The Difference Between Serving Startups and Scaleups

City leaders have the power to help local entrepreneurs start, scale, and retain their businesses – but each stage of development calls for different tactics.

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Local elected officials have the influence required to pull specific city policy levers and build a supportive environment for small businesses and startups. (Getty Images)

This is a guest post by Penny Lewandowski, a NLC University seminar speaker. The post was originally published here.

In the business arena, one size does not always fit all. Businesses come in different sizes, with different needs, cultures, methods of learning, and ways of communicating. And while it can be tempting for city officials to develop programs designed to serve everyone, this easy-way-out approach can be a quick road to failure – particularly with growth businesses that are often ignored simply because they are perceived as more challenging to serve.

Startups and small businesses are hungry – for information, for basic help, and to be around anyone who has taken the path before them and has lessons to share. Their issues are more operational than strategic, and a one-to-many approach works well since many of them are looking for the same thing. Startups are often willing to accept advice – and they love to network, so the more the merrier.

Second-stage businesses, or scaleups – those with 10 to 99 employees and revenues around $1 million to $50 million – face very different issues that are more strategic than operational. They are expanding their teams and markets and are sometimes in the process of diversifying industries. Scaleups are less likely to accept advice because there is a good chance they’ve already cultivated trusted sources of information.

So who do second-stage businesses trust? Their peers. Demonstrate you appreciate their differences by developing peer-to-peer networks such as CEO roundtables and putting them in front of research experts on strategic growth issues around market identification and expansion, competitor intelligence and digital marketing.

And when it comes to networking, growth companies are more selective. You’ll not likely find them at your after-hours social/networking events. Instead, get them together with a successful third-stage company willing to share their experiences – and watch the room light up. If you’re still stumped on how to serve these folks, just ask them what they need. I’ve seen amazingly innovative programs arise from one question: “What kept you up last night?”

Regardless of who you’re serving, remember the importance of speed to market. By the time you’ve finished your third study and sixth focus group, these folks have moved on to greener and speedier pastures, and you’re not likely to get them back. Gather information, get feedback, and get moving. While a one-size-fits-all approach sounds appealing, your companies will thank you for going the extra mile to understand how different they really are.

Copyright © Edward Lowe Foundation. All rights reserved. Reprinted with permission.

penny_lewandowski_125x150About the author: Penny Lewandowski is a senior consultant on external relations at the Edward Lowe Foundation. She is also a National League of Cities University (NLCU) seminar speaker at the 2017 Congressional City Conference. Click here to send Penny comments; click here to subscribe to her blog.

The City of Wichita Leads the Way in Career and Technical Education

Competing in a global economy demands that we continue supporting manufacturing areas by providing skilled workers with certificates and degrees from qualified community and technical colleges.

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A 2013 report by the Brookings Institution reported that the city of Wichita was one of three American cities which had the largest share of STEM jobs not requiring a four-year degree. (Getty Images)

This is a guest post by Mayor Jeff Longwell. This is the first post in a series about the Mayors’ Education Task Force.

As the mayor of Wichita, Kansas, I have seen the importance of investing in Career and Technical Education (CTE). At NLC’s recent Mayors’ Education Task Force meeting, I emphasized the role of local leaders in developing opportunities for youth and adults to gain meaningful employment in the Science, Technology, Engineering, and Math (STEM) disciplines and technical industries. In Wichita, we have experienced the value of CTE as a conduit for rewarding careers in the fields of automotive maintenance and technology, advanced manufacturing, information technology, climate and energy control, and healthcare.

Wichita is known as the “Air Capital” of the world because of our expansive global aviation supply chain. Many of the early aviation pioneers came from, or have roots in, Kansas. This has enabled Wichita to also pioneer new technologies in advanced manufacturing, such as 3-D printing and robotics.

The specialized technical education required for these jobs often can be completed in a one- to two-year program. It is precisely these career technical education programs that are important to creating a successful and available workforce. Competing in a global economy demands that we continue supporting manufacturing areas by providing skilled workers with certificates and degrees from qualified community and technical colleges.

In 2013, the Brookings Institution reported that the cities of Baton Rouge, Louisiana, Birmingham, Alabama, and Wichita had the largest share of STEM jobs not requiring a four-year degree. This report also found that half of STEM jobs do not require a four-year degree, although they pay 10 percent more on average than jobs with similar educational requirements. This knowledge has been a strength of our local economy for many decades, and it has helped build our industries and improve our citizens’ lives. Cities across our nation could benefit from increased access to quality credential programs and career pathways.

The state of Kansas recognized this several years ago and created scholarships that encourage people to obtain a variety of two-year technical certificates and degrees that help to grow our economy. The Kansas Department of Education prepares secondary students for this opportunity by using the National Career Cluster Model, grouping similar job skills into 16 fields of studies as Career Clusters. By developing structured career pathways, Kansas secondary students can access further education and employment opportunities right after high school graduation. The career pathways offered are developed in collaboration with business and industry leaders to ensure relevant and trade-worthy skills are embedded into the CTE secondary curriculum.

In Kansas, skilled automotive technicians who have completed a two-year education program can often earn six-figure salaries in the industry within the first few years of their career. Even with this reality, we see many industries and companies struggle to find people with the proper credentials and technical education to fill these jobs.

Here in Wichita, we are proud to have a leading example in our Wichita Area Technical College (WATC). This nationally-recognized technical college recently launched the Wichita Promise, a scholarship program that pays tuition and fees for training and certification for specific high-wage, high-demand jobs. Recently launched in 2016, the program works with local employers and provides personal career coaching and a guaranteed interview upon completion. WATC also works with our local high schools, providing students access to low-cost or free college and technical courses before students even graduate from high school.

