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Sustainable Economic Development through Local & Regional Synergism Expanding the Comprehensive Economic Development Strategy Framework Capstone Research Project Jordan Yves Exantus University of Memphis Spring Semester 2014 Case Study: Greater Memphis, TN-AR-MS

Regional Economies

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Page 1: Regional Economies

Title Subject Heading What is CEDs?

1

Sustainable Economic Development through Local & Regional Synergism

Expanding the Comprehensive Economic Development Strategy Framework

Capstone Research Project Jordan Yves Exantus

University of Memphis

Spring Semester

2014

Case Study: Greater Memphis, TN-AR-MS

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Research StatementMy research will explore the goals defined by the Economic Development Administration (EDA) and guidance from the National Association of Development Organizations (NADO) as they relate to the development and implementation of the Comprehensive Economic Development Strategy (CEDS). Using the existing CEDS as a starting point, it will be determined in what ways the Memphis Area (MAAG Region) CEDS could improve in order to be more comprehensive, impactful, prescriptive, and reflective.

This project will explore best practices for Regional Economic Development Planning and consider new strategies for the identified regional priorities. I will explore a few rationales as to why planning in a regional manner is essential to local success and identify a few recommended models for regional planning which will guide implementation efforts going forward.

Essentially, CEDS is an Economic Development tool which is meant to be an ‘economic roadmap’ for the region. Within the CEDS, goals are established, investment priorities and funding sources identified, and a planning process is outlined which promotes “broad-based and diverse public and private sector participation”. Key outcomes of this planning process are job creation and other measurable impacts. Additionally, the CEDS serves as a benchmarking tool which allows the region to measure it’s opportunities versus other regions.

About the AuthorJordan Exantus is a passionate individual who has been actively expanding his planning skills and knowledge through worldwide experiences for over 10 years. Starting in 2003, Jordan studied urban planning at Cornell University where he excelled for 4 years. At Cornell, Jordan was recipient of two scholar awards given to less than 2% of the student population recognizing his commitment to academic excellence, work, community service, and leadership. Additionally, Jordan took his studies to Nairobi, Kenya; Tokyo, Japan; Brasilia, Salvador and Rio de Janeiro, Brazil. After his undergraduate studies, Jordan worked in New York City for Gensler Architecture, Planning and Design Worldwide where he had the opportunity to contribute to mixed-use master planning projects, LEED projects and “sustainability consulting” initiatives. During his time at Gensler, Jordan gained a great deal of experience and knowledge pertaining to architecture and the built environment, he became a LEED Accredited Professional, obtaining his professional accreditation for doing sustainable work in existing buildings and operations and maintenance. In 2009, Jordan took his talents to Red Lake Minnesota where he helped the Red Lake Band of Chippewa Indians apply for and receive over $280,000 in grant funds and spearheaded several planning, economic development and energy related initiatives. In 2012, Jordan began his Masters degree at the University of Memphis. In his first semester, Jordan worked as the community meeting organizer for the University’s Vance Avenue Choice Neighborhoods Grant. During the summer Jordan took part in an Environmental Planning summer course which travelled to Catania, Sicily, Italy to present best practices for sustainable economic development through agriculture. During the summer of 2012, Jordan also worked with the Memphis Area Association of Governments (MAAG) to develop the Comprehensive Economic Development Strategy (CEDS) for Greater Memphis. This plan ended up being the starting point of Jordan’s current Capstone project. In the fall, Jordan worked as the Safe Routes to School Coordinator for Frayser Elementary School. Recently, in 2013 Jordan worked at the University’s Center for Partnerships in GIS (CPGIS). In his role at CPGIS, Jordan helped to develop a database model for the Memphis MPO and designed Map Representations for the Databases’ prominent feature classes. In August of 2013, Jordan was called back to the Memphis Area Association of Governments (MAAG) to work full-time and continues to work on CEDS development as well as administering a number of housing programs, servicing local planning contracts and assisting in grant writing and administration.

Background

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1. Introduction What is CEDS? Why analyze CEDS process? EDA & NADO Guidance Gap Analysis Approach & Innovation Assets

2. MAAG CEDS Organizational Mission Identified Priorities 2013 CEDS Update Summary Background SWOT Economic Base Analysis Work Plan & Economic Development Activities

3. Regional Economic Development Planning RATIONALE Positive Development Regionalism Justice Sustainability

APPROACH Community Engagement Education and Workforce Development Small Business Assistance/ Entrepreneurialism Business Recruitment and Retention Asset Mapping, Performance Metrics and Data Driven Analysis BEST PRACTICES Regional Development Consortium Value Chain Rural Growth Model Self-Reliance LOCAL EXAMPLES West Tennessee Day Trippin’ Community LIFT West TN Regional Planning Organization (RPO)

4. Works Cited

4103442526062

Table of Contents

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Introduction What is CEDS?

(CEDS)

A comprehensive economic development strategy (CEDS) is designed to bring together the public and private sectors in the creation of an

economic roadmap to diversify and strengthen regional economies. The CEDS should analyze the

regional economy and serve as a guide for establishing regional goals and objectives, developing and implementing a regional plan of action, and identifying investment priorities and funding sources. A CEDS integrates a

region’s human and physical capital planning

in the service of economic development. Integrated economic development planning provides the flexibility to adapt

to global economic conditions and fully utilize the region’s unique advantages to maximize economic opportunity for its residents by attracting the

private investment that creates jobs for the region’s residents. A CEDS must be the result of a continuing economic

development planning process developed with broad-based and diverse public and private sector

participation, and must set forth the goals and objectives necessary to solve the economic development problems of the region and

clearly define the metrics of success. Finally, a CEDS provides a useful benchmark by which a regional economy can evaluate opportunities with other regions in the national economy.

As the federally designated Economic Development District, MAAG is responsible for developing and implementing the region’s Comprehensive Economic Development Strategy (CEDS). The CEDS analyzes our regional economy and serves as a guide for establishing regional goals and objectives, developing and implementing a regional plan of action, and identifying investment priorities and funding sources. MAAG staff works closely with the MAAG Board of Directors, the MAAG CEDS Committee and community leaders from the public and private sector in this effort. Updates to the CEDS are submitted annually. The CEDS is a federally funded Partnership Planning program through the Economic Development Adminstration.

Since completing the 2012 CEDS MAAG has been designated by the National Association of Development District to an Economic Development Administration organized Steering Committee for CEDS Guidelines Development.

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GOALS

• Measure a comprehensive set of performance metrics

• Assess the long-term trends leading to the current climate

• Identify the key issues and create a sense of urgency

• Map and analyze existing assets.

• Create a quality of place vision for the region.

• Set measurable goals

• Develop strategies for targeted industry clusters

• Involve the entire region/community, including the private sector

• Foster a climate of innovation and entrepreneurship

• Implement and monitor progress

IntroductionWhy Analyze CEDS Process?

MAAG (Memphis Area Association of Governments) CEDS (Comprehensive Economic Development Strategy)

As an organization, MAAG is looking at utilizing the CEDS planning process to help develop new initiatives which seek to engage regional stakeholders in efforts to collaborate on and enhance regional awareness surrounding economic development issues and identifying tools to address needs.

Through participatory planning, research, outreach, and benchmarking, MAAG will build upon the content and objectives of the 2012 CEDS and seek to transform the next deliverable into actionable steps which can be implemented in an incremental approach.

In 2013, MAAG developed an update to the CEDS which takes into consideration new guidance from the Economic Development Administration (EDA) and the National Association of Development Districts (NADO). The 2013 update provides the foundation for this research and provides a base of information on which to build towards regional economic planning efforts. Going forward the goals of the CEDS planning process are as follows:

While many of these goals are addressed in the current CEDS, this document will seek to address the curent gaps in the regional planning conversation. This gap analysis approach will provide a snapshot of the 2013 CEDS as a starting point and provide best practice strategies, rationales, and approaches for regional economic development planning. Through this analysis, it will be determined what strategies need to be pursued in order to achieve our stated goals, and move forward as a region.

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MissionTo lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.

The U.S. Economic Development Administration’s investment policy is designed to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States. This foundation builds upon two key economic drivers - innovation and regional collaboration.

Investment PrioritiesWithin the parameters of a competitive grant process, all projects are evaluated to determine if they advance global competitiveness, create jobs, leverage public and private resources, can demonstrate readiness and ability to use funds quickly and effectively, and link to specific and measureable outcomes. To facilitate evaluation, EDA has established the following investment priorities:

1. Collaborative Regional Innovation

2. Public/Private Partnerships

3. National Strategic Priorities

4. Global Competitiveness

5. Environmentally-Sustainable Development

6. Economically Distressed and Underserved Communities

Core Components of the Comprehensive Economic Development Strategy

Since the 2012 CEDS was completed, the EDA has been evaluating the resulting plans and working to develop new guidelines to increase the impact of local planning efforts. Going forward the core components of the CEDS will be as follows.

From the regulations governing the CEDS (see 13 C.F.R. § 303.7), the following sections must be included in the CEDS document:

1. Summary Background: A summary background of the economic conditions of the region;

2. SWOT Analysis: An in-depth analysis of economic and community strengths, weaknesses, opportunities and threats (commonly known as a “SWOT” analysis);

3. Strategic Direction/Action Plan: Strategic direction/approaches and an action plan (flowing from the SWOT analysis), which should be consistent with other relevant state/regional/local plans. The action plan should also identify the stakeholder(s) responsible for implementation;

4. Evaluation Framework: Performance measures used to evaluate the organization’s successful development and implementation of the CEDS.

In addition to the sections noted above, the CEDS document must incorporate the concept of economic resiliency (i.e., resiliency to economic shifts, natural disasters, climate change, etc.). This can take multiple forms such as a separate section, distinct goal or priority action item, or imbedded in the overarching SWOT analysis .

Introduction Economic Development Administration

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In late August 2013, the Economic Development Administration (EDA) provided the National Association of Development Organizations (NADO) with a draft copy of their new proposed Comprehensive Economic Development Strategies (CEDS). EDA staff asked for comments on the proposed guidelines from their membership over the next few months. At the Annual Training Conference in San Francisco, the NADO Board of Directors established a CEDS Steering Committee to assist in the review of the guidelines. Based on prior CEDS development, MAAG leadership was one of the 19 members from across the nation selected to serve on this important committee.

As a direct result, MAAG is utilizing the lessons learned through the CEDS Planning Process to help develop new initiatives and to inform the National discussion surrounding economic development.

EDA Economic Development Districts:Peer Standards of Excellence

Mission:The nation’s 380 Economic Development Districts (EDDs) share a common vision and mission of promoting economic prosperity, regional competitiveness, and quality of life through regional innovation, collaboration and strategic investments across America.

Shared Commitment to Excellence:As a national network, America’s EDDs are committed to pursuing excellence and innovation in both regional economic development and organizational performance. This includes fostering a regional strategic planning and implementation framework that is results oriented, focused on aligning and leveraging resources, inclusive of public, private and nonprofit sector leaders, and emphasizes the importance of asset-based regional economic development.

Seven Principles of CEDS Standards of ExcellenceUnder federal law, one of the primary functions of EDA-designated Economic Development Districts (EDDs) is to coordinate and lead a regional economic development strategy and implementation process known as the Comprehensive Economic Development Strategy (CEDS) process. As an industry, the nation’s EDDs are committed to advancing seven core principles for CEDS standards of excellence:

1. Build more resilient economies and communities by focusing and targeting regional strategies on the existing and potential competitive advantages of each individual region.2. Foster a regional collaborative framework to strategically align public sector investments from federal, state and local sources, as well as private, nonprofit and philanthropic partners.3. Use modern scenario, data and analysis tools and planning techniques that provide policy makers, stakeholders and the public with evidence-based and factual based information.4. Transform the CEDS process into a more strategy-driven planning process focused on regional visioning, priorities setting and performance outcomes, rather than broad-based encyclopedia or narrative of the region with a laundry list of random projects and programs.5. Promote and support peer reviews and exchanges of Economic Development District planning professionals and policy officials with the goal of increasing collaboration across EDD boundaries, enhancing organizational resources, and positioning regional CEDS as more effective building blocks for statewide and local strategies.6. Communicate in a compelling and modern communication style, including use of executive summaries, high quality print and online media, and social media.7. Engage the public, private, nonprofit and educational sectors, along with the general public, in the development and implementation of the CEDS.

National Association of Development Organizations (NADO)

Introduction National Association of

Development Districts (NADO)

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EDA Regional Development Consortium

EDA outlines several “Innovation Assets” which help to promote healthy local economies. Using this framework, conclusions can be drawn about what the current strengths of the region are and help us to identify where asset deficiencies exist. Where gaps do exist, there are approaches which can help to promote development of these assets. Going forward, CEDS planning should seek to engage the region and its stakeholders in order to understand the current state of the regional economy and plan to enhance or develop initiatives aimed at growing local Innovation Assets.

WHERE ARE WE?

WHERE DO WE WANT TO GO?

Introduction GAP Analysis Approach

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REGIONAL INNOVATION ASSETSGovernment Policies – the presence of a business climate that fosters the growth of technology companies.

Community Mindset – a collective frame of mind focused on collaboration, commitment to common goals, and proactive, strategic transformation.

Entrepreneurial Capacity – the ability to generate entrepreneurial endeavors through the development of new ideas.

Business Acumen – the resident business knowledge necessary to turn good ideas into sound business models.

Risk Capital - the availability of requisite capital to finance high-risk, high-growth entrepreneurial endeavors.

Networking Opportunities – an inherent environment that fosters synergies and connections.

Research and Development Enterprise – the capacity of a region’s R&D enterprise to conduct cutting-edge research combined with the desire to see that research applied to solve real-world problems.

Technology Commercialization Competence – the capacity to streamline and accelerate the process by which market-driven research is translated into products or processes that create economic value.

Human Capital – the availability of a highly-skilled, technically-trained workforce.

“A Buzz” – a regional identity/brand exists focused on entrepreneurial endeavors that are embraced internally and externally.

Physical Infrastructure – the capacity within a region to support entrepreneurial start-ups with desirable physical assets, such as specialized space, dedicated equipment, information and communication technologies, and logistics.

Industrial Base – resident cutting-edge, high-growth firms with global market penetration based on disruptive technologies that in turn builds comparative advantage for the region.

Global Linkages – the capacity to compete and participate on the global stage, leading to greater growth potential.

Innovative Culture – the presence of an intrinsic culture that celebrates entrepreneurship, which in turn generates an environment where startup businesses can thrive and the pipeline for future entrepreneurs builds.

Quality of Life – the presence of a diverse, creative environment that fosters an open, dynamic live/work/play community that in turn attracts more creative people, as well as businesses and capital.

IntroductionInnovation Assets

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Organizational Mission

Identified Priorities Summary Background SWOT Economic Base Analysis Work Plan

Economic Development Activities

MAAG CEDS

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This section will highlight the 2013 MAAG CEDS. It contains an overview of the organization, priorities for regional economic development as determined by the CEDS committee, a summary background of the MAAG region including a SWOT analysis, an economic base analysis which discusses selected social and economic characteristics of the region, MAAG’s current work plan and Economic Development Activities.

The 2013 CEDS seeks to answer the question: WHERE ARE WE? Only through understanding of the current economic and social climate can we determine the best course of action to address needs and prioritize strategies.

MAAG CEDS

WHERE ARE WE?

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The Memphis Area Association of Governments (MAAG) is one of nine statewide development districts established by the General Assembly under the Tennessee Development District Act of 1965. Like all districts in Tennessee, MAAG is legislated to provide comprehensive planning and promote economic, community, and human resource development in its defined geographic region. As a public non-profit association of local governments, MAAG serves Fayette, Lauderdale, Shelby and Tipton counties in Tennessee, Crittenden County, Arkansas and DeSoto County, Mississippi. With offices located in Cordova, an executive director and a board of directors consisting of member government officials, state representatives, state senators, industrial representatives, and minority representatives manage MAAG. An executive committee meets four times each year to set policy and conduct business on behalf of the full board.

The agency was organized in 1971, and is currently staffed by four people, who have technical expertise in program areas of economic development, community development, housing, environmental planning, infrastructure needs, historical preservation, tourism and transportation planning. Financial support for these program areas is provided primarily by federal and state funds received from the U.S. Department of Commerce, Economic Development Administration, U.S. Department of Agriculture, Rural Development Administration, Tennessee Housing Development Agency, Tennessee Department of Economic and Community Development, Tennessee Department of Environment and Conservation, Tennessee Advisory Commission on Intergovernmental Relations, Tennessee Department of Transportation, Tennessee Department of Tourist Development, and the Delta Regional Authority.

In addition to the state and federal funding sources, MAAG also receives membership dues from local governments, fees for grant management services, and program income from MAAG’s small business loan programs.

Mission StatementIt is the mission of Memphis Area Association of Governments to assist and support its members in matters related to regional planning, economic development and intergovernmental matters.

Vision StatementOur vision is to partner with local and regional governmental leaders filling the gap as a resource to improve, promote and support economic growth in the communities we serve.

Engaging Regions to Better Understand

Development Desires

Provide Technical Support and Links to Resources

Leveraging Existing Assets

MAAG CEDSOrganizational Profile and Mission

MAAG Service Area

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MAAG CEDS Priority Identification

Top concerns relating to industrial development

1. New Industrial Sites - 62%2. Job Skills Training - 57%3. Building Public Improvements - 52%4. Marketing of Existing Buildings - 52%5. Financing Programs - 33%

Business recruitment and education

Top concerns relating to business development

1. Small Business Assistance - 71%2. Downtown/Commercial Redevelopment - 47%3. Marketing Assistance - 38%4. Tourism - 38%

Business retention and education

Top concerns relating to planning and management

1. Federal/State Programs - 71%2. Local Leadership Training - 57%3. Administration/Financial Assistance - 57%4. Grantwriting/Administration - 52%5. Information Management - 14%6. Development Controls - 14%7. Mapping/GIS - 14%8. Redistricting - 9%

Resources and education

Recruitment RetentionResources and Education

Promotion of High-TechJob Skills TrainingLeveraging Existing Assets

Priority Identification

2012 CEDS SURVEY ANALYSIS

The 2012 CEDS Survey distributed to regional stakeholders in 2012 gives a clear picture of what the regional priorities and needs are.

In 2013, the CEDS committee met and a more clearly defined set of specific priorities were identified. These priorities will contribute to MAAG’s future Economic Development objectives and efforts.

2013 CEDS Committee MeetingIdentified Priorities

• Need for MAAG to be “regional convenor”

• I-269 corridor plan - marketing/ collaborative/fundraising

• Funding for I-69

• Dealing with outmigration (Memphis to Rural Areas)

• Business Recruitment

• Tourism

• Promotion of CEDS

• Freight Logistics Grant

• Funding models to reduce reliance on Government

• Marketing the region

• Engagement

• Positivity (Changing outside Perceptions)

• Self-reliance/entrepreneurship

• Innovation

• Rural Growth models

• Infrastructure

2012 CEDS Survey Top Priorities

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MAAG CEDS2013 CEDS Summary Background

Center.” The Memphis International Airport also has a Delta hub and the FedEx headquarters/global operations center. The area is traversed by I-40 and I-55 interstates, with the NAFTA I-69 being constructed to intersect the area as well as five Class-I railroads. The City is bordered by the Mississippi River which opens up the river to provide additional access to the western part of the United States. The City is a regional and national hub for transportation and logistics, providing access to the entire country through air, roadways, railways, and waterways.

The Memphis region also has significant medical research facilities including the University of Tennessee Health Science Center, St. Jude Children’s Research Hospital and the University of Memphis. While some research is done collaboratively, each institution has its own research focus such as St. Jude Children’s Research Hospital which is known for its focus on children’s diseases and bio- and health sciences. St. Jude is one of the world’s premiere centers for research and treatment of catastrophic children’s diseases.

Furthermore, the Memphis region offers a wide range of attractions that bring tourists from regional, national and global areas and adds to the quality of life for area residents. Sports, convention and musical venues are dispersed throughout the metro area and across the region and people come from all over to visit the nationally known venues such as: Beale Street, Graceland, the Smithsonian Rock ‘n Soul Exhibit, the Gibson Guitar Experience, the Pyramid, Peabody Place and Hotel, and the National Civil Rights Museum.

Summary Background

Historically, Greater Memphis’s economic growth has been strong, outperforming the nation up until the recent recession. Memphis suffered significant economic losses in the recession, with local employment being especially hard hit.

The recession has amplified our challenges. Innovation has disrupted stability, but has also created new opportunities. Automation and efficiencies have eliminated the need for many workers in different sectors. New industry clusters have moved to or emerged in the South.

The region’s industrial and spatial growth patterns limit many workers’ access to economic opportunity. Greater Memphis’s economic development has created over 200,000 jobs since 1980 but many of these jobs are in materials moving or low-skilled service occupations. These jobs provide few opportunities for advancement and can be difficult to access by transit.

Greater Memphis’s advantages as a global trade hub provide a platform that the region’s leaders can leverage. The strength of the local logistics industry has fueled growth in related industries and across sectors. The region’s leadership should continue to encourage this economic diversification by investing in the skills, infrastructure, and other inputs desired by these industries.

When looking at the Memphis region it is important to note that it is the cultural, economic, social, and environmental center of the Mid-South and what benefits the City of Memphis will benefit the region. The area is centrally located between Nashville, Huntsville-Decatur, Little Rock and Jackson, MS. It is home to the nation’s largest air cargo facility and is known as “North America’s Distribution

2013 CEDS UPDATEPrepared by the Memphis Area Association of Governments

EVALUATING CEDS PLANNING PROCESS AND NEXT STEPSComprehensive Economic Development Strategy

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MAAG CEDS SWOT Analysis

S WO T

INTERNAL

EXTERNAL

POSI

TIVE

NEG

ATIVE

STRENGTHS

Agricultural AssetsRecreational/Natural Assets (Shelby Farms,etc.)

Tri-State Region (Diversi�ed Incentives and Communities)

Multi-Modal Transportation (Logistics)Cultural Assets (Tourism)LocationAvailable LandHealthcare and Research Cluster

WEAKNESSES

Over-supply of single-family homesSprawl

PovertyCrime/PerceptionLack of Resources

Fragmentation/Internal CompetitionWorkforce Skill Level

Social/Economic SegregationDiversity of Economic Base

BlightFood Deserts

OPPORTUNITIES

Education AttainmentWorkforce DevelopmentBusiness RecruitmentAgro-TourismGeurilla PlanningRegional PlanningSmall Business AssistanceBrown�eld DevelopmentWeb-Based CEDS DevelopmentResource MappingDowntown Redevelopment

THREATS

Global CompetitionClimate Change

Loss of skilled jobsBusiness relocation

Outmigration

The Memphis region is an area of tremendous opportunity as well as significant challenges. While Memphis has managed to exhibit economic resilience throughout its history by adjusting to National changes in the economy, social challenges have continued to plague the region. Social and Economic segregation have contributed to the proliferation of crime, poverty, racial disharmony and internal competition. Despite this, the Memphis region boasts tremendous assets, within which Memphis’ great potential lies. As a region, the Memphis Area is host to a number of large companies, economic clusters and is strategically located for distributional efficiency. Through targeted efforts, specifically aimed at creating opportunities for members of the region’s disadvantaged communities Memphis could further establish itself as the economic driver for the greater Mid-South, and the entire Delta. Through collaboration, promotion of education, workforce development, community development, and smart planning, Memphis can begin to address the blight and other issues which prevent it from attracting the type of firms which provide high-paying skilled employment opportunities for the creative class. These efforts, however, will only work if they are done as a region. Currently, Memphis is not lacking in positive attributes, however, the spatial distribution of the city has created real problems. Suffering from significant sprawl, the city has seen vast areas suffer from disinvestment, while the population continues to move further and further away from the city. If this trend is to reverse, than innovative planning efforts are needed to revive the region’s downtown areas.

