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HomeMy WebLinkAboutWS - Inclusive Economic Development PlanPRESENTATION TO FOLLOW: By: _____________________________________ Item: WS. V. Fixmer Oraiz, CEO Astig Planning AO i AST, PLA\NING Iowa City City Council Meeting September 20, 2022 Inclusive Economic Development Plan in Johnson County Iowa A e 1 O Agenda 1. Our Team, Funders & Collaborators 2. Introduction of the Inclusive Economic Development Plan (IEDP) in Johnson County 3. Planning Process & Outreach highlights 4. Findings 5. Recommendations The Astig Team V Fixmer Oraiz, AICP Founder & CEO, Environmental & Community Planner Asmita Poudel Environmental Planner Hekkie Jamili Community Planning Intern Mae McDonough Planning Assistant AST PLANNING Our Partners GreenState CREDIT UNION IOWA CITY AREA DEVELOPMENT I DESIGNING OUR FUTURE 0 IOWA CITY AREA Business Partnership MULTICULTURAL DEVELOPMENT CENTER of IOWA Strategic Doing Session Sponsor I HILLS BANK Partners in coordinating Focus Group Sessions Mazahir Salih Executive Director Center For Worker Justice of Eastern Iowa Angie Jordan CEO & Founder Banjo Knits Empowerment Marlen Mendoza Independent Policy Consultant Michelle Heinz Executive Director Inside Out Reentry Community Inclusive Economic Development Plan in Johnson County • A collaboration between multiple stakeholders that focuses on Underestimated Businesses in Iowa City • To uplift existing and ongoing plans and to outline actions Johnson County and its municipalities can take to create a more inclusive economic environment for underestimated businesses and entrepreneurs Planning Process Timeline November - January 202 Countywide MonIcipa PRESENTATIONS June 2022 STRATEGIC DOING July - September 2022 1Z►ltU]/Il`Y] • (((((At Comae Development Pim 2 105 total respondents Existing Business Owner Emerging Business Owner Business Support Institution existing business owners Currently own a business emerging business owners working on opening a business(es)/have an idea for a business. rni 0 25 50 63 75 support institutions for small businesses business partnerships, lending institutions, local governments, educational institutions, business hubs/communities) support institutions for small businesses Demographics: Respondent Affiliations Respondents self -described their ethnicity & race based on the following definitions: J Race - a group of people who share a common ancestor and certain physical traits Ethnicity - a social group that shares common values, culture and/or traditions Respondents of 25 races & 29 ethnicities surveyed Races of Existing & Emerging Business Ethnicities of Existing & Emerging Business SOUTH AMER AN AFRICAN Owners SPANISH BLA YCO CAROBEAN CAUCA& N BLACK NDIGENODS LATINX AFRICAN AMERICAN ANGLOSAKON "DtANASIAN RITE AMERICAN NDIAN ASLAN /NERICAN NORTHERN EUROPEAN AMERICAN NOLAN SWFXXSH MExKAN BLACK CONGOLESE DANISHMULn{ 14151 ASIAN KOREAN OTHER NORTHERN EROPFAN Owners cF STIAN c u cAswi HISPANIC LATINXAMERICAN OINESE SCOTT51i SUDANESE TRADIOOIES CULTURAL_ JEWISH WHTE AFRICAN AMEPoCAN VETNAMESE RISH Demographics: Race & Ethnicity Outreach Highlight Educational Experience of Business Owners Ent General 29% Education Degree (GED) 14% 096 096 60% 50% 40% 30% 2096 10% Undergraduate Masters Groduote PhD Groduote N/A 149: 596 16% 28% 37% 096 1096 2096 3096 40% The majority of emerging and existing business owners surveyed hold an undergraduate degree or higher Demographics: Educational Experience Percentage of Business Income Spent on Renting Space for Business Operates from home 10-19% N/A 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% Demographics: Rent Costs ) I saw a NEED in the COMMUNITY and thought I could fill it To DIVERSIFY food scene Wanted to stay with MY CHILDREN at home To have a bigger IMPACT in the COMMUNITY To create a WELCOMING and LOVING SPACE where all people could come For my own MENTAL HEALTH and soundness Lack of REPRESENTATION Wanted to be with MY KID a UNDERSERVED local MARKET To provide good FOOD 1 saw people NEEDed certain items that a new business could provide Want to have GENERATIONAL WEALTH for kids To make original FOOD from Michoacan Using my knowledge to be SERVICE to others What inspires our business community? Financial Resources that businesses are already aware of Other 8% lowo State University Center for Industrial Research and Service (LIRAS) I 0% 8% Iowa City Areo Development Group 8% lowo City Area Business Portnership Smoll Business Resources 10% University of lowo John Popojohn Entrepreneurial Center Student and Community Programs 5% US SmoII Business Administration learning Platform 12% Iowa Economic Development Targeted Small Business Programs 10% City of Iowa City Small Business Assistance Grant 8% Project Better Together BIPO( and Immigrant Business Gront 5% Multicultural Development (enter of Iowa's BIPOC Business Accelerator Program (IUCubate) 10% 12 MERGE Resources for Entrepreneurs America's Small Business Development (enter at the University of lowo e 5% 5°% 5°0 5' 10% 14 14 140, 14°„ 1 4 10" 15% EXISTING businesses EMERGING businesses Business Resources For immigrants with ITIN the banks give LITTLE LOANS with the highest interest rates. Difficult to get loans with low or no credit score. Financial Resources When we applied for loans bank refused, now afraid of going to other BANKS. Sold my truck to make the money for the business. Gathered the capital with my own sweat and tears by working for someone else. JC and IC LOANS ARE SMALL and do not cover startup costs. And payback period is too small, before business is making a profit. All the requirements in banks can be VERY INTIMIDATING, so some people just don't do it Resources that act as barriers for businesses EXISTING businesses EMERGING businesses 7% 7% longuoge options Affordable housing oaess Access to mental and physical health services Affordoble rental costs for business space Knowledge on converting your business to on online one High speed Internet for distance learning, remote work, etc. Access to legal ossistonce (hildcme services Marketing platforms for business promotion Credit score Access to money Physical location (e.g. office, warehouse, etc) 3% Tmnsportotion Business supplies and materials 3% Electronic equipments such os computers 4% Business networking 4% Insurance 5% Finding a desirable location 4% Access to business training, professional skills, etc. 4% Accounting Services or Bookkeeping Software 2% Others 2% 2% 2% 2% 2% 2% 4% 4% 7% s% 15% Business Resources 15% Do support institutions in JC have any policies/programs that specifically focus on assisting the BIPOC/Underestimated businesses? Programs have been around for 2 YEARS mostly, and some are EMERGING NONE of the support institutions were collecting data on participants from Underestimated communities* *Banks are required by federal law to report income - based data for CRA, however, other demographics are not recorded 75% 50% 25% 0% Yes • Policies Programs No Unsure Doesn't Apply Business Resources Do support institutions in JC provide loans targeted for BIPOC/Underestimated businesses? When asked specifics, the majority (80%) said that the demographic data is not TRACKED 71 % said that NO SURVEY was released in past 5 years to understand the needs of the Underestimated businesses 60% 4096 2096 096 * Doesn't Apply option was mostly chosen by non -lending institutions Yes No Unsure Doesn't Apply ■ Business Resources Where do the businesses/support institutions go for receiving/relaying resource -related information? Existing Businesses Is. ■ Emerging Businesses 6% 6% t5 14`° 10% 2 e 12% 5% 8% 8% 0°i 3% 2% Websites of support institutions Social Media Platforms Fellow/neighboring Word of Mouth Businesses Family/Relatives Pamphlet Distribution Friends/Mentors Promotional Events Community Members/Neighbors Non -Profit Organization City/County Newsletters Newspapers Television/radio Others Support Institutions 18% Information Flow Do support institutions in JC provide their information materials about lending or support programs in different languages other than English? Yes 17 Nn 6/ Limited English-speaking households' languages in the county ranked by majority*(ACS Data, 2019) • Mandarin • French • Spanish Unsure 17% Currently Spanish is the only one provided by a small percentage Information Flow Unsure 8% Do support institutions in JC provide any relief fund/loan to businesses in response to the Covid-19 pandemic? Yes 33% provided approximately $50,000 in grant funding to 33 BIPOC owned businesses No 58% Covid 19 Impacts 1 One-on-one Mentorship Access to Community Commercial Kitchen 1 sss Classes on startups and online/graphic skills Consolidated Information on permits in multiple languages Affordable Spaces Low interest loans, with no payback for first year MI More community grants with supportive banks Street Vending Opportunity Communities Solutions and Opportunities 70% 60% 50% 40% 30% 20% 13% 10% 5% 0% ‘1111111111111111111111111111111111111-0 Strongly Disagree "To create equity and opportunity for all, I believe a greater portion of resources should go to those who are most in need." 13% Disagree 22% Neutral 41% 63% % Agree Strongly Agree ■ Existing Businesses Emerging Businesses 50% 45% 40% 35% 30% 25% 20% 15% 11% 10% 5% 0% None Support Institutions' Belief 22% Little 44% 22%4 Medium High Equity Perception What We FieaLcL(Barriers) Cost of Rent tl Gaps in Resource Information Missing relationships with Abusiness support systems 1. (trusted bankers, accountants, and lawyers) Short supply of business mentors -11 FA Lack of access or perceived lack of access to financial banking systems Hostile business support system environment Lack of access to childcare StrategicDoing Session 30 attendees from different sectors: Local Government Leaders & Staff, Business Support Institutions, Lending Institutions, Non -Profits, Local Vendors (Emerging and Existing) LF Aspirational Quote Imagine a