In partnership with the new presidential administration and CTE advocates across the nation, I believe that adequate funding and marketing strategies can encourage education leaders, high school counselors, students and parents to explore a career and technical education pathway.

The critical requirement is that state and federal lawmakers support access to these opportunities and promote quality one- to two-year career technical education programs for adults and young people graduating high school. City leaders like myself have an important leadership role to play in guiding the momentum of our communities’ economic growth. With CTE, we can help employers find a ready and skilled workforce in our cities and improve citizens’ access to training and education, preparing them for quality, well-paying careers.

About the author: Mayor Jeff Longwell was elected to office in April 2015 and sits on NLC’s Mayors’ Education Task Force. He is a long-time resident of Wichita, having grown up in a west-side neighborhood and attended West High School and Wichita State University. Mayor Longwell began his community involvement as a member of the Board of Education at the Maize School, where his children attended school.

How Cities Can Support & Finance a Culture of Health

What does it take to ensure cities are healthier places to live, learn, work and play? A strategy that engages the right stakeholders.

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Cities can create a Culture of Health by implementing a comprehensive approach that puts the health and well-being of all residents front and center. (Getty Images)

This post was co-authored by Kevin Barnett, Colby Dailey and Sue Pechilio Polis.

When leaders in local government, community development, and the health care system came together to develop a plan for rehabilitating a historic building – the Swift Factory in North Hartford, Connecticut – they viewed the building as a potential hub for community health.

Community Solutions partnered with the city, state, Saint Francis Hospital, and others to engage the community in dialogues about their health needs and concerns. Using resident feedback as a guide, they began the process of designing a building that will serve as a neighborhood hub for job creation, food production and health promotion. “We have the opportunity to reinvigorate one of the poorest communities in Connecticut,” said Rick Brush, CEO of Wellville and Director at Community Solutions. “Support from the city and state government was critical to bring together the collective vision, resources and innovative financing needed for success.”

Now more than ever – given tight budgets and fiscal constraints in cities – it’s critical for leaders and stakeholders to work together. Community anchor institutions such as hospitals are often one of the largest employers in communities and are essential partners in community health improvement efforts. Likewise, community development financial institutions (CDFI’s) also play a key role in financing strategies to improve neighborhoods and ensure better access in vulnerable communities to health improving resources, services and supports.

Here are two specific strategies cities can use to engage with these stakeholders:

Engaging Hospitals as Partners

The following strategies can help city leaders expand the depth and breadth of their existing relationships with hospitals to build healthier communities.

  1. Review Hospital Community Health Needs Assessments (CHNA’s). Give attention to how hospitals define their geographic communities (required by the IRS) and the degree to which their geographic parameters are inclusive of census tracts where poverty and associated health disparities are concentrated. In their analysis of population health dynamics, do they identify disparities by race and ethnicity only, or do they identify the communities where these populations are concentrated? An excellent public access tool to assist in the identification of these census tracts, hospital locations and other relevant factors is the Vulnerable Populations Footprint (VPF) tool.
  2. Compare CHNAs to Other Assessments. Review other assessments conducted by a variety of organizations (e.g., local public health agencies, United Ways, Community Action Agencies, Federally Qualified Health Centers) to identify opportunities for alignment of priorities and programs.
  3. Review Hospital Implementation Strategies (IS). Determine whether the programs outlined in the IS indicate a focus in communities where disparities are concentrated, or are they framed as “serving the community at large,” with broad dispersion of limited resources at the city, county or other broad geographic parameters. This provides an invaluable entry point for dialogue and analysis into ways in which resources of multiple organizations and entities may be better aligned and focused in order to produce a measurable impact.
  4. Focus on the Social Determinants of Health. Develop a matrix of priorities across organizations to identify potential alignment with city efforts to address various social determinants of health, including land use, affordable housing, food systems, transportation, planning with a focus on links to jobs, and livable wages.
  5. Build a Shared Sense of Ownership for Health. In an environment of increased transparency and public scrutiny, it is important to communicate an ethic of shared ownership for health in the engagement of hospital leaders. Communicate an interest in coming together to solve complex problems and optimally leverage the limited resources of diverse stakeholders including nonprofits, community development financial institutions (CDFI’s), city agencies, etc. Hospital leaders need to understand that the city and other stakeholders will be partners in the allocation of resources, including the development of public policies that offer the potential to scale and sustain positive outcomes.
  6. Build Capital to Support Community and Economic Development Projects. City leaders can set the tone for hospitals to consider investments in community infrastructure through tax incentives, loans, assistance with the permitting process, and informing development to ensure it meets the concerns of residents.

Engaging Community Development Financial Institutions

As city leaders look for ways to spur and leverage resources to ensure improvements in neighborhoods to promote improved health and safety, another key partner are Community Development sector actors, including Community Development Finance Institutions (CDFI’s) that bring investment capital and Community Development Corporations (CDC) that bring deep knowledge of a community needs and assets. The Community Development sector is in the leveraging business and can often help stretch limited resources through innovative financing including tax credits (e.g. new market tax credits), investment products (e.g. Healthy Futures Fund), and low-interest loans. As city leaders and staff consider outreach to local CDFI’s and CDCs, some good initial steps include:

Mayors, city leaders, hospitals and CDFIs can leverage and bolster each other’s efforts. By engaging with one another, identifying common ground, and collaborating across sectors, they can join forces to advance health equity and opportunity, creating communities where all people can live rewarding and healthy lives.