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MAAG CEDSEconomic Base Analysis

Memphis Area PopulationStraight Line Extrapolation

Male Female Total Male Female Total Male Female Total Male Female TotalPopulation 559,420 603,295 1,162,715 609,405 659,366 1,268,771 8.9% 9.3% 9.1% 663,642 720,687 1,384,329

Memphis Area, 2000 Memphis Area, 2012 % Change 2024 Projection

Memphis Area Population2012Population

Crittendon County

50,618

DeSoto County

161,536

Memphis Area Population1,268,771

Shelby County Fayette CountyLauderdale County Tipton County

929,437 27,772 61,03838,370

Memphis Area Population2000Population

Crittendon County DeSoto CountyMemphis Area

Population27,101 28,806 51,271 50,866 107,199 1,162,715

Shelby County

897,472

Lauderdale County Fayette County Tipton County

Population Dynamics

Is Memphis Growing?The current population of the Memphis Area is approximately 1,268,771 people. This number represents a 9% increase in population size since 2000 when the population was 1,162,715. Using straight-line extrapolation methods, in 2024 the population of the six county area will be approximately 1,384,329 people.

Note: This analyis examines data from the MAAG Area (denoted “Memphis Area”) and the Memphis MSA which includes a couple of additional counties.

MSA Boundaries

Memphis (MAAG) Area

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MAAG CEDS Economic Base Analysis

The Next GenerationOne of the key indicators of a successful economy is the ability to attract and retain talent. In urban areas with lots of opportunities, you will find high numbers of young people (aged 25-34) that represent new talent in the workforce. Cities with high proportions of this age cohort have shown the ability to attract college graduates to their city and often have more vibrant urban cores due to the preference of young people to live in urbanized and downtown areas. Unfortunately, despite its growth, it appears that Memphis is losing its young talent. While the numbers of young people in Memphis have grown along with the total population, the proportion of people aged 25-34 has fallen slightly in comparison to the 2000 figures. In 2000, young folks comprised 15 percent of the total population in Memphis. Yet, in 2010, young folks comprised just under 14 percent of the population. This data indicates that Memphis is either attracting less new talent, or less young Memphians are staying local once they reach adulthood.

60,000 40,000 20,000 0 20,000 40,000 60,000

Under 5 years5 to 9 years

10 to 14 years15 to 19 years20 to 24 years25 to 29 years30 to 34 years35 to 39 years40 to 44 years45 to 49 years50 to 54 years55 to 59 years60 to 64 years65 to 69 years70 to 74 years75 to 79 years80 to 84 years

85+

Memphis Area 2012 Population Pyramid

Male

Female

60,000 40,000 20,000 0 20,000 40,000 60,000

Under 5 years

5 to 9 years

10 to 14 years

15 to 19 years

20 to 24 years

25 to 29 years

30 to 34 years

35 to 39 years

40 to 44 years

45 to 49 years

50 to 54 years

55 to 59 years

60 to 64 years

65 to 69 years

70 to 74 years

75 to 79 years

80 to 84 years

85+

Memphis Area 2000 Population Pyramid

Male

Female

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Recently, the Memphis, TN-MS-AR Metropolitan Statistical Area(MSA) earned the distinction of being the first majority minority major metropolitan area in the United States. While there are several cities that have urban centers which are majority minority, typically the surrounding fringe and suburb communities balance the racial dynamics towards a white (or Hispanic) majority in most metropolitan areas. Due to the fact that the US census does not include Hispanic amongst its racial categories, statistically speaking, Memphis is unique in its distinction as the only majority minority city. This distinction begs the question, “What does this mean for Memphis?” Since the demographic make-up of Memphis is different than the rest of the country, a closer look at the numbers is needed to paint a clear picture of what is going on within the metropolis and why.

In 2000, white folks comprised approximately 53 percent of the Memphis MSA’s population (636,707); since that time, the white community has lost approximately 6000 people region wide (-1%). Currently, the white population is approximately 630,714 or 48 percent of the total population. During this same time period, the black community grew by 15 percent from 522,923 individuals to 601,043 people. The Asian community also grew significantly during this time period expanding by 52 percent from 16,000 to 24,000 people. Overall, the trend appears to be that despite losing white population, all other race categories have been experiencing significant growth.

The Greater Memphis Region, like many cities in the nation, is characterized by a “black” urban core, and “white” suburban communities. During the second half of the 20th Century, much of urban America experienced “white flight” as American cities saw their white residents flee the city center for seemingly more attractive suburban lifestyles. Memphis is no different; from 2000 to 2010, Memphis’ urban core lost 15 percent of its white residents falling from 34 percent to 29 percent of the total population. As a direct result, the African American proportions rose from 61 percent to 63 percent despite minimal population growth. Overall, there is negative growth in the urban core, the total population of urban Memphis has fallen by 3,000 people since 2000. Therefore, all of the growth the Memphis region has been experiencing has occurred in the suburbs, which have grown by 20% since 2000.

Based on the census data, it would appear that the majority of the urban white population loss is being absorbed by the suburban communities, resulting in a 7 percent increase in white population from 2000 to 2010. Additionally, it would appear that the suburban communities are becoming increasingly integrated with high levels of minority infiltration into suburban communities. Suburban growth has seen a 53 percent increase in black populations and a 126 percent increase in Asian populations. As a result, the suburban racial composition has changed from being 75 percent white, to being 65 percent white. Currently, blacks comprise almost 30 percent of the total suburban population, up 6 percent from 2000. Based on these numbers, we can reasonably assume that the suburban communities are becoming increasingly integrated.

Racial Composition

MAAG CEDSEconomic Base Analysis

BlackWhiteAsianLatino

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Race by the Numbers

Memphis MSA Racial Compostion by Location, 2000

Population Pct of Total Population Pct of Total Population Pct of TotalWhite alone 636,707 53% 223,654 34% 413,053 74%Black or African American alone 522,923 43% 397,702 61% 125,221 23%American Indian and Alaska Native alone 2,521 0% 1,216 0% 1,305 0%Asian alone 16,152 1% 9,819 2% 6,333 1%Native Hawaiian and Other Pacific Islander alone 659 0% 427 0% 232 0%Some other race alone 13,264 1% 9,648 1% 3,616 1%Two or more races 12,978 1% 7,379 1% 5,599 1%

Total 1,205,204 649,845 555,359

Memphis MSA Racial Compostion by Location, 2010

Population Pct of Total Population Pct of Total Population Pct of TotalWhite alone 630,715 48% 190,120 29% 440,595 66%Black or African American alone 601,043 46% 409,687 63% 191,356 29%American Indian and Alaska Native alone 3,360 0% 1,549 0% 1,811 0%Asian alone 24,479 2% 10,146 2% 14,333 2%Native Hawaiian and Other Pacific Islander alone 613 0% 300 0% 313 0%Some other race alone 37,404 3% 26,163 4% 11,241 2%Two or more races 18,486 1% 8,924 1% 9,562 1%

Total 1,316,100 646,889 669,211

Change in Memphis MSA Racial Compostion, 2000-2010 Total Change Pct Change Total Change Pct Change Total Change Pct Change

White alone (5,992) -1% (33,534) -15% 27,542 7%Black or African American alone 78,120 15% 11,985 3% 66,135 53%American Indian and Alaska Native alone 839 33% 333 27% 506 39%Asian alone 8,327 52% 327 3% 8,000 126%Native Hawaiian and Other Pacific Islander alone (46) -7% (127) -30% 81 35%Some other race alone 24,140 182% 16,515 171% 7,625 211%Two or more races 5,508 42% 1,545 21% 3,963 71%

Total 110,896 (2,956) 113,852

MSA Within Memphis Outside Memphis

MSA (current boundaries) Within Memphis Outside Memphis

MSA Within Memphis Outside Memphis

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20

United StatesCrittenden

County, Arkansas

DeSoto County,

Mississippi

Fayette County,

Tennessee

Lauderdale County,

Tennessee

Shelby County,

Tennessee

Tipton County,

TennesseeMemphis Area

Total Total Total Total Total Total Total Total204,336,017 31,267 103,255 26,886 18,407 589,395 39,232 808,4426.0% 6.8% 3.8% 6.6% 8.2% 4.8% 5.7% 4.9%8.2% 14.5% 7.7% 9.0% 17.4% 9.3% 9.9% 9.5%

28.2% 34.8% 30.9% 36.1% 43.6% 27.2% 37.5%29.1%

21.3% 24.0% 27.2% 22.2% 16.4% 24.0% 25.2% 24.2%7.7% 5.4% 9.2% 5.9% 3.6% 6.0% 7.3% 6.4%17.9% 10.8% 15.0% 14.3% 7.5% 18.1% 10.0% 16.7%10.6% 3.7% 6.2% 5.9% 3.3% 10.6% 4.5% 9.2%

85.7% 78.7% 88.5% 84.5% 74.4% 85.9% 84.4% 85.6%

28.5% 14.6% 21.2% 20.2% 10.8% 28.7% 14.5% 25.8%

26.5% 28.7% 21.8% 27.9% 32.0% 34.4% 19.6% 31.6%13.1% 18.9% 7.5% 9.3% 21.7% 19.4% 12.3% 17.2%9.6% 16.2% 6.6% 5.8% 18.0% 11.8% 7.7% 11.0%4.1% 2.7% 1.6% 3.6% 3.0% 4.1% 4.9% 3.7%

35,522 30,882 37,250 36,731 26,182 33,036 33,155 33,46419,642 20,815 21,990 19,156 21,733 17,102 20,822 18,224

27,607 26,038 31,212 30,630 23,857 25,588 26,841 26,513

33,857 30,600 37,686 39,059 26,695 31,626 35,232 32,67050,096 48,342 46,705 53,222 38,053 48,169 46,802 47,86066,109 54,384 61,801 55,313 45,303 61,641 55,367 60,494

4.6% 5.0% 3.6% 3.7% 4.4% 4.8% 2.7% 4.5%

Subject

Population 25 years and over

Some college, no degreeAssociate's degreeBachelor's degree

Less than 9th grade9th to 12th grade, no diplomaHigh school graduate (includes equivalency)

Percent bachelor's degree or higher

Graduate or professional degree

Percent high school graduate or higher

POVERTY RATE FOR THE POPULATION 25 YEARS AND OVER FOR WHOM POVERTY STATUS IS DETERMINED BY EDUCATIONAL ATTAINMENT LEVEL

Less than high school graduate High school graduate (includes equivalency)

MEDIAN EARNINGS IN THE PAST 12 MONTHS (IN 2012 INFLATION-ADJUSTED DOLLARS)

Population 25 years and over with earnings Less than high school graduate

Some college or associate's degree Bachelor's degree or higher

Educational attainment

Graduate or professional degree

PERCENT IMPUTED

High school graduate (includes equivalency) Some college or associate's degree Bachelor's degree

Education AttainmentThe Memphis Area has very similar education attainment statistics to that of the rest of the country. While the ratio of college degrees attained in the region is slightly lower than the national average, the rate of people who graduate high school or complete equivalency programs are slightly higher than national figures. This is not entirely surprising considering the fact that the local economy is largely built around “blue collar” labor, and there is a relatively lower demand for skilled “white collar” workers.

While education rates are relatively normal for the Memphis area, statistics show that unless local residents do acquire a Bachelor’s degree or higher, they are much more likely to be living below the poverty line than national counterparts. Conversely, those who do acquire a Bachelor’s degree or better, are less likely to live below the poverty line than national counterparts.

MAAG CEDSEconomic Base Analysis

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21

Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent

243,810,053 243,810,053 37,390 37,390 121,012 121,012 30,504 30,504 21,777 21,777 713,977 713,977 46,868 46,868 971,528 971,528157,664,311 64.7% 23,878 63.9% 85,467 70.6% 18,972 62.2% 11,105 51.0% 472,055 66.1% 30,257 64.6% 641,734 66.1%156,533,205 64.2% 23,840 63.8% 85,166 70.4% 18,921 62.0% 11,105 51.0% 470,864 65.9% 29,852 63.7% 639,748 65.8%141,996,548 58.2% 20,790 55.6% 78,113 64.5% 17,025 55.8% 9,400 43.2% 417,662 58.5% 25,920 55.3% 568,910 58.6%14,536,657 6.0% 3,050 8.2% 7,053 5.8% 1,896 6.2% 1,705 7.8% 53,202 7.5% 3,932 8.4% 70,838 7.3%1,131,106 0.5% 38 0.1% 301 0.2% 51 0.2% 0 0.0% 1,191 0.2% 405 0.9% 1,986 0.2%86,145,742 35.3% 13,512 36.1% 35,545 29.4% 11,532 37.8% 10,672 49.0% 241,922 33.9% 16,611 35.4% 329,794 33.9%

156,533,205 156,533,205 23,840 23,840 85,166 85,166 18,921 18,921 11,105 11,105 470,864 470,864 29,852 29,852 639,748 639,74814,557,588 9.3% 3,052 12.8% 7,069 8.3% 1,892 10.0% 1,710 15.4% 53,208 11.3% 3,940 13.2% 70,871 11.1%

141,996,548 141,996,548 20,790 20,790 78,113 78,113 17,025 17,025 9,400 9,400 417,662 417,662 25,920 25,920 568,910 568,910

2,699,250 1.9% 441 2.1% 474 0.6% 447 2.6% 341 3.6% 1,392 0.3% 284 1.1% 3,379 0.6%9,221,878 6.5% 1,208 5.8% 5,494 7.0% 1,454 8.5% 422 4.5% 20,563 4.9% 2,019 7.8% 31,160 5.5%15,079,996 10.6% 2,686 12.9% 8,399 10.8% 2,556 15.0% 2,196 23.4% 35,704 8.5% 3,663 14.1% 55,204 9.7%4,018,762 2.8% 683 3.3% 3,899 5.0% 630 3.7% 350 3.7% 15,030 3.6% 792 3.1% 21,384 3.8%16,422,596 11.6% 2,685 12.9% 7,683 9.8% 2,107 12.4% 968 10.3% 46,062 11.0% 3,178 12.3% 62,683 11.0%7,096,633 5.0% 1,813 8.7% 10,378 13.3% 1,327 7.8% 638 6.8% 47,858 11.5% 1,934 7.5% 63,948 11.2%3,139,327 2.2% 218 1.0% 783 1.0% 270 1.6% 53 0.6% 6,453 1.5% 369 1.4% 8,146 1.4%9,574,851 6.7% 1,063 5.1% 4,121 5.3% 886 5.2% 398 4.2% 26,262 6.3% 1,386 5.3% 34,116 6.0%15,141,136 10.7% 1,346 6.5% 5,977 7.7% 1,326 7.8% 551 5.9% 42,539 10.2% 1,752 6.8% 53,491 9.4%32,513,621 22.9% 4,700 22.6% 15,011 19.2% 3,413 20.0% 1,750 18.6% 93,853 22.5% 5,247 20.2% 123,974 21.8%13,039,332 9.2% 1,889 9.1% 8,804 11.3% 850 5.0% 498 5.3% 40,132 9.6% 2,151 8.3% 54,324 9.5%7,027,803 4.9% 1,138 5.5% 4,221 5.4% 1,007 5.9% 382 4.1% 21,290 5.1% 1,435 5.5% 29,473 5.2%7,021,363 4.9% 920 4.4% 2,869 3.7% 752 4.4% 853 9.1% 20,524 4.9% 1,710 6.6% 27,628 4.9%

141,996,548 141,996,548 20,790 20,790 78,113 78,113 17,025 17,025 9,400 9,400 417,662 417,662 25,920 25,920 568,910 568,910

111,686,094 78.7% 16,027 77.1% 64,012 81.9% 13,242 77.8% 6,794 72.3% 333,719 79.9% 19,581 75.5% 453,375 79.7%21,192,565 14.9% 3,463 16.7% 9,649 12.4% 2,405 14.1% 1,925 20.5% 61,569 14.7% 4,694 18.1% 83,705 14.7%8,907,425 6.3% 1,251 6.0% 4,386 5.6% 1,360 8.0% 681 7.2% 22,100 5.3% 1,587 6.1% 31,365 5.5%210,464 0.1% 49 0.2% 66 0.1% 18 0.1% 0 0.0% 274 0.1% 58 0.2% 465 0.1%

Crittenden County, Arkansas Memphis AreaSubject United States DeSoto County,

MississippiFayette County,

TennesseeLauderdale County,

TennesseeShelby County,

TennesseeTipton County,

Tennessee

Civilian labor force Employed Unemployed

EMPLOYMENT STATUS Population 16 years and over In labor force

Civilian labor force Percent Unemployed

Armed Forces Not in labor force

Civilian employed population 16 years and over Agriculture, forestry, fishing and hunting, and mining Construction

INDUSTRY

Transportation and warehousing, and utilities Information Finance and insurance, and real estate and rental and leasing

Manufacturing Wholesale trade Retail trade

Other services, except public administration Public administration

Professional, scientific, and management, and administrative and Educational services, and health care and social assistance Arts, entertainment, and recreation, and accommodation and food services

Government workers Self-employed in own not incorporated business workers Unpaid family workers

CLASS OF WORKER Civilian employed population 16 years and over Private wage and salary workers

Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent

115,226,802 115,226,802 18,560 18,560 57,518 57,518 14,412 14,412 9,826 9,826 341,948 341,948 21,383 21,383 463,647 463,6478,272,970 7.2% 2,061 11.1% 2,299 4.0% 965 6.7% 1,153 11.7% 32,288 9.4% 1,579 7.4% 40,345 8.7%6,260,673 5.4% 1,304 7.0% 1,815 3.2% 800 5.6% 1,012 10.3% 21,872 6.4% 1,274 6.0% 28,077 6.1%12,309,201 10.7% 2,980 16.1% 5,445 9.5% 1,248 8.7% 1,574 16.0% 40,534 11.9% 2,116 9.9% 53,897 11.6%11,939,777 10.4% 2,626 14.1% 5,335 9.3% 1,283 8.9% 1,488 15.1% 38,698 11.3% 2,532 11.8% 51,962 11.2%15,779,346 13.7% 2,343 12.6% 8,697 15.1% 2,013 14.0% 1,432 14.6% 47,983 14.0% 2,708 12.7% 65,176 14.1%20,929,952 18.2% 3,220 17.3% 12,697 22.1% 3,304 22.9% 1,589 16.2% 59,558 17.4% 4,540 21.2% 84,908 18.3%14,110,448 12.2% 1,775 9.6% 9,087 15.8% 1,577 10.9% 808 8.2% 36,189 10.6% 3,089 14.4% 52,525 11.3%14,768,587 12.8% 1,626 8.8% 8,920 15.5% 1,811 12.6% 462 4.7% 37,474 11.0% 2,638 12.3% 52,931 11.4%5,510,639 4.8% 278 1.5% 2,211 3.8% 710 4.9% 195 2.0% 13,232 3.9% 619 2.9% 17,245 3.7%5,345,209 4.6% 347 1.9% 1,012 1.8% 701 4.9% 113 1.2% 14,120 4.1% 288 1.3% 16,581 3.6%53,046 (X) 36,521 (X) 58,851 (X) 56,297 (X) 32,987 (X) 46,251 (X) 51,847 (X) 47,714 (X)73,034 (X) 51,381 (X) 68,959 (X) 74,738 (X) 45,275 (X) 66,741 (X) 62,570 (X) 66,003 (X)

5,271,043 4.6% 1,768 9.5% 1,742 3.0% 772 5.4% 799 8.1% 17,166 5.0% 1,196 5.6% 23,443 5.1%3,132,921 2.7% 331 1.8% 582 1.0% 214 1.5% 337 3.4% 11,325 3.3% 753 3.5% 13,542 2.9%

13,180,710 11.4% 4,014 21.6% 5,054 8.8% 2,046 14.2% 2,413 24.6% 66,077 19.3% 3,365 15.7% 82,969 17.9%

28,051 (X) 19,548 (X) 25,073 (X) 28,541 (X) 16,328 (X) 25,465 (X) 22,410 (X) 24,941 (X)

Memphis AreaShelby County, Tennessee

Tipton County, TennesseeSubject United States Crittenden County,

Arkansas

INCOME AND BENEFITS Total households

DeSoto County, Mississippi

Fayette County, Tennessee

Lauderdale County, Tennessee

Mean household income (dollars)

Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Median household income (dollars)

Per capita income (dollars)

With Supplemental Security Income With cash public assistance income With Food Stamp/SNAP benefits in the past 12 months

Income & EmploymentWith regard to income, the Memphis area has similar income levels when compared to National figures. There are, however, slightly (percentage wise) more people living in poverty, and slightly fewer making more money. This discrepancy is seen with the differences in median (53k vs 47k) and mean (73k vs 66k) income levels and the significantly higher proportion of people in the Memphis area receiving food stamp benefits.

Unemployment levels in the Memphis area are slightly higher (11.1%) than national figures (9.3%). Only DeSoto County, Mississippi has a lower unemployment rate (8.3%) than the national average. The remaining 5 counties in the MAAG study area all have unemployment rates that exceed the national average.

MAAG CEDS Economic Base Analysis

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22

Large Industries

NAICS code Industry description 2007 US

Employment Percent of Total Memphis MSA

Employment Percent of

Total Location Quotient

Local Requirements

Export Employment

Total 120,604,265 549,614

Key (Largest) Industries561 Administrative & support services 9628468 8.0% 48,137 8.8% 1.10 43,879 4,258 722 Food services & drinking places 9657310 8.0% 44,690 8.1% 1.02 44,010 680 551 Management of companies & enterprises 3121402 2.6% 38,369 7.0% 2.70 14,225 24,144 622 Hospitals 5477818 4.5% 29,865 5.4% 1.20 24,963 4,902 541 Professional, scientific, & technical services 8179941 6.8% 25,451 4.6% 0.68 37,277 -

Totals 186,512 33.9% 33,984

NAICS code Industry description 2011 US

Employment Percent of

Total Memphis MSA

Employment Percent of

Total Location Quotient

Local Requirements

Export Employment

00 Total 113,425,965 509,410

Key (Largest) Industries561 Administrative & support services 9,032,939 8.0% 48,998 9.6% 1.21 40,568 8,430 722 Food services & drinking places 9,691,577 8.5% 41,912 8.2% 0.96 43,526 - 622 Hospitals 5,672,028 5.0% 28,526 5.6% 1.12 25,474 3,052 551 Management of companies & enterprises 2,921,669 2.6% 27,774 5.5% 2.12 13,122 14,652 621 Ambulatory health care services 6,355,462 5.6% 25,248 5.0% 0.88 28,543 -

Totals 123,460 33.9% 26,135

Largest Industries (Employment) in Memphis MSA (2007)

Largest Industries (Employment) in Memphis MSA (2011)

This report utilizes an array of techniques in order to illustrate the health of the regional economy based on the existing industries, employment levels in those industries and diversity of the “economic base” (industries that produce for export). Using the Economic Census, this analysis identifies the industries which are part of the economic base, how these industries have grown over time, what the proportional share of total employment is for these industries, the diversity of the economic base and the location quotient (proportion relative to national averages). This type of analysis helps us to understand what the regional economic engines are and how they compare to national benchmarks, and allow for conclusions to be drawn about the overall health of the economy.

