With changes in resources and economic trends, the approach to economic development efforts in California have changed significantly in recent years. Prior to 2012, cities could rely on tax increment funding from Redevelopment Agencies (RDAs) to fund economic development. With Redevelopment dissolution, cities now must get more creative with limited funding sources. These trends have made this a challenge for local authorities. Economic development efforts have become more concentrated, shifting the focus from programs to projects. Furthermore, cities rely more heavily on regional economic development efforts or even developing multi-city strategies to market an area. Additionally, multiple partners, investors, and stakeholders, have increased transparency, which can lead to more complexity to getting a project done.
Nevertheless, local governments can do a lot to support economic growth in their jurisdictions, the following are some examples:
When selling city owned property, officials should aim to leverage those assets for the greatest economic impact, rather than just seeking the highest sale price.
With assets they continue to hold, local governments should also evaluate opportunities to leverage them for greater economic benefit.
Cities need to understand what it means to be “business friendly” and seek process improvements in order to attract more businesses to locate in their city.
Cities should embrace housing projects at all income levels. Recognizing the role that housing affordability plays in attracting and retaining a talented workforce, not to mention helping people improve their quality of life, some cities have started to warm up to housing developments, but many are still slow to react.
Cities should be aware of legislation at the state level that may affect resources and opportunities, and make their voices heard in order to inspire legislators to add tools for local economic development.