About the authors:

kevin-barnett-headshot_125x150Kevin Barnett, DrPH, MCP is a senior investigator with the Public Health Institute. Kevin has conducted applied research and fieldwork on two distinct but related issues: the charitable obligations of nonprofit hospitals and the diversity of the health professions workforce. Email him at kevinpb@pacbell.net.

colby_dailey-headshot-125x150Colby Dailey is the Managing Director of the Build Healthy Places Network and has worked for over a decade spearheading local, national, and global initiatives while cultivating and guiding cross-sector collaborations for collective measurable impact. Email her at cdailey@buildhealthyplaces.org.

sue_polis_125x150Sue Pechilio Polis is responsible for directing the health and wellness portfolio for the National League of Cities (NLC) as part of the Institute for Youth, Education and Families. Email her at polis@nlc.org.

Cities Can Lead National Effort to Get More Young People Working Again

Here are three specific areas in which cities and their partners can continue to demonstrate effective practices, adopt supportive policies, and determine what’s needed to grow initiatives that benefit more youth.

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Working constitutes a critically needed developmental experience, puts money in the pockets of youth and their families to spend locally, and builds social capital that pays off over the long term. (Getty Images)

“A country for all, and all working when able.” If more city leaders were to adopt this vision – along with those of us providing support and assistance at the national level – we could continue to build effective local stair-step responses to a nagging national dilemma: nearly six million youth and young adults between the ages of 16 and 24 remain out of school and out of work, and less than 50 percent of youth work each summer.

As we enter into a new era of national politics, it’s wise to recall that the federal government has a critical role in assuring high quality and fairness nationwide in areas such as housing, health care, infrastructure and the environment, under an umbrella characterized by equal justice, equal opportunity, and improved outcomes for lagging groups. And when it comes to scaling what’s effective or signaling what’s important, the federal government has no peer. Yet the intensity of a presidential campaign and transition taking place in a 24-hour news cycle has a distorting effect worth noting that, too often, obliterates individuals’ sense of agency and conveys instead that “it all comes down to what happens in Washington, D.C.”

In fact, in policy areas essential to getting more young people working, cities and their partners can continue to demonstrate effective practices, adopt supportive policies, and determine what’s needed to grow initiatives to benefit still more youth – with more long-term impact. For instance, three areas to consider:

  • Reengagement of Out-of-School Youth: Over the past several years, mayors and other city leaders across the country have jumped at the opportunity to institute structured approaches to help young people finish school so they can reach the baseline qualification needed just to enter the labor market. Those same leaders also witness the persistently high cost of school dropout and pushout along dimensions ranging from public budgets to neighborhood efficacy. With too many young people still not finishing high school, and concentration of that effect in people of color and low-income communities, cities and towns have plenty of reasons to advocate for and support comprehensive reengagement initiatives. Even as the past year has seen an uptick in federal attention to reengagement, local energy and funds will continue to drive the spread of reengagement beyond its presence in some 20 cities and two states.
  • Summer Youth Employment: Mayors and the cities they lead stand at the vanguard of efforts to reduce the catastrophic recent trend of declining work experience for youth and young adults. Working constitutes a critically needed developmental experience, puts money in the pockets of youth and their families to spend locally, and builds social capital that pays off over the long term. Efforts to grow high-quality local youth hiring initiatives with the all-in participation of city governments and private sector employers might smartly leverage some federal funds, but ultimately will not depend on federal sources. Showing the benefits of bringing a new focus to summer jobs programs, to ensure that young people who need jobs the most get jobs – alternative school students, for example – must begin at the local level.
  • Juvenile Justice Reform and Jail Reduction: Cities have begun to join county and state partners in efforts to hold youth and young adults accountable in developmentally appropriate ways. In keeping with the goal of getting young people to work, reducing justice system involvement and attendant long-tail records removes a potentially significant barrier to employment. For those who do develop records, Ban the Box and similar strategies playing out mainly at the local level hold promise as tools for effective reintegration.

Meanwhile, as elements of city government, police departments have a particularly prominent role in shifting what happens at the first moments of contact between an officer and a young person, in most cases away from an emphasis on arrest and toward increased supports or formal diversion and restorative justice. Federal support could promote continued peer learning and sharing about police training, diversion, and related practices, yet has not proven essential in instituting reforms to date. Building out a robust continuum of supports and services for youth – with the major exception of mental and behavioral health services supported by Medicaid – remains a largely local and locally-funded task, alongside training and support for police officers.

Demonstrated local success in these three areas (and others) will “trickle up” to the state and federal levels.  The portion of the youth development field focused on older youth has at least six million reasons to continue generating such concrete successes.

Andrew Moore About the author: Andrew Moore is the Director of Youth and Young Adult Connections in NLC’s Institute for Youth, Education & Families. Follow Andrew on Twitter @AndrewOMoore.

Kitchen and Farm Incubators Support Access to Local Food Systems

NLC’s newest municipal action guide provides an overview of food incubator programs as well as guidance on how local governments can support these emerging strategies to promote local entrepreneurship and strengthen local food systems.

(photo: A Muse Photography, courtesy of Union Kitchen)

Union Kitchen, a food incubator in Washington, D.C., provides food businesses with a professionally maintained commercial kitchen space as well as services to help grow and accelerate their business. (photo: A Muse Photography, courtesy of Union Kitchen)

As the American Heart Association kicks off national American Heart Month, we are reminded about the importance of accessing healthy and affordable food. Whether it’s from a local grocer, food truck, or farmer’s market, the freshest and most nutritious meals are most often sourced, prepared, and served locally. In addition to the obvious health benefits, there are also economic gains when cities support access to local food systems and local food entrepreneurs. That is why so many communities are supporting food-based businesses, particularly through the creation of food business incubator programs.