The following charts illustrate the five largest industries (based on employment numbers) in the Memphis MSA between 2007 and 2011. The most significant (negative) change observed in this period is the loss of Professional, scientific, & technical services as one of the largest employers. Administrative & support services continues to be the cornerstone of employment with almost 10% of all the regions jobs. Both Hospitals and Management of companies & enterprises continue to be large employers, but have experiences some contraction locally, and are not as strong as they were in 2007. Food services & drinking places are showing signs of stress with a transition from a basic industry (specialization) to one which has dipped below national averages and no longer produces export employment.

Of these Key Industries, the basic industries are Adminstrative & support services, Management of companies & enterprises and Hospitals.

MAAG CEDSEconomic Base Analysis

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23

Basic Industries

Basic Industries in Memphis MSA (2007)

Basic Industries in Memphis MSA (2011)

NAICS code Industry description 2007 US

Employment Percent of

Total Memphis MSA

Employment Percent of

Total Location Quotient

Local Requirements

Export Employment

Basic Industries551 Management of companies & enterprises 3121402 2.6% 38,369 7.0% 2.70 14,225 24,144 484 Truck transportation 1476397 1.2% 16,245 3.0% 2.41 6,728 9,517 721 Accommodation 1907554 1.6% 17,877 3.3% 2.06 8,693 9,184 493 Warehousing & storage 679077 0.6% 11,530 2.1% 3.73 3,095 8,435 423 Durable goods merchant wholesalers 3395277 2.8% 20,714 3.8% 1.34 15,473 5,241 622 Ambulatory health care services 5477818 4.5% 29,865 5.4% 1.20 24,963 4,902 561 Administrative & support services 9628468 8.0% 48,137 8.8% 1.10 43,879 4,258 813 Religious/grantmaking/civic/professional & similar org 2816537 2.3% 16,057 2.9% 1.25 12,835 3,222 492 Couriers & messengers 569190 0.5% 5,672 1.0% 2.19 2,594 3,078 488 Support activities for transportation 610641 0.5% 5,802 1.1% 2.08 2,783 3,019 339 Miscellaneous manufacturing 680848 0.6% 5,076 0.9% 1.64 3,103 1,973 481 Air transportation 480648 0.4% 3,527 0.6% 1.61 2,190 1,336 325 Chemical manufacturing 793717 0.7% 4,577 0.8% 1.27 3,617 960 323 Printing and related support activities 631771 0.5% 3,704 0.7% 1.29 2,879 825 722 Food services & drinking places 9657310 8.0% 44,690 8.1% 1.02 44,010 680 812 Personal & laundry services 1380284 1.1% 6,786 1.2% 1.08 6,290 496 452 General merchandise stores 2897472 2.4% 13,669 2.5% 1.04 13,204 465 448 Clothing & clothing accessories stores 1648157 1.4% 7,880 1.4% 1.05 7,511 369 324 Petroleum and coal products manufacturing 103577 0.1% 761 0.1% 1.61 472 289 712 Museums, historical sites, & similar institutions 128539 0.1% 825 0.2% 1.41 586 239 447 Gasoline stations 888705 0.7% 4,188 0.8% 1.03 4,050 138 483 Water transportation 68947 0.1% 444 0.1% 1.41 314 130 322 Paper manufacturing 425096 0.4% 2,057 0.4% 1.06 1,937 120 711 Performing arts, spectator sports, & related industries 436072 0.4% 2,098 0.4% 1.06 1,987 111 521 Monetary authorities - central bank 20223 0.0% 153 0.0% 1.66 92 61 446 Health & personal care stores 1069187 0.9% 4,894 0.9% 1.00 4,872 22

Totals 315,597 57.4% 83,213

NAICS code Industry description 2011 US

Employment Percent of

Total Memphis MSA

Employment Percent of

Total Location Quotient

Local Requirements

Export Employment

Basic Industries492 Couriers & messengers 526,762 0.5% 19,660 3.9% 8.31 2,366 17,294 551 Management of companies & enterprises 2,921,669 2.6% 27,774 5.5% 2.12 13,122 14,652 561 Administrative & support services 9,032,939 8.0% 48,998 9.6% 1.21 40,568 8,430 484 Truck transportation 1,332,250 1.2% 14,376 2.8% 2.40 5,983 8,393 493 Warehousing & storage 658,414 0.6% 10,919 2.1% 3.69 2,957 7,962 423 Ambulatory health care services 3,156,124 2.8% 19,491 3.8% 1.38 14,175 5,316 721 Accommodation 1,864,708 1.6% 13,363 2.6% 1.60 8,375 4,988 488 Support activities for transportation 583,637 0.5% 5,734 1.1% 2.19 2,621 3,113 622 Hospitals 5,672,028 5.0% 28,526 5.6% 1.12 25,474 3,052 813 Religious/grantmaking/civic/professional & similar org 2,707,377 2.4% 15,167 3.0% 1.25 12,159 3,008 339 Miscellaneous manufacturing 560,987 0.5% 5,157 1.0% 2.05 2,519 2,638 481 Air transportation 425,787 0.4% 4,213 0.8% 2.20 1,912 2,301 448 Clothing & clothing accessories stores 1,659,696 1.5% 8,543 1.7% 1.15 7,454 1,089 322 Paper manufacturing 363,014 0.3% 2,132 0.4% 1.31 1,630 502 325 Chemical manufacturing 725,288 0.6% 3,656 0.7% 1.12 3,257 399 324 Petroleum and coal products manufacturing 98,410 0.1% 770 0.2% 1.74 442 328 452 General merchandise stores 2,843,559 2.5% 13,018 2.6% 1.02 12,771 247 712 Museums, historical sites, & similar institutions 128,780 0.1% 745 0.1% 1.29 578 167 483 Water transportation 63,365 0.1% 421 0.1% 1.48 285 137 521 Monetary authorities - central bank 18,041 0.0% 83 0.0% 1.02 81 2 525 Funds, trusts, & other financial vehicles (part) 3,079 0.0% 14 0.0% 1.01 14 0

Totals 242,760 47.7% 84,017

While the Economic Base has become slightly less diverse since 2007, and has lost over 70,000 jobs it still comprises almost half of all local employment. Also, while overall job numbers are down, the export employment numbers have actually increased slightly, this indicates that the Memphis area’s basic industries are competing very well when compared to national counterparts in those industries. Despite this, the base does not contain many skilled labor industries, so greater efforts will be needed if Memphis hopes to attract and retain talented professionals in the future.

MAAG CEDS Economic Base Analysis

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24

NAICS code Industry description Memphis MSA

Employment Percent of

Total Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Employment Gained due to Industrial Mix621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937624 Social assistance 11,083 2.2% 0.89 - 5.2% 2,008 -831611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397448 Clothing & clothing accessories stores 8,543 1.7% 1.15 1,089 8.4% 524 608445 Food & beverage stores 9,886 1.9% 0.77 - -0.9% 460 42424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589493 Warehousing & storage 10,919 2.1% 3.69 7,962 -5.3% 335 -260813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268713 Amusement, gambling, & recreation industries 3,917 0.8% 0.60 - -7.6% 260 -329311 Food manufacturing 4,895 1.0% 0.76 - -0.8% 253 3454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553485 Transit & ground passenger transportation 1,308 0.3% 0.65 - -20.5% 122 -362524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106488 Support activities for transportation 5,734 1.1% 2.19 3,113 -1.2% 89 189519 Other information services 69 0.0% 0.08 - 86.6% 88 -54711 Performing arts, spectator sports, & related industries 1,810 0.4% 0.94 - -13.7% 84 -248562 Waste management & remediation services 1,368 0.3% 0.85 - 7.1% 83 84812 Personal & laundry services 5,287 1.0% 0.90 - -22.1% 67 -1,162447 Gasoline stations 3,491 0.7% 0.92 - -16.6% 55 -503712 Museums, historical sites, & similar institutions 745 0.1% 1.29 167 -9.7% 51 -82221 Utilities 412 0.1% 0.14 - 14.1% 31 41486 Pipeline transportation 96 0.0% 0.46 - -29.9% 22 -55512 Motion picture & sound recording industries 714 0.1% 0.51 - -1.4% 19 14324 Petroleum and coal products manufacturing 770 0.2% 1.74 328 1.2% 7 47

Employment Lost due to Industrial Mix238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533236 Construction of buildings 2,949 0.6% 0.60 - -41.4% -1,421 -360522 Credit intermediation & related activities 11,024 2.2% 0.89 - -16.5% -1,126 -263441 Motor vehicle & parts dealers 7,132 1.4% 0.95 - -16.4% -700 -188323 Printing and related support activities 2,147 0.4% 0.99 - -42.0% -666 -670484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283339 Miscellaneous manufacturing 5,157 1.0% 2.05 2,638 1.6% -591 975442 Furniture & home furnishings stores 1,651 0.3% 0.87 - -32.9% -564 -98333 Machinery manufacturing 2,928 0.6% 0.67 - -42.0% -457 -1,366321 Wood product manufacturing 1,032 0.2% 0.67 - -31.4% -433 50532 Rental & leasing services 1,714 0.3% 0.78 - -32.3% -432 -234332 Fabricated metal product manufacturing 4,392 0.9% 0.73 - -7.4% -426 355444 Building material & garden equipment & supplies dealers 4,315 0.8% 0.80 - -17.9% -373 -254337 Furniture and related product manufacturing 664 0.1% 0.44 - -47.5% -371 -155237 Heavy and civil engineering 1,978 0.4% 0.53 - -32.1% -364 -400811 Repair & maintenance 4,756 0.9% 0.91 - -17.5% -355 -311327 Nonmetallic mineral product manufacturing 1,157 0.2% 0.76 - -27.1% -354 17326 Plastics and rubber products manufacturing 1,402 0.3% 0.46 - -41.9% -340 -527531 Real estate 5,120 1.0% 0.82 - -22.4% -274 -811423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236451 Sporting goods, hobby, book, & music stores 1,964 0.4% 0.81 - -16.7% -223 -30511 Publishing industries (except Internet) 1,176 0.2% 0.31 - -39.8% -220 -440481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089322 Paper manufacturing 2,132 0.4% 1.31 502 3.6% -178 375551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140453 Miscellaneous store retailers 2,919 0.6% 0.91 - 7.5% -162 527335 Electrical equipment and appliance mfg. 783 0.2% 0.53 - -35.0% -149 -201315 Apparel manufacturing 12 0.0% 0.02 - -96.8% -138 -208325 Chemical manufacturing 3,656 0.7% 1.12 399 -20.1% -122 -526334 Computer and electronic product manufacturing 1,279 0.3% 0.32 - 6.4% -120 268336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499331 Primary metal manufacturing 770 0.2% 0.46 - -38.5% -114 -294561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838443 Electronics & appliance stores 1,569 0.3% 0.80 - 7.1% -107 298446 Health & personal care stores 4,257 0.8% 0.96 - -13.0% -90 -256314 Textile product mills 360 0.1% 0.72 - -13.0% -87 58492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410517 Telecommunications 3,283 0.6% 0.66 - -14.1% -69 -242313 Textile mills 29 0.0% 0.06 - -83.6% -48 -89515 Broadcasting (except Internet) 861 0.2% 0.73 - -20.0% -47 -105518 Internet service providers, web search portals, & data processing 506 0.1% 0.28 - -27.4% -30 -120425 Wholesale electronic markets and agents and brokers 1,068 0.2% 0.75 - -11.4% -22 -44523 Securities intermediation & related activities 3,124 0.6% 0.79 - -8.8% -19 -79483 Water transportation 421 0.1% 1.48 137 -5.1% -10 13521 Monetary authorities - central bank 83 0.0% 1.02 2 -45.8% -7 -53487 Scenic & sightseeing transportation 11 0.0% 0.11 - -80.1% -7 -35533 Lessors of nonfinancial intangible assets (exc copyrighted works) 52 0.0% 0.40 - -29.7% -2 -16312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179

Industrial Mix ComponentThis table shows the industries which have gained or lost employment due to changes in the health of the national economy.

MAAG CEDSEconomic Base Analysis

Page 25: Regional Economies

25

NAICS code Industry description Memphis MSA

Employment Percent of

Total Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Growth due to Competitive Component492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089339 Miscellaneous manufacturing 5,157 1.0% 2.05 2,638 1.6% -591 975448 Clothing & clothing accessories stores 8,543 1.7% 1.15 1,089 8.4% 524 608454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533453 Miscellaneous store retailers 2,919 0.6% 0.91 - 7.5% -162 527336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499322 Paper manufacturing 2,132 0.4% 1.31 502 3.6% -178 375332 Fabricated metal product manufacturing 4,392 0.9% 0.73 - -7.4% -426 355443 Electronics & appliance stores 1,569 0.3% 0.80 - 7.1% -107 298334 Computer and electronic product manufacturing 1,279 0.3% 0.32 - 6.4% -120 268621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236488 Support activities for transportation 5,734 1.1% 2.19 3,113 -1.2% 89 189312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179562 Waste management & remediation services 1,368 0.3% 0.85 - 7.1% 83 84314 Textile product mills 360 0.1% 0.72 - -13.0% -87 58321 Wood product manufacturing 1,032 0.2% 0.67 - -31.4% -433 50611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48324 Petroleum and coal products manufacturing 770 0.2% 1.74 328 1.2% 7 47445 Food & beverage stores 9,886 1.9% 0.77 - -0.9% 460 42221 Utilities 412 0.1% 0.14 - 14.1% 31 41327 Nonmetallic mineral product manufacturing 1,157 0.2% 0.76 - -27.1% -354 17512 Motion picture & sound recording industries 714 0.1% 0.51 - -1.4% 19 14483 Water transportation 421 0.1% 1.48 137 -5.1% -10 13311 Food manufacturing 4,895 1.0% 0.76 - -0.8% 253 3

Decline due to Competitive Component551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398333 Machinery manufacturing 2,928 0.6% 0.67 - -42.0% -457 -1,366812 Personal & laundry services 5,287 1.0% 0.90 - -22.1% 67 -1,162624 Social assistance 11,083 2.2% 0.89 - 5.2% 2,008 -831531 Real estate 5,120 1.0% 0.82 - -22.4% -274 -811323 Printing and related support activities 2,147 0.4% 0.99 - -42.0% -666 -670424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589326 Plastics and rubber products manufacturing 1,402 0.3% 0.46 - -41.9% -340 -527325 Chemical manufacturing 3,656 0.7% 1.12 399 -20.1% -122 -526447 Gasoline stations 3,491 0.7% 0.92 - -16.6% 55 -503511 Publishing industries (except Internet) 1,176 0.2% 0.31 - -39.8% -220 -440237 Heavy and civil engineering 1,978 0.4% 0.53 - -32.1% -364 -400452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397485 Transit & ground passenger transportation 1,308 0.3% 0.65 - -20.5% 122 -362236 Construction of buildings 2,949 0.6% 0.60 - -41.4% -1,421 -360713 Amusement, gambling, & recreation industries 3,917 0.8% 0.60 - -7.6% 260 -329811 Repair & maintenance 4,756 0.9% 0.91 - -17.5% -355 -311331 Primary metal manufacturing 770 0.2% 0.46 - -38.5% -114 -294484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268522 Credit intermediation & related activities 11,024 2.2% 0.89 - -16.5% -1,126 -263493 Warehousing & storage 10,919 2.1% 3.69 7,962 -5.3% 335 -260446 Health & personal care stores 4,257 0.8% 0.96 - -13.0% -90 -256444 Building material & garden equipment & supplies dealers 4,315 0.8% 0.80 - -17.9% -373 -254711 Performing arts, spectator sports, & related industries 1,810 0.4% 0.94 - -13.7% 84 -248517 Telecommunications 3,283 0.6% 0.66 - -14.1% -69 -242532 Rental & leasing services 1,714 0.3% 0.78 - -32.3% -432 -234315 Apparel manufacturing 12 0.0% 0.02 - -96.8% -138 -208335 Electrical equipment and appliance mfg. 783 0.2% 0.53 - -35.0% -149 -201441 Motor vehicle & parts dealers 7,132 1.4% 0.95 - -16.4% -700 -188337 Furniture and related product manufacturing 664 0.1% 0.44 - -47.5% -371 -155518 Internet service providers, web search portals, & data processing 506 0.1% 0.28 - -27.4% -30 -120515 Broadcasting (except Internet) 861 0.2% 0.73 - -20.0% -47 -105442 Furniture & home furnishings stores 1,651 0.3% 0.87 - -32.9% -564 -98313 Textile mills 29 0.0% 0.06 - -83.6% -48 -89712 Museums, historical sites, & similar institutions 745 0.1% 1.29 167 -9.7% 51 -82523 Securities intermediation & related activities 3,124 0.6% 0.79 - -8.8% -19 -79486 Pipeline transportation 96 0.0% 0.46 - -29.9% 22 -55519 Other information services 69 0.0% 0.08 - 86.6% 88 -54521 Monetary authorities - central bank 83 0.0% 1.02 2 -45.8% -7 -53425 Wholesale electronic markets and agents and brokers 1,068 0.2% 0.75 - -11.4% -22 -44487 Scenic & sightseeing transportation 11 0.0% 0.11 - -80.1% -7 -35451 Sporting goods, hobby, book, & music stores 1,964 0.4% 0.81 - -16.7% -223 -30533 Lessors of nonfinancial intangible assets (exc copyrighted works) 52 0.0% 0.40 - -29.7% -2 -16

Competitive ComponentThis table shows the industries which have experienced significant growth due to competitive component (local growth rate versus national share). The key contributors to these figures are the transportation and logistics industries, government, and healthcare as well as some specialized manufacturing and retail.

This table shows the industries which have experienced significant decline due to competitive component. Troubling factors in the local economy are the large volumes of jobs lost in the fields of Management and Professional services. These skilled labor positions are vital to the local economy and its ability to attract and retain educated talent. The Accomodation and Food services industries have also experienced significant decline which indicates troubling dynamics in the local tourism and hospitality market.

NAICS code Industry description Memphis MSA

Employment Percent of

Total Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Growth due to Competitive Component492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089339 Miscellaneous manufacturing 5,157 1.0% 2.05 2,638 1.6% -591 975448 Clothing & clothing accessories stores 8,543 1.7% 1.15 1,089 8.4% 524 608454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533453 Miscellaneous store retailers 2,919 0.6% 0.91 - 7.5% -162 527336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499322 Paper manufacturing 2,132 0.4% 1.31 502 3.6% -178 375332 Fabricated metal product manufacturing 4,392 0.9% 0.73 - -7.4% -426 355443 Electronics & appliance stores 1,569 0.3% 0.80 - 7.1% -107 298334 Computer and electronic product manufacturing 1,279 0.3% 0.32 - 6.4% -120 268621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236488 Support activities for transportation 5,734 1.1% 2.19 3,113 -1.2% 89 189312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179562 Waste management & remediation services 1,368 0.3% 0.85 - 7.1% 83 84314 Textile product mills 360 0.1% 0.72 - -13.0% -87 58321 Wood product manufacturing 1,032 0.2% 0.67 - -31.4% -433 50611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48324 Petroleum and coal products manufacturing 770 0.2% 1.74 328 1.2% 7 47445 Food & beverage stores 9,886 1.9% 0.77 - -0.9% 460 42221 Utilities 412 0.1% 0.14 - 14.1% 31 41327 Nonmetallic mineral product manufacturing 1,157 0.2% 0.76 - -27.1% -354 17512 Motion picture & sound recording industries 714 0.1% 0.51 - -1.4% 19 14483 Water transportation 421 0.1% 1.48 137 -5.1% -10 13311 Food manufacturing 4,895 1.0% 0.76 - -0.8% 253 3

Decline due to Competitive Component551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398333 Machinery manufacturing 2,928 0.6% 0.67 - -42.0% -457 -1,366812 Personal & laundry services 5,287 1.0% 0.90 - -22.1% 67 -1,162624 Social assistance 11,083 2.2% 0.89 - 5.2% 2,008 -831531 Real estate 5,120 1.0% 0.82 - -22.4% -274 -811323 Printing and related support activities 2,147 0.4% 0.99 - -42.0% -666 -670424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589326 Plastics and rubber products manufacturing 1,402 0.3% 0.46 - -41.9% -340 -527325 Chemical manufacturing 3,656 0.7% 1.12 399 -20.1% -122 -526447 Gasoline stations 3,491 0.7% 0.92 - -16.6% 55 -503511 Publishing industries (except Internet) 1,176 0.2% 0.31 - -39.8% -220 -440237 Heavy and civil engineering 1,978 0.4% 0.53 - -32.1% -364 -400452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397485 Transit & ground passenger transportation 1,308 0.3% 0.65 - -20.5% 122 -362236 Construction of buildings 2,949 0.6% 0.60 - -41.4% -1,421 -360713 Amusement, gambling, & recreation industries 3,917 0.8% 0.60 - -7.6% 260 -329811 Repair & maintenance 4,756 0.9% 0.91 - -17.5% -355 -311331 Primary metal manufacturing 770 0.2% 0.46 - -38.5% -114 -294484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268522 Credit intermediation & related activities 11,024 2.2% 0.89 - -16.5% -1,126 -263493 Warehousing & storage 10,919 2.1% 3.69 7,962 -5.3% 335 -260446 Health & personal care stores 4,257 0.8% 0.96 - -13.0% -90 -256444 Building material & garden equipment & supplies dealers 4,315 0.8% 0.80 - -17.9% -373 -254711 Performing arts, spectator sports, & related industries 1,810 0.4% 0.94 - -13.7% 84 -248517 Telecommunications 3,283 0.6% 0.66 - -14.1% -69 -242532 Rental & leasing services 1,714 0.3% 0.78 - -32.3% -432 -234315 Apparel manufacturing 12 0.0% 0.02 - -96.8% -138 -208335 Electrical equipment and appliance mfg. 783 0.2% 0.53 - -35.0% -149 -201441 Motor vehicle & parts dealers 7,132 1.4% 0.95 - -16.4% -700 -188337 Furniture and related product manufacturing 664 0.1% 0.44 - -47.5% -371 -155518 Internet service providers, web search portals, & data processing 506 0.1% 0.28 - -27.4% -30 -120515 Broadcasting (except Internet) 861 0.2% 0.73 - -20.0% -47 -105442 Furniture & home furnishings stores 1,651 0.3% 0.87 - -32.9% -564 -98313 Textile mills 29 0.0% 0.06 - -83.6% -48 -89712 Museums, historical sites, & similar institutions 745 0.1% 1.29 167 -9.7% 51 -82523 Securities intermediation & related activities 3,124 0.6% 0.79 - -8.8% -19 -79486 Pipeline transportation 96 0.0% 0.46 - -29.9% 22 -55519 Other information services 69 0.0% 0.08 - 86.6% 88 -54521 Monetary authorities - central bank 83 0.0% 1.02 2 -45.8% -7 -53425 Wholesale electronic markets and agents and brokers 1,068 0.2% 0.75 - -11.4% -22 -44487 Scenic & sightseeing transportation 11 0.0% 0.11 - -80.1% -7 -35451 Sporting goods, hobby, book, & music stores 1,964 0.4% 0.81 - -16.7% -223 -30533 Lessors of nonfinancial intangible assets (exc copyrighted works) 52 0.0% 0.40 - -29.7% -2 -16

