Agenda No. 8.
SEDC MEMORANDUM
| SEDC Board Meeting: | 03/16/2023 |
| Department: | Economic Development Corporation |
| Subject: | Presentation on Impact Dashboard (H. Malish) |
BACKGROUND
In recent years, suggested incentives were analyzed via a cost benefit analysis. The analysis would weigh the ad valorem taxes going to the City of Schertz and provided insight as how much incentive to award based on an algorithm.
Impact DashBoard is used by about 82 other Texas EDCs, cities, or counties plus about another 50 ED organizations nationwide.
Impact DashBoard is used by about 82 other Texas EDCs, cities, or counties plus about another 50 ED organizations nationwide.
COMMUNITY BENEFIT
The software allows you to evaluate the impact of proposed economic development projects so that you can present its economic and tax impact. Not only does the software weigh direct impact, but also includes indirect impact such as the number of additional jobs, wages or investment created because of the project. In doing so, this software shows a more nuanced and value-added approach to suggesting possible incentives per project. In reality, the new software reflects a fundamental shift in how we approach the incentive process because rather than incentivize based on direct ad valorem, the program may suggest a higher incentive because we are including revenue from indirect benefits (jobs, wages and capital investment). We still can compare the reports to one another, and can pick out the key pieces in the new report program if needed, but adding the detailed analysis from Impact Dashboard gives a more clear picture and greater impact of the overall benefit to the community.
FISCAL IMPACT
The annual fee for Schertz would be $5,750 which includes setting up the account and loading in the local tax rates, demographic information, and budget data. The annual fee also includes unlimited training and support. We will have access to the online ED questionnaire tool that helps collect project data prospects along with the ability to create as many projects and scenarios throughout the year as needed.
SUMMARY OF RECOMMENDED ACTION
Staff recommends the purchase of this software in lieu of the cost benefit analysis spreadsheet