For years, co-working spaces and incubator programs have accelerated the growth of technology-based startups. Now, this concept of providing entrepreneurs with shared working space, mentorship, and education is increasingly being translated into food-based business incubators. The type of assistance provided to food entrepreneurs includes access to a shared workspace, education programs on how to run a business, and mentors who can deliver industry-specific guidance.

Kitchen incubators and farm incubators are two programs for food-based entrepreneurs. These food-centric programs support individuals in their efforts to launch or grow a business in the food industry, which could include opening a restaurant, food truck, or catering service, as well as selling products at grocery stores, farmers’ markets, and online.

A new action guide from the National League of Cities, “Food-Based Business Incubator Programs,” provides an overview of kitchen and farm incubator programs, as well as guidance on how local governments can support these emerging strategies to promote local entrepreneurship and strengthen local food systems.

Below is a Q&A with several of the practitioners and experts who helped inform the guidebook. Read on to learn more about why food-based incubators are so important for their communities.

Why are food incubators important?

Cullen Gilchrist, CEO of Union Kitchen: Food incubators allow startup businesses to gain access to the resources, tools, and connections necessary to launch a successful business. At Union Kitchen, we build successful food businesses. We provide the professionally maintained commercial kitchen space that all food businesses need, but we differentiate ourselves by offering the services that businesses need to grow and accelerate their business. Our distribution company and retail outlets reduce the risk of failure for these businesses and supports them in establishing a strong baseline of success. We define our success by the revenues and profits we create, the businesses we grow, the jobs we create, the economic impact we have, and the employment training we deliver.

Chris Hiryak, Director of Little Rock Urban Farming: Food incubators are where the next generation of agriculturally informed citizens will be inspired, educated and instilled with the principles and values necessary to meet the challenge of creating a just and equitable food system in the 21st century.

New York City Department of Small Business Services (SBS): Food incubators provide food entrepreneurs with critical resources for building their businesses. Securing a private space to produce food commercially is a major financial and logistical barrier for start-ups. Financing the renovation of a production space with specific capabilities is even more costly and more of a risk. Incubators help food entrepreneurs avoid these hurdles by providing access to a licensed and regulated commercial kitchen space. This allows these small businesses to scale up to larger orders, receive assistance from qualified incubator staff, and network with other entrepreneurs utilizing the space.

What was the biggest challenge in launching the program/incubator?

Cullen Gilchrist, CEO of Union Kitchen: The greatest challenge has been to create an effective local food system that promotes supply and demand for local products, but that also delivers on the logistics necessary to be a successful operator in the food industry. We are creating the demand and supply for local products through our Grocery stores, and we need our distribution company’s operations to be strong enough to support this demand.

Chris Hiryak, Director of Little Rock Urban Farming: The biggest challenge in starting our urban farm project was learning to manage a small business.

New York City Department of Small Business Services (SBS): Through community outreach, the New York City Housing Authority (NYCHA) identified a trend of residents having food business backgrounds and interest in jumpstarting food-related businesses. At the same time, NYCHA recognized it would need support in gaining the necessary business education, funding, and accessing a regulated commercial kitchen space. SBS was able to address these challenges by creating the NYCHA Food Business Pathways program, in partnership with other key supporters. NYCHA resident participants in Food Business Pathways receive 8 weeks of training on business practices and food industry specific topics. The program teaches participants about kitchen incubators, provides assistance to participants on applying for space in incubators, and offers grants that allow graduates to rent space at the incubators for no cost. Grant funding also covers the cost of required licenses and permits for the training graduates.

(photos courtesy of Union Kitchen)

(left) Chris Hiryak of Little Rock Urban Farming. (center and right) Union Kitchen in Washington, D.C.

How did your local government support or assist the creation of your program/incubator?

Cullen Gilchrist, CEO of Union Kitchen: The local D.C. government has been essential in supporting us through the permitting and licensing process. They have played an integral role in training D.C. residents to work for us and our Member businesses through subsidized training programs and initiatives.

Chris Hiryak, Director of Little Rock Urban Farming: Mayor Mark Stodola of Little Rock appointed me to the Little Rock Sustainability Commission, where as the Chairman of the Urban Agriculture committee, I have been able to make recommendations to the City of Little Rock Board of Directors related to urban agriculture policy. This has allowed us to have an ongoing dialogue with city staff and officials to ensure that all urban agriculture projects in Little Rock are supported.

New York City Department of Small Business Services (SBS): The Department of Small Business Services (SBS) works to help small businesses, launch, grow and thrive in New York City through various services and initiatives. SBS’ Food Business Pathways program works directly with NYCHA to meet the recognized needs of residents. This collaboration grew to include several other entities; Citi Community Development provided funding for the program, the New York City Economic Development Corporation provided funding and connections to NYC kitchen incubators, and Hot Bread Kitchen provided technical assistance and access to their commercial kitchen incubator.

What are one or two success stories of businesses created in your incubator program?

Cullen Gilchrist, CEO of Union Kitchen: Over the past four years, current and alumni Union Kitchen Members have collectively opened and operated nearly 70 storefronts in the D.C. region and have developed over 400 unique products. Approximately one third of our current Member businesses are distributing their products with Union Kitchen to nearly 200 retail locations in the region, including 25 Whole Foods Stores. We have seen our Members grow their businesses rapidly and successfully and are proud to support their ongoing success as distribution and retail partners. One of Union Kitchen’s first Members, TaKorean now has three storefronts and a fourth one on the way in 2017. What started as a food truck peddling unique Korean-inspired tacos has become one of D.C.’s most popular fast casual concepts.

