
and administer an investment product specifically marketed to small businesses seeking to expand their export capacity
OO Develop
and support a community of local exporters via informational seminars about exporting
Revitalization & Redevelopment OO Launch
vacant property rehab program in collaboration with Code Enforcement
OO Create
a citywide community development corporation (CDC) to address brick-andmortar and small business development needs
OO Partner
with banks, area merchants and civic associations to establish one-stop centers for technical assistance
OO Develop
a comprehensive, citywide housing plan that recommends policies, financing strategies and capacity-building measures
Access to Capital & Reinvestment OO Capitalize
New Investment Pools
\\
The Citywide Partnership Fund
\\
Global Initiatives Fund
\\
Norfolk Innovation Fund
\\
Grow Norfolk Fund
Workforce & Wealth Creation Partnerships OO Introduce
one or more asset-building initiatives to the city, and help marshal the resources to bring the program to fruition
OO Implement
program
a social enterprise demonstration