NAICS code Industry description Memphis MSA

Employment Percent of

Total Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Growth due to Competitive Component492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089339 Miscellaneous manufacturing 5,157 1.0% 2.05 2,638 1.6% -591 975448 Clothing & clothing accessories stores 8,543 1.7% 1.15 1,089 8.4% 524 608454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533453 Miscellaneous store retailers 2,919 0.6% 0.91 - 7.5% -162 527336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499322 Paper manufacturing 2,132 0.4% 1.31 502 3.6% -178 375332 Fabricated metal product manufacturing 4,392 0.9% 0.73 - -7.4% -426 355443 Electronics & appliance stores 1,569 0.3% 0.80 - 7.1% -107 298334 Computer and electronic product manufacturing 1,279 0.3% 0.32 - 6.4% -120 268621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236488 Support activities for transportation 5,734 1.1% 2.19 3,113 -1.2% 89 189312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179562 Waste management & remediation services 1,368 0.3% 0.85 - 7.1% 83 84314 Textile product mills 360 0.1% 0.72 - -13.0% -87 58321 Wood product manufacturing 1,032 0.2% 0.67 - -31.4% -433 50611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48324 Petroleum and coal products manufacturing 770 0.2% 1.74 328 1.2% 7 47445 Food & beverage stores 9,886 1.9% 0.77 - -0.9% 460 42221 Utilities 412 0.1% 0.14 - 14.1% 31 41327 Nonmetallic mineral product manufacturing 1,157 0.2% 0.76 - -27.1% -354 17512 Motion picture & sound recording industries 714 0.1% 0.51 - -1.4% 19 14483 Water transportation 421 0.1% 1.48 137 -5.1% -10 13311 Food manufacturing 4,895 1.0% 0.76 - -0.8% 253 3

Decline due to Competitive Component551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398333 Machinery manufacturing 2,928 0.6% 0.67 - -42.0% -457 -1,366812 Personal & laundry services 5,287 1.0% 0.90 - -22.1% 67 -1,162624 Social assistance 11,083 2.2% 0.89 - 5.2% 2,008 -831531 Real estate 5,120 1.0% 0.82 - -22.4% -274 -811323 Printing and related support activities 2,147 0.4% 0.99 - -42.0% -666 -670424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589326 Plastics and rubber products manufacturing 1,402 0.3% 0.46 - -41.9% -340 -527325 Chemical manufacturing 3,656 0.7% 1.12 399 -20.1% -122 -526447 Gasoline stations 3,491 0.7% 0.92 - -16.6% 55 -503511 Publishing industries (except Internet) 1,176 0.2% 0.31 - -39.8% -220 -440237 Heavy and civil engineering 1,978 0.4% 0.53 - -32.1% -364 -400452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397485 Transit & ground passenger transportation 1,308 0.3% 0.65 - -20.5% 122 -362236 Construction of buildings 2,949 0.6% 0.60 - -41.4% -1,421 -360713 Amusement, gambling, & recreation industries 3,917 0.8% 0.60 - -7.6% 260 -329811 Repair & maintenance 4,756 0.9% 0.91 - -17.5% -355 -311331 Primary metal manufacturing 770 0.2% 0.46 - -38.5% -114 -294484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268522 Credit intermediation & related activities 11,024 2.2% 0.89 - -16.5% -1,126 -263493 Warehousing & storage 10,919 2.1% 3.69 7,962 -5.3% 335 -260446 Health & personal care stores 4,257 0.8% 0.96 - -13.0% -90 -256444 Building material & garden equipment & supplies dealers 4,315 0.8% 0.80 - -17.9% -373 -254711 Performing arts, spectator sports, & related industries 1,810 0.4% 0.94 - -13.7% 84 -248517 Telecommunications 3,283 0.6% 0.66 - -14.1% -69 -242532 Rental & leasing services 1,714 0.3% 0.78 - -32.3% -432 -234315 Apparel manufacturing 12 0.0% 0.02 - -96.8% -138 -208335 Electrical equipment and appliance mfg. 783 0.2% 0.53 - -35.0% -149 -201441 Motor vehicle & parts dealers 7,132 1.4% 0.95 - -16.4% -700 -188337 Furniture and related product manufacturing 664 0.1% 0.44 - -47.5% -371 -155518 Internet service providers, web search portals, & data processing 506 0.1% 0.28 - -27.4% -30 -120515 Broadcasting (except Internet) 861 0.2% 0.73 - -20.0% -47 -105442 Furniture & home furnishings stores 1,651 0.3% 0.87 - -32.9% -564 -98313 Textile mills 29 0.0% 0.06 - -83.6% -48 -89712 Museums, historical sites, & similar institutions 745 0.1% 1.29 167 -9.7% 51 -82523 Securities intermediation & related activities 3,124 0.6% 0.79 - -8.8% -19 -79486 Pipeline transportation 96 0.0% 0.46 - -29.9% 22 -55519 Other information services 69 0.0% 0.08 - 86.6% 88 -54521 Monetary authorities - central bank 83 0.0% 1.02 2 -45.8% -7 -53425 Wholesale electronic markets and agents and brokers 1,068 0.2% 0.75 - -11.4% -22 -44487 Scenic & sightseeing transportation 11 0.0% 0.11 - -80.1% -7 -35451 Sporting goods, hobby, book, & music stores 1,964 0.4% 0.81 - -16.7% -223 -30533 Lessors of nonfinancial intangible assets (exc copyrighted works) 52 0.0% 0.40 - -29.7% -2 -16

MAAG CEDS Economic Base Analysis

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NAICS code Industry description Memphis MSA

Employment Percent of

Total Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Current Strengths492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089339 Miscellaneous manufacturing 5,157 1.0% 2.05 2,638 1.6% -591 975448 Clothing & clothing accessories stores 8,543 1.7% 1.15 1,089 8.4% 524 608322 Paper manufacturing 2,132 0.4% 1.31 502 3.6% -178 375324 Petroleum and coal products manufacturing 770 0.2% 1.74 328 1.2% 7 47

Prospects limited due to external trends488 Support activities for transportation 5,734 1.1% 2.19 3,113 -1.2% 89 189423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236483 Water transportation 421 0.1% 1.48 137 -5.1% -10 13

Prospects limited due to local weaknesses521 Monetary authorities - central bank 83 0.0% 1.02 2 -45.8% -7 -53712 Museums, historical sites, & similar institutions 745 0.1% 1.29 167 -9.7% 51 -82493 Warehousing & storage 10,919 2.1% 3.69 7,962 -5.3% 335 -260813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397325 Chemical manufacturing 3,656 0.7% 1.12 399 -20.1% -122 -526424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140

Emerging Strengths623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553453 Miscellaneous store retailers 2,919 0.6% 0.91 - 7.5% -162 527336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499443 Electronics & appliance stores 1,569 0.3% 0.80 - 7.1% -107 298334 Computer and electronic product manufacturing 1,279 0.3% 0.32 - 6.4% -120 268621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179562 Waste management & remediation services 1,368 0.3% 0.85 - 7.1% 83 84611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48221 Utilities 412 0.1% 0.14 - 14.1% 31 41

Prospects limited due to weak base and declining competitiveness519 Other information services 69 0.0% 0.08 - 86.6% 88 -54624 Social assistance 11,083 2.2% 0.89 - 5.2% 2,008 -831

Prospects limited due to weak base and external trends238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533332 Fabricated metal product manufacturing 4,392 0.9% 0.73 - -7.4% -426 355314 Textile product mills 360 0.1% 0.72 - -13.0% -87 58321 Wood product manufacturing 1,032 0.2% 0.67 - -31.4% -433 50445 Food & beverage stores 9,886 1.9% 0.77 - -0.9% 460 42327 Nonmetallic mineral product manufacturing 1,157 0.2% 0.76 - -27.1% -354 17512 Motion picture & sound recording industries 714 0.1% 0.51 - -1.4% 19 14311 Food manufacturing 4,895 1.0% 0.76 - -0.8% 253 3

Prospects limited overall533 Lessors of nonfinancial intangible assets (exc copyrighted works) 52 0.0% 0.40 - -29.7% -2 -16451 Sporting goods, hobby, book, & music stores 1,964 0.4% 0.81 - -16.7% -223 -30487 Scenic & sightseeing transportation 11 0.0% 0.11 - -80.1% -7 -35425 Wholesale electronic markets and agents and brokers 1,068 0.2% 0.75 - -11.4% -22 -44486 Pipeline transportation 96 0.0% 0.46 - -29.9% 22 -55523 Securities intermediation & related activities 3,124 0.6% 0.79 - -8.8% -19 -79313 Textile mills 29 0.0% 0.06 - -83.6% -48 -89442 Furniture & home furnishings stores 1,651 0.3% 0.87 - -32.9% -564 -98515 Broadcasting (except Internet) 861 0.2% 0.73 - -20.0% -47 -105518 Internet service providers, web search portals, & data processing 506 0.1% 0.28 - -27.4% -30 -120337 Furniture and related product manufacturing 664 0.1% 0.44 - -47.5% -371 -155441 Motor vehicle & parts dealers 7,132 1.4% 0.95 - -16.4% -700 -188335 Electrical equipment and appliance mfg. 783 0.2% 0.53 - -35.0% -149 -201315 Apparel manufacturing 12 0.0% 0.02 - -96.8% -138 -208532 Rental & leasing services 1,714 0.3% 0.78 - -32.3% -432 -234517 Telecommunications 3,283 0.6% 0.66 - -14.1% -69 -242711 Performing arts, spectator sports, & related industries 1,810 0.4% 0.94 - -13.7% 84 -248444 Building material & garden equipment & supplies dealers 4,315 0.8% 0.80 - -17.9% -373 -254446 Health & personal care stores 4,257 0.8% 0.96 - -13.0% -90 -256522 Credit intermediation & related activities 11,024 2.2% 0.89 - -16.5% -1,126 -263331 Primary metal manufacturing 770 0.2% 0.46 - -38.5% -114 -294811 Repair & maintenance 4,756 0.9% 0.91 - -17.5% -355 -311713 Amusement, gambling, & recreation industries 3,917 0.8% 0.60 - -7.6% 260 -329236 Construction of buildings 2,949 0.6% 0.60 - -41.4% -1,421 -360485 Transit & ground passenger transportation 1,308 0.3% 0.65 - -20.5% 122 -362237 Heavy and civil engineering 1,978 0.4% 0.53 - -32.1% -364 -400511 Publishing industries (except Internet) 1,176 0.2% 0.31 - -39.8% -220 -440447 Gasoline stations 3,491 0.7% 0.92 - -16.6% 55 -503326 Plastics and rubber products manufacturing 1,402 0.3% 0.46 - -41.9% -340 -527323 Printing and related support activities 2,147 0.4% 0.99 - -42.0% -666 -670531 Real estate 5,120 1.0% 0.82 - -22.4% -274 -811812 Personal & laundry services 5,287 1.0% 0.90 - -22.1% 67 -1,162333 Machinery manufacturing 2,928 0.6% 0.67 - -42.0% -457 -1,366722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342

Total: 87,366 2,678 -10,409

Industry Targeting Analysis

MAAG CEDSEconomic Base Analysis

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NAICS code Industry description

Memphis MSA Employment

Percent of Total

Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Fastest Growing Industries492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410519 Other information services 69 0.0% 0.08 - 86.6% 88 -54454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106221 Utilities 412 0.1% 0.14 - 14.1% 31 41611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48

NAICS code Industry description

Memphis MSA Employment

Percent of Total

Location Quotient

Export Employment

Percent Change

Industrial Mix Component

Competitive Component

Largest Industries561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48

Industry Targeting AnalysisCurrent StrengthsThe industries listed as “current strengths” in the previous table were obtained by isolating the basic industries (location quotient > 1) with both positive percent change in employment and a positive competitive component. Several of the “fastest growing industries” listed below are not listed in the “current strengths” industries because they are yet to reach the distinction of being basic industries. Many of these industries are instead listed in the “emerging strengths” field.

Emerging StrengthsThe industries listed as “emerging strengths” in the previous table were identified due to their significant growth and positive competitive component despite not yet achieving the status of being local specializations.

The tables below illustrate the fastest growing and largest industries in the Memphis MSA region.

Of the largest industries, most of them are part of the base or they are growing towards becoming basic industries. Two critical areas are the significant decline in the Food Services & drinking places and Professional, scientific & technical services industries. These two industries have limited prospects, but are needed to nurture sustainable economic development going forward. Significant efforts will be needed to turn these industries around, especially with regard to the large numbers of jobs lost in the Professional, scientific, & technical services industry. Additionally, reliance on low-skilled labor is a weakness of the economic base because one plant or factory closure could create significant changes to the local economy.

MAAG CEDS Economic Base Analysis

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MAAG CEDS Work Plan

ECONOMIC AND COMMUNITY DEVELOPMENTThis work program is organized around economic and community development with emphasis on small business and industrial development in a six-county region. To carry out this effort, MAAG provides staff assistance to the region’s communities in planning and facilitating economic and community development projects.

Grant Writing and AdministrationUnder the supervision of the executive director, a two member staff will work with state and federal agencies throughout the year to prepare grant/loan proposals for infrastructure improvement projects for member governments. Projects may include those such as water treatment facilities, water line extensions, industrial park improvements, rural fire protection, and city parks. State and federal agencies include but are not limited to the Economic Development Administration, Rural Development Administration, Delta Regional Authority, TN Department of Economic and Community Development, and the TN Department of Environmental Conservation. Efforts to obtain grant/loan funds for infrastructure projects will be made throughout the year. Staff will work with communities who express specific needs and will meet with local officials, gather data, attend public hearings, and provide necessary resolutions and notices in order to develop these projects further. Staff will also work with member governments to administer approved projects.

Comprehensive Economic Development Strategy (CEDS)As the federally designated Economic Development District, MAAG is responsible for developing and implementing the region’s Comprehensive Economic Development Strategy (CEDS). The CEDS analyzes our regional economy and serves as a guide for establishing regional goals and objectives, developing and implementing a regional plan of action, and identifying investment priorities and funding sources. MAAG staff will work closely with the MAAG Board of Directors, the MAAG CEDS Committee and community leaders from the public and private sector as a guide in this effort. A new CEDS was developed last year and will be updated this year.

Data CollectionMAAG recognizes the region’s need for maintaining relevant demographic information and using it in the economic and community development planning process. Throughout the year, staff will collect, analyze, and disseminate statistical and demographic information for the region. This information will be used in the development of proposals, special projects, and to guide the development of the CEDS.

MAAG will continue to monitor and provide information to the Economic Development Administration’s economic development representative on area plant closings and the number of employees affected. These efforts should help MAAG maintain accurate and timely updates of the region’s CEDS.

HISTORIC PRESERVATIONIn FY 2013, MAAG applied to the Tennessee Historical Commission for a Federal Preservation Grant. The purpose of the grant is to allow MAAG to become involved in Historical Preservation within the Greater Memphis region. However, due to federal sequestration, the funds are not expected to be released until late summer/early fall 2013. Planned activities for the funds include preservation planning studies for towns, neighborhoods, and historic districts, the preparation of nominations to the National Register of Historic Places, planning or pre-development work necessary to undertake restoration of an historic property, and restoration of historic properties. Other activities may include conducting architectural, archaeological, and historic site surveys to identify and record historic districts, sites, buildings, structures, and objects significant to Tennessee’s history.

HOUSING It is the intent of MAAG to serve as a resource to improve, promote and support economic growth in the communities we serve. Crucial to economic development is the access for very low- and low-income persons to affordable, quality housing. To promote planning and economic development of the region, MAAG provides housing services to local governments, not-for-profit entities and individuals. MAAG will work with the THDA and USDA Rural Development to identify, administer and promote housing programs throughout the region.

Homebuyer EducationMAAG staff has completed the NeighborWorks® America Training the Trainer pre-purchase homebuyer education course and received certification by NeighborWorks® America. In FY2014, MAAG plans to obtain certification by THDA to be an approved homebuyer education provider in MAAG’s four Tennessee counties. Three of the counties, Fayette, Lauderdale and Tipton Counties, currently do not have a single homebuyer education provider offering courses within the county – all residents of the counties must drive to Memphis or Brownsville, TN to complete the course. To remedy this, MAAG will offer homebuyer education courses on a monthly basis, with each county hosting one class each quarter.

Technical Assistance/Customer ServiceMAAG staff will provide technical assistance and customer service to local governments and not-for-profit entities and will make referrals to area residents looking for housing assistance. MAAG staff will also provide assistance to local governments and not-for-profit entities to take advantage of housing programs offered by THDA, Rural Development Administration and Housing and Urban Development. Assistance will be provided in areas of project development, grant writing, and project administration.

OutreachThroughout the year, MAAG will promote existing housing programs offered by MAAG, THDA, and other government agencies and not-for-profit entities. Promotion of housing programs includes developing and obtaining promotional materials, making presentations about housing programs to local governments and community leaders, making information about MAAG and THDA housing programs available on the MAAG website, and presenting and participating in local and regional housing conferences and tradeshows.

Emergency Repair ProgramMAAG will continue to administer the Emergency Repair Program (ERP) for THDA. The ERP provides grants to low income senior homeowners to repair or replace an essential system and/or a critical structural problem. MAAG staff will partner with local not-for-profit entities and local governments to identify homeowners and make essential repairs to make the home livable.

USDA 502 Direct Loan ProgramMAAG staff recently received certification to become a loan packager for the USDA Rural Development 502 Direct Loan program. This program provides up to 100% financing for very-low and low-income rural residents to purchase a home. MAAG staff will work with REALTORS® to promote this program throughout the region.

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MAAG CEDS Work Plan

RURAL TOURISM In 2011, MAAG received the regional tourism organization designation grant from the Tennessee Department of Tourist Development (TDTD) for the Greater Memphis region that includes Fayette, Lauderdale, Shelby and Tipton counties in Tennessee. The MAAG Tourism Advisory Board (TAB) has developed a tourism generating promotion called Day Trippin’ to brand the increased focus on rural tourism in the region. The Day Trippin’ campaign has received two prestigious awards – an International Communicators’ Award and a Telly Award – which have garnered national attention. MAAG will continue to promote the Day Trippin’ campaign throughout FY2014. Additionally, counties may submit requests for mini-grants allocated through the TDTD grant to promote specific projects and/or events in their communities. Requests are submitted to MAAG and reviewed for approval based on set guidelines. Each project that is allocated funding will be monitored throughout the year by MAAG staff.

SMALL BUSINESS FINANCINGMAAG will continue to promote job creation by assisting area small businesses in acquiring financing through, among others, the EDA Revolving Loan Program and the Rural Development Agency Intermediary Relending Program. MAAG will maintain staff that is experienced in the review, packaging, administration and/or referral of the most appropriate loan programs to best meet the needs of interested businesses.MAAG staff will strive to improve upon the current year’s efforts, in doing so will maintain close contact with area chambers of commerce and banks so that those organizations will be more aware of our efforts and the availability of alternative financing options. Efforts will be made to meet with and update the MAAG Loan Committee on a regular basis. MAAG staff will actively pursue opportunities to address civic groups and organizations so as to extend the knowledge and understanding and availability of the Revolving Loan Fund program and the RDA Intermediary Relending Program.

EDA Revolving Loan Fund (RLF)The RLF is a funding source for small businesses that was established by the Economic Development Administration to create access to capital by start-up and ongoing businesses that are viable, but do not currently meet commercial lending standards. The loans emanating from this source assist small businesses in need of working capital and startup expenses and encourage innovative and entrepreneurial efforts from the community.

RDA Intermediary Relending Plan (IRP)The IRP performs the same function and requirements as the RLF with the exception that the IRP is specifically targeted to small businesses in the designated rural areas, and this program is sponsored by the U. S. Department of Agriculture. Uses of this IRP capital include working capital and startup expenses that encourage the innovation and entrepreneurial spirit and activity that is the genesis of strong economies. This is a new program for MAAG. The MAAG staff looks forward to being proactive in promoting the program and being the lender of the program for Fayette, Tipton, Lauderdale counties in TN and portions of Shelby County, TN.

RURAL PLANNING

I-269 PlanningThe planning staff of MAAG is participating in the economic development and environmental planning of the I-269 Corridor in Fayette and Shelby counties in TN. The I-269 Corridor is currently the only planned urban loop off of the I-69 “NAFTA” Highway. The 1,790 mile long I-69 highway will connect Port Huron, Michigan and Laredo, Texas and will provide a direct link from Monterrey, Mexico to Toronto, Canada. The Shelby County portion of the I-269 loop extends approximately 35 miles in length and approximately 2,000 feet in width. MAAG staff will be instrumental in the planning process which will provide a great opportunity to consider effective economic, social, community, environmental, and transportation planning for the region for the 21st century. Community PlanningMAAG staff will continue to serve as the planners for at three communities in fiscal year 2014. These three communities are Gallaway, Henning and Somerville, TN. MAAG will act as the community planning staff for these three jurisdictions and the activities will include, land use planning, transportation planning, economic development planning, environmental planning, geographic information planning, as well as zoning and subdivision issues. Close contact and working relationships with local officials and communities will be essential to assure that plans are accepted and implemented by the local communities.

In addition to the Tennessee counties mentioned, MAAG will be actively assisting some of the communities in Crittenden County, Arkansas in their community planning needs. The planning areas will be the same as above. MAAG currently participates in the West Memphis Metropolitan Planning Organization for transportation planning activities and hopes to expand participation and assistance to the Crittenden County communities through community planning.

Rural Planning OrganizationMAAG will continue to serve as the West Tennessee Rural Planning Organization. The Rural Planning Organization is the Tennessee Department of Transportation’s local presence in the rural communities to facilitate transportation planning and to coordinate those plans with surrounding communities and the state. MAAG will bring rural community officials together periodically to assess their transportation needs and then design plans to accomplish those needs.

