1. CALL TO ORDER 3:00 P.M. 2. DISCUSSION / ADOPTION OF AN ECONOMIC DEVELOPMENT RESOLUTION FOR BEAUFORT COUNTY (backup) (resolution) 3.

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1 D. PAUL SOMMERVILLE CHAIRMAN GERALD W. STEWART VICE CHAIRMAN COUNCIL MEMBERS CYNTHIA M. BENSCH RICK CAPORALE GERALD DAWSON BRIAN E. FLEWELLING STEVEN G. FOBES ALICE G. HOWARD WILLIAM L. MCBRIDE STUART H. RODMAN ROBERTS TABOR VAUX COUNTY COUNCIL OF BEAUFORT COUNTY ADMINISTRATION BUILDING BEAUFORT COUNTY GOVERNMENT ROBERT SMALLS COMPLEX 100 RIBAUT ROAD POST OFFICE DRAWER 1228 BEAUFORT, SOUTH CAROLINA TELEPHONE: (843) FAX: (843) AGENDA GOVERNMENTAL COMMITTEE (Includes Public Safety Division) Monday, May 11, :00 p.m. Executive Conference Room Administration Building Beaufort County Government Robert Smalls Complex 100 Ribaut Road, Beaufort GARY T. KUBIC COUNTY ADMINISTRATOR JOSHUA A. GRUBER DEPUTY COUNTY ADMINISTRATOR SPECIAL COUNSEL SUZANNE M. RAINEY CLERK TO COUNCIL Governmental Committee Members: Stu Rodman, Chairman Rick Caporale, Vice Chairman Cynthia Bensch Gerald Dawson Brian Flewelling Alice Howard Jerry Stewart Staff Liaison: Phil Foot, Assistant County Administrator Public Safety 1. CALL TO ORDER 3:00 P.M. 2. DISCUSSION / ADOPTION OF AN ECONOMIC DEVELOPMENT RESOLUTION FOR BEAUFORT COUNTY (backup) (resolution) 3. ADJOURNMENT 2015 Strategic Plan Committee Assignments County Economic Development Policy Framework, Strategy and Action Plan Heritage / Historic Tourism Plan: Development, Action Plan

2 Economic Development Proposal (May 11, 2015) Resolution Economic Development Corporation Research Parks: NOB SOB Path Forward Common Denominators Strategy Director Product Get Started Downstream Tasks Organize Hire Start Deal Flow Partnership RFP s Develop Parks: Graves or Other Commerce or Other Alliance Affiliation Budgeting / BAN / Bonding

3 Economic Development Organizational Proposal Council Consideration Corporate Structure (2Q15) Director Deal Maker/Closer (4Q15) Executive Assistant Coordinating Role: Business Opportunities Commerce Municipalities & County Cooperative Marketing, Visits, etc. Publicly Funded - $250K 70% ($175K) - County ($90K - 16) 30% ($75K) - Municipalities (start 17) SC - $150K Discussion Points Objective: Formation & Recruitment (Jobs) County: Deal Support ($ s, tax relief, etc.) Executive Board - 7 Members (3Q15): Municipalities (4) - Business or Elected County (1) - Business or Elected Board Selected (2) - Business Board of Advisors - 10 to 15 Members Interim Director - TBD: Deal Flow $150K - SC Director Search Commerce HHI EDC Model Space Job #1 - January, 2016 Director to Recommend Alliance (1Q16)

4 Economic Development Product Proposal $2.0M - Land Infrastructure $8.5M Research Park North Factors: Healthcare - Task Force Aerospace & Military Automotive Light Manufacturing Agriculture Quality of Life Wage Structure Military (Bases & Retirees) Research Park South (Horse Farm) $11.5M - Option (4.0) - R&C (comps = $308K = $5M) (.5) - Storm water $ 7.0M $110K / acre) Infrastructure $ 8.5M Factors: Healthcare (& High Tech) - Task Force Headquarters Quality of Life Residents (Active / Retirees / Private Equity)

5 Economic Development Financial Engineering Operations Director, Assistant, Expense, etc. - $250K Contributions: $100 K - County for Unincorporated 39 - Hilton Head Island 13 - Bluffton 12 - Beaufort 11 - Port Royal $175 K ($1 per Resident) 75 - County $250 K County Appropriation: $ 90K - 16 $175K - 17 $ 8.5M - North South $17.0M Factors: Investment BANs as Req d ( 16 Interest = $150K =.1 Mills) Ref: GO Bonds (1 Mill Debt Service): 1/3 Residents (4%) - $4 / $100K 2/3 Others (6%) - $6 / $100K Cost Offsets? Public - Private Partnerships CIP Referendum Sale of Parcels Commerce Participation

