Regulatory Reform, Data Analytics and Local Food Systems: This Month in Economic Development

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Our monthly roundup of the latest news in economic development filtered through a city-focused lens. Reading something interesting? Share it with @robbins617.

boston_1_fullsizeCities like Boston have recently begun a new chapter in economic development by taking an innovative approach to regulatory compliance, creating a win-win scenario in which the community is protected and businesses are encouraged to contribute to a vibrant, healthy economy. (Getty Images)

Grab your scissors, it’s time to cut red tape for local businesses. Whether it’s the dizzying paper trail, inexplicable permitting or licensing requirements, or an arbitrary approval timeline, the local regulatory process is ripe for reform. NLC profiled the three key strategies for untangling the knots of business regulations, and also highlighted how several cities are using a “more carrot, less stick” approach. Mayor Martin J. Walsh wrote a guest blog post for NLC on how he is making Boston more business friendly, including building an online permitting system. The Ash Center at Harvard’s Kennedy School recently launched a comprehensive, online guide to help cities plan out their own regulatory reform initiatives. (Side note, here’s a great article from The Week on other ways cities can support businesses).

Data analytics is driving more effective economic development… There were a couple great stories this past month about how data analytics is improving local government outcomes, particularly for economic development. For example, Transit Labs is partnering with Detroit to use city data to improve inefficient bus routes. Also Louisville and Raleigh are among a group of cities using public feedback on the restaurant review website Yelp to prioritize health inspections for businesses.

…and collecting city data is more valuable than ever. The data analytics movement is creating new dialogue around what is the most effective data for cities to collect and analyze. To this end, Smart Incentives shared advice on how to measure the actual impact of economic development incentive agreements, not just the costs associated with them. The Kauffman Foundation also released a briefing on the four best indicators to measure a city’s entrepreneurial ecosystem. (NLC also has a performance management guidebook for cities).

Pioneering local food systems. Creating a local food ecosystem is a win-win situation for food providers and community member. The city of Portland, Maine, is emerging as a pioneer in the local food system scene. Mayor Michael Brennan developed the Healthy Sustainable Food Systems Initiative a couple years ago pledging that 50 percent of food at public schools, universities, and hospitals will be from local sources. To help other cities create their own local food ecosystems, the Council of Development Finance Agencies (CDFA) recently held a course on financing local food systems (follow @CDFA_Update to find out when it will be offered again).

Local government is still the leader in public sector job growth. This month’s Local Jobs Report found that, once again, local government is leading public sector job growth. Both federal and state governments lost jobs, but local government gained 3,000 jobs in March. Our analysis also reviews monthly employment trends from 2008 to now, and looks at whether or not cities are hiring back public safety positions that were lost after the recession due to budget cuts.

Religious freedom in Indiana? Talk about voting with your feet. In the wake of Indiana Governor Mike Pence’s passage of a controversial new religious freedom law, the business community is responding by cancelling expansion plans and prohibiting travel to the state. Angie’s List, headquartered in Indianapolis, is delaying a planned $40 million expansion set to create 1,000 local jobs over the next five years until the law’s ramifications are made clear. The list of other organizations that are banning activity in Indiana includes major companies like Apple, Salesforce, and Yelp. Meanwhile, Governor Pence is working to clarify the intent of the law, and its supporters are explaining that similar legislation already exists in 19 states without comparable pushback.

For a laugh. Or maybe for a shudder. The city of Austin wants you to visit its cemeteries. No, really. The city is developing a master plan for its burial grounds to turn the abandoned (and perhaps creepy?) spaces into public places where people choose to visit. The city’s plans include gravestone repairs, public programming, and other revitalization efforts.

What we’re reading. HuffPo column on how McDonald’s is fighting Seattle’s new minimum wage law. San Francisco Fed’s analysis of whether or not place-based policies like enterprise zones create jobs. A thought piece from Jerry Newfarmer on why people, not technology, are the unsung heroes of innovation in cities.

(Read the previous monthly roundups from January and February.)

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About the author: Emily Robbins is the Senior Associate of Finance and Economic Development at NLC. Follow Emily on Twitter: @robbins617.