President’s Report: Balancing Economic Development with Community Resources

By: Bob Mundt, President and CEO

Oftentimes we as economic developers struggle with balancing the resources of our communities with the benefits of an economic development project. The Sioux Falls Development Foundation works closely with city, state and utility officials to determine those limitations and stay within those parameters to balance residential, commercial and industrial growth. In short… smart growth.

As an organization, we have developed an “economic impact scorecard” to help us analyze whether a potential industrial prospect or an expansion project is a fit for our resource allocations. The form breaks down the critical elements and needs of the project and measures them against critical measurements to determine overall impact.

Variables we consider:

• Total Expenditures: CAPX for building and equipment to determine potential tax revenues.
• Job Creation: Overall wages and individual salaries (the higher the better).
• Benefits Package: Health and dental insurance, 401K plans, flex benefits.
• Property Tax Revenue: Projected assessed value for the building for tax purposes.
• Community Impact: Impact on infrastructure, schools, housing, support services.
• Risk Assessment: Market and labor stability over time.
• Environmental Impact: Air, water, wastewater, noise, and visual presentation.
• Energy: Balance of energy usage between renewables and traditional; how much are we willing to allocate to a project?
• Current Business Impact: Local suppliers, services and cross business utilization.
• Sustainability: Is it a growing business or a declining business?
• Community Give Back: Will they participate in the “Sioux Falls Way”?

The higher the prospect scores on the assessment the more likely we may be to offer incentives and assistance to locate in the community.

As we see across the country, natural resources including land, water, energy and the workforce are at a premium. Those communities who take a calculated approach to sustainable development will reap the benefits. We believe Sioux Falls and our region are on the right track, and must continue to work together to meet the critical needs of the future.