New York City Department of Small Business Services (SBS): Joann Poe, owner of Joann’s Elegant Cakes, participated in the Food Business Pathways program and won a grant that provided her with free use of the kitchen incubator, Hot Bread Kitchen, in Harlem. Use of the food incubator led to Joan building up the capacity of her business which ultimately catalyzed growth and allowed her to contract with clients such as the City of New York, Citibank, and Kate Spade.

About the Author: Emily Robbins is Principal Associate for Economic Development at NLC. Follow Emily on Twitter @robbins617.

How Six Cities Are Pursuing Equity and Innovation in Economic Development

The participants in NLC’s Equitable Economic Development (EED) Fellowship are tackling unemployment, low income levels, and workforce-related issues in their communities – but each city is employing different tactics.

This week, NLC staff is heading to Houston, one of six cities in our inaugural class of EED Fellowship participants. Our plan is to further provide technical assistance to help the city pursue economic development goals. (Getty Images)

This week, NLC staff is heading to Houston, one of six cities in our inaugural class of EED Fellowship participants. Our plan is to further provide technical assistance to help the city pursue economic development goals. (Getty Images)

The need for equitable economic development programs is dire. The National League of Cities‘ (NLC) new president, Matt Zone, councilmember from Cleveland, Ohio, launched a new NLC Task Force on Economic Mobility and Opportunity at City Summit in Pittsburgh towards the end of last year. According to the Brookings Institute, states and localities spend $50 to $80 billion on tax breaks and incentives each year in the name of economic development, despite a mountain of evidence showing that tax incentives produce mostly marginal returns. These traditional approaches to economic development by local governments have not benefited all populations – and, in many cases, the policies and programs have particularly neglected or even shortchanged people of color, immigrants, and low income communities. Cities need to be intentional about targeting their economic development programs, funding and policies at the specific populations and neighborhoods that are increasingly distant from the growth sectors of their regional and city economies.

To that end, the National League of Cities (NLC), together with PolicyLink and the Urban Land Institute (ULI), launched the Equitable Economic Development (EED) Fellowship last year with the generous support of the Surdna and Open Societies Foundations. Specifically, the EED Fellowship provides one year of technical assistance to a class of six cities to help them pursue more equitable and inclusive economic development policies and programs in traditionally underserved communities – those that have the highest levels of unemployment, lowest levels of income and educational attainment, and represent the highest needs for job- and workforce-related programs in the city. Through leadership development, technical assistance, peer learning and sharing best practices, the fellowship provides city leaders with insights and tools to make equity, transparency, sustainability, innovation, and community engagement driving forces for how they conduct economic development and bring an intentional focus on communities that have been historically disconnected from economic growth and prosperity.

The EED Fellowship kicked off in June 2016 with a two-day retreat, during which the EED Fellows presented the group with one specific project in their economic development agenda on which they would focus during the course of the fellowship. Later in the fall, EED program staff conducted scoping visits to each of the cities, during which they introduced the fellowship and its goals to senior city officials, departments and agencies, met with community or government stakeholders, and advised the EED city fellows to finalize the scope of fellowship project. Two EED fellows from each city then met for a second convening at which they presented a project update to their EED fellowship peers. The mid-year retreat also included sessions with leading experts on economic development issues.

Throughout the year, the EED Fellowship also offers technical assistance via webinars on different topics identified by the six cities. Some of the topics covered include: inclusive strategies for small business development and entrepreneurship support, best practices in collecting data for equitable economic development, institutionalizing equity in economic development programs and policies, and presenting a framework to incorporate an equity lens in economic development incentive package.

The inaugural EED Fellowship class consists of three fellows from the cities of Boston, Charlotte, Houston, Memphis, Milwaukee and Minneapolis. Below is a quick summary of each city project, as well as a list of the three EED Fellows from each city:

Boston

The city of Boston is interested in exploring the intentional support of worker co-operatives in the private sector by developing and expanding access to capital and technical assistance for existing worker co-ops and ensuring that new firms focus on promising growth sectors.

  • Joyce Linehan, Chief of Policy, Office of Mayor Martin J. Walsh
  • Trinh Nguyen, Director, Office of Workforce Development
  • John Smith, Policy Analyst, Mayor’s Office of Economic Development

Charlotte

The city of Charlotte is seeking address its economic mobility gap – and encourage investment and involvement of the private sector in addressing the problem – with a set of tactical programs and larger-scale economic development policy reforms. Charlotte hopes these initiatives will allow it to learn about innovative evaluation practices, identify model programs and best practices that address these challenges, better evaluate small-business capacity and connectivity, and measure whether these initiatives are helping to close the gap.

  • Ann Wall, Assistant City Manager
  • Kevin Dick, Economic Development Director, Neighborhood & Business Services, Economic Development Division
  • Holly Eskridge, Entrepreneurship and Small Business Manager, Neighborhood & Business Services, Economic Development Division

Houston

The city of Houston is seeking to focus its economic development activities in the traditionally underserved communities located generally east of downtown, which have the highest levels of unemployment, lowest levels of income and educational attainment, and represent the highest needs for job- and workforce- related programs in the city.

  • Andrew Icken, Chief Development Officer
  • Gwendolyn Tillotson, Deputy Director, Economic Development Department
  • Carnell Emanuel, Staff Analyst, Economic Development Department

Memphis:

The city of Memphis is seeking to address a vacancy problem in commercial buildings that also facilitates the growth of neighborhood-scale businesses. While Memphis has experienced considerable economic growth in the last decade, very little has been occurring in its low-income neighborhoods.