Solid WasteMAAG will be the district office for Shelby, Fayette, Tipton, and Lauderdale counties to coordinate the Tennessee Department of Environmental and Conservation Department’s rules and regulations regarding solid waste. MAAG will work closely with its four counties and their Solid Waste Boards to coordinate requirements and policy between the state and the local governments. At the same time, MAAG will assist the local jurisdictions in designing and implementing their Solid Waste Plans to assure their effectiveness and compliance.

Tennessee Advisory Commission on Intergovernmental Relations (TACIR)The General Assembly, through the Public Infrastructure Needs Inventory Act, has directed that the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) shall annually compile and maintain an inventory of needed public infrastructure within the state. On a county-by county basis, the following categories of infrastructure will be inventoried: transportation (roads, bridges, airports, etc.); water and wastewater; industrial sites; municipal solid waste; K-12 facilities; recreation; low and moderate income housing; telecommunications; public health buildings; public buildings; and other public facilities as deemed necessary by the TACIR.

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MAAG CEDS ED Activities

UPDATE AND REVIEW OF THE ECONOMIC DEVELOPMENT PROGRAM The Association has two resources to utilize in implementing the CEDS. The first resource is the Revolving Loan Fund Program and the other is the staff which is supported by EDA resources and Non-EDA resources. The following Strategic Activities Matrix indicates the activities that were to be undertaken during the 2007 – 2012 CEDS and provides for an assessment of the Associations ongoing economic development program and a review and update of the inventory of economic development projects.

Strategic Activities Matrix

EDA Supported Activities Assessment

Identify resources to undertake an analysis of the causes of nontraditional behavior of unemployment rates for the core County and the MSA.

MAAG has been working with workforce organizations to become more involved in workforce activities. MAAG is working with the Community Colleges to find funding to increase the number of trained IT/JAVA Developers for the Region.

Identify the role of the Association in examining biofuels as an economic development asset

Working with the Memphis BioWorks Foundation to identify funding to carry out their mission. MAAG is collecting data from residents across the region on the importants of developing a biofuels economy and making sure trained workers are prepared to biofuels job clusters.

Broadband access feasibility Local governments have been contacted to identify those that do not have an internet website or email access. MAAG worked with a Memphis based organization (Community Lift) to write a successful DRA Grant to provide Broadband accessiblity for an intercity neighborhood.

Enhance working relations with local chambers of commerce.

Establishing relationships with The Greater Memphis Chamber, Millington Chamber and Fayette County Chamber. A spreadsheet has been created to identify all other Chamber Organizations within our region. MAAG is scheduling presentations with all chambers of commerce in the region to help promote the CEDS and listen to needs and concerns of regional chambers in its attempts to bring companies and jobs into their communities, while helping them to understand the importance of growing and promoting local businesses.

Enhance working relation with regional economic development organizations.

Participated in regional organizations such as the West Memphis MPO and the Memphis MPO. Also working to establish relationships with local governments within our service area but outside of our member governments. MAAG’s staff is attending the city council and county commission meetings. This is an effort to hear needs and concerns of our local communities. We are also joining all of the chambers of commerce in the region.

The Association has two resources to utilize in implementing the CEDS. The first resource is the Revolving Loan Fund Program and the other is the staff which is supported by EDA resources and Non-EDA resources. The following Strategic Activities Matrix indicates the activities that were to be undertaken during the 2007 – 2012 CEDS and provides for an assessment of the Associations ongoing economic development program and a review and update of the inventory of economic development projects.

Strategic Activities Matrix(2013 Updates in RED TEXT)

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MAAG CEDS ED Activities

Attend County Joint Economic and Community Development Committee Meetings.

Met with U of M Economic Development Department; Attended and made a presentation at a meeting for the Joint Economic and Community Development Board; Attended the Economic Development Fair held at the Cook Convention Center; Participated in the TN Basic Economic Development Course; and Attended a Fayette County/TVA Economic Development Meeting. MAAG attends JECDC meetings and makes presentations on projects and funding opportunities.

Project refinement, resource identification and implementation assistance.

Implemented new application process and new quarterly application submissions. Identified projects for supplemental funding for Disaster Declarations. Assisted the Town of Millington prepare and submit an application for funding.

CEDS Annual Assessment

Met with Committee September 2013.

Workforce Development Forum

MAAG has been working with workforce organizations to become more involved in workforce activities. MAAG held a regional workforce development workshop to discuss the challenges in meeting the needs of the employers and developing a sustainable workforce

EDA Non-Supported Activities Assessment Infrastructure Needs Survey Worked with the TN Advisory Commission on

Intergovernmental Relations to complete the Public Infrastructure Needs for the region. Developed and sent out surveys to public organizations within the MAAG region. MAAG played a major role in helping with an I-269 Corridor Study. We will be working with the community along the Corridor to help develop a marketing plan and will work to develop a strategy and plan for securing funding for the completion of the I-69 Corridor.

Transportation Planning Participation

Attended Rural Planning Organization and Metropolitan Planning Organization meetings. MAAG has recaptured the contract with the State of TN to be the administrator of the RPO program. We continue to attend the MPO meetings for the region.

 

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Regional Economic Development

WHERE DO WE WANT TO GO?

Based on the stated goals of the CEDS, this section looks at the topic of Regional Economic Development and its potential to impact where we go as a region. This section will focus on addressing the gaps as outlined during the planning process and provide strategies, rationales, and best practice development models for regional planning and collaboration to promote economic success.

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Regional Economic Development

INTERNAL

EXTERNAL

POLI

CIES

ACTIO

NS

APPROACH

Community Engagement and Organizing

Education and Workforce Development

Business Recruitment and Retention

Small Business Assistance

Asset Mapping, Performance Metrics and other Data Driven Analysis Tools

RATIONALE

Positive Development

Regionalism

Justice

Sustainability

BEST PRACTICES

Regional Development Consortium (EDA)

Value Chain (Wealth Works Model)

Self Reliance (ILSR)

Rural Growth Model (USDA)

LOCAL EXAMPLES

Regional Tourism

Infrastructure/ RPO

Community LIFT

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NASCIOCollaboration

Series

What is governance and what does effective governance look like?

working group set about identifying successful collaborations and delving into what made them successful. NASCIO created a 9 element outline for describing successful collaboratives and framed a number of scenarios into this outline for publishing on its webpage for highlighting collaborative scenarios. This outline was expanded in 2013 to include a 10th element – governance.(see http://www.nascio.org/advocacy/collaboration/)

As NASCIO reviewed successful collaboratives, governance continually surfaced as an essential ingredient for effective sharing of government information and services and effective employment of technology across two or more enterprises. This is no surprise. NASCIO has long advocated for establishing and nurturing governance. In the NASCIO Enterprise Architecture Tool-Kit version 3.0 governance frameworks comprised an entire section for

recommended effective enterprise architecture.1

For many collaboratives, governance is fairly simple. For others that had started with a single shared solution, service or concept in the beginning, a well articulated governance model becomes more essential as arrangements become more mature and sophisticated entailing more members, more initiatives, and the potential necessity for cost-sharing models. Early governance may not even be formalized in any type of document. Rather, very

simple arrangements between organizations often involve contributing time and resources to a common initiative without a formal agreement. Going forward, the growth in scope and complexity of the collaborative must not be allowed to outstrip the capacity of the governance structure. Such circumstance can precipitate unanticipated, and even disastrous, outcomes. There may be the necessity for a more deliberate governance that is

a charter, a memorandum of understanding, an interstate compact2, or other means. Governance is then kept current and relevant with certain bylaws

making.

What is governance and what does effective governance look like?

Governance is really all about decision rights – who makes decisions, and how those decisions are made. Governance establishes who has a seat at the table; who has a say – who must approve versus who has input; when in a process are decision makers convened; what triggers the necessity of a “meeting of the minds” - regarding policy, action, direction, investment, scope, accountability, and assignment of commitments. Further, as presented in past publications by NASCIO, governance establishes different

Why Regionalism?It may sound cliché, but there is a lot of truth behind the moniker that two heads are better than one. It is part of an age-old understanding that people are capable of achieving far more when working collaboratively, than they can achieve working alone. Simply put, many hands make short work. In the context of an urban region, the Memphis Area functions as a collective, a sum of parts, where the urban core provides a cultural and economic anchor and the rural areas support the city with housing, agriculture and industry. Beyond that, the other cities in the region provide complementary economies; for example, West Memphis, Akansas’ commercial sector benefits heavily from the high volumes of truck traffic coming through Memphis’ bourgeoning logistics cluster. While different in many ways, the fates of the municipalities throughout the region are tied to one another, and as Memphis goes, so does the rest of the region. It is important to foster as much cooperation as possible between the other towns and cities in the region, because they constitute our network. Working together as a region allows us to better compete at the national and global levels. Considering the fact that Greater Memphis is a three-state region, diplomacy is even more important when navigating cross-jurisdictional dynamics. It is also an opportunity because the three states all have something slightly different to offer in terms of landscape, culture and laws.

Ultimately, regionalism is necessary simply because there are several cross-cutting issues which affect the entire region and cannot be adequately addressed at the local level. Environmental health is something that falls into this category. When it comes to the health of the regional ecosystem, one bad apple truly can spoil the whole bunch. Even if everyone throughout the region is practicing sustainable practices, one oil spill, one chemical contamination or one polluting industry can affect the health of an entire watershed, overall air quality or contribute to soil contamination. In this context, regional regulation is needed to ensure that everyone remains in compliance and we don’t get a tragedy of the commons situation. With regard to social issues, economic and social segregation is an issue which must be addressed at the regional level. Regional collaboration could help to align public services and diminish the often prevalent structure/challenge mismatch where resources, services and amenities tend to be disproportionately distributed based on income instead of need.

“If you want to go fast, go alone. If you want to go far, go together.” - African Proverb

Positive DevelopmentThe overall strength of a city’s (region’s) progress over time is measured in two critical forms: science and capital. These two, often interdependent metrics frequently leverage each other. Science represents the collective systems of knowledge which support technological advances, urban development, social innovation, and methods of growing, producing and manipulating capital. Capital represents the various inputs and outputs of all human activity; monetary, social, physical, natural, human, political, etc. While the potential of science is unlimited, capital is often associated with finite and interconnected resources which require careful management. Every region must utilize its assets sustainably in order to promote Positive Development. The rate of Positive Development is considered relative to competing regions and measured by the existence, quality and quantity of certain attributes associated with every aspect of advancement:

• Population growth, with a favorable balance of new births and migration• A wide diversity of land uses and building types• Proximity to key natural resources (inputs) and favorable geography, topography, weather, etc.• Vertically integrated positive export economy and strong regional tourism• High quality education systems and research institutions• Unique and innovative institutions (Religious, Educational, Business, Civic, etc.)• Great Leaders (including but not limited to: cultural, scientific, economic, bureaucratic)• Healthy active citizens• Infrastructure• Transportation• Public events, public spaces, active streetscapes and abundant night life• Community Solidarity• Iconic Architecture, Urban Design and Public Art• Effective Governance – Transparent, participatory, diplomatic, responsible• Justice/Benevolence• Preservation of Natural Oasis’ – maintain connection to nature in urban areas• Hard Power/Soft Power balance

RATIONALE

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Why Sustainability?Modern society can be characterized by two undeniable phenomena: rapid urbanization and the marked decline in the health of the global ecosystem. The correlation between these two occurrences is equally irrefutable; not only do cities expel large volumes of pollution into the environment and materials into the waste stream, but most city’s economic, social, and political organizations exacerbate environmental problems through irresponsible and gluttonous methods of operation. In an era where over half of the world’s population lives in urban areas, the implementation of new approaches to urban planning are needed; development must shift based on the understanding that monetary value cannot be placed on the environment and its non-renewable resources that we continue to degrade and exploit. Furthermore, the improved health and living standards of city residents that would result from increases in availability and utilization of green spaces, “green technologies”, and renewable energy sources are vital to the overall longevity and evolution of the human race.

In recent years, the increased occurrence of cancer and other maladies of the industrialized world have triggered debates over the current status of development and the perceived threats to human health posed by pollutants. Additionally, high levels of atmospheric greenhouse gases and extreme global weather events have alerted the global community to the rapidly growing threats posed by climate change.

The impact of environmental degradation and its contributions to poverty, hunger and disease worldwide are far more devastating to human health than the threats of terrorism, violence and crime we focus so closely on. Consequently, it is essential to promote development that will maximize benefits to our race, and focus must shift towards environmental issues. Contrary to conservative economic theory, if sustainable development is correctly implemented its initial cost would pay off in the long run through cost-effective technology and increased educational and eventually economic attainment of residents. Economists look at development in a limited scope with objectives of economic growth and efficiency, social equity and poverty reduction, and natural resource management. The sustainable side focuses on economic efficiency, growth, and efficiency, empowerment, participation, social mobility, social cohesion, cultural identity, institutional development, ecosystem integrity, carrying capacity, biodiversity, and global issues (Ierland et al. 92). Since “major cities tend to develop in key environments such as on rivers, at ocean harbors, or near the fall line, where waterfalls provide water power… major cities tend to develop at locations crucial for biological conservation”(Botkin and Beveridge 5). Considering the location of cities, their sustainability objectives require special attention.

In our market-driven economy, a necessary step to actualizing the paradigm shift needed to achieve global sustainability is establishing the connection between sustainable development and economic development.

Why Equality?In a capitalist market-driven economy there will always be winners and losers. Despite this, the dynamics which shape who the winners and losers are and the numbers of people who are able to achieve success are skewed. It has been said that great nations are measured by how the most disadvantaged citizens live, not by how the most privileged live. If America is to be honestly measured through this lens, than we are not a great nation, because here we have extreme poverty living directly adjacent to exorbitant riches. In this country we have great wealth, but the concept of equal opportunity for all is a national myth. Recently, America has seen its income and education attainments gaps continue to grow as social mobility becomes an increasingly fleeting phenomenon. It would appear that the rich are getting richer and the poor are getting poorer, and for those disadvantaged citizens it is getting more and more difficult to survive and compete in a changing economy which requires increasing levels of skill and education to “make it”.

While sound economic theory can present rationales for why in a burgeoning market economy, decision-makers should pursue strategies of deregulation, privatization and other actions aimed at “restricting the government’s role in economic affairs” (Klosterman 5), there are also very strong political, social and economic forces which tend to exacerbate problems in an already fragmented society, consisting of vastly different interest groups, often in direct competition with each other. Furthermore, in capitalist society, “the fundamental social and economic institutions… systematically promote the interest of those who control society’s productive capital” (Klosterman 14). As such, “the political arena is dominated by individuals and groups who use their access to government officials and other elites to protect their status, privilege, and wealth and ensure that government acts in their interest… Systematically excluded from the group bargaining process are minority and low-income” communities (Klosterman 11). In addition to these glaring issues, even economists will agree that Pareto efficiency is not achievable in a perfectly competitive market due to the prevalence of market failures involving public goods, externalities, prisoners’ dilemma conditions and distributional issues. Apparently, economic theory’s ‘invisible hand’ is not enough to create stable cities; planning is needed to help protect society from the social ills that capitalism perpetuates such as greed, exploitive business practices and social exclusion. It is through various systems of regulation, physical planning, community organizing and education that planning seeks to level the ‘playing field’ with special consideration for society’s most disenfranchised.

“Overcoming poverty is not a task of charity, it is an act of justice. Like Slavery and Apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings.” – Nelson Mandela

RATIONALE

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Implications

1. Challenges that appear local or even national usually require regional responses

2. Suspicion is prevalent, especially if it involves power- sharing need for regional citizenship

3. We are organzied to respond to challenges at municipal- county, state and national levels, but the major ones are emerging at neighborhood, regional and international levels.

4. Existing problem solving and service-delivery mechanisms are being overwhelmed by regional challenges; most of these mechanisms lack timeliness, flexibility, inclusiveness, stability or clout.

5. Widening economic disparities and racial segregation are creating almost insurmountable obstacles to bringing the rich and poor communities together in regional problem solving and service delivery.

personal income disparities continue to widen regional income disparities between central cities and suburbs have widenedpoverty and other indicators of urban hardship are concentrated in central cities

resident racial segregation continues across all income levels

white flight continues to be a dominant practice in regions

minorities are a growing part of the population and are more likely to live in poor communities

central city school dsitricts have significantly less resources than suburban schools

6. economic competitiveness is demanding improved responses to regional challenges

business development and governance performance are becoming more regional and interdependent.

In his book, Regional Excellence, William Dodge explains how their are five trends which are collectively raising the importance of regional governance:

1. Challenge Explosion, the increasing frequency and intensity of crosscutting challenges that require regional responses;

2. Citizen Withdrawal, the withdrawal of citizens from public involvement just as they are needed to shape regional strategies;

3. Structure/Challenge Mismatch, the mismatch of governance structures with regional challenges;

4. Rich/Poor Community Gap, the widening fiscal, economic, and racial gaps across communities regionwide; and

5. Global Competitiveness, which is requiring us to address regional challenges effectively if we are to compete successfully in the global economy.

Regional Governance has risen in importanceMore attention must be paid to regional impacts of growth and development with special consideration for land-use impacts on the regional ecosystem.

Pursuing regional governance requires a guiding strategyThis pursuit must be empowered by community leaders and citizens and include involvement and support from state and national, governmental and non-governmental, organizations

Achieving regional governance excellence will improve the effectiveness of the federal systemRedefining regional challenges and providing clearer communication based on consensus building will improve governance mechanisms

Mobilizing community leaders and citizens to act is a priorityThe change our regions needs is in our own hands

Regionalism“Nicety to Necessity”

Working as a region greatly strengthens the ability to compete globally allowing for local success

and cooperative governance.

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6. Offer affordable housing to create mixed income communities regionwide

Require affordable housing in new housing developments, including subsidized units for the very poor, and convert public housing project to mixed income projects

EmpoweringDevelop regional citizenship, foster intercommunity relationships and empower citizens in regional decision making.

7. Broaden regional leadership programs into regional citizenship programs

Broaden the curriculum, increase participation, channel graduates into assisting regional decision making mechanisms and implementing SARGE regional governance initiatives

8. Create ongoing “Sister Community” relationships between affluent and distressed communities regionwide

Arrange Sister Community relationships between pairs of communities to exchange cultural and other groups, participate in regional interdependence small group discussions, and pursue joint activities

9. Establish citizen advisory boards or elect citizen representatives to regional governance mechanisms

Establish citizen advisory boards to review and comment on plans, budgets and other actions of individual regional problem-solving and service-delivery mechanisms or directly elect citizen representatives to empowered regional planning or decision making bodies

InstitutionalizedProvide the range of regional decision making mechanisms needed to address regional challenges in a timely and effective manner.

10. Create at least one effective public, private, academic and civic regional problem-solving mechanism

Each sector needs an effective regional mechanism to educate its members and develop positions on regional challenges as well as take the lead in addressing regional challenges

11. Institutionalize the capacity to launch regional alliances to address regional challenges

Build the capacity to turn to an existing regional problem-solving mechanism to sponsor a regional alliance representing all sectors of the region or create one or more ongoing regional alliances to address particular types of regional challenges as they emerge.

12. Create a regional service-delivery coordinating groupConvene regional service-delivery mechanisms regularly to guide implementation of new regional services and develop cooperative arrangements for delivery of existing regional services

The Regional Excellence Dozen: Regional Governance Initiatives To Make Regions Preeminent

Prominent -Create the critical mass of activities needed to capture the attention of community leaders and citizens and make regional governance important to them.

1. Sponsor an annual Regional Excellence Day:Keep building community leader and citizen interest in regional governance with an annual celebration, including activities such as presenting regional governance awards for outstanding performance, reporting on progress and implementing regional governance initiatives, holding open houses at regional governance mechanisms, sponsoring dialogues on emerging regional challenges, and recruiting community leaders and citizens to work on regional projects.

StrategicMaintain momentum in improving regional governance, systematically.

2. Institutionalize the SARGE process:Create an ongoing capacity to develop, implement, monitor and update the Strategy for Achieving Regional Governance Excellence (SARGE), including securing the pledges of community leaders and citizens to pursue priority regional governance initiatives, providing regular reports on the state of regional governance, and creating regional governance funds/foundations.

EquitableEducate community leaders and citizens on intercommunity disparities and reverse the widening service inequities, economic distress and racial segregation among communities.

3. Offer regional interdependence dialogues for all community leaders and citizens regionwide:

Educate small groups of citizens from different communities across the region on the threats and opportunities of regional interdependence and recruit graduates as facilitators for the next round of small groups; recruit a coalition of academic, community and religious groups to keep sponsoring new rounds of small groups until they are offered to all community leaders and citizens regionwide.

4. Combine regional tax sharing and service-delivery modifications to guarantee basic public services to citizens regionwide

Share increased tax revenues from new developments to guarantee basic services in distressed communities; simultaneously, require service modifications to assure effective use of resources

5. Combine intercommunity linkage projects, shared development of regional projects and urban growth boundaries to create economic opportunities for all communities regionwide.

Develop linkage projects such as access to jobs and investment opportunities, share benefits of regional economic drivers across impacted communities; and establish growth boundaries to encourage infill development.

RegionalismProcess

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The Right to the CityThe right to the city is far more than the individual liberty to access urban resources: it is a right to change ourselves by changing the city. It is, moreover, a common rather than an individual right since this transformation inevitably depends upon the exercise of a collective power to reshape the processes of urbanization. The freedom to make and remake our cities and ourselves is, I want to argue, one of the most precious yet most neglected of our human rights (Harvey 23).

Property and PacificationQuality of urban life has become a commodity, as has the city itself, in a world where consumerism, tourism, cultural and knowledge-based industries have become major aspects of the urban political economy. The postmodernist penchant for encouraging the formation of market niches—in both consumer habits and cultural forms—surrounds the contemporary urban experience with an aura of freedom of choice, provided you have the money. Shopping malls, multiplexes and box stores proliferate, as do fast-food and artisanal market-places. We now have, as urban sociologist Sharon Zukin puts it, ‘pacification by cappuccino’ (Harvey 31).

Achieving Long-Term Economic and Social SecurityLong-term economic and social security are prerequisites for beneficial change and are dependent upon environmentally sound, sustainable development.

To achieve triple bottom-line sustainability, economic strategies need to increase the value and vitality of human and natural systems, and conserve and renew human, financial, and natural resources. Through fair allocation of resources, economic strategies should seek to meet basic human needs in a just and equitable manner. In particular, economic strategies should guarantee the right to potable water, clean air, food security, shelter, and safe sanitation.

Cities are the locus of human diversity; their policies, structures, and institutions significantly contribute to fostering cohesive, stimulating, safe, and fulfilled communities. (Newman and Jennings, 32)

Material Success, Social FailureIn The Spirit Level, authors Richard Wilkinson and Kate Pickett offer valuable insight into the importance of transformative strategies which focus on equality as the cornerstone of social policy.

