Economic Development

Jurisdictions should create a policy on the appropriate parameters for use of economic development incentives.

Economic development strategies and capital improvement planning should be coordinated and integrated within and among governments.

Local governments should carefully evaluate whether TIF and TIF districts are the most appropriate and effective tool to assist the local government in its economic development plans.

The finance officer or budget officer should lead or be a key participant in the analysis of the economic and fiscal impacts, as well as the risks and uncertainties, associated with proposed economic development plans, strategies or individual projects.

Government officials should analyze the specific benefits, costs, and risks associated with economic development projects, programs, and policies as an integral part of selecting which projects, programs or policies to pursue.

Governments should develop and pursue a clear negotiating strategy when working with 3rd party developers on an economic development project, and that the finance department/officer should always be represented on the negotiating team.

Governments should take steps to ensure effective administration of economic development agreements through an on-going assessment of government benefits, monitoring of commitments and requirements, and communicating progress to the governing body.

State, provincial and local jurisdictions should monitor economic development projects and program performance to ensure objectives established in an economic development policy are accomplished. 

Governments should encourage effective public engagement in the economic development process through local economic development strategic plans and per individual development agreements before required public hearings occur.

Before deciding to pursue or enter into a P3 agreement, the public entity should carefully analyze the potential P3 agreement, including all financial impacts.