Solving Challenges Others Cannot Economic Development s Three-Legged Stool

Solving Challenges Others Cannot Economic Development’s Three-Legged Stool Susan Liberty Vice President, Infrastructure & Economic Development sliberty@mwcllc. com

Three-Legged Stool – Intersection of Communities of Interest Political (Elected Officials) • Identify legislative needs and provide leadership for legislative initiatives • Build citizen and government consensus Economic Development Organizations • Establishes long range plan that anticipates political and economic changes Consultants • Research and identify potential funding sources • Leverage relationships with government entities to bring about buy-in

Three-Legged Stool – Intersection of Communities of Interest Political (Elected Officials) • Need to build grass roots support for a project • Navigate through multiple governmental entities • Underestimated importance – all projects are political decisions • Leadership for legislative initiatives

Three-Legged Stool – Intersection of Communities of Interest Economic Development Organizations • Long-range plan anticipating economic and political changes • Recognition of changing political scene • Determine staffing capabilities • Grassroots strategy for projects • Monitor community image and infrastructure

Continental Corporation • Announced December 2009 • Company background: Automotive Manufacturing • Type of project: Consolidation of manufacturing plant from S. C. to Newport News, Virginia • Expansion of existing facility • Employment: Retain 576 & add 250 net new jobs • Total investment: $159 M • Incentive Package: $13 M

Harris Teeter Corporation • Announced: January 2009 • Company background: Food Chain doing business in N. C. , VA, MD, D. C. & Delaware • Type of project: Distribution Center in King George County, VA • Land purchase – 100 acres • Employment: 350 • Total investment: $101 M • Incentive package: $3 M

Hilton Hotel Corporation • Announced February 2009 • Company background: Worldwide owner and operator of hotels • Type of project: Headquarters Move from Beverly Hills, California • Lease of 125, 000 square feet office space • Employment: 350/425 net new jobs to Virginia • Total Investment: $17 M • Incentive package $6 M

Three-Legged Stool – Intersection of Communities of Interest Consultants • Leverage Local expertise and relationships • Identify incentive trends & optimize for clients • Conduct market analysis • Generate leads and take projects to community • Negotiate with policy makers to create or enhance legislation

Maersk Sealand Shipping Container Terminal • Announced: 2001 • Company background: Largest shipping container company in the world • Type of project: Expansion - building terminal at deepest port on the East Coast • Land purchase - 616 acres • Employment: 175 jobs • Total investment $500 M

Three-Legged Stool – Maersk Sealand • Consultant contacted Economic Development organizations to develop action plan • Consultant identified key political officials to facilitate meetings • Directed legislative funding initiatives on federal, state and local levels • Consultant laid out strategic plan with company officials for securing incentives • Multi-year negotiations for funding for road improvements, rail service, federal funding for dredging of Elizabeth River

Potential project pitfalls – lessons learned • Let the consultants give you political cover – economic development organizations should not be put into the position of requesting appropriations or tax relief • Economic development officials need to scope the opportunity appropriately (determine staff resources) • Changes in Legislatures, Governing bodies, and Administrations need to be anticipated

Mc. Guire. Woods Consulting • • Public affairs approach to economic development projects Establish long-term relationships, not short-term gains Largest firm in Virginia, offices in North Carolina, Georgia, Washington, DC, Illinois, Romania Effective national coverage

THE END Business Expansion Services | Constituency Development | Corporate Social Responsibility & Sustainability | Economic Development | Federal Budgeting and Contracting Advice | Federal Legislative Assistance | Grassroots Contact Program | Issue Advocacy | PAC Consulting | Public Infrastructure Finance | Public-Private Partnerships | Referendum Campaigns | State Government Relations ATLANTA • BUCHAREST • CHARLOTTE • CHICAGO • SPRINGFIELD • NORFOLK • RALEIGH • RICHMOND • TYSONS CORNER • WASHINGTON, D. C. . Susan Liberty, Vice President Business Expansion Services Sliberty@mwcllc. com