Cities Taking Measures to Stimulate their Local Economies

Building on national economic recovery efforts, local governments across the nation are strategically assessing the needs of their communities and employing creative solutions to stimulate business growth and development, create and maintain jobs, address severe housing concerns and leverage federal and private resources in new ways. 

A review by NLC revealed that cities of all sizes are engaged in local economic recovery — either by implementing a coordinated, comprehensive local economic stimulus package or through targeted efforts, including new and retooled local programs.

The overarching goals of these local economic stimulus efforts include: affordable housing and reducing homelessness; foreclosure mitigation; commercial and neighborhood redevelopment; infrastructure; local business supports; keeping capital within the community; workforce development; and sustainability.

Examples include:

Portland, Ore.

Portland’s Job Creation and Business Stimulus Package invests $503 million in the local economy and is projected to create 4,985 jobs, strengthen local businesses, connect vulnerable homeowners and families to services and fast-track public projects.

In support of local businesses, Portland has created working groups charged with developing micro-lending and micro-credit programs to provide capital access to local entrepreneurs. The city is also developing a micro-exchange that would allow local investors the opportunity to invest directly in local non-public companies. 

In an effort to revitalize commercial corridors and support small local contractors, the city has also increased the storefront grant budget to provide a 75/25 matching grant program (increased from 50/50). To view more details visit www.portlandonline.com/shared/cfm/image.cfm?id=225979.

American Canyon, Calif.

The American Canyon Can Thrive Now (ACT Now) plan is an effort by the city to provide economic relief to residents and businesses affected by the recession. The plan includes $100,000 set aside of city funds for a voucher program to assist customers in danger of having their water shut off.

ACT Now also encourages development by reducing the fee structure for building permits. Additionally, the plan seeks to spark business investment through local lenders by investing up to $3 million with local and regional banks that can commit to lending the money to local businesses and residents.

Flagstaff, Ariz.

Flagstaff has developed a plan to invest nearly $35 million in its local economy. The plan features flood control and street maintenance programs, as well as increased funding for tourism marketing and a sales tax waiver on hybrid vehicles purchased at local dealerships. The plan is predicted to generate about 300 new jobs and $13 million in new wages.

San Francisco

San Francisco’s local stimulus plan accelerates capital spending, invests in local businesses and supports the local work force by expanding existing efforts and introducing new initiatives.

One such initiative is the New Jobs Payroll Tax exemption whereby there will be no increases in payroll taxes for two years for existing employers and new employers will pay no new tax until 2011. The city will also provide free space to local artists in vacant storefronts, provide business tax credits for new locally purchased equipment, expand the banking literacy program for lower income residents, provide $23 million in no interest loans for local businesses, and expand health care supports for small businesses.

Details: Local actions to encourage economic recovery can be found in cities across the country. NLC will continue to collect information about local economic recovery efforts and would like to hear from you. If your community is engaged in these types of efforts, contact Will McGahan at mcgahan@nlc.org.