Today’s AgendaToday’s Agenda10:00-10:15Welcome

Mike Wheeler, Los Alamos County Council Chair

10:15-10:40REDI OverviewEd Burckle, RDC

10:40-11:30Cluster Strategy UpdatesGreen: Sandy McCardell, State Green Jobs Coordinator, RDCTechnology: Steve Stringer, LANL Technology Transfer and

Jeff Lundsford, New Mexico Technology Council

11:30-12:00First Regional Econometric ReportBarbara Deaux and Fred Brueggeman, NCNMEDD

12:00-1:00 Lunch and Keynote SpeakerOutstanding Private Sector Partners Recognition Carol Sanford, CEO Developmental Economies Group International

1:00-2:00 Break-Out Groups and Wrap-UpKatie Snapp, Facilitator

2:00 Closing Remarks by REDI Partners

Northern NM Regional Economic Development Initiative

State of the Region ConferenceOctober 29, 2009

Overview PresentationEd Burckle, RDC

BackgroundBackground• Los Alamos County began its Progress through Partnering

initiatives in 2007, as a result of increased GRT from the change in LANL contractor status.

• Cooperative agreements signed with local governments in the four-county region of Santa Fe, Los Alamos, Rio Arriba and Taos counties.

• The Regional Economic Development Strategic Plan is one of the Progress through Partnering projects.

• RDC and subcontractor NCNMEDD completed the Regional Economic Strategic Plan in 2008. The Plan was approved by Los Alamos County in March 2009.

• 2009 is REDI’s first year of implementation, funded by Los Alamos County.

Why Regional? Why Regional?

“Economic regions are now the basic unit of global competitiveness.”— Brian Dabson, Rural Policy Research Institute

“Regions that have strongleaders willing to partner are going places.”— Mark Drabenstott, Federal Reserve Bank of Kansas City

• Northern NM consists of relatively small and isolated communities. We will have more success becoming a major ED player if we work together.

• Many of the “supports” for ED: infrastructure, public policy and human capital (workforce) are regional in nature.

• When we act regionally, diversity becomes a strength instead of a barrier.

• Other communities in the US are succeeding with a regional approach.

REDI Goals and Mission REDI Goals and Mission Mission: To develop and strengthen

the target clusters of:

Renewable Energy/ Green

Industry

Technology

High-Value/ Value-Added Agriculture

Storage, efficiency technologies, etc.

Environmental & agricultural technologies

New Media & IT

Biofuels & Biomass

Media

Goals1. Diversify the economy

2. Develop a high-quality workforce

3. Increase the number of higher-paying jobs

4. Retain and attract youth and families

5. Make rural communities vibrant

• REDI is a 25-year economic development plan• In 2008 and 2009, significant changes have required us to be

flexible with the REDI plan and projects

Long-Term vs. Short-TermLong-Term vs. Short-Term

Economic

Downturn

(2008)

Job Loss: Less concern with workforce shortages in the short-term

Budget Shortfalls: No State funding available, public policy consumed with fiscal crisis

ARRA: Federal funding available, new reliance on federal government

1. Public PolicyLEDA Amended in 2009, allowing local governments to dedicate up to 10% of

annual general fund expenditures on ED projects

2. Private Sector Partnerships– LANL, in-kind sponsor of Technology Cluster Strategy ($20,000 value)– New Mexico Technology Council (Technology Cluster Strategy)– Kit Carson and Jemez Electric Cooperatives (Regional Broadband)

3. Funding Leverage: $105K received, $81.5M pending from investment to date– $74 million in pending broadband applications– $7.5 million in pending DOL applications for Green Jobs– $50,000 obtained from USDA Rural Business Opportunity Grant for Value-

Added Agriculture Cluster Study and Rural ED Services– $40,000 obtained from DFA to fund Rio Arriba County Broadband Assessment– $15,000 from local governments for regional broadband planning efforts (does

not include individual studies)

Accomplishments: 6 months to dateAccomplishments: 6 months to date

ImplementationImplementation• 1st Year of Implementation: April 2009 - June 2010

• Covers implementation of six areas in REDI Plan

• Some projects required additional funding to proceed

• Scopes of work for each will be completed by July 2010

• Human Capital will be a long-term effort

Scope of Work:

1. State of the Region Conference

2. Regional Broadband

3. Cluster Strategies

4. ED Services Plan

5. Human Capital Initiatives

6. Long-Term Sustainability

1. Broadband Plans and Studies: (Summer/Fall 2009)

• Los Alamos County, Santa Fe Regional Telecom Coalition and Rio Arriba County

• Open or shared network model• Regional interconnects and mapping• MOU with Jemez Mountains Electric