It is a remarkable paradox that, at the pinnacle of human material and technical achievement, we find ourselves anxiety-ridden, prone to depression, worried about how others see us, unsure of our friendships, driven to consume and with little or no community life. Lacking the relaxed social contact and emotional satisfaction we all need, we seek comfort in over-eating, obsessive shopping and spending, or become prey to excessive alcohol, psychoactive medicines and illegal drugs (3)

The Spirit level explains how there are environmental limits to growth, and while developing nations are prospering, there are significant costs associated with economic growth such as climate change and environmental degradation, typically dispraportionately affecting poor individuals.

Additionally, income differences within and between societies contribute to significant health and social problems directly related to inequality. Factors such as varying quality of life contribute to loss of self-esteem and social insecurities such as pride or shame associated with status

The Costs of InequalityTrust, Gender Inequality, Mental Illness and Stress, Illegal Drugs, Physical Health and Life Expectancy, Obesity, Educational Performance, Unequal Learning Opportunities, Teenage Births: Recycling Deprivation, Violence: gaining respect, Inequality = Structural Violence, imprisonment, criminalization of poverty, social mobility: unequal opportunities...

JusticePutting value in people and environment

Inequality breeds social friction and economic inefficiencies that trigger adverse societal impacts. As such, in economic development poverty eradication should be at the foremost of efforts to improve everyone’s overall stock in life (The entire ladder moves). Focus on workforce development, education attainment, etc.

Where justice is denied, where poverty is enforced, where ignorance prevails and where any one class is made to feel that society is an organized conspirancy to oppress, rob and degrade them, neither persons nor property will be safe.

Frederick Douglas, Speech on the 24th anniversary of emancipation, Washington, DC, 1886

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Justice

incentives to stimulate desired business activity such as tax rebates and low interest-loans to attract new industry and downtown improvement projects” (Klosterman 11). Consequently, we observe the trend of politicians getting ‘in bed’ with big business. If both economic and political power is leaning towards promoting capital creation without regard to negative externalities, than the marginalized truly face an uphill battle. It is incumbent for ethical planners to challenge the status quo and present rationales for why a more just approach is better for everyone. If planning can provide a system of “checks and balances” which mandate smart growth and help foster the perception that Pareto efficiency is better than maximizing profits while simultaneously creating negative externalities most often affecting society’s poorer members, than things can improve.

While Marxist arguments against planning in the capitalist context might suggest that planner’s efforts to provide collective goods, control externalities and advocate for the poor end up primarily serving the interests of capital, legitimizing state action, coopting deprived groups and “forestalling the structural reforms…required for real improvement to their positions in society” (Klosterman 14), to me, this does not mean we should stop trying. I would argue that planning is effective when it is innovative and actively upgrading its mechanisms through reflection and analysis of current and past best practices. While current approaches to planning may not be perfect, they do make impacts and they do improve people’s lives. Personally, I would like to see some of the Marxist prescriptions for planning implemented, specifically with regard to education and health care. However, recognizing the realities of the people who live in this country, the likelihood of a revolution and changing of economic systems is very slim. As such, I feel it is the planner’s role to work within the system and do all that s/he can to change it for the better.

Central to economic arguments against planning is the idea that “competitive markets could be relied upon to coordinate the actions of individuals, provide incentives to individual action, and supply those goods and services which society wants, in the quantities which it desires, at the prices it is willing to pay (Klosterman 6). This notion of the ‘invisible hand’ being capable of effectively managing the distribution and supply of society’s needs is a bit naïve. While a perfectly competitive market may be efficient in distributing private goods; “the aggregated market preferences of individuals do not accurately reflect individual or social preferences for alternative” public, quasi-public [and private] goods (Klosterman 8). In addition, this approach does not address the immense impact of externalities and their affect on society as a whole, our global ecosystem and true market efficiency. It has been recognized that, the divergence between public and private costs and benefits associated with externalities causes even perfectly competitive markets to misallocate society’s goods and services. Profit-maximizing firms concerned only with maximizing revenues and controlling costs are encouraged to increase output even though the associated negative external costs vastly outweigh any increases in revenue because the external ‘social’ costs are not reflected in their production costs. Neighbourhood beautification projects and similar goods with positive external effects similarly tend to be under-produced because private entrepreneurs cannot appropriate the full economic benefits of their actions (Klosterman 8). Consequently, society has been left with a situation in which private interests are exploiting finite resources and creating a tragedy of the commons situation in which everyone ultimately loses. Conversely, public goods that could help reverse some of societies social and environmental issues are underfunded because ideas such as peace, justice, conservation, equal rights, happiness and harmony are not necessarily considered ‘good for business’. I would argue that it is the planner’s role to help ensure that the production of public goods achieves a noteworthy place in decision-makers agendas. This could be achieved through effective, yet context sensitive transportation, environmental and economic development planning. Through the evaluation of past planning efforts, it can be recognized that public works projects are good for business. Planning employs an epistemological knowledge base to address issues of accessibility, suitability and feasibility when placing mechanisms needed for business such as infrastructure, transportation networks, waste management, protective services, etc. Planning improves the market’s profitability by increasing physical and social access as well as security.

In contrast, if we assume that the political arena is equally afflicted by the maladies and obstacles which plague the economic realm, we can reasonably argue that “existing political processes exacerbate existing inequalities in income and wealth and fail to provide adequate information for fully informed policy-making (Klosterman 11). Economic theory suggests that in a perfectly competitive market the phenomena of “groups pursuing a range of divergent goals and interests is assumed to place all important issues on the public agenda, guarantee that no group dominates the public arena, maintain political stability, and improve individuals’ intellectual and deliberative skills” (Klosterman 11). As such, political competition eliminates the necessity of governmental action, planning and coordination. Again, I would venture to say that these assertions are naïve in that they neglect to consider the moral risks often associated with greed, power and politics. Due to the capitalist nature of urban economies, “government officials, particularly at the local level, cannot treat business as only another special interest, but must provide

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In a market economy, a necessary step to achieving the paradigm shift needed to achieve global sustainability is to firmly establish the connection between sustainable development and economic development. The following graphic illustrates how a sustainable approach benefits an economic system. Proliferation of this knowlede will incentivise green building and sustainable community planning.

Most cities “owe their location, their historic growth and population distribution” to the “distinctive features of the natural environment” (Spirn 142). However, too often, “tradition has set the city against nature” and the belief that the city is an entity apart from nature predominates. As such, this perception of the city affects the way in which it is built and “even those who have sought to introduce nature to the city… have frequently viewed the city as something foreign to nature, have seen themselves as bringing a piece of nature to the city” (Spirn 141). If we are to compensate for the damage humans have inflicted on the planet through restoration, greater balance is needed between the built and natural environments.When the natural environment is obstructed by human development and the natural processes are altered, there are significant consequences and nature often takes radical measures to account for these alterations.

While the need for more green spaces in cities has been recognized, many city habitants especially lower income residents are forced to live in a “concrete jungle” where one is hard pressed to find bushes, let alone open fields or trees. The failure to address environmental issues in the city can be attributed to “deep-rooted structural distortion of underdevelopment caused by persistent poverty and population pressures; price distortions due to under- or non-pricing of natural resources and environmental services; failures of governmental intervention that subsidizes or otherwise prompts excessive uses of natural resources; and increasingly defensive structure of the economy in response to deteriorating quality of life and living conditions” (Bartelmus 98). Things have been allowed to deteriorate to this point due to the way of thinking in which “human beings are imagined to be self-sufficient cells, from which society is constructed. In this conception, people need not accept the social order as given, but may fashion it to suit their needs” (Carley and Christsie 64). Under this view of society, individuals have essentially been able to pursue economic interests regardless of the negative repercussions their endeavors have on the environment or other people. Government has been largely uninvolved in policy relating to self-sufficient business interests and the destruction of the environment. Consequently, “our current economic system allows companies to internalize profits from destroying natural resources, while externalizing costs of such destruction onto society at large” (Davis 2).

Sustainability

Sustainable Community PlanningThe key difference between traditional community planning versus sustainable community planning is that sustainable community plans focus more closely on the connections between social, environmental and economic issues, realizing that policies or actions in one area have might have impacts on another:

Sustainable community plans address a wide range of topics that rarely, if ever, are mentioned in traditional comprehensive plans. These topics include global issues such as climate change and energy resources, which are affected by planning’s core areas of housing, land use, and transportation. Policies calling for compact growth patterns that use land efficiently and make travel choices viable, a broader mix and variety of housing types to meet the changing needs of our communities, and multiple travel modes that create more walkable and transit-accessible communities all contribute significantly to community sustainability (Herman 2010).

Core components of good sustainable community plans are mechanisms which give special attention to issues relating to renewable energy, greenhouse gas reduction, community health, environmental justice, waste stream reduction, recycling, food production and food security. As such, good planning relies on the innovation, savvy and resources of the local area.

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Sustainability

In November 2011, the U.S. Department of Housing and Urban Development (HUD) awarded Shelby County Government the Sustainable Communities Regional Planning Grant to develop this Mid-South Regional Greenprint & Sustainability Plan. This plan is designed to enhance regional livability and sustainability by establishing a unified vision for a regional network of green spaces in the Mid-South.

New and revisited “Smart” Growth patterns need to be promoted in order to avoid further environmental degradation due to the effects of urban sprawl

Urban Sprawl—the tendency of the modern city to grow geographically more rapidly than it grows in population—creates economic and social burdens for the city.

Urban sprawl actually creates a need for new private and public infrastructure, schools, and businesses to serve the new development. The costs of new construction often subtract from maintenance of the old infrastructure, schools, and business. The old city, however, does not just evaporate into the ether; it remains and becomes a physical and geographic blight that is more costly to fix, police, and maintain as a social commodity. In addition, the sheer size of the modern metropolitan area becomes costly to run—too much depreciation for the tax revenues or the business revenues to cover effective replacement.

Smart Growth Principles• Mix Land Uses• Take Advantage of Compact Building Design• Create a Range of Housing Opportunities and Choices• Create Walkable Neighborhoods• Foster Distinctive, Attractive Communities with a Strong Sense of Place• Preserve Open Space, Farmland, Natural Beauty and Critical Environmental Areas• Strengthen and Direct Development Towards Existing Communities• Provide a Variety of Transportation Choices• Make Development Decisions Predictable, Fair and Cost Effective• Encourage Community and Stakeholder Collaboration in Development Decisions

“Sustainability is a process of continuous, ongoing improvement,and a realignment of community goals to grow in a more responsible and resilient manner” (Herman 2010).

Mid-South Regional Greenprint

Concept for a Regional Network of Connected Green InfrastructureMID-SOUTH REGIONAL GREENPRINT CONCEPT MAP

ARLINGTON

LAKELAND

GALLAWAY

BRADEN

HERNANDO

SOUTH-HAVEN

WESTMEMPHIS

COLLIER-VILLE

GERMAN-TOWN

PIPERTON

BARTLETT

MILLINGTON

MARION

SUNSET

WALLS

HORNLAKE

OLIVEBRANCH

To Holly Springs

To Wapanocca

To Oakland

To Ghost River

MASON

To Hatchie River

To Somerville

To Covington

To Hatchie River and Dyersburg

To Horseshoe Lake

To Marianna

To Forrest City

To Marshall County

M I S S I S S I P P I

TAT EC O U N T YT U N I C A

C O U N T Y

M A R S H A L L C O U N T Y

D E S O T O C O U N T Y

C R I T T E N D E N C O U N T Y

S H E L B Y C O U N T Y

FAY E T T E C O U N T Y

T I P T O N C O U N T Y

T I P T O N C O U N T Y T E N N E S S E E

A R K A N S A S

M i s s i s s i p p i

Ri v

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Key Inputs:

Long-Term Proposed(25-Year) Regional Trail System. Refer to local trail plans for other proposed trails.

Proposed Key On-Street Connections. These bicycle and pedestrian-friendly streets will connect the Regional Trail System where off-road routes are not possible.

Other Greenprint Focus Areas. These areas were identified by citizen-led Greenprint working groups as areas of focus for revitalization and housing.

The larger ring shows a 5-mile (30-minute bike ride) from Downtown Memphis.

The Mississippi River Trail (MRT) is mainly an on-street designated route.

Employment Centers and High Priority Areas for Equity. Traditionally underserved areas and major employment centers are highlighted as priorities for connecting future green infrastructure.

Open Space Resources. These resources help protect our region’s water, air, and soil. Conservation efforts could focus on existing research, such as the EPA Ecological Framework, and on supporting local food systems.

Mississippi River Trail (MRT)

continues north

Shelby Farms Park

JFK Park

NesbittPark

DavyCrockettPark

FirestonePark

OrgillPark

EagleLake

Refuge

Meeman-ShelbyForest State Park

HorseshoeLake

HernandoDesoto Park

LatimerLake Park

SouthavenCentral Park

Frank Road Park

Olive Branch City Park

SnowdenGrove Park

Mike Rose Soccer Complex

Wapanocca National Wildlife Refuge

Overton Park

Audubon Park

T.O Fuller State Park

MLKRiverside

Park

Tom Lee Park

Mud Island Park

MississippiGreenbelt

Park

PresidentsIsland

Arkabutla Lake

Herb Parsons Lake State Park

Mississippi River Trail (MRT) continues south

City Centers and Town Centers. Showing a 1-mile radius (20-minute walk) from center.

ParksWildlife Recreation AreasFarmlandConservation AreasWetlandsWater/Rivers and Streams.Existing

Trail

Employment Centers

Social Equity Areas

Commercial Revitalization Focus Areas

Housing Focus Areas

M E M P H I S

Wolf River Wetland Wildlife Refuge Area

Coldwate

rRi

ver

Blue

w

ay

Proposed Trail Corridor

GreenprintConcept

Maps

ExistingTrails

& CurrentPlans

Public Input (map mark-up at meetings,

commentforms)

CorridorAnalysis of

Opportunities& Constraints

Connectivityto Employment

Centers &for Social

Equity

Consortium& Working

Group Input

Direction fromLocal/Regional

Planners

Connectivityto Parks & Town/City Centers

Proposed Trail Corridors

Key On-Street Connectors

1 2nd & Benjestown2 Arlington to Mason Connector3 Byhalia Connector4 Castleman Connector5 Chelsea & Highland6 Florida Street7 Hacks Cross Road8 Herb Parsons Lake State Park Connector9 Hernando Connector10 Hollywood Street11 Holmes Road West12 Lakeland & Arlington Connector13 Mallory Avenue14 McLemore & Southern Connector15 Meeman Shelby Forest to Firestone Park16 Mitchell Road & Brooks Road Connector17 MLK & Central Connector18 Norris & Pendleton Connector19 Tchulahoma Road20 V&E Greenline to Mississippi River21 McInvale Road22 Hernando Point Connector23 Locke-Cuba Connector24 Watkins Road25 Orgill Park-Rosemark Connector26 Bellevue/Elvis Presley Boulevard27 Nail Road28 Raleigh-Lagrange Road29 Holmes Road East30 Overton-Broad Connector31 Singleton Parkway32 Center Hill Road

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1 Downtown Memphis Riverfront2 Harahan Bridge Connector3 Chelsea Ave Greenline4 Cypress Creek & Horn Lake Creek to Hernando5 Firestone Greenway6 Fletcher Creek to IH Managerial Park7 Fuller Park to Hernando Desoto Park8 I-269 Greenway Corridor9 Johns Creek Greenway10 Johnson Creek Corridor11 Loosahatchie River Corridor12 Loosahatchie River to Wolf River13 Marion to Harahan Bridge Corridor14 Meeman Shelby State Forest Connector15 Millington Connector16 Mississippi River Corridor17 MLK Riverside Park Connector18 Nonconnah Corridor19 Horn Lake Creek Corridor20 Shelby Farms Greenline21 Short Fork Creek & Camp Creek Greenway22 South Memphis Greenline23 Southaven Connector24 Southaven Utility Line Corridor25 Tenmile Bayou Corridor26 V&E Greenline

27 Wolf to Chelsea Connector28 Wolf to Nonconnah - Collierville Connector29 Wolf to Nonconnah - Utility Line Connector30 Wolf River Corridor East31 Wolf River Corridor West32 Coldwater Corridor33 Hurricane Creek Corridor34 Missouri Pacific Rail Trail35 Fifteenmile Bayou Corridor36 Island 40 Connector37 Loosahatchie Bridge Connector38 JFK Park to Loosahatchie Connector39 Tenmile Creek and Utility Line Connector40 I-240 Utility Line Connector41 Nonconnah-Coldwater Connector42 Pidgeon Greenway43 Horn Lake-Tenmile Utility Line Connector44 Big Creek-Casper Creek Corridor45 Beaver Creek Corridor46 Grays Creek Corridor47 Marys Creek Corridor48 Germantown Greenway East49 Wolf to Nonconnah - Eastern Connector50 North Fork Creek Corridor51 Bean Patch Creek-Camp Creek Greenway52 Charjean Park to Nonconnah Connector

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8 | Vision Plan

October 2013MID-SOUTH REGIONAL GREEN PRINT

Six Livability Principles From the Partnership for Sustainable Communities a joint project of HUD, DOT and EPA

Collaborating groups throughout the region will focus this plan’s development and implementation on HUD’s six livability principles:

Providing more transportation choices through increased greenway, bike and pedestrian routes and greater connectivity within and between communities and across modes of transportation.

Promoting equitable, affordable housing by improving environmental conditions and amenities for urban neighborhoods adjoining greenways and open spaces, and planning land use and zoning changes to promote affordable housing to create a stronger link between housing, infrastructure, and opportunity areas.

Enhancing economic competitiveness by improving quality of life in the Mid-South region thereby attracting/retaining businesses and residents, and connecting residents with access to quality jobs.

Supporting existing communities through providing new or improved greenway and open space amenities and access to economic or employment opportunities connected to greenways and open spaces.

Coordinating policies and leveraging investment related to greenways and open spaces across the region, including working with other federal grant partners towards bicycle and pedestrian connectivity across jurisdictions, enhanced access to regional employment, increased access to fresh foods regionally, and building capacity for community-based planning.

Valuing communities and neighborhoods by enhancing and providing access to greenway and open space amenities and employment opportunities, improving residential property values, and enhancing the unique attributes of urban, suburban, and rural areas (e.g. preserving rural agricultural and working lands).

1

2

3

5

4 6

8 | Vision Plan Mississippi River Park8 | Vision Plan

October 2013MID-SOUTH REGIONAL GREEN PRINT

Six Livability Principles From the Partnership for Sustainable Communities a joint project of HUD, DOT and EPA

Collaborating groups throughout the region will focus this plan’s development and implementation on HUD’s six livability principles:

Providing more transportation choices through increased greenway, bike and pedestrian routes and greater connectivity within and between communities and across modes of transportation.

Promoting equitable, affordable housing by improving environmental conditions and amenities for urban neighborhoods adjoining greenways and open spaces, and planning land use and zoning changes to promote affordable housing to create a stronger link between housing, infrastructure, and opportunity areas.

Enhancing economic competitiveness by improving quality of life in the Mid-South region thereby attracting/retaining businesses and residents, and connecting residents with access to quality jobs.

Supporting existing communities through providing new or improved greenway and open space amenities and access to economic or employment opportunities connected to greenways and open spaces.

Coordinating policies and leveraging investment related to greenways and open spaces across the region, including working with other federal grant partners towards bicycle and pedestrian connectivity across jurisdictions, enhanced access to regional employment, increased access to fresh foods regionally, and building capacity for community-based planning.

Valuing communities and neighborhoods by enhancing and providing access to greenway and open space amenities and employment opportunities, improving residential property values, and enhancing the unique attributes of urban, suburban, and rural areas (e.g. preserving rural agricultural and working lands).

1

2

3

5

4 6

8 | Vision Plan Mississippi River Park8 | Vision Plan

October 2013MID-SOUTH REGIONAL GREEN PRINT

Six Livability Principles From the Partnership for Sustainable Communities a joint project of HUD, DOT and EPA

Collaborating groups throughout the region will focus this plan’s development and implementation on HUD’s six livability principles:

Providing more transportation choices through increased greenway, bike and pedestrian routes and greater connectivity within and between communities and across modes of transportation.

Promoting equitable, affordable housing by improving environmental conditions and amenities for urban neighborhoods adjoining greenways and open spaces, and planning land use and zoning changes to promote affordable housing to create a stronger link between housing, infrastructure, and opportunity areas.

Enhancing economic competitiveness by improving quality of life in the Mid-South region thereby attracting/retaining businesses and residents, and connecting residents with access to quality jobs.

Supporting existing communities through providing new or improved greenway and open space amenities and access to economic or employment opportunities connected to greenways and open spaces.

Coordinating policies and leveraging investment related to greenways and open spaces across the region, including working with other federal grant partners towards bicycle and pedestrian connectivity across jurisdictions, enhanced access to regional employment, increased access to fresh foods regionally, and building capacity for community-based planning.

Valuing communities and neighborhoods by enhancing and providing access to greenway and open space amenities and employment opportunities, improving residential property values, and enhancing the unique attributes of urban, suburban, and rural areas (e.g. preserving rural agricultural and working lands).

1

2

3

5

4 6

8 | Vision Plan Mississippi River Park

6 | Vision Plan

October 2013MID-SOUTH REGIONAL GREEN PRINT

6 | Working Draft for Review

THE MID-SOUTH REGIONThe study area for this project is defined as the boundaries of the Memphis Metropolitan Planning Organization (MPO) and West Memphis (Arkansas) MPO. These two MPOs include all of Shelby County, TN, and the cities of Arlington, Bartlett, Collierville, Germantown, Lakeland, Memphis, and Millington; northern DeSoto County, MS, including the cities of Hernando, Horn Lake, Olive Branch, Southaven, and Walls; eastern Crittenden County, AR, including the cities of West Memphis, Marion and Sunset; and western Fayette County, including the cities of Piperton, Gallaway and Braden.

green•print n 1: A planning document containing text and

maps that guide communities to grow in a way that balances the need for

natural resource conservation with the needs for economic development

and physical expansion.

6 | Vision Plan

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42

Community Engagement and OrganizingCommunity Engagement is the very backbone of the planning profession. As such, it should be at the forefront of any strategy dealing with Economic Development Planning.

Because planning is the guidance of future action, planning with others calls for astute deliberative practice: learning about others as well as about issues, learning about what we should do as well as about what we can do. So when city planners deliberate with city residents, they shape public learning as well as public action. Sharing or withholding information, encouraging or discouraging public participation, city planners can nurture public hope or deepen citizens’ resignation. (Forester 1).

Going forward, efforts should be made to engage stakeholders in collaborative efforts and open dialogues surrounding economic development. This conversation/endeavor should span members of the private, public, non-profit and student/youth cohorts. This strategy should improve MAAG’s role as a ‘regional convenor’ as well as help to generate a ‘buzz’ around the issues. Long-term engagement efforts should seek to create formal partnerships and programs aimed at fostering a community mindset, increased entrepreneurial capacity, business acumen, networking opportunities, innovative culture and identification of human capital.

