September 2011 MOBILIZE MAINE - Nado

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September 2011MOBILIZE MAINE:Asset-Based Regional Economic DevelopmentIn Partnership with the EDA Know Your Region Project

Maine is jumpstarting its economy through an innovative initiative calledMobilize Maine. Led by the state’s Economic Development Districts,Mobilize Maine is a proactive approach to revitalizing the economy bydrawing on regional assets. Michael Aube, President of the Eastern MaineDevelopment Corporation, states, “Mobilize Maine changes the entireculture of how we approach economic development.”Source: Eastern Maine Development CorporationU.S. Senator Susan Collins and members of theMobilize Eastern Maine team during a visit to EasternMaine Development Corporation to learn about theproject.

Economic Development Districts (EDDs) are self-formed,multi-county regions designated and funded by theU.S. Economic Development Administration (EDA).They are responsible for conducting regional strategicplanning by developing the Comprehensive EconomicDevelopment Strategy (CEDS), which is produced everyfive years and updated annually by EDDs. Through theCEDS, EDDs bring together regional partners aroundeconomic development planning, and identify regionalgoals and objectives and prioritize projects that maybe eligible for financial assistance from EDA. EDDs alsoprovide technical and other forms of assistance to theirservice areas.EDDs are often administered by a regional developmentorganization (RDO). The term RDO is used to describemulti-jurisdictional planning and developmentorganizations that are governed primarily by localgovernment-elected officials who are focused onstrengthening local governments, communities andeconomies through regional solutions, partnerships andstrategies. These public entities are often known locallyas: councils of governments, area development districts,economic development districts, local developmentdistricts, planning and development districts, planningand development commissions, regional developmentcommissions, regional planning commissions orregional councils.Mobilize MaineFor decades, Maine has faced challenges as itseconomy evolved from a resource-dependentindustrial economy centered in rural areas into ahigh-skilled post-industrial economy centered inurban areas.1 As manufacturing shifted overseas to globalmarkets and new technology reduced demand for laborintensive jobs, economic growth in rural areas slowed. Therecent national economic downturn has only exacerbatedthis slowdown.Mobilize Maine, a statewide initiative launched in 2009, isan asset-based approach to economic development centeredon private sector engagement. Rather than working fromthe top down, Mobilize Maine takes a bottom-up approachto identifying assets. By the end of 2011, the state’s sevenEconomic Development Districts (EDDs) will have enteredthe Mobilize Maine framework, bringing together businessleaders, along with local government and communityleaders, to identify assets and develop goals for each region.The Northern Maine Development Commission (NMDC)and Eastern Maine Development Corporation (EMDC)were the first EDDs to implement the Mobilize Maineframework. Both organizations are designated andfunded as EDDs by the U.S. Economic DevelopmentAdministration (EDA). NMDC services Aroostook andWashington Counties, and provides a range of economicdevelopment services including strategic planning, attractionof new investment, management of the Aroostook CountyEmpowerment Zone, small business finance, and workforcedevelopment. EMDC services the greater Bangor region,including communities in Hancock, Penobscot andPiscataquis Counties, and portions of Waldo County.EMDC runs a number of programs, including a BusinessResources Center, a robust workforce training developmentprogram, and a full range of community planning services.EMDC also manages a U.S. Department of TransportationTIGER II Planning Grant that will be used to develop acohesive plan to integrate public transportation optionsacross its four counties.3