6 RESOLUTION NO. 2015/ A RESOLUTION TO ADOPT AN ECONOMIC DEVELOPMENT POLICY FOR BEAUFORT COUNTY WHEREAS, economic development and the diversification of the tax base within Beaufort County is a priority of Beaufort County Council; and WHEREAS, in order to adequately support economic development initiatives, it is appropriate for County Council to establish a strategy on how to approach economic development, recognizing that the individual components require subsequent Council approval; and WHEREAS, it is conventional wisdom that economic development requires the assemblage of property and associated public infrastructure for that purpose, which are typically called Parks; and WHEREAS, the geographic makeup of Beaufort County is large and diverse and, as such, more than one Park is required; and WHEREAS, it is generally agreed that the management of economic development activities should not be part of the County Administration; and WHEREAS, it is agreed that in order for economic development activities to be successful in Beaufort County, there will need to be cooperative participation between the County and the Municipalities; and WHEREAS, in order to successfully implement economic development activities, Public Funding will be required until such time as sufficient commercial development and diversification has occurred, which will then foster continued development by private industries. NOW, THEREFORE, BE IT RESOLVED, that Beaufort County Council hereby adopts an economic development strategy, which, among other things, will include the establishment of the following: 1. A County Economic Development Corporation to include participation of the Municipalities and associated public funding. 2. The purchase and infrastructure development of two commerce parks in the County, one the northern areas of the County and one southern areas of the County. Adopted this day of, COUNTY COUNCIL OF BEAUFORT COUNTY APPROVED AS TO FORM: By: D. Paul Sommerville, Chairman Joshua A. Gruber, Deputy County Administrator Special Counsel

7 The document(s) herein were provided to Council for information and/or discussion after release of the official agenda and backup items.

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9 BEAUFORT, SC REG IONAL C H AM BER OF COMMERCE 1. Geographical Area of Representation 2. Mission Statement 3. Core Focus 4. Business Retention & Expansion (BR&E) 5. Education & Workforce Development 6. Economic Data Collection 7. Support to County & Municipal Primary Business Recruitment 8. Regional Economic Marketing Support 9. Development of Northern Beaufort County Incubator, Accelerator, and Micro-Lending Programs 10. Resource Links

10 Geographical Area of Representation, 278\ (_68~ 7 ~ lollycreck V\.V" +Jason Green Pond Ernest F Hoflmgs Ace Basm National Edi Ridgeland ;-.,.... _ Bluffton Listed Geographical Area of Representation: Unincorporated Northem Beaufort County City of Beaufort Town of Yemassee St Helena Okatie Lobeco Burton - Town of Port Royal - Beaufort Commerce Park - Point South - Fripp Island -Sheldon - Dale - Harbor Island

11 Mission Statement: This Business Retention and Expansion program will be dedicated to the objectives of stimulating growth and driving change. To create a vibrant regional economic environment in Northern Beaufort County through research based advocacy, private sector engagement, and strategic coordination of educational and workforce resources. To leverage the inherent economy of program residence in the chamber and serve in a support role to the region's primary economic development entity(s) with the collective goal being growth of the northern county middle class. Organization: The Beaufort Chamber of Commerce Business (BRCOC) Business Retention and Expansion program is a managed entity supported by the existing infrastructure of the Beaufort Regional Chamber of Commerce and steered by an independent Economic Development Advisory Committee created through the governing charter of the BRCOC. Like the Chamber Tourism Division all related funding will be segregated and accounted for as a separate entity but supported in part by such subject matter expertise as exists in our Destination Marketing Organization and the economy that comes with operational support such as administrative and accounting from Chamber staff. Core Focus: Listed below are the core areas of focus for the program. Business Retention and Expansion (BRE) Education & Workforce Development Economic Data Collection Support to County & Municipal Primary Business Recruitment Potential for Regional Economic Marketing Support Support to development of North Area Incubator, Accelerator, and Micro Lending Organizations Business Retention & Expansion The Beaufort Regional Chamber of Commerce exists to manage and build capacity for continual community growth by advocating for a pro-business environment and building quality workforce development in order to enrich the region's quality of life. One initiative for continual community growth is the implementation of a Business Retention & Expansion program. Business Retention and Expansion is the requisite first step for all economic and workforce development initiatives in a market area. They emerged in response to business defections and the negative impacts those defections can have on the local economy. They have increased in importance as communities recognized that real job growth over time comes from local business expansion. In his study "Jobs Created In America" MIT professor David Birch determined that, at 40-80%, the majority of new jobs created come from existing businesses. The objective of the program is straightforward: To retain and grow the existing base of businesses and jobs in the Beaufort region by using their feedback to optimize the business environment and remove growth blockers. A strong Business Retention & Expansion is multifaceted and team-based. The Northern Beaufort County BR&E program is designed to facilitate ongoing fact based dialogue among existing businesses, governments, and all members of the community that rely on these businesses for products, services and jobs. The Beaufort Regional Chamber of Commerce plans to concentrate efforts in Northern Beaufort County, Town of Port Royal and the City of Beaufort and will also look to partner with University of South Carolina Beaufort for validation of data analysis and creation of additional economic health indicators.