Education and Workforce DevelopmentAnalysis of the regional demographics show that education attainment is a limiting factor in the strength of the regional economy. Interactions between MAAG and local organizations have revealed many stories of business recruitment challenges due to local shortages of certain skill sets. If Greater Memphis is going to be competitive in the global economy, we need to foster an environment which is attractive to the creative class and other skilled laborers. Additionally, we need to ensure that our education system is preparing youth and adults alike for successful integration into the workforce. Through community engagement, research and educational programs, long-term strategies must help improve the achievement gaps in the local education system as well as help local students, as well as unemployed and underemployed adults transition into the workforce.

Small Business AssistanceSmall Businesses are the backbone of the American economy. While it may seem counter-intuitive, more people are employed by small companies and businesses than large ones. Consequently, providing support to existing and future small business owners is an essential part of economic development planning. Promotion of entrepreneurial resources such as technical assistance, training and business incubators should be a large part of this endeavor. Increasing the stability of existing small businesses is another top priority. Stabilizing existing small businesses helps reduce turnover, stabilizing employment and local families.

APPROACH

Strategy Goals

Increase Job Opportunities - • Target business investment in support of job development• local preference in buying and hiring• skilled labor force development• infrastructure investment for job growth • affirmative action

Promote Balanced Growth - • Balanced growth between downtown and neighborhoods• public-private partnerships• strengthened tax base• equitible distribution of the tax burden

Assist communities to develop through partnerships and coordinated investment -

• Community Planning• Expanded housing opportunities• Linked development• Expand funding for community action agencies

Enhance public participation in decision making -

• Increase citizen access to information• Additional opportunities for citizen involvement

Objectives

Regionalism - planning based on regional cooperation and consideration, integrated infrastructures, economies, and in some cases, land use.

Marketing - business recruitment and regional tourism

Collaborative(s) - vertical integration, political cooperation, leveraging economic power through unity

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Business Recruitment and RetentionUltimately, the presence of local business comprises the lion’s share of local employment. Therefore, recruitment of new business and retention (and enhancement) of existing businesses should be a priority for economic development efforts. With regard to regionalism, an organized, vertically integrated business community can leverage significantly more opportunities than a fragmented and disengaged business community. The economic base analysis provides us with insight into the existing industries and how they are performing. In response to this information, efforts must seek to enhance existing clusters and encourage the development of government policies and infrastructure which supports these industries. Conversely, new efforts need to be made to attract tomorrow’s businesses which are based in high-tech and other emerging industries. Strengthening and diversifying local business will help improve regional economic strength and make recruitment efforts easier. Going forward, the business community must embrace regional cooperation and branding in order to strengthen the overall visibility and impact of the local economy. Agglomeration economies (clusters) help create competitive advantages through increased efficiency, specialization, and linkages. Through regional collaboration, new linkages can be realized to further enhance the synergistic properties of the regional economy. The presence of these efforts will also streamline education and workforce development by creating the market demand for specific skills.

Asset Mapping, Performance Metrics and Data Analysis ToolsAsset Mapping (using ArcGIS) is a useful method by which trends can be observed and conclusions can be drawn pertaining to the regional economy, demographics and geographic features. Asset mapping in conjunction with performance metrics such as (number of) jobs created, investment capital (dollars), and (number of) conversations provide economic development agencies such as MAAG with tools to measure the success of efforts and benchmark against other regions. Additionally, data analysis allows us to gain insight into issues which are not outwardly apparent. For example, the economic base analysis shows us that while some industries may be experiencing growth locally, they may not be growing as quickly as they ought to be, or they may exist in an industry which is experiencing decline on the national or global scale and thus may not be sustainable. While economics isn’t a perfect science, development of sound economic rationales behind efforts helps to build transparency and reduce the risks and obstacles associated with making certain investments.

This information is also valuable for performing other planning tasks including, but not limited to, grant writing, grant administration, civic engagement, marketing, education, professional reports, benchmarking, and research.

APPROACH

Globalization impacts all markets; we are competing with everyone, everywhere, for each job.

We need to generate high quality employment opportunities for our citizens.

Skilled labor is a deciding factor in many business locations and expansions.

Empowering citizens with the right skills through education is an essential endeavor to position our communities for future success.

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Community Engagement

As an organization, MAAG is looking at community engagement as the first priority. As far as stages in the planning process, the initial CEDS planning documents included some engagement, but essentially, they comprise the survey portion of the planning process along with some vision and goal setting.

In order to enrich the planning process and ensure that the goals of “broad-based” participation are met, much more engagement will be needed. In addition to working on local issues, MAAG would like to pursue funding in order to host regional conferences and implement community engagement on a regional scale. Ideally, the CEDS process will become one that is synonymous with business in the region. One of the key priorities identified by the CEDS committee was for MAAG to act as a regional convenor, an organization that others seek out in order to make needed connections to be successful in the region and an organization that facilitates conversations between key stakeholders.

Going forward MAAG will be planning a “State of the Region” conference to highlight findings in the CEDS and invite other area experts to speak on how better to promote economic development and address social and environmental issues in Greater Memphis.

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Community Engagement

Purpose of participatory planningThe purpose of participatory planning is to create a platform for learning rather than plunging directly into problem solving. The process is expected to enhance

(1) Identification of the felt needs of the people(2) Bringing forth consensus(3) The empowerment of local disadvantaged groups(4) Integration of local knowledge systems into project design(5) Two‐way learning process between the project and local people(6) Political commitment and support(7) Accountability in local governance

The planning process should produce two sets of results:

(1) In the short term, the tools of participatory planning should generate a two‐way learning process, which will shape project interventions to local needs, opportunities and constraints.

(2) In the long term, this learning process should lead to local empowerment and effective support at the institutional level.These are considered preconditions for strengthening both institutional capacity for decentralized planning and local planning capacity.

(Direct Quotes From Paricipatory Planning by Thomas and Bendapudi)

The AmericaSpeaks model

Educate participants. Provide citizens with accessible information about the issues and choices involved so that they can develop informed opinions.

Frame issues neutrally. Present policy issues in a way that allows the public to struggle with the most difficult choices facing decision makers.

Achieve diversity. Ensure that the demographic makeup of the participant group reflects that of the affected community.

Get buy-in from policy makers. Obtain commitment from decision makers to engage in the process and to use the results in policy making.

Support high-quality deliberation. Facilitate discussion that is designed to ensure that all voices are heard.

Confirm public consensus. Ensure that formal communications clearly highlight the public’s shared priorities.

Sustain involvement. Support ongoing public involvement - including monitoring, feedback, and evaluation.

There are three traditional forms of effective public outreach

Mass media: Leveraging mainstream media outlets such as radio, print, digital, and, where possible, television to ensure that broad public markets are penetrated

Networks: Identifying and working through existing networks of community-based groups to ensure that organized constituencies are targeted and fully engaged

Person-to-person contact: Sending volunteer recruiters to make person-to-person contact in key geographic areas where there are hard to reach populations

Source: Local Planning: ICMA Press

Best Practices for Civic Engagement

There are six essential elements of civic engagement

Transparency. Ensure that all information is available to everyone.

Listening. Understand what people are saying. Ask questions.

Ground Rules. Establish how meetings will be conducted; publish and post the ground rules.

Solutions. Propose ways in which the project can enhance the community, and explain how community interests can advance the project. Engage nonprofit organizations and other stakeholders as supporters.

Graphics. Provide drawings that the community understands. Assume that 90 percent of the public cannot read plans: instead, use graphics and photos of comparable projects to communicate the design.

Closure. Make certain that the public comes to some agreement, however small, by the end of every meeting. Reiterate points of agreement in the concluding remarks, and restate the points at the opening of the next meeting. Always move forward.

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Human Capital – the availability of a highly-skilled, technically-trained workforce. Indications of the presence of the asset include:

• Skilled workforce• Positive migration dynamics• Educational/training systems that incorporate a relevant, high- quality curriculum that is responsive to business needs, and includes relevant entrepreneurial components, real- world experiences, and is readily available.

Metrics to determine presence of asset:• Educational attainment levels• Occupational employment distribution• Total employees in high tech establishments• Science and engineering degrees conferred• Talent migration flow• Number of open STEM positions

Is there an Asset Deficiency?Leading questions to help uncover root causes of an asset deficiency:

1. Does the skill base of the regional workforce meet the needs/demands of the regional industry? Of the region’s high-tech industry? If not, are there specific subject matter areas of shortage?

2. Is the population base able to gain the required skills for employment at regional educational institutions? If no, where does the regional populace go to seek the skills required for their desired employment? Conversely, if the skill set is not being developed within regional educational institutions, where does industry go to find its workforce?

3. Do graduates of regional educational providers primarily remain in the region or do they migrate elsewhere to seek employment? Do the region’s educational providers serve as talent magnets from other regions? If yes, is the region able to retain the talent after graduation, or do the skilled individuals leave?

4. Does industry perceive the educational providers to be responsive to their specific needs? If yes, specifically how? If no, what are the constraints/problems encountered?

Labor is widely considered to be the most important component of supply-side economic development, and the availability of an experienced and talented labor market is one of the key inputs for businesses. Often referred to as “human capital,” labor is an essential cog in any economic environment because it drives productivity of local businesses and is just as important as monetary capital. One of the main ways to increase the human capital within a region is through education and workforce training otherwise known as workforce development.

In Memphis, a lack of a skilled workforce has repeatedly been mentioned as one of the key limiting factors affecting business recruitment and retention. If Memphis is going to make improvements, education attainment must increase and ‘brain drain’ must be limited.

Regional Economic DevelopmentEducation and Workforce Development

The Memphis Metro Area was ranked 49th of the top 51 U.S. metro areas in post-secondary attainment. And first in poverty. The correlation is significant. – U.S. Department of Education

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Regional Economic DevelopmentDrive to 55

Increasing the college attainment rate in Memphis by at least 1% point (8,002 additional graduates), would result in an additional $1 billion dividend to the local economy. Every year. - CEOs for Cities

The Goal:Bring the percentage of Tennesseans with college degrees or certifications to 55% by the year 2025. Tennessee now lags far behind the national average for higher education, ranking 43rd in working adults with a two-year degree or higher. Reaching our goal will involve increasing the number of two-year and four-year degrees as well as technical certifications in important fields such as welding and mechatronics.

The Plan:Better prepare students to reduce the need for remedial courses; increase dual enrollment & dual credit; improve mentoring; reduce financial barriers to education; enhance programs to increase graduation rates; better serve the 940,000 adults with some college but no degree; and identify and proactively fill the skills gaps of the future.

As a governmental organization, MAAG often looks to leverage existing State and Federal programs to inform and align organizational efforts with the priorities outlined by other governing bodies. Recently, Governor Haslam initiated the Drive to 55 campaign which is an effort to increase education attainment across the State of Tennessee. It’s not just a mission for higher education, but a mission for workforce and economic development, a drive to reduce unemployment and improve quality of life. MAAG will continue to support governments by promoting and supporting these endeavors.

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Entrepreneurial Capacity – the ability to generate entrepreneurial endeavors through the development of new ideas. Indications of the presence of the asset include:

• Amount of deal flow (current and potential)• Presence of entrepreneurial talent – serial entrepreneurs• Proliferation of spillovers or spin-offs from regional innovation anchors

Metrics to determine presence of asset:• Number of firm births and deaths per capita• Number of “gazelles” per capita• Number of Inc. 5000 companies per capita• Number of IPOs per capita• Number of mergers and acquisitions per capita

Is there an Asset Deficiency?Leading questions to help uncover root causes of an asset deficiency:

1. Are compelling commercial concepts being identified and brought to market by start-ups, thereby generating sales and profit?

2. Are innovative ideas being validated through the acquisition of financial resources that enable new products/processes to be created and sold?

3. Are individuals starting a number of different businesses over their life time, both failing and succeeding, but constantly developing and improving their entrepreneurial acumen?

4. Are there generations of new entrepreneurs being created as a result of having worked for an entrepreneurial endeavor?

5. Is there a supportive environment for entrepreneurial endeavors? Are there programs/services available to support the needs of entrepreneurs? Does the region’s government, research enterprise, and industry support entrepreneurial efforts?

6. Is there a regional market for new products/services? Are large companies willing to buy from smaller firms?

7. In analyzing these leading questions, it quickly becomes apparent that a lack of entrepreneurial activity or capacity is often an overall leading indicator that there is a deficiency in one or more of the other innovation assets. In other words, the lack of entrepreneurial deal flow is often indicative that the region lacks a variety of other important assets that are requisites for a flourishing innovation ecosystem.

Regional Economic DevelopmentEntrepreneurialism

MAAG understands the critical role that small business plays in this country. As such, MAAG has provided small business loans, grants, training, and other types of support to individual proprietors who share our passion for improving the local economy through sustainable business.

Through our Revolving Loan Fund and various grant programs MAAG hand picks projects which seek to further the organizations goals of economic development, job creation, education, etc.

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Regional Economic DevelopmentRecruitment and Retention

Retail Strategies Model

AboutThe current economic environment has taken its toll on cities throughout the country, many of whom rely on volatile retail sales taxes as a primary source of revenue. Basic community services and quality of life depend heavily on a city’s ability to broaden the sources of public revenue. This often requires the city to recruit additional retailers, identify local entrepreneur-ial opportunities or assist existing businesses in better understanding their potential through detailed market analysis.

To accomplish this, cities today need a plan to address their retail recruitment initiatives. In many instances, city economic development efforts turn to retail consultants to address these issues, only to be left with research reports, a list of retailers, and limited guidance on the actual process of recruiting prospects to their community.

Retail Strategies was formed to help cities take a comprehensive approach to retail recruit-ment. We go beyond research, recognizing the need for our clients to have a partner involved in the execution of a specific Retail Recruitment Strategy.

While not currently part of our scope of work, MAAG would like to become more actively involved in business recruitment and retention. The Retail Strategies Model provides us with a good example of how the planning process could be used to foster a more vibrant retail economy. This is just one of many strategies that MAAG sees the potential for in the Greater Memphis region.

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Asset Mapping, Performance Metrics and Data AnalysisAsset Mapping

Asset mapping using tools such as ArcGIS is a powerful way to promote economic development through technical planning. ArcGIS allows users to do spatial analysis, demographic and other data analysis, market analy-sis and display information in a way that is easily accessible. ArcGIS al-lows you to analyze trends and make observations about regions that you might not be able to make otherwise. It also allows you to analyze how social issues interact with geographic issues. In short, ArcGIS is a tool with limitless possibilities. With regard to CEDS, ArcGIS will be used to create a dataset which highlights the dynamics of the region. These maps will streamline efforts so that focus can be paid to the areas that need the most investment and help to avoid duplication of labor when preparing grants and proposals that require data.

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Asset Mapping, Performance Metrics and Data AnalysisPerformance Metrics

$0K $20K $40K $60K $80K $100K $120KAverage Wage

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Career Path Postsecondary (PS) Demand OpeningsAverage Annual Openings 2012-2025(Select a circle to see relevant areas, demand and supply)

Select AreaTennessee

CareerPathAccounting

Administration and Admi..

Banking Services

Biotechnology Research ..

Business Finance

Business Information Ma..

Construction

Consumer Services

Correction Services

Counseling & Mental He..

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Emergency and Fire Man..

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Food Products and Proc..

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About Tableau maps: www.tableausoftware.com/mapdata

Shelby

Area Map

Occupation Education Level Openings Income

Accountants & Auditors Bachelor's degrees/Post-baccalaur..

Actors Some college, no degree

Actuaries Bachelor's degrees/Post-baccalaur..

Adhesive Bonding Mac.. High school diploma or equivalent

Admin Law Judges, Adj.. Bachelor's degrees/Post-baccalaur..

Administrative Services.. High school diploma or equivalent

Adult Basic & Secondar.. Bachelor's degrees/Post-baccalaur..

Advertising & Promotio.. Bachelor's degrees/Post-baccalaur..

Advertising Sales Agen.. High school diploma or equivalent

Aerospace Engineering.. Associate's degrees

Aerospace Engineers Bachelor's degrees/Post-baccalaur..Agents/ Bus Mgrs of Ar.. Bachelor's degrees/Post-baccalaur..

56,403840

10

52,68620

36,06110

87,61710

53,795245

39,66835

54,44535

34,97285

80,9270

87,52315

43,82870

Demand

Degree Program Education Completed Degrees

Accounting Associate's degrees

Bachelor's degrees/Post-baccalaureate certifi..

Master's degrees/Post-master's certificates

Postsecondary non-degree awards

Accounting andBusiness/Management

Associate's degrees

Bachelor's degrees/Post-baccalaureate certifi..

Master's degrees/Post-master's certificates

Postsecondary non-degree awards

Accounting and Finance Bachelor's degrees/Post-baccalaureate certifi..

Master's degrees/Post-master's certificates

Accounting and RelatedServices, Other

Associate's degreesMaster's degrees/Post-master's certificates

1

35

91

13

1

0

23

2

10

3

50

0

Supply

LWIA 13

In conjunction with ArcGIS, data analysis tools such as the Economic Base Analysis and other techniques can be used to draw conclusions about the local economy. Through careful analysis, we can make informed decisions as to what efforts should be made to address issues and how to prioritize those efforts. Also, ensuring that all work is measured in performance metrics is an essential aspect of today’s economic development climate. In order to justify investments, the return needs to be clearly illustrated. Through generation of conversations, jobs and capital investment, economic development efforts can be quantified and impacts can be measured. This type of due diligence allows for transparency, and builds trust amongst local stakeholders. The above graphic from the Drive to 55 campaign shows how analysis of projected job demand aligns with different career paths. This type of analysis allows us to better steer our youth into jobs which we know will exist as opposed to creating educational bottlenecks, increasing competition and driving down salaries.

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Wealth Works - Value Chain ApproachThe Wealth Works Value Chain promotes development of vertically integrated collaborative working groups that are motivated through mutual self interest. By creating a business and partner network, cooperation allows regions to leverage additional resources, address challenges, be more responsive and innovative, and promote upward mobility. Typically a rural development model, Wealth Works targets sustainable methods of investment such as “growing” fuel (bio-fuels), telemedicine, organic certifications through USDA, building rural-urban connections and wealth building. Wealth Works philosophy emphasizes that there are seven forms of wealth, that contribute to a community’s capital. Building all of these seven forms of wealth are essential to creating a resilient local economy.

Regional Development ConsortiumThe EDA provides many resources for organizations to increase their overall impact. Going forward, MAAG will borrow from principles set forth by the Regional Innovation Acceleration Network (RIAN) Project which aims to help promote regional economic development.

About RIANThe Regional Innovation Acceleration Network (RIAN) is a project of SSTI funded by the U.S. Economic Development Administration to establish and support a virtual nationwide community of nonprofit Venture Development Organizations (VDOs). A VDO is a business-driven, public or nonprofit organization that promotes regional growth by providing a flexible portfolio of services, including: assisting in the creation of high-growth companies; providing expert business assistance to those companies; facilitating or making direct financial investments; and, speeding the commercialization of technology.

RIAN is built on twelve guiding principles about the appropriate public role to encourage regional growth and the need for VDOs. RIAN draws on the lessons learned from the various approaches in place to support regional innovation.

The RIAN project is working to:

• define and establish the concept of a VDO as a practical, efficient and successful means of supporting regional innovation and economic development (this includes showcasing the economic impact of successful VDO activities across the country);

• support the community of existing and emerging VDOs around the country by providing the means for peer-to-peer sharing of information and best/common practices and helping to identify funding opportunities for VDOs; and

• provide tools to help regions approach the creation of their own VDO.

BEST PRACTICES

Individualcapital

Socialcapital

Financialcapital

Naturalcapital

Builtcapital

Intellectualcapital

Creating wealth that sticks is rarely an intentional goaleven when we define wealth broadly. Intention matters.

Politicalcapital

Seven Forms of Wealth

How do we define Wealth?

Type of Wealth Interventions (Activities) in Value Chains

Individual How will your activities impact the stock of skills and physical and mental healthiness ofpeople in a region?

Social How will your activities impact the stock of trust, relationships, and networks that supportcivil society?

Intellectual How will your activities impact the stock of knowledge, innovation and creativity?

Natural How will your activities impact the stock of unimpaired environmental assets in a region

Built How will your activities impact the stock of fully functioning constructed infrastructure?

Political How will your activities impact the stock of power and goodwill held by individuals,groups, and/or organizations?

Financial How will your activities impact the stock of unencumbered monetary assets at the individual and community level?

A wealth matrix for planning andevaluation

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Rural Growth Model USDASeven Strategies for Economic Development

Strategic Partners• Work closely with tribal, state and local governments, national foundations and non-profit organizations to increase the resources and partnerships that can support economic and community development.• Utilize strength in numbers.• Emphasize the importance of partnerships with rural residents.

Capital Markets• Promote multiple industries in rural areas.• Expand the availability of capital to rural entrepreneurs and businesses.• Support local micro lending through locally-run business revolving loan programs to alleviate poverty and increase economic activity and employment in rural communities.

Regional Food Systems• Build markets for local and regionally grown agricultural products.• Create regional food systems with local businesses and producers.• Keep revenue in the local community and have access to locally- grown food.• Provide technical and financial assistance to connect consumers with local producers.

Regional Collaboration• Assist rural communities gain greater economic strength and longevity through collaboration with neighboring communities and regional economic hubs. • Allow collaboration and development of regional strategies to build a regional economic team.• Provide leadership, education and training, technical support and incentives to build regional economies.

Community Building• Encourage local leaders with vision, drive, and the resources to succeed in building great communities.• Build and improve community facilities and infrastructure.• Minimize the digital divide and allow businesses and communities to compete economically in a global marketplace.

Alternative Energy• Promote the development and use of alternative energy.• Increase the national supply of home-grown American renewable fuels as an alternative to foreign sources of oil.• Support new - rural America - renewable energy markets.

Broadband and Continuous Business Creation• Level the economic playing field for rural communities with access to broadband.• Familiarzie rural residents with modern technologiees and practices.• Investments in technology like broadband have helped keep the United States at the center of innovation and kept U.S. companies competitive around the world.

BEST PRACTICES

The Institute’s mission is to provide innovative strategies, working models

and timely information to support environmentally sound and equitable community development. To this end,

ILSR works with citizens, activists, policymakers and entrepreneurs to

design systems, policies and enterprises that meet local or regional needs; to maximize human, material, natural

and financial resources; and to ensure that the benefits of these systems and

resources accrue to all local citizens.

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EDA Regional Development Consortium

EDA outlines several “Innovation Assets” which help to promote healthy local economies. Using this framework, conclusions can be drawn about what the current strengths of the region are and help us to identify where asset deficiencies exist. Where gaps do exist, there are approaches which can help to promote development of these assets. Going forward, CEDS planning should seek to engage the region and its stakeholders in order to understand the current state of the regional economy and plan to enhance or develop initiatives aimed at growing local Innovation Assets.

WHERE ARE WE?

WHERE DO WE WANT TO GO?

Regional Economic DevelopmentEDA Regional Development Consortium

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RIAN’s Guiding PrinciplesOur future prosperity requires innovation.Economic development is about jobs.Venture Development Organizations help companies create innovation-based jobs.RIAN helps create and improve Venture Development Organizations.

These four simple statements summarize RIAN’s purpose. They are drawn from 12 guiding principles developed in the fall of 2010 by SSTI, EDA and the leaders of several Venture Development Organizations.

