Model based on Colorado city that tripled revenue without tax breaks.

 By Dave Larsen, Dayton Daily News, Staff Writer 9:12 PM Tuesday, November 1, 2011

DAYTON — Local economic development officials are considering a different strategy to grow existing businesses and create jobs that has been successful in other parts of the country.

Economic gardening, an entrepreneur-centered economic growth strategy, was introduced Tuesday to area business leaders at CityWide Development’s second annual economic development dialogue at Sinclair Community College.

The goal of economic gardening is to connect entrepreneurs and expanding companies to resources, infrastructure and information to give them the same opportunities to grow and thrive as large corporations.

The strategy was developed in 1987 in Littleton, Colo., after a major employer left the city. Littleton has doubled jobs and tripled tax revenues over 25 years without money incentives or tax breaks to recruit new businesses, said Mark Lange, executive director of the Edward Lowe Foundation. The Michigan-based nonprofit seeks to accelerate entrepreneurship and its impact on economic development.

“Existing companies are the key for the growth of our economy,” Lange said. “Moving companies from one place to another does not create jobs,” he said.

Expanding existing companies has been the most productive factor in creating jobs in the Dayton area in recent years, resulting in 9,800 net new jobs from January 1993 to January 2009, Lange said.

The economic gardening concept “is a logical next step for our city and our region,” said Shelley Dickstein, Dayton’s assistant city management for strategic development.

CityWide hosted the event with hopes of convincing local community leaders to provide funds for the training and tools offered by the Lowe Foundation, including strategic research teams, said Steve Budd, CityWide’s president.

Initial funding would be $50,000 to $150,000, Budd said. CityWide hopes to start moving forward over the next two to three months, he said.

The economic gardening concept “sounds appealing,” said Al Wofford, president of CDO Technologies, a Dayton-based information technology company. “Those types of services and those types of tools can be very valuable in helping entrepreneurs and firms like CDO to grow,” he said.

At the event, the subject of economic gardening was explored, which is the concept that local businesses drive economies and create jobs in a community rather than the practice of solely recruiting from elsewhere.   The goal of economic gardening is to connect entrepreneurs and expanding companies to resources, infrastructure and information to ensure they are afforded the same opportunities to grow and thrive as large corporations.

“Everyone is talking about how to create jobs in this economy and the Economic Gardening Dialogue, offers some perspective on that important topic. We are thrilled to have the nationally recognized Edward Lowe Foundation principals here facilitating an insightful community dialogue on how to better support second-stage companies,” said Steve Budd, President of CityWide.

The traditional economic development model of attracting businesses by itself may not be sufficient enough to grow economies but blended with proven, newer strategies such as economic gardening is what will help contribute to greater successes in communities.  Steve Budd further adds, “We hope that by offering a venue for discussion, region leaders, business owners, and residents alike, will embrace new ways of thinking about economic development.”

In additional to presentations from Lange and Lewandowski, local business leaders including Al Wofford, President of CDO Technologies, Inc, Shelley Dickstein, Assistant City Manager for Strategic Development, City of Dayton, Jeff Hoagland, President and CEO of the Dayton Development Coalition and Roger Furrer, Market President of First Financial Bank participated in a panel discussion about what is being done to support and nurture Dayton’s business growth.

CityWide, the Dayton area’s leading non-profit economic development agency hosted the 2^nd annual event. Presenting sponsors include First Financial Bank and AT&T.

The History of Economic Gardening

Economic gardening was pioneered in 1987 by Chris Gibbons in the city of Littleton, Colorado.  The new economic model was based on research by MIT Professor, Jim Birch that indicated that the great majority of jobs come from existing small and local businesses within a community. After the relocation of a Littleton major employer, the community felt the erosion of economic development and, under the leadership of Gibbons, began to implement economic gardening practices.   The approach was to grow jobs through entrepreneurial activity instead of economic “hunting”.   By supporting second-stage companies (organizations that have grown past the start-up stage), Littleton began to focus on the basic elements of economic gardening which are:

• providing critical information for businesses to survive and thrive;
• development of  infrastructures that embraces growth and change; including a basic infrastructure, quality of life infrastructures and intellectual infrastructure
• develop connections with organizations, universities, roundtable groups etc

By sowing these seeds, Littleton has captured interest around the country in both larger and smaller communities.  Presently in Littleton, city jobs have doubled and tax revenue has tripled all without money incentives or tax breaks to recruit new businesses.  Other resources and published reports can be found at www.edwardlowe.org and www.littletongov.org/bia/economicgardening/default.asp

About CityWide

CityWide is one of the leading economic development organizations in Dayton. CityWide offers a full range of services, including financing for economic development projects, housing activities, site location assistance, and federal and state financial assistance. CityWide serves as the lead organization on the development, leasing and marketing of Tech Town, Dayton’s premier technology park. CityWide has been instrumental in the revitalization of neighborhoods including Genesis and Phoenix. In conjunction with local partners, CityWide developed the long-term economic development plan, CitiPlan 20/20: Focus 2010 & Beyond for the City of Dayton. Learn more at www.citywidedev.com.

