The following Special Report appeared in the April 2004 issue of Toledo Business Journal. Permission to reproduce this editorial can be obtained by contacting the Editorial Department of Toledo Business Journal at (419) 865-0972.
Unigov Part IV: Economic
development collaboration
Recommendations from a consulting study of economic development efforts in Toledo and Lucas County are pointing toward a Unigov structure of organization. Unigov is an approach to governance implemented in a number of cities and counties around the country designed to improve decision-making capabilities and the utilization of resources.
Separately, Toledo Mayor Jack Ford has initiated discussions with public officials around Lucas County to examine the benefits of a regional approach to governance.
In past articles in this series, the impact and benefits were examined from Unigov efforts around the country as well as those already under way in the region. The benefits that have resulted from the merger of the health departments of the City of Toledo and Lucas County in 2000 were explored in an earlier article in this series. Toledo Metropolitan Area Council of Government’s (TMACOG) process of coordinating hundreds of millions of dollars of investment in sewer infrastructure around the region was explored in an article in this series published in December 2003. This Unigov series can be viewed on our website at www.toledobiz.com.
Economic development consulting study
In 2003, Hammer, Siler, George & Associates, a Baltimore, Maryland consulting firm specializing in public sector strategy studies and the International Economic Development Council were hired to study economic development activities in Toledo and Lucas County. This study was initiated and funded by Regional Growth Partnership (RGP), Toledo-Lucas County Port Authority, City of Toledo, and Lucas County. Each organization has separate staffs that perform various economic development responsibilities. There are also quite a few other organizations in Toledo and Lucas County that are involved in neighborhood development activities and other economic development efforts. As the study was organized, there was a belief that increased coordination and collaboration was critical to advancing economic development efforts. Each of the partners initiating this study indicated at the beginning of this effort that they were willing to accept the recommendations of this joint effort and would avoid “protecting their own turf.”
“This is truly unique in that we have unprecedented cooperation among the leading economic development organizations in this community,” said Harry Barlos, president of the Lucas County Commissioners. “Each of our entities is dedicated to considering these recommendations as a means to build the performance and efficiency of our region.”
County-wide economic development organization
One of the priority recommendations of this study is the creation of a county-wide economic development organization that has full responsibility and authority for economic development.
Currently, while the RGP manages regional economic development marketing efforts and works with private sector clients with specific site needs, it does not have the authority to organize or “package” a project for such clients, assemble land, prepare a site, or other efforts required to satisfy the needs of businesses interested in expansion or relocation of facilities.
The study recommended that a new entity be created called Toledo-Lucas County Economic Development Corporation (TLCEDC). The agency would have a staff of approximately 25 professionals and a budget of an estimated $2.5 million. This recommendation would involve the City of Toledo transferring $1.2 million of its economic development budget and personnel to the new agency. Similarly, Lucas County would transfer $350 thousand, $700 thousand would be transferred from RGP, and $250 thousand from Toledo-Lucas County Port Authority. These figures are preliminary and would be revised as each of the organizations agreed to implement such a county-wide structure for economic development. Other structural approaches were raised which would include an expanded RGP that played a county-wide role with broader responsibility, authority, and funding for economic development. A final determination of the organization and structure of such a county-wide approach is being made by the participants of this consulting project.
The study does suggest that this proposed county-wide economic development organization should be headed by one of the top professionals in the country. RGP has delayed replacement of its former president, Donald Jakeway, who took a position to head the Michigan Economic Development Corporation. RGP has been operating under interim management in order to wait for the recommendations of this consulting study and resultant decisions.
Study recommendations
The timeframe of corporations for selecting sites for expansion projects has been significantly reduced over the past decade. One of the keys to success in economic development is an existing inventory of sites that can quickly be completed for a client. Infrastructure of utilities, sewers, etc. must already be in place. Often, the timeframe of prospective business clients requires that a structure or its shell already be constructed.
One of the weaknesses of the current economic development efforts identified by this consulting study involves the lack of land assembly and site preparation authority. It states: “Both meeting the needs of expanding businesses and being able to offer an attractive range of existing sites to prospective businesses requires that the city and the rest of the county maintain a good inventory of sites and be able to act to achieve sites for a full range of kinds of business users and economic development projects when they arise… This capacity does not now exist and the lack of sites is a serious negative factor.”
Another key finding of the study is that there are too many separate organizations involved in economic development in the Toledo area with unclear roles and with no ability to set common goals and priorities. The study states: “Toledo has an extensive number of agencies and other entities that list economic development as part of their mission and work program. However, the consensus of our extensive economic development interviews confirms our own analysis that there is no organizational strategy to assign and allocate each economic development function to a lead agency with roles of all participating agencies defined and agreed to. The result is inefficiency and under-performance.”
“We appreciate that issue and believe that by coming together, we will be better able to set priorities, remove any duplication of service, and improve the efficiency of our community,” said Toledo Mayor Jack Ford, “Regional cooperation is critical in order for us to become more successful.”
One major economic development strategy initiative reviewed in the consulting study involves creation of new jobs by assisting the expansion efforts of businesses already located in the area. In order to significantly increase efforts in this area, the study recommends that this be a primary function of a county-wide economic development department. “Regular communications, diagnosis of needs, response to needs and continuing follow-up and feedback are the essential components, with priority in staff time allocation related to size and importance of the business,” the study states. “Fully deploying university faculty and other technical assistance resources to work with businesses to keep them at the technology cutting edge in their product development and refinement and production processes needs to be a very important part of the effort.”
At its December 2003 board of directors meeting, the RGP board directed the staff to significantly increase its priority and efforts of working with existing businesses in the region to assist their growth and expansion in order to create new jobs. The consulting study recommends that each of the area economic development organizations combine and coordinate efforts under a county-wide organization to work with businesses already in the region.