Economic Development Flashcards
What are the 3 core activities in Economic Development?
- Business recruitment and attraction
- Business retention and expansion
- Enterprise and small business development
What are four types of recruitment incentives for businesses?
- reduced taxes/tax rebates
- free or below market value land
- access to technology and training
- grants based on factors such as number of jobs created
Name 4 tools of retention and expansion.
- assist in creation of new markets
- improved technology/training
- facilitating moves to new locations; help obtaining government approval
- land or expansion of land for landlocked businesses
What is an Industrial Revenue Bond?
a loan to a company to build or buy a facility, land or equipment
Describe the Revolving Loan Fund
loans are made and repaid
What are Enterprise Zones?
economically distressed areas targeted for improvement
What is an Empowerment Zone?
Economically distressed rural and urban zones; designated by the USDA and HUD
Describe Business Incubator Programs
Support business startups by providing services such as inexpensive or free office space, tech assistance, admin support, marketing assistance, and access to capital
What is the SBA?
Small Business Administration; agency of Federal government that assists and protects interests of small businesses, has loan programs
What is a micro loan?
Small short term loans for small businesses, usually startups
What are Venture Capital Funds?
funds made available to invest in potentially highly profitable business ventures or considerable risk to the investor
Name 4 Economic Development Organizations
Downtown Development Authorities (DDAs), Business Improvement Districts (BIDs), Community Development Corporations (CDC), Merchant Association/Chamber of Commerce
What is a Brownfield?
a property present of hazardous substance, pollutant or contaminent
What is a Greenfield?
undeveloped land in a city or rural area used for agricultural or landscape design, or left to evolve naturally
What is a Greyfield?
an economically obsolete, outdated, failing or underused real estate or land
What is Capitalization?
in finance, the sum of a corporation’s stock, long-term debt, and retained earnings
What is Clawback?
a clawback provision is a special contract and clause included in some governmental economic development contracts by which money already paid to grantees for guaranteed economic development outcomes must be paid back under certain conditions where the guarantees are not met
What is the Multiplier Effect?
local multiplier effect refers to the spillover effect the presence of a particular type of job has on additional local economic activity
What is Threshold Population?
The minimum number of people necessary before a particular good, service, or infrastructure can be provided to an area
What is the population project technique that allocates a projected population
expansion to subregional areas called?
A) demographic approach
B) input-output approach
C) shift-share approach
D) marketing approach
The correct answer is C)
The shift-share technique allocates a portion of the projected expansion to subregions or
population centers based on the center’s present share of the total population. For
example, the population of metropolitan New York may be expected to increase by 8
percent. Brooklyn and Queens may have 10 and 12 percent of the total population,
Location quotient equals which of the following?
A) the ratio of total local employment of an industry to that industry nationally
B) the ratio of total national employment of an industry to that industry locally
C) the ratio of total number of local industries to that industry nationally
D) the ratio of total number of national industries to that industry locally
The correct answer is A)
Location quotients are used to determine the ratio of total local employment of a specific
industry to that of the industry on a national basis.
If an industry has a location quotient of 3.00, which of the following statements
apply? This industry…
A) exports employment
B) imports employment
C) exports employment, but imports more than it exports
D) none of the above
The correct answer is A)
An industry is an exporter of employment if it has a location quotient greater than 1.00.
Which of the following has the largest FAR?
(A) One acre 20-story building on a 4-acre lot
(B) A 4-story building entirely covering a 1⁄4 acre lot
(C) One acre 12-story building on a 2-acre lot
(D) A 2-story building entirely covering 1⁄2 acre lot
The correct answer is (C)
FAR = floor area ratio = building area / lot area. The FARs for (A) = 5 [20 acres of building/4 acre lot]; (B)
= 4 [4 story bldg. on 1⁄4 acre/ 1⁄4 acre]; (C) = 6 [12 acres of building/2 acre lot]; (D) = 2 [2 story bldg. on 1⁄2
acre / 1⁄2 acre].
A 1.4 acre parcel has been developed with a three story office building, a parking area and a
storm water retention area. Assuming each floor of the office building is 10,000 gsf, the parking area
contains 480 spaces and the retention area is capable of handling a 25-year storm, the FAR is
approximately equal to which of the following?
A) 0.5
B) 2.0
C) 0.4
D) 1.0
The correct answer is A)
FAR (floor area ratio) = building floor area sf / parcel sf. The 3-story building has a total of 30,000 square
feet. The overall 1.4 acre site contains 60,984 square feet (1.4 acres x 43,560 sf/acre = 60,984 sf). For
this site, the FAR is equivalent to 30,000 sf / 60,984 sf = 0.492 or approximately 0.5.
Rochester’s downtown CBD allows a maximum base FAR of 15. The CBD allows bonus FARs of 2
for affordable housing, and 3 for historic preservation. If the developer is approved to include
affordable housing and historic preservation, then the resulting maximum FAR will be:
(A) 15
(B) 17
(C) 18
(D) 20
The correct answer is “D“
Through the land use regulatory technique known as “incentive zoning” or “bonus zoning,” cities may
grant private real estate developers the right to alternatives to strict zoning restrictions (for example,
those relating to height, bulk or density regulation) in return for voluntary agreements to provide
specified urban design features, such as plazas, atriums, parks, social facilities, or to provide publicly
desired development, such as affordable housing or historic preservation. For Floor Area Ratios (FAR),
the bonuses are typically provided in addition to the maximum base FAR (even where for additional
residential development).
A 62,390 sf lot contains a 22,321 sf drainage area, a 10,100 sf parking area and a
87,350 sf development. The resulting FAR is approximately:
(A) 0.7
(B) 0.9
(C) 1.4
(D) 1.9
The correct answer is “C”
FAR = Floor Area Ratio = building area/lot area = 87,350 sf/62,390 sf = 1.4
A 2.5 acre downtown site is approved with a FAR of 6. Approximately how many stories of
building could be built on an acre of the site, if 60% of the site will be required for onsite stormwater
treatment, parking and landscaping systems?
(A) 6 stories
(B) 10 stories
(C) 15 stories
(D) 22 stories
The answer is (C)
A 2.5 acre site with an approved FAR of 6 will allow 653,400 square feet of building area (i.e. 2.5 acres x
43,560 sq. ft/acre x 6 = 653,400 square feet). This is equivalent to 15 stories on a one acre site (i.e.
653,400 square feet/43,560 square feet = 15). The amount of other required acreage is not needed for
the calculation.
What is a Capital Improvement Plan?
The CIP is typically a five to seven year plan for planning and funding public facilities and infrastructure. It includes both the construction of new facilities and the rehabilitation or replacement of existing capital facilities.
What is the Capitalization Rate formula?
The capitalization rate is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.