By Lucas Sullivan, Staff Writer Updated 10:59 PM Wednesday, April 13, 2011

DAYTON — General Electric is receiving $8.8 million in public funds, including $1.2 million from Montgomery County and the city of Dayton, to build its $51 million research facility at the corner of Patterson Boulevard and River Park Drive. 

The corporation, one of the nation’s largest, will break ground today on the Electrical Power Integrated Systems Research and Development Center, or EPISCenter. The center could be in operation by the end of 2012. 

In addition to the public funds, GE will avoid paying property taxes or for the building itself because of a 15-year land-lease agreement with Dayton’s economic development nonprofit, CityWide Development, and the University of Dayton, which owns the $2.6 million lot. 

CityWide will own the building and is also helping GE secure new market tax credits worth about $6 million, said CityWide President Steve Budd. 

The cash incentives were part of the deal to lure GE to the site. Dayton and county officials say the incentives are not unusual for such economic development projects when governments are in competition for a project. 

“The trade-off is the growth in our core city and the vitality of the region,” said Deborah Feldman, the county’s administrator. “The investment being made by the company far outweighs our investment, and this was a competitive project with other areas so we feel this was necessary.” 

The deal with GE was brokered before it became public that the company used tax breaks to avoid paying any federal taxes on its $5.1 billion in U.S. profits last year. In fact, GE received a tax benefit of $3.2 billion on its 2010 federal filing. 

GE officials blasted a recent New York Times story about how corporations reduce their tax burdens, saying it implied the company received a refund and did not account for its deductible capital losses. In an email Wednesday, GE said the company paid about $1 billion in 2010 in local, state and federal taxes. 

The city and county agreed to the tax incentives within the past week. The $1.2 million comes on top of the state’s $7.6 million contribution from Third Frontier funds. GE will use the $1.2 million incentive mostly to pay the lease, said Mark Grafton, EPISCenter program manager for GE. The Third Frontier money will be paid through UD and will be used to operate the center, he said. 

The county is giving $500,000 from a $1 million fund for “strategic economic initiatives” established last year and another $500,000 in Economic Development/Government Equity (ED/GE) grant money. The city is giving $200,000 from its development fund. 

The facility will be staffed initially with 10 to 15 scientists and engineers who will focus on developing power systems for aircraft, ships, automobiles and other markets. If successful, GE officials said more than 200 jobs could be added during several years, which could bring additional income tax revenue to the city. 

Tax policy experts said GE is doing nothing illegal by finding loopholes to reduce its tax burden. They said it’s up to the federal government to close those loopholes. 

President Obama has vowed to do just that as federal, state and local governments grapple with huge budget deficits, but has received criticism for naming GE’s chief executive to a council formed to address the issue. 

Ohio is grappling with a $7.7 billion deficit. Republican Gov. John Kasich has vowed he will not raise taxes to solve the problem, and he hopes to lessen the tax burden for business owners. 

It is unclear what GE, which has a large presence in the state, pays in local and state taxes. The numbers are not public record, according to the state Department of Taxation. 

“In 2005, the Ohio General Assembly passed a major tax cut for businesses and individuals that was supposed to cause our tax system to reduce the need for these incentives,” said Zach Schiller, a researcher for the liberal think tank Policy Matters Ohio. “It’s always unclear what the necessity was for these incentives, so one would hope the reasons (for the award) were studied. 

“The real question is how much in (state) Commercial Activity Tax is GE paying? Are they exempt from that?” 

GE officials said they are not exempt from the CAT tax, the state’s tax on businesses’ gross receipts. 

“(GE) paid about $1 billion in 2010 in other state, local and federal taxes in the U.S.,” company officials
wrote in an email Wednesday. “The U.S. tax system is old, complex and uncompetitive. The purpose of the tax code should be that everyone pays their fair share, including GE. But it should also help to promote jobs and competitiveness. It does the opposite today.” 

Contact this reporter at (937) 225-2494 or lsullivan@Dayton
DailyNews.com.