Developing MobilizeMaine at the State LevelMobilize Maine is:1. A local leadership-driven initiative that maps regional assetsand industry cluster value chains, which will complementexisting Comprehensive Economic Development Strategies(CEDS) both statewide and regionally2. Hundreds of Mainers leading the development andimplementation of focused and measurable “triplebottom line” action plans3. An asset- versus needs-based approach focused onadvantages versus deficiencies, which can be preserved,enhanced and leveraged to achieve economic, social, andenvironmental prosperity–the “triple bottom line”4. A statewide initiative, which will uncover the unique potentialof each region and connect its resources to transform Maine’srate of economic growth5. A four-step systematic and disciplined approach that willsupplement existing and enhanced regional CEDS planningand strategy development, including training and empoweringhundreds of Maine leaders dedicated to growing theireconomy6. A statewide public/private partnership supporting agrassroots mobilization of Maine’s citizens to takeresponsibility for and control of their economic destiny7. Based on a proven model for success, which connects qualityof place, innovation, and livable and healthy communitystrategies to achieve accelerated and balanced economicgrowthSource: Based on concept by ViTAL Economy, Inc.The Mobilize Maine initiative was prompted by a fundingopportunity from FairPoint Communications, a privatetelecommunications company that acquired telephone andbroadband lines in Maine, New Hampshire, and Vermont in2008. FairPoint Communications established the “ConnectNorthern New England” (CNNE) program in 2009 andwas prepared to provide 125,000 per year for three yearsto one region in each state to implement an economicdevelopment project. The company’s motivation wassimple–to be a meaningful community partner in improvingthe economy. FairPoint knew that economic expansionwould lead to new businesses requiring additional telephoneand Internet connections, which it could provide. To helpbuild CNNE and identify one EDD in each state with thecapacity to manage and implement a development project,FairPoint Communications hired the consulting firm ViTALEconomy, Inc.ViTAL Economy found that Maine’s EDDs were wellorganized at the state level and met regularly. As a result,the EDDs, along with Maine’s State Planning Office andDepartment of Community and Economic Development,persuaded FairPoint Communications and ViTAL Economyto design a statewide asset-based economic developmentprogram rather than focus on one region. ViTAL Economyagreed to provide each EDD with a disciplined frameworkthat guides regions to form partnerships with businessleaders, perform an asset-mapping exercise, set goals, anddevelop performance measures.Mobilize Maine’s approach recognizes that the economiclandscape varies greatly from one region to the next.Typically, economic development in Maine, as in many U.S.states, is top-down, and the statewide strategy does notalways resonate with communities farther from the capitalcity. Mobilize Maine State Director Mark Ouellette pointsout that “Maine stretches 700 miles from north to south,”from small rural communities dotting the border of Canadato financial districts in more urbanized Portland. Statewidedirectives to foster economic activity in financial servicesmay make sense in Portland but have little relevance tosmaller rural communities with different strengths. Bytaking a bottom-up approach, results from each region’sMobilize Maine process will feed into a more relevant andcomprehensive statewide strategy.Bob Clark, Executive Director of NMDC, says, “Thetraditional approach to economic development is recruiting4NADO Research Foundation

EMDC President Michael Aube says, “Mobilize Maine breaks down the silos,forcing us to be collaborative and supportive of a whole network.”new businesses, but we recognize that it doesn’t workin a rural area like our region.” Rural economies facechallenges reaching a critical mass and bringing togetherresources–financial, human, or physical–to help businessesgrow. An asset-based approach to economic development,like Mobilize Maine, helps rural communities strengthennetworks across the region around common goals. EMDCPresident Michael Aube says, “Mobilize Maine breaks downthe silos, forcing us to be collaborative and supportive of awhole network.”Overall, Mobilize Maine is not a resource-heavy structuresince it leverages existing assets and organizations to createsynergies. The biggest expenditure is increasing capacityamong EDD staff to coordinate meetings and events. Theinitiative was originally made possible with seed fundingfrom FairPoint Communications, but it also benefited fromother private sector donors at the regional level. A numberof different sources–including NMDC, AndroscogginValley Council of Governments (AVCOG), Southern MaineRegional Planning Commission, the Maine Chamber ofCommerce and ViTAL Economy–provide funding for astatewide coordinator, and recently the EDDs decidedto pursue additional resources from EDA to expand andenhance the statewide coordination, peer learning andimplementation of the initiative.Starting with NMDC and EMDC,ViTAL Economy is taking each EDDthrough a systematic framework todevelop its personalized Mobilize Mainestrategy. First, each EDD is responsiblefor reaching out to the private sector inits communities and putting togethera Leadership Board comprising eightto 12 stakeholders. Some regions, likeNorthern Maine, were already activelyengaging the private sector, whereasother regions had to start the outreachprocess from scratch.Mobilize MaineThe Foundation phase also includes taking stock of existingresearch and data collection. Statewide, four measurementsare assessed in each region, which incorporate per capitaincome, labor force participation rate, gross domesticproduct (GDP) growth, Internet subscriptions, andpopulation 25 years or older with bachelor’s degrees. TheLeadership Board also develops additional measurementsbased on its unique situation. For example, Eastern Maineestablished a measurement to assess the populationwith associate’s degrees, and Northern Maine added ameasurement to consider the number of jobs with privatepaid health insurance. These measurements will providebenchmarks for progress toward the 2015 RegionalEconomic Vision.After the Foundation phase, the Discovery stage commencesthe process of mapping indigenous assets, defined byHaguewood as “what makes the region unique, special, orSource: ViTAL Economy, 2009The Process: Foundation,Discovery, Connect, andReportThe Mobilize Maine framework, developed by ViTALEconomy, begins with 12 months of strategy development.The next year consists of implementation and the thirdyear is sustainment of the initiative, but short-term winsand actions throughout the process are always a priority.The yearlong strategy development stage includes foursteps: Foundation, Discovery, Connect, and Report. TheFoundation stage begins with identifying the region’schallenges and opportunities. Jim Haguewood of ViTALEconomy says the Leadership Board is charged withdeveloping the region’s “quality of place statement,”which is meant to define the region’s sense of urgency andidentify the pressing needs for the economy. Based on thisinformation, a five-year plan is developed.Figure 1, Benchmarking Progress to 20155

