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HomeMy WebLinkAbout2016-02-09 PACKET 04.03.D. Washington County Board of Commissioners Economic Development Strategic Plan May 6, 2014 Economic Development: A Washington County Strategic Initiative I.)­³±®£´¢³¨®­ What is Economic Development? Economic development has different meanings to different people. The County Board believes the International Economic Development Council (IEDC) definition is appropriate for mix of social, geographic, political and economic qualities: No single definition incorporates all of the different strands of economic development. Typically economic development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of the quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well-being of a community. The main goal of economic development is to improve the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life. As there is no single definition for economic development, there is no single strategy, policy or program for achieving successful economic development in Washington County. Thus the plan laid out in this document is developed from a comprehensive and broad-based perspective. Through implementation of this strategic plan the County anticipates achieving the following short-term goals over the next 1-2 years: 1. Establish a single point of contact for economic development within the County government. 2. Update County tax-increment financing and tax abatement policies. 3. Incorporate economic development impacts and considerations into county decision making. 4. Expand County role in marketing the County. Њ 5. Establish working relationships with state, regional, and local entities working on business retention and growth within the County. 6. Convene practitioners and other stakeholders to address barriers and opportunities and to encourage free flowing communication. 7. Assert a stronger voice at the legislature in advocating for sound economic policies and authorities. This document presents the draft of an Economic Development Strategic Plan for Washington County, Minnesota. The Strategic Plan consists of the following nine sections. Section I Introduction Section II Planning Process Section III Section IV County Mission, Vision and Goals Section V Policy and Principles Section VI Strategies, Outcomes, and Structure Section VII Implementation Section VIII Appendices II.0« ­­¨­¦ 0±®¢¤²² The Washington County Board engaged Springsted, Incorporated to prepare a Washington County Economic Development Strategic Plan. The plan focused on the following two elements: 1) Recommend an appropriate expanded role for Washington County including recommending a viable structure for carrying out that role; and 2) Develop high-level strategies for encouraging economic development within Washington County. The County spent considerable time this past year engaged in discussing its role in economic development. The County Board conducted three formal work sessions to discuss ideas, options and opportunities. Feedback was provided to the staff and consulting team to move forward with developing a plan based on the direction from the County Board. Economic Development Work Group An Economic Development Work Group supported the planning process by bringing a wealth of knowledge and experience to the process and providing important local perspectives to the discussion. The Work Group is comprised of economic development practitioners in Washington County from municipal governments and public agency partners such as the Housing and Redevelopment Authority. Members of the Work Group represented a cross section of roles and responsibilities including a mayor, city administrators, assistant city administrators, planners, and community development directors. The economic development study pursued two simultaneous tracks: a community engagement process and data analysis initiative. A brief summary of each follows: Data Collection Springsted retained the services of the University of Minnesota Extension Office to collect, organize and analyze Washington County economic data to develop an understanding of the current status of the economy in Washington County. Two formal presentations were held on the Ћ data: Washington County -- Economy and Selecting Industries for Further Analysis (November 2013). Copies of both presentations are on file in the County Administration. Five of the most essential findings that might have an immediate policy implication are identified in Section III. Community Engagement The County Board directed that a broad reaching community engagement process be undertaken, including: 1) Interviews and listening sessions with elected officials and other key stakeholders within the community of interest; 2) Gather input from every city; 3) Presentations/discussions to organized groups such as Economic Development Authorities, Chambers, Business Development ; and 4) Facilitated sessions with key stakeholders within a community of interest to identify issues and create the strategic plan. A summary of the stakeholder input is included in the Appendix. III. The data presented by the Minnesota Extension Office offered a clear picture of the Washington County economic conditions. A summary review of economic data for Washington County finds Washington County is a competitive, job creating economy. The county has experienced steady and strong growth in the number of jobs and weathered the recession well. Washington County had 80% employment growth from 1990-2012 adding 32,000 new jobs. The number of jobs in 2012 nearly rebounded to pre-recession levels of 74,000 total jobs. Washington County competes very well within the region and the Twin Cities economy. Businesses in Washington County added 