Contact:            Aaron Sorrell, Manager of Housing & Neighborhood Development, 937-333-3670

                             Steve Budd, President of CityWide Development Corporation, 937-853-2520

 The City of Dayton and Good Samaritan Hospital are continuing efforts related to the Phoenix Project, a program created in 2004 to revitalize neighborhoods around the hospital. To date, the partners have contributed $7 million each to the project. These dollars have been leveraged with other resources that have resulted in a $78.2 million investment in the Phoenix Project area.  The project is managed by the CityWide Development Corporation.

 The goals of the project are to retain and support job growth at Good Samaritan Hospital; to improve the quality of life in the neighborhoods surrounding GSH; to improve the appearance and viability of the Salem Avenue corridor; and to add amenities that support vibrant community life.  (View 3-16-11 Video Presentation to Dayton City Commission)

 Mark Shaker, President of Good Samaritan Hospital, said, “The investments we have made through the Phoenix Project have had a positive impact on our operations and services. The neighborhood is truly under transformation.”

 Phoenix accomplishments include: the acquisition and demolition of 100 substandard housing units; a reduction in major crime by nearly 50 percent through a community policing initiative; and the growth of resident leadership. Housing programs offered through Phoenix provide opportunities for homeownership, home repair and lease purchase housing. Since 2005, over $1 million has been leveraged in private investment through these programs. Last summer the project completed construction on 33 new lease purchase homes to offer another housing option for people not quite ready to buy.

 Steve Budd, President of CityWide, stated, “We are encouraged by the transformation we’ve seen within the Phoenix neighborhoods and are excited to continue to offer diverse housing opportunities for families within our community.”

 The project has also forged an important partnership with Dayton Public Schools, which led to the construction of a new school in the heart of the Phoenix redevelopment area. This project will connect by intention the new school to the existing City amenities at Fairview Park and Pool. Through the Phoenix Project, a spray park has been built adjacent to the outdoor pool and this spring a state of the art assessable playground will be built.  This new civic space, known as Fairview Commons, creates greater opportunities for social, civic, educational and recreational opportunities in Northwest Dayton. 

 Dayton City Commissioner Joey Williams said, “The Phoenix Project demonstrates the importance of partnerships and the multiple strategies that are needed for comprehensive community revitalization to occur.”

 Future Phoenix activities include the development of the former school sites within the neighborhoods, continued improvements on Salem Avenue and creating a redevelopment plan for the former Miracle Lane Shopping Center.

 The Phoenix Project area covers four neighborhoods and a significant portion of the Salem Avenue corridor. The neighborhoods are: Fairview, Sunnyview-Catalpa Park, part of the Dayton View Triangle Federation, and part of College Hill.

The tax credits granted by the U.S. Treasury to the Dayton Region New Market Fund can be paired with private investment for real estate, local business and other projects, officials said.

CityWide Development Corp., the city of Dayton’s development arm, is sponsor of the Dayton Region New Market Fund.

“This is a great win for Dayton,” said Steve Budd, president of CityWide. “Through this award we are able to leverage new sources of monies to fund local projects and create jobs.”

Budd said the organization’s application included $50 million in potential projects throughout the region.

A governing board and a process for awarding the credits have been established, Budd said.

A project must be financially viable and poised to be under way within 12 months to qualify for funds generated by the tax credits, CityWide said in a news release.

Of the $11 million in tax credits, officials hope to commit at least half to projects before June 1, when the Treasury begins a new round of applications for the credits, Budd said.

The state’s contingent of U.S. senators lauded the new credits. The local credits were part of $3.5 billion in credits issued through the Treasury program.

“I am pleased to see that the U.S. Department of Treasury shares a commitment to investing in the Dayton region,” Sen. Rob Portman, R-Ohio, said. “By making it easier to create jobs and invest in our communities, the Dayton Region New Market Fund, paired with this tax credit, will have a lasting effect on the region for years to come.”

Sen. Sherrod Brown, D-Ohio, said, “These tax credits will help to generate development in hard-hit communities and spur new job growth and opportunities.”

Dayton, Ohio – CityWide Development Corporation announced today that the Dayton Region New Market Fund, a qualified Community Development Entity that CityWide sponsors, has received an allocation of $11,000,000 from the US Treasury in New Market Tax Credits. (NMTC) NMTC leverage private investment to complete real estate, local business and other development projects in communities with high rates of poverty and unemployment.

CityWide President, Steve Budd said, “This is a great win for Dayton. Through this award we are able to leverage new sources of monies to fund local projects and create jobs.”

The New Market Tax Credit Program (NMTC) was authorized by Congress in 2000 to encourage investment in census tracts located in low-income communities. The Annual Awards of Tax Credits it based upon Congressional Appropriations. To date, Congress has authorized eight rounds of NMTC Allocations.