competitive in regards to their economy.” In this process,the project team surveys the local community to identify theregion’s strengths, such as the population’s unique talents;specialization of the workforce; education institutions; ornatural, cultural or historical assets. The AndroscogginValley Region in western Maine, served by AVCOG,identified transportation, distribution and logistics as itsassets, as well as destination tourism, characterized by itsski resorts. NMDC identified a business process outsourcingindustry, based on good customer service skills, and anexisting forest product industry cluster, linked to renewableenergy. Through the Discovery stage, EMDC uncovered anationally renowned health care system and the amenities ofthe city of Bangor’s riverfront.The third step, Connect, is the phase in which assetsare analyzed and prioritized. This step uses informationcollected in the cluster and asset-mapping to develop astrategy that connects assets to economic growth. Assetsare evaluated based on their potential to create economicvalue and contribute to regional goals: how many jobs canan asset produce and who will it benefit? What resourcesare needed to help an asset achieve its full value? The finalstage, Report, is when findings and strategies are presentedto the community, by the community leaders. WhileMobilize Maine encourages each region to establish “quickwins” throughout the process, the teams will focus next onimplementation.Northern Maine added a baseline measurement to consider the number of jobswith private paid health insurance.Realignment: Unprecedented ProgressThe state recently succeeded in realigning federal and state resources for economic development by changing the boundariesof its EDDs. The original six EDDs in Maine were: Northern Maine Development Commission (NMDC) Eastern Maine Development Corporation (EMDC) Kennebec Valley Council of Governments (KVCOG) Androscoggin Valley Council of Governments (AVCOG) Mid-Coast Economic Development District (MCEDD) Southern Maine Economic Development District (SMEDD)The realignment was approved by the U.S. Economic Development Administration (EDA) in July 2011. The change movedWashington County from EMDC to NMDC, Knox County from EMDC to MCEDD and SMEDD was split into two EDDs, making YorkCounty the seventh and newest EDD.Why did they realign? Many leaders associated with the EDDs believed that the boundaries for their regions did not matchthe economic realities of 21st-century Maine. The original boundaries were established in the 1960s and, in some cases, werebased around industries that no longer exist. For example, there are few economic synergies between York County and itsneighbor Cumberland County, yet the two were joined under one EDD. On the other hand, the adjacent counties of Washingtonand Aroostook face similar economic challenges but were separated into two different EDDs.Redrawing boundaries of EDDs statewide was not an easy task. Mark Ouellette said, “I don’t remember EDA ever doing astatewide redistricting; typically it happens one EDD at a time.” The realignment will assist the Mobilize Maine initiativeby bringing together areas with common economic characteristics and follow natural and political lines of communicationalready in use by local officials.During this process, other resources at the state and local levels were also realigned. In some cases, local WorkforceInvestment Boards, which administer federal programs and funds through the U.S. Department of Labor, were consolidatedto serve a single region, or boundaries were redrawn to match that of the EDD. In Northern and Eastern Maine, the WorkforceInvestment Boards are now housed in the same offices as the EDDs serving those regions, allowing for greater synergiesbetween economic development and workforce development programs, and better leveraging of federal, state and localresources.6NADO Research Foundation

