Economic Development Policy Trends

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Economic Development Policy Trends

• Christopher D. Lloyd
• September 24, 2008

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McGuireWoods Consulting

• Public affairs approach to projects
• Establish long term relationships, not short term
  gains
• Largest firm in Virginia, offices in North
  Carolina, Georgia, DC, Illinois
• Effective national coverage

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Presentation Overview

• Corporate trends
• Policy trends
• Maintaining Delawares Competitiveness

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Corporate Trends

• Increasing internal competition for capital
  investment funds
• Shorter timeframes for corporate decision making
• Acceleration of project development
• Devaluation of tax credits

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Corporate Trends

• More attention to long-term project costs
  (especially property taxes)
• Increased use of internal training resources
• Increased use of out-of-town contractors and
  project managers

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Corporate Trends

• Increased attention to DMBE contracting
• Workforce diversity
• Desire flexibility in performance agreements for
  market fluctuations
• Increasing importance of infrastructure
  incentives

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Corporate Trends

• Commitment to environmental stewardship and
  sustainability
• Rational and uniform environmental laws
• Focus on energy costs

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Policy Trends

• Shrinking budgets (real and nominal)
• Increasingly complex incentives consultant job
  security
• Performance based incentives (grants) instead of
  tax credits
• Ombudsman initiatives

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Policy Trends

• Increasing flexibility in use of training
  funds/delivery platforms
• More local incentives
• At-risk site development and site certification
• Lowering corporate tax rates
• Addressing Big Labor

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Emerging Issues

• Energy and environmental policy and politics
• Impact of BRAC
• Impact of immigration
• Rural Areas the Have Nots
• Transportation gridlock
• Offshore/onshore energy production

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What should you do?

• No two projects are the same, so you cannot
  predict everything
• Show hospitality and flexibility
• Long term partnerships, not golden shovels
• Educate elected officials about the importance of
  economic development to tax base and quality of
  life

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Maintaining Delawares Competitiveness

• Build on reputation of corporate friendly legal
  structure
• Diversify industry base
• Regulatory reform initiative
• Business tax competitiveness study (Delaware is
  ranked 12th highest in nation)
• Invest in infrastructure, training
• Federal procurement strategy
• Increase awareness of Delaware among corporate
  decision makers

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