Our future prosperity requires innovation.1. New entrepreneurial businesses are responsible for the majority of job creation in America [U.S. Census Bureau]. Of primary importance for ensuring America’s global leadership in innovation and opportunity, are young, research & technology enterprises advancing technology commercialization, providing high wage, high quality knowledge-based jobs and attracting capital to a region.2. For national competitiveness, federal, state and local economic development policy should increase the likelihood of success for high-growth enterprises commercializing technology. Technology-based Economic Development (TBED) is the field of policy and practice addressing this critical need.

Economic development is about jobs.3. TBED results from discovery and commercialization of innovation through formal and informal networks, organizations, institutions, and resources that collectively comprise a regional innovation system.4. TBED differs from conventional economic development by encouraging endogenous growth and innovation that, if the regional innovation system is working smoothly, can sustain economic opportunities for the region well beyond traditional strategies focused heavily on business/industrial recruitment and retention. TBED places stronger emphasis on creating new wealth and opportunities by “growing one’s own” enterprises than on recruiting companies from other regions.5. Regional innovation systems across the country vary greatly in structure, effectiveness and efficiency at moving innovation into practice or commercial production. The overall success of a regional innovation system depends upon the quality of the individual elements within the particular region and the linkages between these elements and with other regions.6. Regional innovation systems ignore local political boundaries. Instead, the constituent elements in an effective regional innovation system draw on participation from all aspects of a regional community (private, government, education, research, philanthropic, financial, civic, etc).7. The effectiveness, efficiency and resilience of most regional innovation systems can be improved through public policy, program investments, and other interventions.

Introduction Community Engagement

Venture Development Organizations help companies create innovation-based jobs.

8. One of the more recent and most successful TBED interventions to emerge for regional innovation is an adequately resourced regional venture development organization (VDO). A VDO is a public or nonprofit organization that contributes to economic development by providing a portfolio of services, including: assisting in the creation of high-growth companies; providing expert business assistance to those companies; facilitating or making direct financial investments in companies; and, speeding the commercialization of technology.9. A high-performing VDO draws on the existing strengths of the region’s innovation system and develop programs and initiatives targeted to overcome the system’s weaknesses. Properly structured VDOs have the ability to work with a wide cross section of the key assets of their particular regional innovation system and the flexibility to adapt the VDO portfolio of services to meet the specific needs of an individual commercialization opportunity or venture.10. To date, the knowledge to create and implement a successful VDO has been learned through individual experience and trial and error. Means by which to transfer the lessons learned by successful VDOs have not been systematized in a way that is easily exchanged with others. Additionally, the characteristic differences of individual VDOs and the geographic separation of VDOs present several challenges for their own operations. Fiscal strain facing state and local government and foundations is putting great financial stress on VDOs across the nation. These challenges create significant inefficiencies working against national priorities to expedite the movement of technology and innovation into the commercial marketplace as efficiently as possible.

RIAN helps create and improve Venture Development Organizations.11. These challenges can be overcome and more opportunities for success created through the formation of a collaborative partnership, a Regional Innovation Acceleration Network, of VDOs focused specifically on supporting and growing the community of VDOs. VDOs and TBED organizations operate with the understanding that they benefit by learning from each other and operate in a spirit of collaboration and cooperation.12. RIAN will work in partnership with federal, state and local governments to expand the ability of many more regions across the country to contribute meaningfully toward ensuring America’s global leadership in economic prosperity and innovation.

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WealthWorks is a 21st-century approach to local and regional economic development that belongs in every community and economic development toolkit. WealthWorks brings together and connects a community’s assets to meet market demand in ways that build livelihoods that last.

WealthWorks aims to advance a region’s overall prosperity and self-reliance, strengthen existing and emerging sectors, and increase jobs and incomes for lower-income residents and firms — all at the same time. It can work for people, firms and places of all sizes, shapes and success levels.

Why WealthWorks?WealthWorks offers a systematic approach that identifies enterprising opportunities in a region and engages a wide range of partners in turning those opportunities into results that both build and capture wealth. It can complement or incorporate traditional economic development methods, but intentionally focuses on creating more value that becomes rooted in local people, places and firms.

The WealthWorks approach is designed to produce and sustain these results:

• Build a more self-reliant and robust area economy.

• Bring underutilized community assets — people, place, property and know-how — into fuller participation and production.

• Create wealth that sticks — because it is locally owned, controlled and reinvested.

• Increase upward mobility overall and advance the livelihoods of lower-income people, firms and places.

• Strengthen industry sectors that fuel the economy.

• Forge valued partnerships that can ably and flexibly connect again and again to power increasingly resilient regions.

Regional Economic DevelopmentWhat is WealthWorks?

1. Gauge your local capital

WealthWorks starts with the

people, assets and businesses you already have and

builds from there. Most people and places, from those doing quite well to those that are relatively isolated and persistently poor, have underutilized assets that can be developed and then linked to regional or global markets. WealthWorks brings together stakeholders — whether in rural places or urban neighborhoods — and helps them consider what their region is doing or could be doing to meet specific market demand. With WealthWorks, the point is not “Are we ready to do something?” Instead, it is “What are we ready to start doing?” In this approach, you wrap your thinking and doing around that starting point.

The wealth trinity: capitals, ownership and livelihood. WealthWorks aims to grow and sustain a healthy economy by focusing on more than just money. You design your economic and community development to produce three primary wealth-building results. First, you choose a development opportunity that builds your stock of as many of these capitals as possible, while depleting none:

Intellectual Knowledge and innovation

Individual Skills, education, health

Social Trust and relationships

Natural Natural resources

Built Infrastructure

Political Influence on decision makers and shapers

Financial Savings and investment

Cultural Traditions, customs and ways of doing

Second, you design your effort to increase local ownership and control of these capitals, since locally owned and controlled capital is more likely to be reinvested in and sustain a region’s economy. Third, you include low-Income people, firms and places to ensure that improved livelihood benefits flow to them.

2. Identify a value chain opportunity

WealthWorks identifies opportunities

and paths to create goods and services

that will connect to real demand. Before investing time, effort or money in any

economic development enterprise, it is essential to

understand the connection between “what we can do or make in our region” and what markets inside or outside our region might actually buy. WealthWorks begins with a set of screens that help narrow your focus to the best opportunities to match your goods and services to real demand:

n What sectors are important in our region or emerging in the economy that likely offer more potential?

n What products or services do — or could — we produce in those sectors?

n What market trends are changing what customers buy or want in the world?

Once you have narrowed your list of opportunities, WealthWorks helps sift further by analyzing which of

these opportunities offer the most potential for wealth-building success:

n What do we know about demand from likely customers for the products or services we could produce?

n What key people, firms or organizations in the area might help us succeed — and benefit by doing so?

n Which option has the most wealth potential — that is, the potential to increase the most local capital and our local ownership and control of it?

n Which can produce the most upward mobility in the livelihoods of local low-income people, firms and places?

n Of our emerging options, which generates the most local excitement and energy?

3. Construct a WealthWorks value chain

WealthWorks networks people, businesses, institutions and

organizations into a value chain that advances the self-

interest of each participant while building greater wealth

and livelihood within the region. Constructing your value chain involves acting on each of these questions:

n Who can best play an active role in helping meet verified or likely demand for our products or services?

n What will provide each player sufficient value to engage?

n How can we connect them to both meet demand with excellence and increase local wealth?

n How can we do this in a way that ensures improved livelihoods for low-income people, firms and places?

n How can we fill any gaps in the value chain using local resources or entrepreneurship?

n How can we design our value chain to ensure the most local ownership and control?

Local wealth is increased not just by selling a product or service, but by how you collaborate to root as much “value chain action” as you can within the region. This is the fundamental design goal of constructing a WealthWorks value chain.

4. Test impact on local wealth and livelihoods

WealthWorks tracks results.

WealthWorks keeps a sharp focus on what it is accomplishing. That means regularly tracking the impact of that value chain on these critical bottom lines:

n How has the quantity and quality of each capital changed?

n How has upward mobility increased and livelihood improved for low-income people, firms and communities in the region?

n How has local control and ownership of wealth increased?

DEMAND KEY PEO

PLE ENERGY LOW-INCOME

W

EALT

H

2 IdentifyValue ChainOpportunity

PRO

DU

CTS

MARKETS

SECTORS

CONNECT PARTNERS

CAPTURE VALUE

MEET DEMAND

ConstructWealthWorksValue Chain

3

PEOPLE

PLACE

BUSINESS

INTELLECTUAL

INDIVIDUAL

SOCIAL

NATURAL

POLITICAL

FINANCIAL

CULTURAL

BUILT

GaugeLocal

Capital

1

Test Impact: Local Wealth &

Livelihoods4

QUANTITY

& QUALITYY

UPWARD

MOBILITYM

OWNERSHIP

OWO& CONTROL

the action framework

how it works

PEOPLE

PLACE

BUSINESS

INTELLECTUAL

INDIVIDUAL

SOCIAL

NATURAL

POLITICAL

FINANCIAL

CULTURAL

BUILT

GaugeLocal

Capital

1

DEMAND KEY PEO

PLE ENERGY LOW-INCOME

W

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H

2 IdentifyValue ChainOpportunity

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SECTORS

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ConstructWealthWorksValue Chain

3

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Livelihoods4

QUQUANTITYTY

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UUPWARDRD

MOM BILITTYMM

OWOWNERSHIHIP

OWO

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Rural Growth ModelUSDA Rural Development

Rural Growth Model USDASeven Strategies for Economic Development

Strategic Partners• Work closely with tribal, state and local governments, national foundations and non-profit organizations to increase the resources and partnerships that can support economic and community development.• Utilize strength in numbers.• Emphasize the importance of partnerships with rural residents.

Capital Markets• Promote multiple industries in rural areas.• Expand the availability of capital to rural entrepreneurs and businesses.• Support local micro lending through locally-run business revolving loan programs to alleviate poverty and increase economic activity and employment in rural communities.

Regional Food Systems• Build markets for local and regionally grown agricultural products.• Create regional food systems with local businesses and producers.• Keep revenue in the local community and have access to locally- grown food.• Provide technical and financial assistance to connect consumers with local producers.

Regional Collaboration• Assist rural communities gain greater economic strength and longevity through collaboration with neighboring communities and regional economic hubs. • Allow collaboration and development of regional strategies to build a regional economic team.• Provide leadership, education and training, technical support and incentives to build regional economies.

Community Building• Encourage local leaders with vision, drive, and the resources to succeed in building great communities.• Build and improve community facilities and infrastructure.• Minimize the digital divide and allow businesses and communities to compete economically in a global marketplace.

Alternative Energy• Promote the development and use of alternative energy.• Increase the national supply of home-grown American renewable fuels as an alternative to foreign sources of oil.• Support new - rural America - renewable energy markets.

Broadband and Continuous Business Creation• Level the economic playing field for rural communities with access to broadband.• Familiarzie rural residents with modern technologiees and practices.• Investments in technology like broadband have helped keep the United States at the center of innovation and kept U.S. companies competitive around the world.

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BankingThe financial crisis and its economic aftershocks have spawned the first seri-ous examination of the structure of our current banking system and the public policies that have fueled consolidation over the last 30 years and untethered financial institutions from their communities.

From the 1930s through the 1970s, state and federal policies nurtured a strong network of community-based financial institutions (both banks and credit unions). Beginning in 1980 and continuing through the last three decades, Congress and federal regulators systematically dismantled these policies.

The result has been a tidal wave of mergers and an unprecedented concentra-tion of market power. The number of community banks — those with a $1 bil-lion in assets or less — has fallen by more than half, while the four biggest banks — Citigroup, JP Morgan Chase, Bank of America and Wells Fargo — now hold 42 percent of U.S. deposits and control nearly half of all bank assets.

This delinking of banks from their communities has opened up a vast distance between depositor, borrower and lender, and has spawned a financial system that devotes an increasing share of its resources to speculative activities over productive investments.

Today, a growing number of economists, policymakers, and citizens believe that this separation was at the root of the financial sector’s collapse and that we ought to look at the benefits of moving toward a financial system that is primar-ily composed of independent banks and credit unions. Although severely dimin-ished as a result of public policies embraced over the last 30 years, our nation is still home to about 7,100 credit unions and more than 6,700 community banks.

The Institute for Local Self-Reliance launched the Community Banking Initiative to provide the empirical and conceptual underpinnings for a community-scaled financial system, which will reduce systemic risk and strengthen local econo-mies, and to identify public policies that can revitalize such a system.

In conjunction with traditional principles of sustainability, MAAG is seeking to promote economic sustainability in the form of Self-Reliance. With constant fluctuations in the availability of grant and foundation funding for projects and programs, mechanisms that enable regions to reduce reliance on outside funding sources are seen as advantageous to local communities. Creating value chains and vertically integrated economies can contribute to this endeavor, but the Institute for Local Self-Reliance (ILSR) has developed a broad-based group of initiatives which look to leverage local opportunities in order to foster development of strong local economies. Through promotion of local banking, biomaterials, broadband, renewable energy, local business, biomass, and public goods, ILSR has illustrated several ways that a community can promote economic development from within. Not only do these endeavors promote economic vitality, but they help foster relationships and community building which has positive social and environmental impacts as well. Going forward, MAAG will borrow from this model in order to encourage similar efforts throughout the Greater Memphis region.

Self-RelianceAchieving Sustainable Economics

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Self-ReliancePublic GoodAt the founding of the American Republic the word “private” had pejora-tive connotations. Derived from the Latin word “privare”, private meant to divide or tear apart. A privateer was a pirate. The word “public” was an honorable adjective, often found in the phrase “public good”.

In 1776 John Adams wrote, “There must be a positive passion for the pub-lic good, the public interest… and this public passion must be superior to all private passions.” In the first 150 years of the new republic, in fits and starts, we expanded the public realm even as we also dramatically in-creased our standard of living. The road system, at first privatized, became public. We established a nationwide, localized system of free public edu-cation. We created a national network of free public libraries. Municipal water and transit systems, at first private, became public. In the 1930s we expanded the concept of a public good and a public asset to the idea of social insurance with programs like unemployment insurance and social security and in the 1960s Medicare.

Today the public sector is under attack. Indeed our very language has changed. The “private” is glorified while the word “public” has become the pejorative, especially its current synonym, “government”.The verb form of the word private, “privatizing” has gained wide currency and is embraced for everything from the post office to social security to libraries, to the military.

Today there is a wild imbalance between those who favor protecting pub-lic assets and those who do not, between those who believe the public should take priority over the private, and those who do not, between those who would emphasize the “we” over the “me” and those who would not.

Waste to WealthDuring the last three decades, the waste hauling and disposal industry has undergone considerable consolidation. Large consolidators have bought out not only many smaller independent firms but also each other in mega-mergers. The result is an industry with a smaller number of large, vertically-integrated companies that are less responsive to the needs of communities and smaller recycled-content product manufacturers.

BiomaterialsIn 1992, ILSR’s work on plant derived plastics and other materials led to our co-hosting the first International Workshop on Biodegradability. The concept of a Carbohydrate Economy – one that uses plant-based chemicals to replace petro-chemicals – was born. This work continues today through our Sustainable Plastics Initiative. As part of our Sustainable Plastics Initiative, ILSR now hosts the Sustainable Biomaterials Collaborative, which is helping purchasers, policymakers, and NGOs navigate the maze of new and emerging biobased plastics and guiding the marketplace toward sustainable biomaterials. This work focuses on networking, building collaborations, and catalyzing interest in sustainable biomaterials.

BroadbandAccess to the Internet is an essential infrastructure for any community that cares about economic development, quality of life, and educational opportunities. Unfortunately, most communities are presently dependent on a few unaccountable absentee corporations that act as gatekeepers to the Internet.

Communities are increasingly building their own networks, using a variety of approaches. From municipal ownership to cooperatives to other nonprofit approaches, communities are building next-generation networks that are directly accountable to residents and local businesses. These networks offer some of the fastest connections to the Internet available in the U.S. even as they keep prices affordable for television, telephone, and broadband services.

ILSR defends the right of communities to build these networks without states or the federal government creating unique barriers that apply only to public sector providers. The majority of our online work in this space appears on a dedicated site run by ILSR – Community Broadband Networks.

EnergyWind and sun are available everywhere, so renewable energy can be economically harnessed at small scales across the country. This nature of renewable energy, and the exponential increase of renewable energy generation, promises to decentralize the nation’s grid system. But the greater transformation is the democratization of the electric grid, abandoning a 20th century grid dominated by large, centralized utilities for a network of independently-owned and widely dispersed renewable energy generators, dispersing economic benefits as broadly as electricity generation.

Indipendent BusinessOver the last 25 years, a handful of giant retailers have grown to dominate the U.S. economy. ILSR challenges the wisdom of this market concentration. Through research and analysis, we have built a compelling case that places that are home to numerous locally owned businesses are more prosperous, sustainable, and resilient than those in which much of the retail sector is controlled by a few big chains.

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Local Examples

Day Tripping Rural Tourism Development ProjectThe West Tennessee Day Trippin’ Rural Tourism Development Project (Project) will launch a strategic print and online media marketing campaign to promote the West Tennessee Day Trippin’ brand between February 2014 and January 2015. The purpose of the Project is to support small and emerging local businesses and encourage entrepreneurship within these rural counties by increasing visitor trips to these areas through the promotion of Day Trips originating from Memphis as well as from within the rural counties. To achieve this, the Project will expand the existing print and online media marketing campaign for rural tourism, develop and produce new content as part of the Day Trippin’ video series, develop and maintain a dedicated Day Trippin’ website, provide consultation services, and explore further resources to promote tourism in rural Shelby, Fayette, Tipton and Lauderdale counties to sustain the Day Trippin’ brand as a recognizable regional marketing campaign.

Following the success of the first phase of the West Tennessee Day Trippin’ rural tourism marketing campaign, the Project will directly promote the unique sites, attractions, museums, local businesses and events throughout Fayette, Tipton, and Lauderdale counties in West Tennessee. The requested funding will support and expand marketing efforts which highlight destinations in these rural communities.

Community Digital Advantage ProgramThe purpose of the Community Digital Advantage Program (CDAP) is to improve the Soulsville community by enhancing economic opportunity, entrepreneurship, public safety and education throughthe use of broadband technology. This newly established Wi-Fi network will allow businesses to work, learn and fully utilize information technology to improve their productivity and market viability. New access to broadband technology in this community will not only support the DRA’s goal to strengthen the Delta’s physical and digital connections to the global economy, but will have positive implications on the agency’s goals to create a competitive, productive workforce, and develop sustainable communities. Again, our project supports the State of Tennessee’s goal to strengthen the Tennessee Delta’s physical and digital connections to the global economy.

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Local Examples

Regional Transportation PlanningAs the West TN Rural Planning Organization Coordinator, MAAG serves the small, rural localities in West TN that surround the Memphis MPO. Historically, many of the local officials who serve on the RPO committee perceive the committee to be a poor attempt at regional cooperation. Some committee members saw certain project priorities to be granted those with the larger makeup of the committee membership. The project prioritization selection, for example, came down to whatever town or county had the most members on the executive committee which approved the final rankings. Meetings lacked the collaborative and purposeful unity that was supposed to bring together leaders to solve common transportation issues throughout the region. However, things are changing.

The hope is to continue a consistent and meaningful dialogue in order to build cooperation among local officials. One way to encourage the dialogue is to produce an agenda which includes several issues that everyone can relate to. With the RPO, it is relatively simple to discuss transportation issues that apply to several communities. Roads do not stop at the edge of a jurisdiction. Instead, the network of roads have to be constructed and maintained by someone. It is in the best interest of a locality to opening discuss ways to keep costs reasonable and provide the best road system possible. Additionally, topics in transportation such as alternative transportation, land use planning, signalization, and road management agreements allow people to realize that they have much more in common in their communities than they think. If knowledge is shared at the meetings and among RPOs members that can be taken back and utilized in their respective localities, it will make all of the communities that much better in transit planning and implementation.

While modes of transportation rely on a network, the regional economy must also depend upon a connection system as well. Regionalism is incredibly important to maintaining a strong economy. Unfortunately, the Memphis MSA fails in many socio-economic categories including median income, health, housing, and education due, in part, to the various jurisdictional separations. Look no further than the Mid-South’s largest county, Shelby County, to gain an understanding of this dilemma. Suburbs have recently decided to separate themselves from the county school system and start municipal school systems. The intense deliberations surrounding the schools provided much stress to parents, children, and

school officials. The county boundary permitted the merger of the Memphis and county schools. The city boundaries, however, allowed the de-merger to take place as well. The MSA also maintains a presence between three states, each with various priorities including recruitment and retainment of industry and jobs. The federal government has the area split into sections as well. For example, the Economic Development Administration (EDA) supports separate regions split by the Mississippi River. The Arkansas team is headquarter in Austin while the TN and MS team works out of Atlanta. It is the boundaries at different levels of government which harms the region in policy decisions. Without unified decision-making and resource-sharing, many pieces of the region stay economically relevant while many are left behind.

It is easy to say that the region will stay divided because the jurisdictions are bound by law and were created long before any of us were born. Therefore, no one should take a chance and bring together officials throughout the region. This type of thinking would be incorrect and against the realism that is so apparent and so often taken for granted by both the residents and government. Memphis is the economic driver of the region. It was the anchor for the region yesterday and today. In the future, even if the pattern continues and more people are compelled to flee the city for the suburbs, the city will remain the focal point for industry in the area. Most major cities have a similar situation in that wealthy suburbs and poor urban cities make up the socio-economic map. It remains important to keep a strong urban core so that commerce can take place in a way that makes sense logistically. With distribution-based industries making up the highest share of the local economy versus any other place in the North America, industries will work closely together to ensure better movement of goods. It is the same with many of the other economic components - medical being another great example of cooperative agreements, especially with the MED and UT constructing a women and children’s hospital. Each industry can complement one another if they exist alongside each other. In much the same way, regionalism allows each locality to complement one another in many ways. Transportation is an obvious issue which can drive cooperation but others exist as well. Planning activities that affect the region should be driven by the region. It makes it essential therefore to promote people and places on the same level throughout the region, listen to applicable feedback, and determine the best course for everyone involved. It can be accomplished as experienced in other places such as Kansas City and DC metro.

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Herman, Benjamin A. “Embracing Sustainability in Community Plans” Planning. April 2010. Wilkinson, Richard and Kate Pickett. The Spirit Level. New York: Bloomsbury Press, 2010.

Dodge, William R. “Regional Excellence.” Washington, D.C.: National League of Cities, 1996.

Forester, John. “The Deliberative Practicioner.” Massachusetts Institute of Technology, 1999.

Newman, Peter and Isabella Jennings. “Cities as Sustainable Ecosystems.” Washington, D.C.: Island Press, 2008.

Ed. Hack, Gary, Eugenie L. Birch, Paul H. Sedway and Mitchell J. Silver. “Local Planning.” Washington, D.C.: International City/County Management Association, 2009.

Harvey, David. “Rebel Cities” 2012.

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