NMDC is the only region to havefinished the four-step process to date.Stakeholders identified two industryclusters (information technologyand renewable energy), and areimplementing a strategy to mobilizeresources. EMDC is in the Discoverystage and is now holding focus groupsto finalize selection of their assets. Inthe meantime, they are identifying“quick wins” to move the processalong. ViTAL Economy is beginningwork with AVCOG in the westernpart of the state, the Kennebec ValleyCouncil of Governments (KVCOG)in central Maine, and in the greaterPortland region with the SouthernMaine Economic Development District(SMEDD). Each region will havestarted the first step of the MobilizeMaine framework by September 2011.In Northern and Eastern Maine, the WorkforceInvestment Boards are now housed in the sameoffices as the EDDs, allowing for greater synergiesbetween economic development and workforcedevelopment programs and better leveraging offederal, state and local resources.The Northern Maine DevelopmentCommission (NMDC) servicescommunities in Aroostook Countyand, more recently, WashingtonCounty. NMDC provides financingto local businesses and runs avariety of economic developmentprograms, including an EmpowermentZone, Pine Tree Zone, SmallBusiness Development Center, andthe Aroostook County TourismCommittee. NMDC also engagesin regional planning aroundtransportation, brownfields renewal,land use planning, and emergencymanagement. NMDC began to workclosely with the private sector andengage in dialogue to improve theeconomy as early as 2003, allowingMobilize Northern Maine (MNM) tokick off ahead of its peers.Source: Northern Maine Development CommissionMobilize NorthernMaineMap of Maine’s EDD BoundariesOften referred to as the “Crown ofMaine,” Northern Maine is knownfor its rich agricultural lands and vastdense forests. The region contains 30Mobilize Maine7

percent of Maine’s land area with only eight percent of thepopulation.2 With a population of 106,794, the district’slargest cities are Caribou and Presque Isle; New Brunswick,Canada, neighbors the region to the north and east.3The region has a diverse economy dominated by agriculture,including potato farming, and forestry, including paper millsand wood products. Northern Maine also counts tourism,manufacturing, and a budding information technologyindustry among its economic strengths. But with theclosing of Loring Air Force Base in 1994 and the declineof manufacturing and agriculture jobs, many AroostookCounty residents have been forced to look elsewhere forjobs. Average per capita income in the region is 20 percentless than the state average, and even though the region has areputable education system, levels of educational attainmentof the population 25 years and older trails the rest of thestate.4NMDC laid the foundations for what later became MNM in2003 with the Rural Empowerment Summit, which broughttogether more than 180 interested citizens from acrossthe region to address economic challenges and producesolutions. As a result, the region’s business leaders, withthe support of NMDC, formed the Aroostook Partnershipfor Progress (APP), a public-private regional organizationcreated to shape economic development. APP bringstogether CEOs and public officials to market the regionto attract new investment, create new jobs, and facilitatedialogue around key development issues. APP has a closerelationship with NMDC, which, in addition to sittingon the board, provides the organization with office spaceand public funding. APP investors provide approximately 250,000 in private funding annually.The first goal is to see the region’s population increaseby 3,000 people by 2015. Mike Eisensmith, NMDC’sEconomic Development Director, laments that the regionhas “lost population every decade since 1960.” Since theyear 2000, Aroostook County’s population has decreased by4,000 people. Eisensmith says, “The region can’t continue tobe viable if the trend continues.”The region’s exodus is primarily among the youngerworkforce, leaving the region with an aging population.Forty-six percent of the region is age 50 or older, comparedwith 39 percent in Maine as a whole and 32 percent in theU.S.5 A survey of businesses in the region revealed that aquarter of the workforce would be eligible for retirementwithin five to 10 years, and only 16 percent of thepopulation is between the ages of 20 and 34, not enough toreplace the existing workforce.6Another goal focuses on increasing per capita incomes.The average wage in the NMDC region is approximately20 percent lower than the average wage in the state. Whilewages increased by 11 percent in the state and 21 percentin the U.S. between 1990 and 2007, they only increased byseven percent in Northern Maine over that time frame.7The goal is to add 1,677 new jobs at an annual income of 42,000 including benefits and 1,118 new jobs at an annualincome of 38,500 including benefits by 2015. In addition,Northern Maine hopes to increase 6,628 full-time salariesThe 2003 Rural Empowerment Summit also led NMDCto commission Portland-based firm Planning Decisions,Inc., to conduct an industry cluster analysis for the regionto identify existing assets and prepare a strategy to buildon them. The analysis revealed five existing clusters in theregion: forest products, agriculture, tourism, informationtechnology, and precision manufacturing.When Mobilize Maine was announced at the state levelin 2009, NMDC and APP organized an Action Team ofeight to 10 public- and private-sector representatives usingits existing network of businesses. The Action Team helda series of focus groups to gather existing information,identify goals for 2015, and set measures to monitorprogress. The analysis and resulting goals were presentedto the Leadership Team, which comprises NMDC and APPboard members, for review.8Source: U.S. Census, 2010Identifying GoalsFigure 2: Northern Maine Population by Age, 2010NADO Research Foundation