  • Doug McGowen, Chief Operating Officer
  • Paul Young, Director, Division of Housing and Community Development,
  • Joann Massey, Director, Office of Business Diversity and Compliance

Milwaukee:

The city of Milwaukee is seeking to create a framework that matches responsible development entities that own, renovate and manage their portfolio of foreclosed small mixed-use buildings with entrepreneurs who want to open a business in a commercial space and possibly occupy residential units in that space. The city currently owns, manages and markets a large portfolio of foreclosed properties, mostly located in distressed low-income neighborhoods.

  • Martha Brown, Deputy Commissioner, Department of City Development
  • Ken Little, Commercial Corridor Manager, Department of City Development
  • Matt Haessly, Real Estate Specialist, Department of City Development

Minneapolis:

The city of Minneapolis is seeking to pilot a capital access project for the most vulnerable and disadvantaged businesses located in north Minneapolis, where disparities are worse than the Minnesota state average. The city’s Access to Capital is a formalized program that helps provide qualified Minneapolis businesses owned by people of color with access to financial and knowledge capital at a level they have not previously had, and would not likely have but for the program. The Access to Capital program will bring together potential investors, funders and lenders to offer deal packages that provide documentation and use systems already in place to fund qualified businesses that participate in the program.

  • Craig Taylor, Director, Community Planning and Economic Development
  • David Frank, Economic Development Director
  • Jim Terrell, Senior Project Coordinator, Community Planning & Economic Development

This spring, the EED program staff is planning our next round of scoping visits to each of the cities above. These scoping visits are intended to further assist each of the six cities with their program and provide them with access to subject matter experts recruited from our networks. The visiting technical team will include subject matter experts and practitioners, EED fellows from other cities, and program staff from NLC, ULI, and Policylink. We look forward to finishing our work with our current class and announcing our next class this spring – stay tuned!

carlos_delgado_125x150About the author: Carlos Delgado is the Senior Associate for the Rose Center for Public Leadership in Land Use at the National League of Cities.

An Inside Look at How Cities Win Investment Projects

When a company chooses a location for a major relocation or expansion, the details behind the decision aren’t often divulged in the media. This new podcast gives listeners an inside look at the site selection process, and the stories behind how the location was selected and what it took to close the deal.

Downtown Reno, Nevada, where one of the podcast guests chose to locate their startup due in large part to the city's warmth and welcoming small business environment. (Getty Images)

Downtown Reno, Nevada, where one of the companies profiled in the podcast chose to locate their startup due in large part to the city’s welcoming small business environment. (DenisTangneyJr/Getty Images)

This is a guest post by Andy Levine and Patience Fairbrother.

In September 2016, Alorica, a California-based customer engagement company worth $2 billion with 92,000 employees across the country, announced plans to establish an 830-employee customer engagement center in Owensboro, Kentucky, marking the largest economic development project in the city’s history.

If you saw the announcement in the media, you probably read about the projected job numbers and heard glowing quotes from company and community officials. What the press release didn’t tell you, however, is that the project almost didn’t happen. In fact, the facility that the Greater Owensboro Economic Development Corporation (GO-EDC) originally intended for Alorica was exactly the opposite of what the company was looking for. It was, as Greg Bush, Divisional Vice President at Alorica, put it, “the same old thing.”

Closing the Deal

The story behind Owensboro’s successful but bumpy road to winning the investment was featured on an episode of “The Project: Inside Corporate Location Decisions,” a new podcast from Development Counsellors International (DCI) that gives listeners an inside look at how cities compete for corporate relocation and expansion projects. Every two weeks, the podcast features a recent corporate location decision and interviews with company executives, site selection consultants, and economic developers that reveal how the location was selected and what it took to close the deal.

 Greg Bush, Divisional Vice President at Alorica addresses a crowd in Owensboro, Ky., where the company announced plans to locate a massive customer engagement center. (photo: 44News)


Greg Bush, Divisional Vice President at Alorica, addresses a crowd in Owensboro, Kentucky, where the company announced plans to locate a massive customer engagement center. (photo: 44News)

The saving grace for the City of Owensboro, as the podcast revealed, was that the company’s project team fell in love with the city’s vibrant downtown, which Owensboro has spent more than $120 million to redevelop over the last seven years.

Greg Bush and consultant Jeff Pappas, Principal at E. Smith Realty, another key player in the project team, arrived in town the night before the site visit and instantly saw a place for Alorica downtown. The next day, they told Madison Silvert, President and CEO of GO-EDC, that they had to be downtown, or there was no deal.

Silvert, a bow-tie wearing lawyer turned economic developer, sprung into action to make the deal happen for the city. He called the owner of an old BB&T building downtown – a facility that he thought just might work for their significant size requirements – and set up a meeting for that day.

Lessons Learned

As Alorica tells it, Owensboro’s ability to switch gears and move very quickly to Plan B was what sealed the deal for the company.

This kind of detail – the kind that you don’t read about in a press release – is what makes “The Project” podcast unique. Seldom do city, state and economic development officials have the opportunity to hear directly from companies in a candid manner about the obstacles, pitfalls and turning points behind these complicated decisions – not to mention the “lessons learned” from their peers in the competition for jobs and investment.

In one episode which profiles Dana Incorporated’s decision to locate a $70 million manufacturing plant in Toledo, Ohio, the company reveals that, if the community hadn’t had the foresight to build a 100,000-square-foot spec building, the deal would have gone somewhere else.

In another, a women-run startup reveals that they chose Reno, Nevada, over locating in Silicon Valley because the Economic Development Authority of Western Nevada (EDAWN) went above and beyond to roll out the red carpet for the company during their visit. A key turning point for the project was a casual dinner where local business leaders joined the startup owners to talk frankly about the local business climate and their experiences operating there.