Cooperative

Regional BroadbandRegional Broadband Deliverables• Regional Broadband Plan

• Five-Year Funding Strategy

2. ARRA broadband applications: (August 2009) $74 million in grant and loan requests

• Kit Carson Electric: $18.4 million, BIP/BTOP Last Mile• Los Alamos County: $17.5 million, BIP/BTOP Middle Mile• Rio Arriba County: $30.9 million, BIP Last Mile• San Ildefonso Pueblo: $1.26 million, BIP/BTOP Last Mile• Santa Fe Regional Telecom Coalition: $7.5 million, BTOP Last Mile

3. Five-Year Funding Strategy: (now through early 2010)• Region is discussing follow-on funding opportunities • Formal strategy will be developed following ARRA funding awards

Regional BroadbandRegional Broadband

BIP: Broadband Initiatives Program, Rural Utility Service (USDA)

BTOP: Broadband Technology Opportunities Program, National Telecommunications and Information Administration (DOC)

Cluster Strategies BackgroundCluster Strategies Background

We are in the pre-cluster or emerging cluster stage.

• Makes ED investments more targeted and strategic: objective assessment of what will the market will support, rather than what entities and individuals want to see.

• Allows companies in the same industry to understand and work with common opportunities and challenges.

Clusters are geographic concentrations of interconnected companies that work closely with each other, rely on a common labor pool, use the same infrastructure and local suppliers, and access

the same educational institutions and other workforce resources.

Cluster StrategiesCluster Strategies

1. Technology Cluster Strategy: Summer 2009Sponsored by LANL Technology Transfer Division: Steve Stringer, LANL Industrial Fellow and LANL MBA interns

2. Green Cluster Strategy: Fall 2009

3. Value-Added Agriculture Cluster Strategy: 2009/2010 $20,000 from USDA Rural Business Opportunity Grant announced in

October 2009. Scope of work in process.

4. Media Cluster: Working to obtain funding for cluster strategy

Deliverables• One or more Cluster Strategy

Regional ED ServicesRegional ED Services

Individual government entities in the region have their own ED programs.

REDI’s program focuses on regional coordination to make individual efforts more effective.

Regional Economic Development Services Program Plan(In Process, due 12/09)

• Attraction targets and site visits strategy• Regional website and marketing materials

including on-line community profiles, infrastructure, buildings and sites inventory

• Trade show and sales missions calendar • Local and regional business incentives• Coordinated business retention and

expansion strategies• Coordinated business creation strategies

Deliverables• Regional ED Service Program Plan

Human CapitalHuman Capital

1. Need to Leverage Additional Funding (In process)

2. Green Jobs: (Summer/Fall 2009)– DOL Energy Training Partnership grant application ($5 million)– DOL Pathways out of Poverty grant application ($2.5 million)

3. Technology: (In Process)– Working with NMTC to support Innovate/Educate– Flex-Tech Programs

4. Accounting and Financial Services: (In Process)– Short-course basic skills training– Journeyman program with private sector

Deliverables• Partnerships such as

apprenticeships to support high-paying careers in target clusters

REDI’s Long-Term SustainabilityREDI’s Long-Term Sustainability

A funding model for making REDI a sustainable, long-term effort was a requirement of the REDI Plan.

In 2008, REDI partners decided on a public-private partnership (PPP):

– PPP is a successful model used by other regions

– PPP meets REDI goals of diversifying the economy by strengthening the private sector and reducing government dependence

– PPP is needed to support target industry clusters

Funding to Date• REDI has been

operating from $250,000 (18 months) from Los Alamos County

• Some additional grant funds have been leveraged

• REDI partners have contributed some additional funding for specific projects (broadband)

• Other regional efforts funded through PPP membership

• Public and private sector can “buy in” at various levels

• Different benefits are offered for different membership levels

• A scope of work or work plan is decided upon and the organization’s progress is evaluated annually

• Some REDI partners have expressed interest in “buying into” specific projects only (cafeteria plan)

Public-Private Partnership StructurePublic-Private Partnership Structure

Membership Level Examples

Platinum Level: $20,000 and above

Gold Level: $10,000 to $19,999

Silver Level: $5,000 to $9,999

Additional levels can be considered. For example: Turquoise ($40,000 and above) Bronze ($2,500 and below)

PPP FeasibilityPPP Feasibility

Your input today will help us define how REDI continues in the future.

12/09: Feasibility Plan for public-private partnership• Scope of Work (i.e. projects for 2010/2011)• Budget• Governance• Funding: Membership levels and “cafeteria style” opportunities

01/10: Individual Meetings with REDI partners and follow-upwith new and potential partners

Deliverables• Feasibility Plan for PPP