robust entrepreneurial community in Johnson County that authentically welcomes and empowers underestimated business owners with a sense of belonging throughout all stages of business and idea development Pathfinder Projects Mobile Food Vendor Portal JC Business Education Series Underestimate d Mentorship Program Recommendations nelgnnornooa-level Multi -Cultural Business Hubs BEHIND THE SCENES SUPPORT Changes in policies and procedures at multiple levels PUBLIC -FACING SUPPORT Internal Work for local Governments and Business Support Institutions Bolster entities/ orgs that are currently supporting small businesses/ entrepreneurs Provide resources to the Underestimated Entrepreneurial and Business community Build Infrastructure to create spaces for the Underestimated Business community to thrive Changes in policies and procedures at multiple levels Make available more affordable commercial spaces through creative ordinances that reuse/ revitalize/rehabilitate vacant properties UpSeek state -level policy changes to support translating business licensing and permitting documents. Create local government procedures for funding and loan programs that include: • Increased borrowing amounts • More time before first payment • No interest in the 1st year *UB - Underestimated Business *UBO — Underestimated Business Owners Internal Work for local Governments and Business Support Institutions Recognize, legitimize, and support multicultural planning perspectives and tools Translate publicly - available business documents and resources in print form and online Require antiracism training that integrates reconciliation, healing and learning Create o clearer city permitting/ county licensing process and accessible ordinance information Incorporate multicultural and/or multilingual elements in office and public spaces Bolster entities/ orgs that are currently supporting small businesses/ entrepreneurs .Strengthen collaborative partnerships between local governments and existing organizations that serve UB that include accountability, transparent evaluation, and support the evolution of partnerships. . Streamline communication between UB support organizations. . Reduce duplicative professional service expenses across UB support organizations. . Conduct transparent and recurrent evaluations to help evolve partnerships in sustainable ways. Provide resources to the Underestimated Entrepreneurial and Business community Create more access to multicultural educational opportunities taught, led by, and for UBO and professionals . Host financial literacy demonstrations/ workshops led by and for UBO Create and sustain ▪ formal and informal dynamic mentorship programs Widely publicize access to start-up and mid-level funding and loan opportunities with flexible conditions Support existing and emergent local multicultural business markets through funding and marketing efforts Build Infrastructure to create spaces for the Underestimated Business community to thrive Build accessible, culturally -mindful, low - Rental Cost/ No -Rental Cost commercial kitchen space Build neighborhood - level, multicultural chambers of commerce throughout the county that can serve as safe communal spaces UBuild new or modify existing city/county- owned properties to support flexible food truck and street vending services ARPA Strategic vestments BIPOC Business Support Infrastructure '-'4-6M From 9.7.20 ARPA Work Session: 1. BIPOC Business Support Infrastructure examples: physical space, youth entrepreneurial and community center accelerator program, startup and expansion grants, SSMID pilot, project manager/community navigator 2. Social Service Needs Assessment and Capital Planning + Seed Funding This seed funding can help fund top recommendations from the assessment Public Input Summary- Common Themes: Business Support • Comprehensive BIPOC business support framework • Small business operating assistance • Permanent BIPOC vendor space with commercial kitchen • Retail incubator for BIPOC/Immigrant/Refugee populations • Pop-up storefront program From 2020-2021 Strategic Plan: • Advance Social Justice, Racial Equity, and Human Rights • Demonstrate Leadership in Climate Action • Strengthen Community Engagement and Intergovernmental Relations • Invest in Public Infrastructure, Facilities and Fiscal Reserves • Foster Healthy Neighborhoods and Affordable Housing Throughout the City • Enhance Community Mobility for All Residents • Promote an Inclusive and Resilient Economy Throughout the City P_ublickacing ARPA Recommendations Physical space r. 4 Youth entrepreneurial and community center accelerator programs Startup and expansion Community navigator grants A (community networking) Physical space Recommendation: Neighborhood -level Multicultural Business Chamber Hubs Support the creation of neighborhood -level, multicultural chambers of commerce, that are led by and for underestimated community members, which could serve as hubs that include, but are not limited