What is an Economic Development District?
An Economic Development District (EDD), or District Organization, is a federally designated organization given the responsibility to maintain and implement a Comprehensive Economic Development Strategy (CEDS) plan. Today, Puerto Rico does not have an EDD and the CEDS is currently managed by the Puerto Rican Planning Board and covers all 78 Municipalities. This pilot initiative seeks to establish the minimum requirements for Puerto Rico to request a regional EDD designation for a select geographical area of 6 municipalities with the ability to conduct a more granular and targeted CEDS in addition to the Puerto Rican Planning Board’s broader CEDS.
Why would Puerto Rico want to have an Economic Development District?
A federal Comprehensive Economic Development Strategy (CEDS) is designed to bring together the public and private sectors in the creation of a plan to strengthen and diversify a regional economy.
It has been demonstrated that regional governmental and non-governmental entities are often more effective at leveraging their assets by working with others in an economic region. It is worth noting that Economic Development Districts traditionally do not market the region or recruit new industries. Their primary mission is to build capacity for expansion of existing firms, recruitment of new firms, and creation of new firms through entrepreneurship. Building capacity is accomplished through improvements in and expansion of infrastructure, initiating programs such as innovation hubs and business incubators, developing and managing workforce skill development programs, and other initiatives such as broadband access and industrial/business parks, often with “shell” buildings that can be quickly customized and completed for either new or existing business use.
It has been demonstrated that regional governmental and non-governmental entities are often more effective at leveraging their assets by working with others in an economic region. It is worth noting that Economic Development Districts traditionally do not market the region or recruit new industries. Their primary mission is to build capacity for expansion of existing firms, recruitment of new firms, and creation of new firms through entrepreneurship. Building capacity is accomplished through improvements in and expansion of infrastructure, initiating programs such as innovation hubs and business incubators, developing and managing workforce skill development programs, and other initiatives such as broadband access and industrial/business parks, often with “shell” buildings that can be quickly customized and completed for either new or existing business use.
Process Summary
Social distancing to slow the COVID-19 pandemic has placed challenges and constraints, never experienced before, on how Puerto Rico’s Pilot EDD will be launched and in meeting the precursors for the formation of a Regional Economic Development Organization to request a federal designation as an Economic Development District. To meet the current priority to protect the health of all Puerto Ricans, the regional stakeholders’ event will be held virtually. The Strategic Leadership Team, directed by Titín Foundation, is dedicated to engaging a wide range of community leaders, industry, non-profit and public sector representatives, including those who haven’t had a voice in regional economic planning before. Sector cluster interviews conducted virtually can facilitate inclusion of the widest group of participants and will effectively support the development of SWOT Analysis that provides a comprehensive overview of the current conditions of the region.
What are the Requirements?
To request designation as an EDD, an applicant must have a current EDA-approved CEDS and include at least one geographical area within the designated service boundaries that meets EDA’s regional distress criteria as set out in 13 C.F.R. § 301.3(a). EDDs are designed to represent multi-county areas so entities that request designation should be able to serve and represent the entire geographic area of the region. See more under: Why are There 6 Municipalities in Puerto Rico’s Pilot EDD?
Pre-Planning Work Plan
Comprehensive Economic Development Strategy (CEDS) Planning Process:
- There will be a Strategy Committee that will serve as the principle facilitator of the CEDS compliant planning process, annual report, and the five-year update. The Titín Foundation will lead this phase.
- This Committee will broadly represent the main economic interests of the region and will extend the participatory opportunity to a diverse array of regional partners (public/private sectors, community leaders, WIBs, minority and labor groups, non-profits, educational institutions, etc.).
CEDS objectives:
KEY OBJECTIVES of the CEDS:
- Establish a strategic blueprint/economic roadmap for regional collaboration between the public and private sectors.
- Strengthen regional capacity and diversify the regional economy.
- Leverage existing regional planning efforts, state/federal support and private resources.
- Identify investment priorities and funding sources.
Regional Planning Challenges
- Engage and sustain broad regional support
- Implement the regional plan
- Communicate achievements to build momentum
- Evaluate progress and refine activities based on results
Elements of a CEDS
- Summary Background
- SWOT Analysis
- Strategic Direction/Action Plan
- Evaluation Framework
- Economic Resiliency
Summary Background
Economic conditions of the region supported by current, relevant data, including:
Economic conditions of the region supported by current, relevant data, including:
- Demographics, socioeconomic and environmental data
- Cultural, geographic, natural, and recreational resources
- Infrastructure assets
- Emerging and declining clusters or industry sectors
- Relationship of the regional economy to the larger region or state
- Transportation
- Workforce development
- Land use patterns
SWOT Analysis
- In-depth analysis of regional strengths, weaknesses, opportunities, and threats (commonly known as a “SWOT” analysis).
- This strategic planning tool provides a comprehensive understanding of the region’s competitive advantages.
Strategic Direction/Action Plan
- The strategic direction for the CEDS should build on findings from the SWOT analysis and incorporate elements from other regional plans (e.g., land use, transportation, workforce development, etc.).
- The plan should also identify the vision, goals, objectives, stakeholders responsible for implementation, timetables, and integration of other funding sources.
Evaluation Framework
- Evaluation Framework: Performance measures used to evaluate the organization’s implementation of the CEDS and impact in the regional.
- It serves as a mechanism to gauge progress on the successful implementation of the CEDS.
Economic Resiliency
- Ability to avoid, withstand, and recover from economic shifts, natural disasters, and impacts of climate change.
- Establishing economic resilience in a local or regional economy requires the ability to identify vulnerabilities, anticipate risk, evaluate how that risk can impact key economic assets, and build a responsive capacity.
Support
This effort will be supported by FEMA, DOC-EDA (Econ RSF), US DOT (IS RSF), USACE (IS RSF Lead), and HHS (HSS RSF).
The Economic Development Administration (EDA), Economic Recovery Support Function, FEMA CPCB, and the International Economic Development Council (IEDC) have been working to produce the baseline background to facilitate a Comprehensive Economic Development Strategy (CEDS). The Titín Foundation, a local NGO, with executive and board approval, will lead this effort with support from the Econ RSF in meeting the above requirements, and IEDC will be holding the pen and drafting a SWOT Analysis.
Once the SWOT Analysis is produced, it will be used by the ERSF as a foundation to develop a CEDS. The Titín Foundation would then submit to EDA for approval as a CEDS and undertake the other steps to request EDD designation.
The Economic Development Administration (EDA), Economic Recovery Support Function, FEMA CPCB, and the International Economic Development Council (IEDC) have been working to produce the baseline background to facilitate a Comprehensive Economic Development Strategy (CEDS). The Titín Foundation, a local NGO, with executive and board approval, will lead this effort with support from the Econ RSF in meeting the above requirements, and IEDC will be holding the pen and drafting a SWOT Analysis.
Once the SWOT Analysis is produced, it will be used by the ERSF as a foundation to develop a CEDS. The Titín Foundation would then submit to EDA for approval as a CEDS and undertake the other steps to request EDD designation.