Economic development is fundamental to supporting national, regional, and local community well-being and quality of life for residents. But what does economic development really mean? It is anything that generates economic activity and can come in many forms, such as a football game, a cultural event, or a local arts festival. However, when most people think of economic development, they are probably thinking of industrial and commercial development that brings new jobs to a given community. What is needed to achieve these developments and how will they impact your community?

Life Cycle of an Economic Development Project

When you read in the newspaper that a new company is locating to your community and creating new jobs, it may sound like it is just the beginning of new economic development in your region. However, there are many steps that a company must take before deciding on a location, a process that takes many months to vet.

1. First, a company realizes that they have a need for a new location in your state or region.
2. Companies hire a site location consultant to help them choose the best location for their new investment based on their business needs. The consultant works with the company to put together a request for proposal (RFP), including all the different parameters that the company would need to make a decision. For example, considerations of proximity to an airport, proximity to a four-lane highway, the local workforce's education level, and any other metrics may be used to make the decision.
3. The company then disseminates the RFP to the states they are considering.
4. Each state's economic development agency disseminates the RFP to the communities that have available sites that fit the metrics given.
5. The company and its consultant will shortlist five to seven sites and make local site visits. They also meet with local leaders and continue to narrow down the list of sites they are considering.
6. The state and local community will then put together an incentive package. Incentive packages are financial inducements for companies to locate in a certain state or region. Often these include tax abatements and other considerations for a period of time, usually five to 10 years.
7. Taking all this information into account, the company will select a location and site.
8. The company will hold a groundbreaking for the new site, often as a community celebration with elected officials.