Appendix H

Connecting Strategic Planning and Business Planning—Winston-Salem, North Carolina

Major Focus Area
Economic Vitality and Diversity

Strategy:Define a proper approach to incentives for manufacturing, small businesses, and new technology businesses.

Issue:The City has a variety of economic development financial assistance programs. Providing a public benefit is required for all of these programs. The two measures historically used to determine a public benefit have been job creation/retention and tax revenues created. Recently, several questions have been raised regarding the two measures and whether these are the only measures that should be evaluated in determining a public benefit. One concern is that factors such as indirect tax revenues, local ownership and community goodwill have not been considered in the past since these factors are more difficult to quantify. A second concern is the appropriateness of incentives for a particular business. Factors such as local competition and level of public assistance compared to return on investment have not been considered. A third concern relates to how the types of jobs created are evaluated. Finally, the incentives policy needs to evaluate rehabilitation versus new construction. Since rehabilitation does not generate as much tax base as new construction, it does not qualify for the same level of public support; however, rehabilitation is a growing development trend that provides additional public benefit which currently is not being considered in the evaluation of a project.

ActionPlan:August 2002–June 2003

A task force of professional economic development organizations will be organized to evaluate the information gathered during the Economic Development Summit breakout sessions to determine the constitutionality, legality, and feasibility of using any of these initiatives in Winston-Salem. The group also will collect and research Best Practices information from other cities, states, and professional organizations related to new economy incentives, local competition and return on investment guidelines, job creation requirements, and rehabilitation incentives. Based on the findings, City staff will determine if new programs, modifications to existing [programs], or economic development strategies should be considered.

July 2003–December 2003

Present a report of the above findings to the Board of Aldermen for its consideration regarding recommendations.

Begin process of seeking legislative approval, as necessary, for recommended changes.

Outcome:A new or modified financial assistance strategy/program designed to meet local economic needs while providing a measurable return on investment.

Resources:The information can be collected and a strategy/program designed using existing Development Department resources. There is approximately $500,000 of existing economic development loan funds. While these funds are available, as needed, for economic development projects, additional funds will be required for implementation of a long-term strategy/program.

Major Focus Area
Economic Vitality and Diversity

Strategy:Revitalize/redevelop existing commercial areas under decline.

Issue:Several commercial corridors/areas are under decline. Conditions within these areas include underutilized, unutilized, and blighted properties. Many of these areas need public financial assistance to induce private investment and change the disinvestment trend. The City already has established some programs to assist in the redevelopment of these areas including the Brownfields programs, Target Area Business Assistance Program, Building Improvement Program, and small business loan program.

ActionPlan:October 2002–February 2003

Staff will identify commercial areas in decline (i.e., underutilized, unutilized, and blighted properties) based on at least 20% of the properties in the area being vacant or below minimum code. Other commercial areas which fail to meet the above criteria, but are under decline based on the economic, safety, or aesthetic impact on the area, also may be included for consideration.

Housing and Neighborhood Services will aggressively pursue code enforcement actions for substandard commercial buildings.

March 2003–June 2003

Community meetings will be held with merchants and commercial property owners within these identified areas to identify solutions to the problem of decline, advise them of existing economic development assistance programs, and discuss other ways that they feel the City can assist them to revitalize their declining commercial area.

As declining commercial areas are identified, staff will seek Board approval to declare these areas as business target areas to qualify these areas for existing financial assistance programs.

Planning staff will investigate options for the use of an impact fee or fine that would be assessed on substandard commercial property.

May 2003–August 2003

Based upon community meetings, outline strategies to address the problem of decline. Strategies could include zoning incentives, disincentives to direct new development to these areas, infrastructure, and streetscape improvements.

Outcome:By October 2003, a new or modified program, to assist in the revitalization/redevelopment of declining commercial areas by inducing private investment in these areas, will be presented to the Board.

Resources:The identification of declining areas, qualifying these areas for existing programs, and community meetings can be accomplished using existing City staff resources. There is approximately $150,000 of existing East Winston Demonstration funds which could be used to provide assistance within these areas; however, additional economic development funds will be required for implementation of a long-term strategy/program or for any public infrastructure/streetscape improvements that are identified and receive Board approval.