Building a 21st Century

Regional Economy

Dynamic Growing Economy

Technology, Innovation

Investment

Housing

Infrastructure,

Transportation

Education

Balanced Growth

Ideal State: Jobs and Competitiveness

Reality Check:

Economic Cycle

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Business-cycle-graph better.jpgimagesndibeconomics.wikispaces.com.

Reality Check: Business Life Cycle

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SBA estimates that the average life cycle of a business is 7 years

Why Economic Development

• Job creation/retention

• Increased investment

• Increased quality of life

• Broaden the tax-base

To drive an economically

dynamic and competitive city

Cycle of Economic Development

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Case Study: City of Atlanta

Reality Check:

Economic Development Efforts

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According to the US Census Bureau, this is the number of municipal governments in

the United States

Data based on the most recent survey (2007)

Reality Check:

Gross Domestic Product (GDP)

Source: BEA

Amounts in Billions

$277.30

$284.60

$296.30

$307.20

$270

$275

$280

$285

$290

$295

$300

$305

$310

2010 2011 2012 2013

Atlanta MSAGDP

Underutilized Property and Talent

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Vacancy Rate for the Built Space

SF Vac %

Office 11.5m 13.7%

Industrial 2.8m 7.5%

Source: Neighborhood Nexus: March, 2015

Economic Development Strategies/ Organization

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Economic Development

• 447,000 People

• Headquarters of Coca-Cola, Delta, Sun-Trust, CNN

• Home to the World’s Busiest Passenger Airport

City of Atlanta

• 5.4 Million People

• 9th Largest Metro Area in U.S.

• 2.9 Million Jobs

Metro Atlanta

• 9.9 Million People

• 32 Fortune 1000 Headquarters

• 35 Public Colleges and Universities

State of Georgia

The Experts Agree on Atlanta…

#1 Lowest Cost of Doing Business Major U.S. City, KPMG,

2014

#1 Best City to Start a Business, Nerd Wallet, 2013

#3 City for Global 500 Headquarters, FORTUNE, 2014

#3 City for FORTUNE 500 Headquarters, FORTUNE, 2014

#1 Top City for Young Entrepreneurs, Under 30 CEO, 2013

Atlanta is the business center of the Southeast.

Largest economy in the SE – GDP of

$307.2 billion

42 Bi-national chambers of commerce

1.9 Million jobs forecast to be

created by 2040

8.4 Million Residents in

metro area by 2040

1.3 Billion SF of commercial real estate in metro area

10th Largest economy of all metro areas in

the U.S.

6th District of the Federal

Reserve

Invest Atlanta’s VISION

Our vision is to make Atlanta the most

economically dynamic and competitive

city in the world.

87 Business Attraction Wins

• Spurring $1,064,000,000 in Investment

23 Housing Projects Financed

• Spurring $309,622,074 in Investment

3 New Market Tax Credit Deals Closed

• Spurring $221,186,000 in Investment

12 TAD Projects Closed

•Spurring $80,687,583 in Investment

543 New Homeowners

•Spurring $69,673,245 in Investment

35 Small Businesses Financed

•Spurring $12,035,243 in Investment

29 Park Acquisitions

•Spurring $13,808,447 in Investment

Capital InvestmentSince 2010, Invest Atlanta has generated $1.81 Billion of real estate

investment and business activity

Organizational Structure

Housing Finance Business Development Redevelopment

Legal Finance

17

Atlanta is particularly attractive to firms in six key sectors Economic development efforts should focus on growing:

1. Digital arts and new media production

2. Life sciences

3. Applied computational processing and engineering

4. Corporate headquarters and professional and management services

5. Advanced logistics

6. Conventions and tourism

• Motion picture production• Software and computer programming• Audio production• Broadcasting

Digital arts and new media production

Life sciences

• Medical devices• Biological products• Medical laboratories• Biotechnology R&D• Pharmaceuticals

Conventions and tourism

• Hospitality• Attractions and conferences• Food and beverage• Transportation

• Engineering services• Computer systems design services• Scientific R&D• Advanced manufacturing• Financial technology• Health information technology

Applied computational processing and engineering

Corporate headquarters and professional

and management services

• Headquarters and back office• Management consulting

Advanced logistics

• Freight air transportation• Distribution and logistics consulting

services

We have the 3rd most Fortune 500 headquarters in the nation.

Programs for Business Attraction

Site Selection Assistance

Economic Opportunity Fund

Bonds

Workforce Training

Tax Incentives

Loans

Business Outreach & Contact

Interview, Survey & Assessment

Recommendations and Referrals

Action PlanningFollow up and

ReviewAssess and Report Economic Impact

BUSINESS RETENTION & EXPANSION PROGRAM OVERVIEW

Operates as IA’s Business Customer Service Program

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Innovation in Atlanta

Population of adult workers grew four percent

Population of highly educated adults grew eight percent.

