How to plan for economic development

Members of the executive branch and the state’s legislature seem to be marching in step when it comes to creating better jobs for Rhode Islanders, attracting new businesses and helping existing business thrive and grow. The chambers, professional and trade associations and the media support these efforts.

While attention to economic development is growing, members of the business community often take a “wait and see” approach because of past initiatives, where most of the new programs did not create jobs or attract businesses.

Economic development is a shared responsibility. Government cannot create jobs alone, and attract and retain businesses, if the other parties needed to support the economy do not participate. Little will happen without the enthusiasm and leadership of businesspeople and the elected officials of Rhode Island’s cities and towns.

Locally elected officials need to play a role in getting their cities and towns involved in economic development. These officials spend the majority of their time on budgets, property taxes, school funding, approving licenses and other matters. They spend little time on Main Street activities. … This is evident when you listen to local businesses and you drive by vacant office buildings and stores.

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There are five things locally elected officials must do to get their communities more active in economic development.

First, they must articulate a vision of what economic development can do for their community. The process starts with information collected by the mayor, town manager and/or town administrator of the assets and challenges of the community, and the issues and opportunities facing the community, such as changing demographics, tax structure, housing stock and other factors.

From this information, elected officials can set measurable goals and prepare an economic-development plan. Any plan must be approved by all local officials if it is to be implemented successfully. Unfortunately, there often needs to be a cultural change in how cities and towns view economic development. Most view it as an expense rather than as a source of new revenue.

Second, they must set realistic goals that must be discussed in the community. Communication must be ongoing. The city or town should develop and share with members of the community a “scorecard” to report the progress that is being made in achieving the goals, as well as the status of the plan and the impact on retaining and attracting businesses, and creating jobs.

Third, they must establish a structure to implement the economic-development plan. Elected officials must provide the leadership for the plan. Without champions, goals will not be achieved. Resources may also be needed to carry out the plan from state economic-development offices, representatives and senators in the legislature, local chambers and other groups, volunteer committees and local businesses.

Fourth, they must make sure the plan includes both small and big decisions. Economic-development plans deal with everything from signage to changing the tax structure for business, to zoning issues and providing economic incentives for a business to locate in the community. Some decisions are tactical and can be handled at a low level of local government while others require the direct action of elected officials. Big decisions require bold leadership because change is difficult.

And fifth, they must make sure that decisions are implemented quickly. Too many plans end up in file cabinets. Postponing decisions is a way of avoiding hard choices.

Comprehensive plans are prepared every 10 years, while economic challenges and opportunities take place every day. Locally elected officials mistakenly treat economic development as an exercise of gathering information for a comprehensive plan or for applying for an economic grant.

We must demand more from our locally elected officials if we want our communities to be financially healthy without raising taxes. •

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