The Human Side of Corporate Location Decisions

An added bonus of hearing these stories directly from the key players involved is that it paints a more human picture of these seemingly inhuman, data-driven decisions. How does the project team celebrate when a major deal goes through? Madison Silvert says his first instinct was to go to church when he found out Owensboro had won the Alorica project.

In another episode, which features iCIMS’s decision to locate in a former research laboratory in New Jersey, the central characters make a deal to purchase a 30-year-old bottle of Macallan, which they joke will become a 31-year-old bottle if negotiations go on for much longer.

Ultimately, whether it’s over a bible or a glass of scotch, the characters featured on “The Project” have a happy ending and a wealth of insight for anyone dedicated to creating jobs and investment in their community.

andy_levine_and_patience_fairbrother_200x150About the authors: Andy Levine is the President and Chief Creative Officer of DCI and creator of “The Project” podcast. Follow Andy on Twitter at @DCI_Andy. Patience Fairbrother is a Senior Account Executive at DCI and producer of “The Project” podcast. Follow Patience on Twitter at @Patience_Fair.

Five Ways Your City Can Benefit from the “Solar in Your Community” Challenge

Offering $5 million in cash prizes and technical assistance over 18 months, the Challenge supports local teams across the country in their efforts to develop programs or projects that bring solar to their communities.

There are 19 megawatts of solar installed in the city of Portland. Pictured is the Oregon Convention Center. (Jeremy Jeziorski)

This is a guest post by Odette Mucha.

In 2016, solar energy was the largest source of new generating capacity in the United States. With more than one million solar projects now operating across the country, the U.S. has over 35 gigawatts of total solar installed capacity – enough to power the equivalent of 6.5 million average American homes. This is an industry that is growing fast.

Despite this rapid growth, however, solar energy remains inaccessible to nearly half of American households and businesses, as well as many local governments and nonprofits. There are several reasons for this:

  • Nearly half of all rooftops cannot host solar due to insufficient roof space, lack of control over the roof (renters, condos), or shading.
  • While the federal Investment Tax Credit has grown the solar market, it excludes individuals and organizations with no federal tax liability, such as cities, nonprofits, low income individuals, and retirees
  • Low income populations face even greater challenges, often due to poor roof conditions, lower than average credit scores, and lack of access to affordable financing.

And yet, these communities stand to benefit the most from going solar – from stabilizing their energy costs to reducing air pollution. Cities go solar through the Solar in Your Community Challenge, a program launched by U.S. Department of Energy’s SunShot Initiative to expand solar access to those who have, to date, been left out of the growing solar market.

The Solar in Your Community Challenge encourages the development of innovative financial and business models that serve low and moderate-income communities, local governments, and/or non-profits. Offering $5 million in cash prizes and technical assistance over 18 months, the Challenge supports local teams across the country in their efforts to develop programs or projects that bring solar to these segments of their communities, while proving that these business models can be widely replicated and scaled up.

Why should cities participate in the Solar in Your Community Challenge?

  1. Save Money on Municipal Electricity Bills

Local governments, which own approximately 10 percent of commercial buildings (schools, office buildings, public assembly buildings, etc.), spend approximately $14.7 billion on electricity – 12 percent of total commercial building expenditures (EIA data). Solar energy can cut cities’ monthly electricity bills and make funds available for other priorities.

  1. Create Local Jobs

The solar industry is a proven driver of job growth. As deployment has soared, so have solar jobs – there are nearly 209,000 solar workers in the U.S. today, with more than half of them in installation jobs that can’t be outsourced. Further, these workers are paid competitive wages, with installers making a median wage of $21 per hour.

  1. Help Low Income Residents

Low income households pay a large portion of their income towards electricity bills. An analysis by Groundswell found that the lowest income households spent nearly 10 percent of their income, over four times more than the average consumer. Access to low cost solar can provide price stability and bill relief to low and moderate income households.

  1. Improve Resiliency

Cities around the country are facing increased threats from natural disasters and are taking steps to plan for them. During extreme weather events, solar energy can help prevent outages, provide energy for critical facilities, and aid in recovery efforts. Solar can also provide energy to remote areas.

  1. Meet Environmental Goals

Using solar power instead of conventional forms of energy reduces the amount of carbon dioxide, nitrous oxide, and other pollutants that are emitted into the environment. Reducing the amount of pollution translates into cleaner air, reduced water consumption, and improved health.

Cities can participate in the challenge in two ways – as part of a program team or a project team.

Program teams create new programs that enable the installation of solar for use by low income households, governmental organizations and/or nonprofits. Program Teams will be led by governments, utilities or financial institutions.

Project teams develop and install a new solar system or a portfolio of systems that benefit low income households, governmental organizations and/or nonprofits using innovative and scalable business practices. Project Teams can be led by anyone, but should include a combination of key organizations like cities, solar developers, utilities, financial institutions and community organizations.

The application deadline to participate in the Challenge is March 17, 2017. Click here to learn more about the Solar in Your Community Challenge and apply today!

odette_mucha_125x150About the author: Odette Mucha is a Technology Manager at the U.S. Department of Energy SunShot Initiative. She is the manager of the Solar in Your Community Challenge.

Top 5 Most Popular NLC Blog Posts of 2016

This year saw a number of posts that reached thousands of readers and were shared widely on social media. Here are the top five, in no particular order.

7 Ways City Leaders Can Address Racial Inequities
City leaders must step up to take the lead with their police departments and community members to address racial inequities in their respective cities and towns.

10 Innovative Ways to Attract Millennials to Your City
Philadelphia is a city that has implemented a set of successful policies aimed at attracting and retaining talent in the last decade. During that same period, the city’s population grew by 100,000.