From 2007 to 2012

Total university R&D expenditures reached nearly $2 billion dollars in 2012

Patent activity has more than doubled, increasing 106%

Atlanta’s Workforce

46% of City Residents Hold a Bachelor’s Degree or Higher

66 Colleges and Universities Educate 275,000 Students

Annually

7th Highest Student Enrollment Among

America’s Largest Urban Areas

#5 in the U.S. for Number of Computer Science/IS Degrees

Awarded

Georgia Tech’s Computer Science

Degree Has the Highest Job Placement Rate of

Any Major at Tech

Policy Business

Events Financing

• Demonstration Project

• Startup Tax Exemption

• Startup Atlanta Roadshow

• GovAThon• SwitchPitch

• Debt • Cash Flow

Other

• Startup Atlanta • Entrepreneur Center• WEI• SQ5• Innovation District

(proposed)

Entrepreneur Eco-System

Source: Jumpstart

27 Pledge

City of Atlanta & Google Fiber

DESCRIPTION: Atlanta was chosen to be an Upcoming Fiber City which means connections up to 1,000 megabits (Gigabit Internet) per second.

GOALS:

1. Connect Communities

2. Support Small Business

3. Spur Innovation

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And we’re home to the stars of the tech world.

• Govathon IV– Hosted at Workforce Dev. Agency

– SMS texting system which tracks the status

of a building permit

• Govathon III/Transportation Camp– Hosted at GT

– Focused on transportation issues

• Govathon II– Atlanta Budget Explorer vs Traditional City

Budget Document

– Hosted in the Old Council Chambers

• Govathon I– iParcs

– Crime Blotter(purchasable in App Store)

– Hosted in Old Council Chambers

Accomplishments

3 Phases of a

Simplified Innovation Process

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Conception

Source: Jumpstart

City of Atlanta Innovation Center:

Demonstration ProjectDESCRIPTION: Allow entrepreneurs within the proof of concept phase of their development to test their product using City of Atlanta resources.

GOALS:

• Create new markets and new jobs

• Support existing local innovators and Entrepreneurs

• Improve quality and efficiency of City services and operations

• Advance the City’s Sustainable Initiatives and economic development strategy

• Position Atlanta as a location for cutting edge innovation

• Retain entrepreneurs in the City of Atlanta

• Attract and maintain investments as a result of new innovations

• Create a collaborative community of relationships between government and entrepreneurs

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City of Atlanta Innovation Center:

Startup Atlanta Ordinance

DESCRIPTION: An ordinance to amend the Occupation Tax Ordinance to provide a tax exemption for new and emerging technology businesses.

GOALS:

1. Job Creation

2. Retention of entrepreneurs

3. Encourage investment in certain types of businesses in fields related to high technology, life sciences, information technology and intellectual property

4. Catalyze Atlanta’s entrepreneurial ecosystem

5. Position Atlanta as a location for cutting edge innovative companies

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The Opportunity of Women in Entrepreneurship

The percentage of men and women involved in early-stage entrepreneurial activity

Do you want to start a business in the next three years?

(Source: How Women Entrepreneur Can Make a Difference)

2011 2012Men 13% 15%Women 11% 11%

1 in 5 men 1 in 13 women

City of Atlanta

Women’s Entrepreneur Initiative

(WEI)

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DESCRIPTION: A public private partnership to support the growth of women entrepreneurs.

GOALS:

1. Provide Innovative Workspace

2. Mentorship

3. Access to Experts

4. Programming

PARTNERS:

Home Depot, UPS, Hawks, Invest Atlanta and more

Square on Fifth: the Dormcubator

DESCRIPTION: Next to Georgia Tech, the 25 floor dormcubator will provide entrepreneurs with the opportunity to innovate right where they live.

GOALS:

1. Drive Innovative Collisions

2. Entrepreneur environment

3. Place to live

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INCENTIVE: Lease Purchase Bond

Flatiron Entrepreneur Center

DESCRIPTION: An entrepreneur center with the second Microsoft Innovation Center in the US

GOALS:

1. Provide affordable rent

2. Short Term Leases

3. Flexible Office Space

4. Entrepreneur Network

5. Entrepreneur Environment

INCENTIVE:

Tax Allocation Incentive37

There’s never a boring second in Atlanta.

The Value Add of

Economic Development

Invest Atlanta’s investments of

nearly $45M helped to leverage over $662M in private

investment

Facilitated 3,973direct jobs and 4,935indirect and induced

jobs

Supported $2.5B in Total Economic

Impact

Generated over $129M in State and

Local TaxesInvest Atlanta

2014 IMPACT

2014 Business Attraction Results

32 project wins and $184.9 in Capital Investment Facilitated 3,853 direct new jobs, 199 retained

jobs and 3,376 indirect/induced jobs Absorbed 1,229,450 sq feet Generated over $25 million in new local taxes to

the general fund

For this 4 year period, for every $1 invested the City received over $13 in local taxes

Return on an Economic Development Services Investment

$738,593,674

$1,775,431,503

$1,937,027,043

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

2012 2013 2014

Business Development Economic Impact

Based on an IMPLAN analysis

Long Term Investment For Economic Growth

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$20.0

$9.0

$4.7$4.0

$3.0 $2.7$2.0

$1.9 $1.3 $1.0

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

St. Louis Louisville Cincinnati Detroit Atlanta(2015)

Charlotte Milwaukee ColoradoSprings

Indianapolis Tulsa

Economic Development InvestmentIn Millions

IEDC, 2009 . Atlanta's investment represents the City's 2015 proposed contribution excluding the Economic Opportunity Fund.

Thank you!

Dr. Eloisa Klementich, Managing Director Business Development

133 Peachtree Street NE, Suite 2900

Atlanta, GA 30303

(404) 880-4100www.investatlanta.com