Source: Flickr user loosends, available under Creative CommonsAroostock Countyby 5,000 per year. Attaining these goals would produce 365 million per year in new wages. On the productionside, adding to the workforce will help reach a regionalGDP of 2.8 billion, 200 million more than the region’sexisting business activity produces. An additional relatedgoal is to see 27.7 percent of private employers reimbursehealth care benefits for their employees.8The goals set by MNM are intentionally ambitious, andare meant to motivate the region to work toward achievingthem over the five-year time frame. The strategies that theMNM leadership developed around the region’s existingassets are designed to make these goals a reality by 2015.Turning an Existing Asset into anOpportunity: Renewable EnergyDuring the Discovery phase, MNM used Planning Decisions’cluster analysis, along with input from the businesscommunity, to identify two target clusters: informationtechnology and renewable energy. MNM engaged ViTALEconomy to conduct a deeper analysis of the two targetclusters. The MNM Leadership Board established ActionTeams for each cluster. The Action Teams comprise 60 to70 business representatives engaged in the industry cluster.Within each industry cluster, four to five smaller workinggroups are assigned to address specific activities.The renewable energy industry cluster illustrates how the regionis using MNM to turn an existing asset into an opportunity.With rising energy costs and concerns about the impacts ofclimate change, renewable energy has received a lot of attentionin Maine, as well as across the country. Because of NorthernMaine’s cold climate, residents carry twice the national averageburden for residential energy costs compared with theirhousehold income.9 Residents of Northern Maine primarilyuse imported oil to heat their homes, which is costly andsubject to price fluctuation.The Action Team identified biomass as a renewable energysource that could be both produced and consumed withinthe region. Biomass energy production uses wood or plantproducts to generate electricity or create heat. Wood wasteproducts, such as sawmill residue, supplemented withpulpwood, can be turned into wood pellets. Automatedfurnaces burn wood pellets in a system that can heat anentire building.Adjacent to the largest wood basket east of the MississippiRiver, Northern Maine’s existing wood products industryis well-poised to foster a niche market for biomass toenergy production. The forest products industry is thelargest industry cluster in Northern Maine, employing3,500 people in timber harvesting, lumber and paper mills,“Workforce development is part of everything we do at the Northern MaineDevelopment Commission and the Mobilize Northern Maine work around industryclusters is better informing our programs.” – Bob Clark, Executive DirectorMobilize Maine9