12 The Chamber will start interviews with primary business in the region as well as businesses in the Retail/Tourism Sector. The program is expected to produce these outcomes: To demonstrate to existing firms that the community appreciates their contribution to the local economy. Creation of sustainable job growth by identifying opportunities to help companies expand in the community. To help businesses solve their problems and challenges. An opportunity to learn more about the company and match the firm to the available programs, resources and information. To develop collaborative relationships for participating in comprehensive long-range retention and expansion activities. To build the community capacity and cooperation to sustain growth and development activities. An opportunity to use business leader's perspective to create a better business climate through development of pertinent programs, policies and strategies. There is no better marketing strategy than the demonstration of a successful and thriving business climate! The early detection and identification of problems that could cause employers to leave a community. Build relationships with individual company executives to promote a sense of loyalty. The Business Retention & Expansion program will evolve into a significant data based tool for identifying business sensitive needs. It is our expectation that this tool will bring focus to those areas needing attention and will bring change that will positively impact this very important activity for economic growth. Anticipated start up time will be 1st Quarter FY Recommend the acquisition of Executive Pulse Software presently. Assign BR&E program management to Chamber Business Development Manager, Jason Ruhf o Create custom survey and interview questions for primary and secondary business in Northern Beaufort County, June 2015 o Develop coordinated working relationships with other workforce and economic development entities like TWEAC (Transitional Workforce Educational Assistance Collaborative), SCDEW Work Ready, and TCL. o Create a local marketing I awareness campaign o Begin database building and training, July 2015 o Begin custom interview process with different industry segments, July 2015 o Expect to see trends after approximately 30 visits o Report annually on BR&E and Regional Economic Health Indicators The meaningful presentation of this data is meant to foster analysis, identify issues, offer constructive criticism and promote meaningful problem resolution. This will hopefully result in program and policy modification that will strengthen and promote the business community and have direct impact on the quality and quantity of jobs available to our community.

13 Education & Workforce Development BR&E offers the bridge to optimize education and workforce development to the real world need of the local business community. It allows for consistent opportunity to educate the business community on workforce opportunities being developed by various regional entities. The BR&E program will offer a platform for coordinated assembly of hiring pools as needed, for expansion and primary recruitment opportunities in the region, by working with educational institutions like Technical College of the Lowcountry (TCL) and University of South Carolina Beaufort (USCB) as well as programs like SC Department of Education Workforce Work Ready and TWEAC (Transitional Workforce Educational Assistance Collaborative). It will aid in the proliferation and application of the Work Keys certification program. A current example is the emerging partnership between TCL /BRCOC I Beaufort Jasper Water Authority (BJWA) for development of a pre-vet employment program using Work Keys certification. Economic Data Collection Aggregation of regional business environment data which in conjunction with Together for Beaufort County and USCB can be used for development of regional economic indicators and benchmarks. The focus of survey information gathered can be customised as needed to study particular business climate issues and substantiate advocacy for positive change in the local business environment. Validated data can be presented to policy makers and business leaders to aid in making informed decisions in a similar way to how the tourism numbers employed by the community. Support to County & Municipal Primary Business Recruitment We see our role as a foundational support to economic development activity able to help organize and leverage myriad resources. Our tourism resources in the area can be used to help host primary economic development site visits much like we currently do hosting travel writers coming to the area. The Chamber can economically take on projects like orchestrating Loopnet setup to increase visibility of available commercial properties as needed. Regional Economic Marketing Support Potential for county and municipal primary economic development agents to take advantage of economy and expertise that comes with our existing Destination Marketing Organization (DMO). Additional benefits include potential Leverage of our in house marketing expertise for Northern Beaufort County Regional primary economic development marketing. Development of Northern Beaufort County Incubator, Accelerator, and Micro Lending Programs Creation of a BR&E program at the Chamber will put us in a strategic position to help organize and leverage myriad regional resources for development and advancement of these programs. It will help identify and remove obstacles to new business growth. The institutional expertise gained from a devoted head can be used to foster these types of programs in conjunction with regional partners and stakeholders.

14 Resource Hyperlinks: Executive Pulse Software Entergy Arkansas development/docs/business Retention Expans ion Guidebook.pdf City of Columbia, SC BR&E Site nsion TWEAC g-eyv u7zku8/edit Ready SC TCL Workforce Solutions USCB International Economic Development Council ED Reference Guide.pdf BRE Guru State Level BR&E Best Practices http :// org/wp-content/uploads/2014/12/state-levei-bre-p rog rams-and-best.p ractices-2. RQ.f