Greater Cedar Valley Alliance & Chamber Report: Four Years of Economic Development Will Spur $1.8 Billion in Economic Output
posted on Tuesday, May 8, 2018 in Blog
Study Finds Every Dollar Invested Generates $64 in Output
Dorothy de Souza Guedes, Independent Writer
Waterloo, Iowa, May 7, 2018: Regional businesses will benefit from more than $1.8 billion in economic output generated over 10 years due to investments in economic development projects supported by the Greater Cedar Valley Alliance & Chamber from 2013-2017.
That is the conclusion drawn from analyzing data gathered by the Alliance & Chamber and reported in “The Economic Impact of the Greater Cedar Valley Alliance & Chamber from 2013-2017,” a report prepared by Impact DataSource, an Austin, Texas consulting, research, and analysis firm.
The Cedar Valley of Iowa is in northeast Iowa and is within a day's drive of all major Midwest markets only 180 miles south of the Minneapolis/St. Paul and 265 miles west of Chicago and 315 miles southwest of Kansas City with a regional population of 236,038.
The Alliance & Chamber assisted 23 existing business expansions and new locations in the Cedar Valley of Iowa creating $260.3 million in new capital investment. Together, creating 558 jobs and retaining an additional 30 direct jobs and anticipated creation of 400 indirect jobs.
The report noted that for every $1 in new capital investment generated by these project, the businesses supported and generated:
- $13.62 in additional worker earnings
- $9.63 in additional local taxable sales
- $2.01 in additional net benefits for cities
- $5.61 in net benefits for all local taxing districts
During that five-year period, the Alliance & Chamber supported new or expanding existing businesses in economic development projects that created employment opportunities and spent money on supplies, services and other inputs. Direct expenditures include both those by the expanding businesses and earnings paid to new workers. This created a positive ripple effect on regional businesses as workers spend money in area businesses such as restaurants, banks, grocery stores, apartment complexes, convenience stores, and service companies.
“The Greater Cedar Valley Alliance & Chamber's one-stop center for economic development services is critical to a community's economic growth and many of these investments may not have occurred without the efforts of the Alliance & Chamber,” the report's authors concluded.
“We act as a catalyst for economic and community development through strategies for growth, which prove to increase the economic vitality of this region like no other place in the state of Iowa. We are the Cedar Valley's One-Voice for business and development interests. We believe in strong community development that feeds a strong economic development goal.,” said Cary Darrah, Acting CEO, Greater Cedar Valley Alliance & Chamber.
Local and state governments committed $24.9 million for incentives. After accounting for costs associated with increased demand for city services from new or expanding businesses and new households, the cities are expected to receive approximately $49.9 million in net benefits over the 10-year period.
The Alliance & Chamber plans to have the economic impact analysis done annually to review the impact of economic development projects on businesses and works in the Greater Cedar Valley of Iowa.
The Greater Cedar Valley Alliance & Chamber's mission is to increase economic vitality and wealth by leading Collaborative economic and community development in Northeast Iowa.