How Do We Navigate the Economic Development Incentive Roadmap?
o matter your industry, there are a lot of factors to consider for the site selection process. That’s why it helps to work through the process with smaller objectives. Utilizing a clear checklist can help you analyze all of the quantifiable data and find your best long-term location fit. Our proven roadmap for economic development incentives makes it easy to establish a strong community partnership and productive outcomes.
Exploration and Site Selection
When you are unfamiliar with the process, site selection can seem overwhelming at first. Breaking it down to three different stages and a series of steps can help you understand where you will be headed.
- Identify Finalist Project Sites
- Complete Location Modeling Analysis
- Analyze Available Incentive Tools
- Site Selector Conducts Field Work and Negotiates Incentive Packages
- Company Selects the Project Site
In the beginning, your site selector will help you hone in on a short list of your finalist project sites based on key criteria. These will be determined based on a variety of data points, including workforce availability and quality, real estate, tax climate, and infrastructure. After that, you will need to review the local, regional, and state level incentive tools that can benefit your project. An open dialogue with your site selector will help you narrow your focus.
Once you have chosen your top finalists to locate the project, your site selector will conduct the final negotiations with the appropriate economic development representatives. Those finalist communities will then present their incentives package in an effort to win the project. Based on the location modeling analysis and incentive details, you will be able to select the best site and advance to the next stage of development.
Project Review and Approval
Typically, the incentive tools offered for your project require a formal approval process. The next steps of your economic development incentive roadmap involve the site selector preparing these submissions and presenting your plans to the approval bodies.
- Submit Incentive Program Applications
- Secure Approval for Incentive Program Applications
- Execute Incentive Agreements
Every community, region, and state has its own system for approving incentive awards, so your company project team will have to pay careful attention to what the approval bodies are specifically looking for when incentivizing projects. A close collaboration with your site selector is critical to successfully navigating this stage of the process. Once your project receives incentive award approvals, you will likely need to sign an agreement that memorializes the commitments of the company and governmental entity to one another.
Reports and Economic Benefits
The final stage of the process is to see your project through to completion and ensure that your company receives all of the economic development incentives that it is entitled to based on performance. Some projects may receive support at the project onset. Others will receive their economic incentives as the project moves forward and/or when the terms have been met at the project’s conclusion.
- Project Incentives Received (at onset and/or over time)
- Company Begins Operations
- Annual Incentive Compliance Reporting
- Incentive Process Completion
Your annual compliance reporting will be a crucial part of your project’s success. You may also need to submit reports on a quarterly or semi-annual basis, depending on the requirements of the incentive agreements. Additionally, there may be some post-completion compliance reporting requirements. Detailed organization and partnership with your site selector will help streamline how your benefits are received and managed for years to come.
Let’s Find Your Best Long-Term Solution
If you are ready to learn more about how the site selection process would look for your company’s project, please do not hesitate to contact our globally-recognized team of experts at Ginovus. We are always happy to connect and answer your questions.
With so many factors influencing and impacting your decision, it helps to have a highly-qualified team of professionals on your side. Together, we can ensure that your company has all of the data required to make the best project location decision. The right decision will not just benefit your company—it can have a positive effect upon the local community, region, and state. Let us help you get the best results.
W ith more than 30 years of economic development and site selection experience, Larry Gigerich has served clients all across the United States and beyond. Amidst the uncertainties with the coronavirus outbreak, economic development professionals, business leaders, and...