24,000 more jobs than would have been expected given national and industry trends. Washington County is especially competitive and has significantly more jobs in comparison to neighboring counties in Wisconsin. growth rate exceeded or was on par with neighboring counties in Wisconsin. Washington County maintains a competitive share of employment growth compared to St. Croix County except for manufacturing where St. Croix County has a modest growth advantage. Washington County is a service-based economy. sectors of employment are Trade (16%): Professional and Business Services (16%); Education and Health Services (14%); Leisure and Hospitality (12%); and Government (13%). Wages at jobs in Washington County are low, incomes primarily from jobs outside the County are high, and housing is expensive; these trends make affordable work force housing an issue for county leaders. Ќ )6ȁ #®´­³¸ -¨²²¨®­Ǿ 6¨²¨®­  ­£ '® «² Mission, Vision and Goals. Mission Providing quality services through responsible leadership, innovation, and the cooperation of dedicated people. Vision A great place to live, work and play...today and tomorrow. Goals Washington County has four principle goals: To promote the health, safety, and quality of life of citizens To provide accessible, high-quality services in a timely and respectful manner To maintain public trust through responsible use of public resources, accountability, and openness of government The economic development strategic plan is but one supporting activity which allows the County Board and staff, cities and public agencies, and the business community to pursue the mission, achieve the vision and accomplish the goals. Economic Development Role develop and thrive. The County contributes to a robust business climate by providing well-planned, essential infrastructure; maintaining a low tax rate; and assisting in creating an ample pool of skilled employees. The county strives to maintain the right blend of county services to support a vibrant business sector, be it transportation and transit services, public safety, health and human services, corrections services, workforce housing, or other public services. The county is committed to stewardship of cultural and natural amenities such as land and water resources, parks and open spaces, and libraries which contribute to a high quality of life for business owners and their employees and families. The companies to be competitive and successful in the local, regional and global economies. Ѝ V.0®«¨¢¸ a­£ '´¨£¨­¦ 0±¨­¢¨¯«¤² The foundation of this Strategic Plan is the policy and guiding principles that drive the strategies and goals of the County. The following policy statement and six guiding principles define the planning efforts. These guiding principles are relevant for the present economic environment and are subject to review and change on a periodic basis. Economic Development Policy Statement It is the policy of the Washington County Board of Commissioners to strengthen role and increase its support of economic development in the County. The County will invest staff time and financial resources in a planned, coordinated and strategic manner and will engage in a collaborative and holistic approach to economic development. The Cpolicies and actions will be guided by six principles. Economic Development Guiding Principles The following principles are not in rank order of importance. The private sector is the lead that drives the economy The County will work in partnership with the private sector o The County will not duplicate or replace the work of cities and other public agencies The County will work in collaboration with cities and public agencies and will o provide leadership where the County can make the most difference The County supports a strong collaborative approach to economic development No matter the location, economic development is a benefit to the entire county o Support efforts to ensure a highly skilled workforce and adequate workforce o housing Business attraction and business retention are essential policy objectives A balanced approach to pursue each of the two policy areas is required o The diversity of the County requires an adaptable and open-minded approach The distinctive qualities of the County require flexibility o A deliberate, purposeful and strategic plan is required The County will take careful and prudent risks to pursue its objectives guided by o clear outcomes, and consensus-based policies VI.Strategies, Outcomes  ­£ 3³±´¢³´±¤ Economic Development Outcomes The County Board has seven outcomes for this Strategic Plan: 1. Retain a premier quality of life for all of residents 2. Create and sustain living wage jobs across all employment sectors 3. Expand the County property tax base 4. Be a value-added partner to other public and private agencies 5. Allocate appropriate staff time and resources 6. Affect public policy issues that impact the County 7. Expand Ў The Strategic Plan provides a realistic and practical road map for the County. It guides the county leaders and allows them to focus on the most important economic development priorities. Furthermore it directs staff time and financial commitments to those activities that support the mission, vision, and goals. Ultimately when the plan is underway and the County has a solid foundation, it will improve accountability and the capacity to measure performance and outcomes. Economic Development Strategies Strategies are essential public policy priorities that precede goals and action steps. Typically they are long-term in nature and are fairly constant in their intent and pursuit. The optimal way to introduce strategies is through the eight functional economic development categories that emerged from the stakeholder