Source: Northern Maine Development CommissionNorthern Maine Renewable Energy Mapwood production plants, trucking and railroad transport,and equipment and chemical supplies.10 There are threeexisting biomass energy generation plants and a number ofwood production plants in Aroostook County that alreadyproduce more than 21,000 tons of sawmill residue that canbe converted to wood pellets.Replacing oil heat with locally produced biomass inresidential and commercial buildings will allow the regionto capture and retain economic value. Using oil as a sourceof heat retains 22 percent of each dollar in the economy,while using locally produced biomass would retain 100percent of each dollar in the economy.11 Biomass is acheaper energy source than oil or electricity, reducing thefinancial burden on residents and allowing them to spendin other areas. In addition to decreasing U.S. dependence onforeign oil, the energy produced from biomass burns cleanerthan the energy produced from oil.10ViTAL Economy’s analysis indicates that producing andburning an additional 300,000 tons of wood pellets ayear in Northern Maine would generate 150 million inbenefits, including more than 1,000 new jobs.12 Based onexisting capacity, the MNM Action Team set a near-termgoal to produce 45,000 tons of wood biomass pelletsfor residential and commercial heating per year, whichwould create an estimated 9 million per year within fiveyears.13 Furthermore, the Action Team set a goal to convert4,500 residential units and 10 commercial facilities tobiomass heat over the next five years. To date, nine of the10 commercial applications have been achieved, with aneconomic impact value of 585,000/year. But, in order tofully achieve these goals, MNM needs to improve demand.On the demand side, the Team designed a marketingeducation campaign on the benefits of biomass heating.The Team is promoting energy audits as a tool to helpNADO Research Foundation

consumers understand the advantages of using alternativeenergy sources. Energy audits are a professional evaluationof a building’s energy usage aimed at identifying areasto improve energy efficiency. NMDC partnered with theNorthern Maine Community College (NMCC) to traineight professionals to become energy auditors.Single EconomicStrategyTo increase demand through exports, Northern Maine needsa reliable and efficient connection to markets. In February2010, the Montreal, Maine & Atlantic Railway (MMA)announced its intent to abandon the rail line connectingAroostook County to the seaport. NMDC and APP, throughMNM, worked closely with state officials to understandthe importance of the railway to their economy. In October2010, the state agreed to purchase the railway and recentlyannounced it will be operated by Maine Northern Railway.As a result, MNM is fostering relationships with shippingcompanies to forge the link between the region’s renewableenergy cluster and markets in Europe.On the supply side, the Team identified a need to increasecapacity among the workforce in the field of renewableenergy. In response, NMCC opened the Northern MaineCenter for Excellence in Alternative Energy Training andEducation. The President of NMCC, an active participantof MNM and advocate of economic development, secureda 1.2 million private donation to establish the Center,which is expected to have a significant impact in training acompetent workforce in renewable energy.Mobilize Maine holds the potential for regions andlocal governments to integrate multiple service areasand planning processes into a single regional strategicThe renewable energy industry cluster illustrates thesynergies that can be facilitated through MNM. NMDCExecutive Director Bob Clark says, “Workforce developmentis part of everything we do at NMDC and the MNM workaround industry clusters is better informing our programs.”MNM meetings succeeded in fostering connections amongthe private sector, universities, and public sector to worktogether towards nurturing this industry. Similarly, MNM isnow creating synergies around the information technologyindustry cluster, using these techniques.economic development plan. The process aims toNext StepsRange Transportation Plan, regional and local land useMNM’s success toward completing the first phase ofMobilize Maine has allowed it to become a model for itspeers. Recently, MNM hosted other EDDs in a workshop toshare experiences. MNM has had an advantage and a headstart in this process because of its ties to the private sectorthrough APP, which has helped attract private donations.and housing plans, environmental protection strategies,Initially, MNM utilized funding from the U.S. Departmentof Agriculture (USDA) Rural Empowerment Zone programto fund staff time and meeting facilitation. Private sectordonations through APP have helped MNM to leverageMobilize Mainegenerate a strategic plan that is supported by theprivate sector and not only satisfies federal and/or stateagency requirements, but also provides direction for theregion to achieve economic growth and sustainability.For example, such a plan could serve as the region’sComprehensive Economic Development Strategy, Long-workforce development strategies, and others. Byrelying on an asset-based planning process thatfocuses on a region’s unique attributes, such a plan canbe a viable, credible tool that leverages federal, stateand local resources to shape sustainable development.11

Source: Eastern Maine Development CorporationMobilize Maine holds the potential for regions to integrate multiple service areasand planning processes into a single regional strategic economic developmentplan.existing funds and be more attractive when applying topublic sector funding sources. While MNM does not requirefundin

The Northern Maine Development Commission (NMDC) and Eastern Maine Development Corporation (EMDC) were the first EDDs to implement the Mobilize Maine framework. Both organizations are designated and funded as EDDs by the U.S. Economic Development Administration (EDA). NMDC services Aroostook and Washington Counties, and provides a range of economic

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