The Dayton Region New Market Fund Governing Board will look to deploy credits in local projects which are financial viable and can be underway within twelve months. The credits are often used in areas where comprehensive community development is already occurring to leverage other investments in the area. CityWide Senior Vice President, Brian Heitkamp, praised the work of the Board and their commitment to CityWide’s effort to bring new resources to the Dayton region. He said, “Through the NMTC award Dayton has bolstered our ability to attract significant investment capital from the private sector to fund development projects that benefit our businesses and community.”

CityWide was assisted in preparing its application by Ariel Ventures, a national consulting firm located in Cleveland, which provides technical assistance to organization seeking NMTC.

Since 1972, CityWide Development Corporation has played a part in transforming possibilities into reality for Dayton business owners and homeowners. The Mission of CityWide Development Corporation is to provide leadership in the creation and implementation of strategies addressing Dayton’s need for economic growth and viable, attractive neighborhoods. The Dayton Region New Market Fund is a Community Development Entity certified the Community Development Financial Institution of the United States Department of Treasury; the fund is an affiliate of CityWide Development Corporation.

City officials work to resell foreclosed homes

Friday, 10 Dec 2010

What is LEED Certification?
LEED (Leadership in Energy and Environmental Design) certification is the recognized standard for measuring building sustainability. Achieving LEED certification demonstrates that a building project is truly “green.” The LEED green building rating system was developed and is administered by the USGBC, which promotes design and construction practices that increase profitability while reducing the negative environmental impacts of buildings and improving occupant health and well‐being.
The LEED rating system offers four certification levels for new construction projects—Certified, Silver, Gold, and Platinum. These levels correspond to the number of credits accrued in five green design categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor environmental quality.

The CTA’s Certification
The CTA earned the Gold certification because of its highly efficient energy system and envelope design—leading to officially receiving 7 out of 8 possible LEED Credit points for optimizing energy performance. This is equivalent to an annual energy cost savings of over 32% when compared to a conventionally designed building. The building also includes ecologically‐friendly features such as ample natural lighting, energy‐efficient fixtures, and a rooftop garden.
Partners in the CTA building project included CityWide, the City of Dayton, The Architectural Group, Chapel Electric, Heapy Engineering, and Messer Construction.

Next Up at Tech Town

Currently, Tech Town continues to grow, creating opportunities for more companies to become part of Dayton’s technology community. Plans are on track for the campus’ second building, with construction expected to be completed by summer 2011 and leasing now underway.

The $9.1 million, 63,000‐square‐foot multi‐tenant structure, is also designed as a “smart building,” incorporating highly advanced technology features such as integrated HVAC systems, secure and public wireless internet connections, and a variety of environmentally‐friendly “green” elements. This building is also expected to earn a LEED certification.

Tenants in the second building will benefit from:

• Competitive, low lease rates.
• Landlord‐provided tenant improvement allowance.
• Access to leading‐edge work in Aerospace, Sensors, and RFID in progress at WPAFB’s Air Force Research Laboratory and UDRI.
• Commercialization support via Dayton’s four technology business incubators.

Learn More!
To learn more about the CTA’s LEED Gold Certification or to find out about leasing opportunities at Tech Town, contact Steve Nutt, CityWide Senior Vice President at (937) 853‐2539 or snutt@citywidedev.com. Learn more about Tech Town by visiting our new website at www.daytontechtown.com.

For nearly 30 years, CityWide has been providing services including:

• Economic Development
• Community Development
• Strategic Planning
• Business Financing
• Housing Programs
• Site Location Assistance
• Federal & State Financial Assistance

Today, CityWide’s mission remains unchanged as we provide leadership in the creation and implementation of strategies that are driving Dayton’s economic development and improving our neighborhoods.

“CityWide has always been committed to moving Dayton forward, and we look forward to building on this momentum as we work with you on major projects that lie ahead for 2010,” says Steve Budd, President of CityWide. “From construction on Tech Town’s second building, to continuing improvements in the Phoenix Project area, to a new wave of businesses coming to town, CityWide is proud to be a driving force in Dayton.”

About CityWide

CityWide is a private, nonprofit economic development firm located in Dayton, Ohio offering a full range of services, including financing for economic development, housing activities, venture capital, site location, financial analysis, and federal and state financial assistance. Today, the mission of CityWide is to provide leadership in the creation and implementation of strategies addressing the city’s need for economic growth and viable, attractive neighborhoods. CityWide Development is located at 8 N. Main Street, Dayton, Ohio, 45402. For more information on CityWide’s business financing and loan programs and to learn more about the organization, visit www.citywidedev.com.