input process. The eight categories reflect the marketplace of opportunity for the County and general consensus is to use these designationsasthefoundation 1 forthestrategies.Thestrategiesarenotrankedinorderof importance. Each strategy is followed by one to four goals. Goals are a measurable and desired activity, project or purpose that requires resources (time and/or money). Action steps are individual steps and activities necessary to implement a goal, accomplish a strategy, operationalize the mission and fulfill the vision. Specific action steps are continuously evolving and changing as they are completed. The role of local government in economic development must be viewed in both a short and long term perspective. In this, strategic plan, the focus is on short-term actions that support and sustain a long-term investment. and change. The goals are focused on a one-three year timeframe. This does not prohibit or discourage the County from making changes and adjustments throughout the year. 1. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth;economic development resources and investments will advance and support the high standard of living in the County. 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on multi-modal transportation networks and access to high-speed broad band networks. 3. Washington County uses economic development financial incentives in a fiscally prudent manner. 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive process. 5. Washington County understands that other county-based services impact economic development goals and economic growth, including but not limited to, transportation and housing policies and programs. 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county-wide economic development goals. For additional information and details on each strategy please read the December 12, 2013 and January 28, 2014 County 1 Board documents. Џ 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. 8. Washington County partners with other public and private agencies to pursue economic development goals. There are 21 identifiable goals. The Goals are not listed in any priority order or ranking. Priorities are established by the letter assigned to each. The ranking is as follows: Letter A One to Six Months Letter B Six to Eighteen Months Letter C Eighteen Months and Longer 1.Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. Goals Assigned Priority 1. Designate a county staff member to be the point of contact for economic development and implementation of the strategic plan. A 2. Evaluate how economic development factors into 2040 Comprehensive Plan update. C 3. Establish and monitor key economic indicators and benchmarks for the county and the quality-of-life indicators that are most important from a A measurement report. 2.Washington County recognizes that economic development requires a strong infrastructure foundation built on multi-modal transportation networks and access to high-speed broad band networks. Goals Assigned Priority 1. Explore public-private partnerships to ensure access to high-speed broad band fiber networks throughout the county. C 2. Consider creating a pool of financial resources for unanticipated land acquisition (e.g. right-of-way) needs for economic development projects. C 3. Continue to pursue multi-modal transportation and transit opportunities that will stimulate economic growth in the county. A А 3.Washington County uses economic development financial incentives in a fiscally prudent manner. Goals Assigned Priority 1. Review and update the existing financial incentive policies: tax increment financing and tax abatement. A 2. Explore the creation of a revolving loan program to support business development. A 3. Explore using federal Community Development Block Grant monies for economic development activities. B Washington County realizes that success in economic development is only achieved through a 4. collaborative and inclusive environment. Goals Assigned Priority 1. Explore the value and purpose of a public/private partnership such as an Economic Development Corporation and how it may complement and C 2. Identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities B could be directed to the HRA consistent with their mission. 3. Continue to convene the Economic Development Work Group to address issues of mutual concern and to foster a unified county-wide economic A development approach. 4. Develop a concept paper on the formation of a Community Development Agency (CDA) and present to the County Board. B 5.Washington County understands that other county-based services impact economic development goals and economic growth, including but not limited to, transportation and housing policies and programs. Goals Assigned Priority 1. Review transportation related policies and standards for compatibility and flexibility with economic development goals. A 2. Review recent outcomes of housing market research completed for the Washington County HRA to determine appropriate workforce housing A strategies that support economic development goals. 3. Where applicable, consider economic development impacts in other county-based plans, programs, and services. B Б 6.Washington County provides leadership and initiative to shape regional and state-wide policies to support county-wide economic development goals. Goals Assigned Priority 1. platform. B 7.Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. Goals Assigned Priority 1. Assess how the County can participate in marketing and branding to support the existing efforts underway in other public and private C agencies. 2. Build relationships with existing organizations that focus on job retention and identify how the County can support those efforts. C 8.Washington County partners with other public/private agencies to pursue economic development goals. Goals Assigned Priority 1. Partner with the Workforce Development Board and staff to identify and address workforce training and workforce housing needs. C 2. Identify specific economic development training and assistance needs of Washington County communities and determine how best to meet those C needs. 3. development activities such as Greater MSP and East Metro Strong. A 4. Work with area chambers of commerce to determine how the county can B help to grow tourism as an economic driver. Economic Development Structure One of the primary goals of this Strategic Plan is to answer the question of what structure best suits the role Washington County should to take. The Work Group and county staff conclude that this will be a process that takes time to mature. Throughout the process two concepts were identified that are important components of the planning process: less formal structure and formal structure. Information on each follows. Less Formal Structure (Public Private Partnership) These models are essentially Economic Development Commissions (EDC) supported by membership dues from private companies and local units of government. They are typically convened and staffed by the interested municipal entity and play primarily an advisory role and advocate for development in the community. Some communities, such as Wright County, assign В the entity to evaluate and underwrite their loan programs, but the County Board retains the ultimate authority to approve the allocation of those financial resources. In addition to the private sector business representation, these boards can be comprised of representatives of smaller communities. This allows for these public private entities to pool resources and provide economic development technical assistance to those communities that capacity use these types of structures more as an advisory board representing private sector business interests. In the case of Washington County, Woodbury and Oakdale use this structure to help develop Economic Development Strategic Plans. Since the primary benefit of this structure is to encourage private sector involvement through board participation and possibly financial support, the question is how could this type of structure benefit Washington County and what are the downsides. Research shows that often counties in Minnesota start to play a role in economic development with this type of EDC structure as a first step. Counties can provide financial resources based on tasks assigned to that entity while retaining final approval authority for specific projects and programs. These structures work well as marketing champions for county wide growth and should not be considered mutually exclusive of a more formal structured approach. The possible downside risk of this approach in Washington County is the current private business community participants, particularly the , could perceive that this is duplicative. In addition, the more this public private model is tasked with direct economic development activities, such as loan programs and technical assistance, the more there would need to be careful consideration given to avoiding duplicating those same efforts currently undertaken by the larger communities and potentially the County HRA. Formal Structure (County Community Development Authority) If the County Board chooses a more formal and active role in economic development, one logical path is to seek any necessary special legislation to enhance the capabilities of the Washington County HRA by essentially adding economic development authority powers. Other jurisdictions authorities. Any programming would require careful consideration to avoid duplicating efforts currently undertaken by cities, but obtaining legal authority provides the county access to significant authority and financial resources to encourage economic development. Many of the technical skill sets required for implementing economic development strategies exist within the County HRA. (They also exist in many of the larger communities, but are currently limited to those municipal boundaries.) To be responsive to city needs and county board direction, the HRA could certainly undertake and implement programs (i.e. partner with MCCD for example) as soon as possible as long as those efforts are consistent with current authority, while pursuing the necessary legislative amendment process. A possible downside of the CDA model is the risk of diluting private business sector interests on the board. However, the CDA model can have a board comprised entirely of county elected officials or a blended combination of elected and appointed members. As resource commitments increase with a more active and formal participation in economic development activities, county elected officials may choose to have a more direct involvement on the board. They establish advisory committees organized according to the issues they intend to address. If the Washington ЊЉ County Board chooses to pursue a more formal CDA model and wishes to have more direct involvement with county wide housing and economic development initiatives, the structure could accommodate that desire. One of the principles promoted during this process is for the County to be purposeful and deliberate. If the formal CDA model becomes the objective, it will take time and careful collaboration to complete. ЊЊ Possible County Economic Development Structures Organization Description Board Type Private A corporation formed to develop and sell industrial land Low County control Partnership or and/or provide financing for business development in the mostly all private Non-Profit community. Shares are sold or funds may be raised in other ways. Or could be a 501(c) (4) or (6) organization whose purpose is to promote community economic development. The membership is usually made up of business. Can have paid or volunteer staff. Economic An advisory board, appointed by the Washington County County appoints Development Board. It has limited or no decision-making authority and Commissioners Commission usually serves as a sounding board or as a first point-of- (EDC) contact for the County for development projects. It is often responsible for drafting strategies and policies for ratification and implementation by the County. The commission may be active in implementation of local plans on a volunteer basis. Work can be coordinated by county staff. Economic EDAs were created to facilitate a well-rounded development County appoints Development program by taking advantage of some of the Port Authority Commissioners if a Authority powers and all of the HRA powers. By combining and 5 member board, at (EDA) utilizing HRA, EDA and County powers, community least 2 County leaders are able to create flexible business assistance and Commissioners must development programs. EDAs for example, are allowed, to serve buy and sell property; make loans and grants to businesses; provide guarantees or other credit enhancements; and to sell bonds. Although Economic Development Authorities were originally designed to meet the needs of cities, special legislation has been granted to several counties to establish economic development organizations, in addition to housing The EDA may employ an executive director and other staff. Housing An HRA is a legal entity created by a City Council, County County appoints Redevelopment or Area to provide a sufficient supply of adequate housing Commissioners; HUD Authority for low-to-moderate income families and individuals. They requires a (HRA) / are also charged with clearing and redeveloping blighted Commissioner to be a Community areas throughout the community. The board may be a participant in the Development y Board or a combination thereof. Housing Choice Agency HRAs also have limited powers that may be used for Voucher Program or business development. Special legislation has been used to Public Housing add economic development powers to become a community Program where the development agency (CDA). May require additional staff at HRA acts as Public the HRA. Housing Authority. ЊЋ VII.)¬¯«¤¬¤­³ ³¨®­ Strategic plans are only as effective as the commitment made by all parties to follow-through. Washington County has invested a large amount of time and effort in the assessment, development and adoption of the Economic Development Strategic Plan. The Plan is comprehensive yet realistic. The plan provides the County with four distinct benefits: A decision-making tool to assist in making policy decisions A leadership tool to assist in identifying and establishing goals A management tool to assist in operationalizing plans and determining accountabilities A communication tool to inform partners and stakeholders about the plans To move the plan into action the County Board will: Be the champion Identify expectations Allocate resources and time Commit to implementation Determine levels of accountability Periodically review the Plan In applying the guiding principle of working in partnership with others the County will seek the input and perspectives of a broad group of stakeholders. The diverse group of stakeholders that contribute to economic development within the County includes large and small businesses, economic development organizations, educational institutions, chambers of commerce, state and regional agencies, and local communities. The County will engage these stakeholders in two primary ways. 1. The County will continue to convene the Economic Development Work Group, a group of public sector stakeholders. The Work Group has successfully established an identity and good working relationships through the strategic planning process. Continuing to engage the Work Group during plan implementation will be critical to the County achieving its economic development goals, avoid duplication of effort, and to understanding how the County can add value to the work of others. 2. The County will periodically convene a group of private sector stakeholders to inform the work of the County and its public sector partners. This group will help County staff and the Work Group to understand the interests and needs of the business community and to identify critical issues affecting businesses and the economy of the County. ЊЌ VIII.Appendices !¯¯¤­£¨· ) 3´¬¬ ±¸ ®¥ &¨­£¨­¦² ¥±®¬ 3³ ª¤§®«£¤± )­¯´³ The following information is designed to summarize for the County Board the five most important themes and information learned from the community engagement process. This information is meant to inform, update and educate the Board on the insights of key stakeholders in Washington County. This summary does not attempt nor is it designed to provide every particular insight or opinion shared during the community engagement process. The information is organized into five overall themes. vement in Economic Development anticipated. The stakeholders believe that Washington County should expand its role in supporting the economic development efforts of the cities. There are some lingering doubts about politically and organizationally. It is well noted that the County Board is challenged to find an equitable and/or a simple economic development plan that can addre Although optimistic and certainly excited about an expanded role for Washington County, the stakeholders are realistic and do not anticipate or expect miracles. This is best stated by Craig Waldron, City Administrator in Oakdale who is on the record noting that, he advises the County Stakeholders Have Distinctive Opinions and ultimately its strategic plan - requires more deliberate discussion. Testimony at the community engagement meetings was generally more philosophical and strategic. Although opinions exist on matters of policy, priority and structure, we do not offer any trend, indicator or community reflection that leads or points the County Board to any easy answers. Even at the municipal level the testimony of cities differs largely along the lines of cities with experienced personnel and cities that do not have a strong economic development support base within the staff. Business interests also varied in their testimony and input. No Consensus Exists on a Clear Organizational Model Washington County has already identified five different organizational models to deliver economic development programs and services. Throughout our testimony we heard various opinions about what is the best way for the County to organize. We offer to you that no clear consensus-based organizational model came forward from our community engagement process. We discuss structure and roles in greater depth in Section V. ЊЍ !¯¯¤­£¨· )) 3´¬¬ ±¸ ®¥ #¨³¸ &¤¤£¡ ¢ªȀ %¢®­®¬¨¢ $¤µ¤«®¯¬¤­³ 3´±µ¤¸ A survey was sent to each City and the HRA at the beginning of the study. The questions were designed to obtain preliminary input into the economic development study. This information was summarized and shared with the County Board in September of 2013. I. Specific Priorities Please identify the three most significant economic development priorities of your City or organization over the next five years. Programs administered by HRA at an economy of scale that helps cities and townships Housing construction Promotion marketing for new and existing businesses Redevelopment -- reinvestment in existing properties Investment in infrastructure Development (new) Jobs and diversity of employment Linkage between living and working within the county Coordination of efforts Business attraction financial incentives II. County-wide Factors Please identify the top three factors that are impacting in any way (driving or impeding) economic growth and development within Washington County. Driving Available land Schools New bridge in Stillwater Natural amenities Strength of existing economy Impeding Lack of affordable housing Lack of transit alternatives Lack of coordinated strategy Lack of coordinated infrastructure strategy Infrastructure flexibility (regulatory restraint) Shortage of niche financing programs (grants) Still a slow recovery Digital divide in parts of county No policy on tax abatement No economic development staff The County is diverse how can we effectively promote the county as a whole when areas are distinct and different (rural low taxes) ЊЎ III. Stakeholder Input Please identify who you want included in the stakeholder input steps of the planning process. Your list could be a specific name(s) or a reference to a group or association. Commercial real estate community Greater MSP All levels of local government (schools and watershed districts too) Variety of market rate and affordable housing developers Sample of individuals that work in the county but do not live in the county Communities of color, disabled, and low income population Two members of city staff and the Mayor Sample of elected officials County Board and staff City staff Economic Development Authorities Local business associations Chamber of Commerce IV. Tools Please identify up to three current tools you are using to support or augment your economic development efforts? Greater MSP (leads and promotion) HRA levy Local income housing tax credit program and Minnesota Housing programs Met Council LCDA program for land acquisition and pollution clean-up resources TIF (redevelopment and housing) Tax abatement Woodbury Growth fund (revolving low interest loan) SEED fund Fast track process and one stop shop Shovel ready business park Acquisition of property V. Distinctiveness Please identify one or two considerations that you believe are unique or distinct to Washington County that can be a positive asset to economic development within the county. Accessibility and location with easy access to MSP, airport and Wisconsin Land costs (may be higher), but tax environment is competitive Human capital and workforce Positive relationship with the county trust level is in place to accomplish projects Significant natural areas for recreation and tourism Significant land supply within distinct communities Rural and urban character Fast growing cities VI. Best Practices Please identify one or two economic development best practices that our process should identify and possibly explore. Level of investment and involvement with Greater MSP ЊЏ Open for business and gardening programs Evaluate need for a countywide EDA (role, relationship with cities?) Incentives, funding, gap financing program County infrastructure assistance (or policy modification) Tax abatement policy and strategy Explore programs and practices that make the County a better option than Wisconsin County wide marketing campaign VII. Outcomes Please identify two outcomes you want to achieve as a result of this economic development initiative. Clarity on roles and responsibilities Consensus on the best program/place to start Supportive of local economic development or not disruptive or work against Recognize and capitalize on the diversity of the cities Develop one or two useful tools Greater county role in bringing resources and attention to broadband gaps Sustained or expanded commitment to infrastructure Actual project goals (roadways, countywide fiber optics, incentives) Marketing plan for business attraction ЊА