Four Bad Habits to Avoid at City Council Meetings
Learning these principles and avoiding these bad habits will improve your meetings — and your decision-making.

5 Ways Parks Provide a Return on Investment
Parks and public spaces are an integral part of the atmosphere and culture of a city or town. More than that, though, they have a massive positive financial impact – one that is generally overlooked.

5 Things Mayors Can Do to Create Healthier Communities
NLC’s new report, Addressing Health Disparities in Cities: Lessons from the Field, provides lessons learned and examples of actions that mayors and other city leaders are taking to intentionally address childhood obesity-related health disparities.

Paul Konz headshotAbout the author: Paul Konz is the Senior Editor at the National League of Cities.

8 Ways Cities Can Prepare for the Future of Work

We know that automation and artificial intelligence will have a great impact on the future of work, play, and life – but we shouldn’t jump to the assumption that this will be a net negative.

(Getty Images)

Advocates from the tech world tout a basic income as a way to counteract the economic blow of automation replacing jobs currently occupied by humans. (Getty Images)

This post originally appeared on Business Insider. The post was republished with permission.

Fundamental shifts in society are upending the current nature of work. With automation and artificial intelligence already permeating nearly every sector of the economy, disruption is happening at an accelerated pace.

Our recent presidential election made clear that workforce shifts are felt by a broad swath of the American public. People are looking to elected officials at every level of government for a new response to these changes.

We have to move the policy discussion away from job retraining towards job rethinking.

NLC’s latest report, The Future of Work in Cities, examines the rapid changes occurring in today’s workforce. Here are eight suggestions from that report on how city leaders — the most responsive government leaders — can approach the rapidly shifting future of work.

Rethink education and workforce training programs.

The strength of cities comes from the people that live in them. As cities prepare for the future of work, they must address talent development by collaborating with business leaders, educational institutions, and community-based organizations to ensure education and training programs match workforce needs.

Update policies to reflect the changing composition of the workforce.

Tomorrow’s workforce will be significantly more diverse. Women will continue to make up a larger portion of the workforce, and the racial and ethnic makeup of the workforce will change. The workforce is also getting older, as many elderly workers delay retirement and younger people delay working. These changes shift the fundamental needs of employees and, subsequently, the way employers should respond. Flexibility will be critical.

Support entrepreneurs and startups as a core workforce development strategy.

Innovation is the lifeblood of city economic growth. Local leaders need to create a strong startup culture through low tax and regulatory barriers, and strong regional networks with access to capital that allow startups to scale. As cities continue to lower barriers of entry for small businesses and support local startups, innovation will flourish.

Build equitable business development programs.

Equity is critical to building a strong workforce. Policies that promote equity in areas such as health and education often have positive effects on economic growth. Likewise, policies that address marginalized groups reduce political conflict and strengthen public institutions and social organizations, feeding into a virtuous cycle of growth.

Invest in digital and physical infrastructure that supports the workforce of tomorrow.

Investment in reliable, high-speed internet and expanded broadband services is critical to supporting a competitive workforce. In addition to digital infrastructure, cities must also invest in roads, bridges and transit systems.

In cities, people like to walk, bike, and take public transit, while single occupancy vehicle use continues to decline. This preference, combined with a move toward autonomous vehicles, means that cities will need to rethink investment priorities while considering new uses for car-oriented infrastructure like parking garages.

Ensure access to paid leave for families.

The United States is one of few developed countries that doesn’t offer some type of guaranteed paid leave for new parents. Yet companies that offer these policies retain more employees and avoid lengthy talent searches. Cities are leading in this space. The San Francisco Board of Supervisors, for example, mandates six weeks of paid parental leave for workers. This long overdue policy benefits everyone, giving parents the opportunity to maintain their careers, helping organizations retain employees, and bringing stability to the city’s workforce and economy.

Consider offering portable benefit systems.

As workers change jobs more frequently and contract work becomes more common, the policy environment around benefits needs to shift. Benefits that once accompanied most employment situations are becoming more elusive, and portable benefits, which are tied to individuals rather than employers, represent one potential solution.

These typically wrap together some form of paid leave, health insurance, worker’s compensation/unemployment, and retirement fund matching. Proposals for this type of system vary.

Some suggest that it should be universal and administered by government or a public/private institution created for such a purpose. Others think it should be administered by non-governmental community-based groups. Either way, portable benefits have the potential to support those who work outside the realm of the traditional nine-to-five economy.

Explore basic income and other broad-based social support systems.

Basic income, which guarantees every citizen a regular, unconditional sum of money, is gaining support in policy conversations. This is intended to serve the same function as a living wage by bringing all individuals up to an economic baseline. In some ways, this proposal resembles existing welfare systems, with the major exception that the benefit goes to everyone, regardless of age, ability, class status, or participation in the workforce.

Advocates from the tech world tout it as a way to counteract the economic blow of automation replacing jobs currently occupied by humans. Other supporters argue that basic income is more streamlined, efficient, and transparent than current social welfare systems. Finally, there are others who argue that a basic income might allow individuals to pursue more creative, enjoyable interests. A full-scale of examination of the cultural and financial implications of basic income will be key to implementing such a system.

We know that automation and artificial intelligence will have a great impact on the future of work, play, and life. However, we shouldn’t jump to the assumption that this will be a net negative.

Despite the evolving nature of the economy, people are still working, the economy is still growing, and indicators show that life has gotten better for the majority of the world’s workers. To stay on that path, these and other such ideas should be higher on the agenda of policymakers. Cities are the place where new ideas and opportunities happen first, so we should prepare for the technological shifts to come and usher in a future that works for everyone.

About the author: Brooks Rainwater is the Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter @BrooksRainwater.