to supporting: Aligns with Project Better Together 2030: A Shared • Neighborhood -level Spaces Reduce Barriers of Access and are Supported by Future For Johnson County: ■Guiding Principle of Representative Leadership to dismantle systemic inequity and deepen a culture • Access to Trusted Business Resource Experts of inclusion and belonging • Centralized Information Sources/More Accessible Information Sources ■Two of the Five Priorities • Formal and Informal Dynamic Mentorship Programs %Authentic, Vibrant Neighborhoods and Districts • Increased Direct Access to Federal/State/Local Grant Opportunities A Thriving Inclusive Economic Ecosystem Support collectively informing those grant processes and opportunities for future changes our Johnson County Community • Access to Low-Cost/No-Cost Commercial Kitchen Space/Maker Spaces Recommendation: Neighborhood -level Access & Mobile Vendor Spaces Youth entrepreneurial and community center accelerator programs Recommendation: Support *Current BIPOC-Led Business Support Institutions • Fund current/future programs • Reduce duplicative professional service expenses (accounting, customer service, insurance/liability providers) across underestimated business support organizations • Assist in conducting transparent and recurrent evaluations to help evolve partnerships in sustainable ways. *Criteria for BIPOC-Led Business Support Institutions: 1. Proven record of established economic development: a. Number of years in service + Good standing with the city 2. Services include: a. Provide funding/lending programs b. Host economic development programs (e.g., entrepreneur programs, financial literacy, BIPOC support groups) Current organizations include but are NOT LIMITED TO: a. b. c. d. e. f. 9. Multicultural Development Center of Iowa Center for Worker Justice of Eastern Iowa Emprendimiento Latino 5M (Formerly Colectivo de Mujeres de Negocios) Diversity Markets (Potential South District SSMID Project) Wright House of Fashion Immigrant Entrepreneurial Summit Astig Planning (Internal Work) Startup and expansion grants Recommendation: Create local government procedures for funding and loan programs Programs that include: • Increase borrowing amount • More time before first payment • No interest in the 1st year Community navigator (community networking) Recommendation: Improve networks of support between local governments and existing organizations that serve underestimated businesses • Strengthen collaborative partnerships between local governments and existing organizations that serve underestimated businesses that include accountability, transparent evaluation, and support the evolution of partnerships. • Streamline communication between underestimated business support organizations. Behinchttle Scenes ARPA Recommendations li ti Internal Work for Local Governments and Business Support Institutions A clearer city permitting/ county licensing process and accessible ordinance information More affordable commercial rental spaces through creative ordinances Internal Work for Local Governments and Business Support Institutions Internal Work to: • Recognize, legitimize, and support multicultural planning perspectives and tools, such as the BlackSpace Manifesto • Require antiracism training that integrates reconciliation, healing and learning • Create a Culture of Care centered on truth -telling and reconciliation that addresses harm or trauma in safer/braver spaces. Establish celebration and joy as an equal partner in healing and transformation. • Incorporate multicultural and/or multilingual design elements in office and public spaces LIIIMore affordable commercial rental 1 spaces through creative ordinances Make available more affordable commercial rental spaces through creative ordinances that reuse/revitalize/rehabilitate vacant properties, such as: • Community -wide Adaptive Reuse Assessment • Adaptive Reuse Ordinances • Commercial Overlay Districts 1011 A clearer city permitting/ county licensing process Create a clearer city permitting/ county licensing process and accessible ordinance information for but NOT LIMITED TO: • Street vending permits/licensing • Mobile food unit permits/licensing • General business permits/licensing • Translated versions for the city (potential online vendor portal underway) Vext_Steps • Continue Supporting Pathfinder Projects • Offer to create specific action steps for interested entities (cities/county) O Align with stated goals (ARPA funding, Inclusive Business Development, etc.) O Convene local underestimated business leaders to deepen relationships and generate a cohesive proposal O Create draft proposal and work with leadership group to finalize O Create and present final proposal to decision -makers � r� � • F„K Ci.)4 ELCOtte INCLUSIVE ECONOMIC DEVELOPMENT PEA14 nut- 7.0 {for ilm h ' hr.r,bu t.aQa.caVt tA.. a \ 1 )1..4; c+l-.� Wim f GY EV1014 C INCLuSLVE 6CONONIIC DEva.oPMENT PLAN Tifton: ysu ___ii mal Thank you! Questions? PRESENTATION CONCLUDED