Making it in Massachusetts:Tools for Cities to Attract and Retain Businesses

Special thanks to today's sponsor:

Project TeamPrincipal Investigators David Soule, Ph.D. Senior Research Associate, Center for Urban and Regional Policy

Shelley McDonough, Sociology Department and Kennedy School of Government, Harvard University

Barry Bluestone, Ph.D.Russell B. and Andrèe B. Stearns Trustee Professor of Political EconomyDirector, Center for Urban and Regional Policy, Northeastern University

 

Research Associates Charles Coffin, Center for Urban and Regional Policy

AcknowledgementsAttleboro

Kevin J. Dumas, MayorMichael Milanowski, Attleboro Redevelopment Agency

BrocktonJohn T. Yunits, Jr. MayorNancy Stack-Savoie, City Planner

ChelseaJay Ash, City Manager

FitchburgDan H. Myott, MayorDaniel Curley, Fitchburg IDC

HaverhillJames J. Fiorentini, MayorWilliam Pillsbury, Community Development Director

HolyokeMichael J. Sullivan, MayorJeffrey P. Hayden, Director, Office of Economic and Industrial Development

LawrenceMichael J. Sullivan, MayorFrederick Carberry, Community Development

New BedfordFrederick M. Kalisz, Jr., MayorRobert Luongo, New Bedford Economic Development Council

PittsfieldJames M. Ruberto , MayorDeanna Ruffer, Community Development Director

RevereThomas Ambrosino, MayorFrank Stringi, Community Development Director

SpringfieldCharles V. Ryan, MayorRobert O’Brien, Senior Financial Advisor to the Mayor

WorcesterMichael O’Brien, City managerJulie Jacobson, Assistant City Manager

Financial and Program Partners in Phase 2

NAIOP FoundationMassachusetts Chapter of NAIOPNSTAR12 cities Executive Office of Environmental Affairs -- Smart Growth Technical Assistance GrantOffice of Commonwealth DevelopmentMassachusetts Department of Business and Technology

Fundamental Proposition

Cities have the ability to create their own destinies, but they can benefit from having

sophisticated partners to help them develop the tools and information needed to compete

successfully.

Deal Makers

Deal Breakers

Action Steps

Deal Breakers/Deal Makers1. The economy is changing so fast, we need to work

together.Self-Assessment Tool

2. Cities suffer from negative perceptions.Website Evaluation

3. City sites have problems.Overlay Districts

4. The permitting process is a stumbling block if it is unpredictable.Pre-Permitting

5. Money is important (incentives) but not until the deal is ready.District Improvement Financing

Lead Actors

State GovernmentsCity GovernmentsRegional AgenciesBusinessUniversitiesPublic/Private Partnerships

What did we do?Survey 4,000+ corporate real estate and development professionals on location decisions:

NAIOP (National and Massachusetts Chapter)CoreNet Global

Strong consistent response

2 parts to the survey:Rate importance of 34 factorsOpen-ended section

What topics did we ask about on the survey?

Permitting ProcessesLaborDevelopment and Operating CostsBusiness EnvironmentTransportation and AccessQuality of Life/Social Environment

Which of the 34 factors received the highest scores?

On-site parking

Rental rates

Availability of appropriate labor

Timeliness of approvals and appeals

Which of the 34 factors received the lowest scores?

Municipal minimum wage law

Access to rail

Informative municipal website

Strong trade unions

When asked what they thought was most critical, what did respondents tell us?

Proximity to major highways, airports, and transportation routesRents, land costs, and lease costsAvailability of appropriate labor poolPermitting, approvals, and appeals processesAmenities and services nearbyPro-business/development friendly city

What does all this mean to cities?

The usual suspects (taxes, incentives, etc.) aren’t necessarily the most important.

There are a number of factors that matter to firms that cities can do something about (permitting, attitude).

What does all this mean to cities?

There are things that matter to firms making location decisions that are tougher for cities to address directly (labor, location), but cities need to recognize them and develop strategies to deal with them in order to win.

What does all this mean to the commercial real estate industry?Cities are attractive opportunities for development.They need help staying on your radar screen.They need to partner with you to compete in the 21st century.With your practical advice and insight, cities can tailor effective responses to opportunities in different sectors.

Where do we go from here?Self-assessment tool for cities

Evaluation of city websites for information required by location specialists

21st century economic development training seminar for municipal professionals and policy officials

How can others help?

Appendix: Survey ItemsPermitting Process• Predictability / clarity• Timeliness of approvals / appeals• Permitting ombudsman• Zoning by right• Fast track permitting• Municipal reputation for economic development• Municipal website• Awareness of strong neighborhood organizations

Labor• Availability of appropriate labor pool• Competitive labor costs• Existence of municipal minimum wage law• Existence of strong trade unions

Development / Operating Costs• Property tax rates• Local tax incentives• Land costs• Rental rates• Quality / capacity of infrastructure• Brownfield contamination

Business Environment• Critical mass of similar firms in area• Municipal reputation as a good place to work• Proximity to research institutions and universities

Transportation & Access• Public transportation• Onsite parking for employees• Access to major highways / airports• Access to railroads• Proximity to restaurants and shops in area• Traffic congestion• Undesirable abutting land use

Quality of Life / Social Environment• Municipal reputation as a good place to live• Affordable housing for employees• Crime rate in the area• Physical attractiveness of area• Availability of cultural / sports amenities• Quality of local primary and secondary schools