Agenda - 01-10-1994 - Laserfiche WebLink

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MEMORANDUM TO: Board of County Commissioners John Link, County Manager Geoffrey Gledhill, County Attorney Ted Abernathy, Economic Development Director Beverly Blythe, Clerk to the Commissioners FROM: Marvin Collins, Planning Director DATE: January 7, 1994 SUBJECT: Cost-Benefit Analysis - Economic Development Districts Work Session COPIES: Planning Board Economic Development Commission At the December 21, 1993 and January 4, 1994 meetings of the Board of Commissioners, a question arose as to whether cost-benefit studies should have been undertaken as part of economic development initiatives,and,if so, in what time frame. This memorandum provides an explanation of the evolution of cost-benefit to fiscal impact analysis,provides examples of the use of a spreadsheet template developed to evaluate the fiscal impacts of non- residential development (see Attachment A), and presents scenarios comparing residential and non-residential development of the same tract. As requested by the Board, copies of articles concerning the fiscal impacts of development are also provided in Attachment B.This memorandum does not attempt to revisit every step or point of discussion taken or considered along the seven-year path. THE EVOLUTION OF COST-BENEFIT ANALYSIS To understand the origins of the term "cost-benefit analysis" as used in the context of economic development initiatives, it is best to review the development history of the Economic Development Strategic Plan and the implementation steps taken in response to it. Strategic Plan.Perhaps the central issue surrounding cost benefit analysis is what was intended by Challenge 1 and Strategy 1.1 as identified in the Strategic Plan. I. Identify Target Industries and Appropriate County Areas for location Identify appropriate industry for each area of the county, based on an evaluation of the effect/impact of industrial development: This evaluation can also be used to insure effective utilization of resources and as input into the program to educate the public. Stratm 1.1 Cost-Benefit Analysis. Conduct a cost-benefit analysis of industries. - To develop a data base for educating the public, and - To develop a target list of industry. (look at both primary and secondary effects.) Implementors: County Government(Tax&Finance Offices) Economic Development Commission/set up advisory group Professional consultant who would support that advisory group Refer to.Economic Development Commission Preliminary Study(February 1988) North Carolina Department of Commerce Agriculture Extension Service Planning Board Response.In responding to the December, 1988 draft of the Strategic Plan.the Planning Board noted the following with regard to Strategy 1.1: