Case Study: Economic Development Organization Performance Report – Barberton Community Development Corporation
Client: Barberton Community Development Corporation & Barberton Community Foundation
Location: Barberton, Ohio
The Research Question
From 1998 through 2009, the BCDC and the BCF provided loans totaling over $9 million to 17 businesses expanding or locating in the Barberton area. Impact DataSource was engaged to summarize the economic and fiscal impacts produced by BCF investments in BCDC projects for the State of Ohio, City of Barberton, Summit County and other local taxing districts for the year 2009.
The Approach
Barberton Community Development Corporation provided Impact DataSource information on each of the projects under study. This information included
- the firm’s primary industry,
- number of jobs created,
- average salaries,
- investment in land and equipment,
- cost of new construction and
- value of loan made to the firm by the Barberton Community Foundation.
Impact DataSource estimated the indirect impacts generated by these businesses and then determined the fiscal impact for the city, county and other taxing districts. Finally, Impact DataSource compared the fiscal impacts to the total value of the economic development loans made by the Barberton Community Foundation.
The Outcome
The investment of just over $9 million generated a 52% annual rate of return for taxing districts in the Barberton area. This return is in addition to the principle and interest payments the Foundation receives from the businesses on these loans. Although the terms of each loan varies, on average, these loans charge 5% interest, amortized over 15 years with a 5 year term.
Download the entire report.
Barberton Economic Development Organization Performance Report