Education  May 12, 2006

Study: Greeley reaps returns from EcoDevo spending

GREELEY – Psst. Want to hear the skinny on a hot investment?

Upstate Colorado Economic Development is arguably a blue chip stock for its investors, based on a new analysis of the agency’s performance since 2000.

The assessment, conducted by the University of Northern Colorado’s Economics Department, showed that Upstate Colorado ED’s activities generated a 280 percent return for the city of Greeley in the 2000-05 period.

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The report, presented to the Greeley City Council on May 9, showed that Upstate Colorado helped to generate 1,176 new jobs in the city, adding $53.2 million in payroll income in the city, during the six-year timeframe.

“We just feel it’s our responsibility to be accountable to our funders,´ said Larry Burkhardt, president of Upstate Colorado ED. “Clearly, the city of Greeley is one of our largest funders. We think this study will show them, based on an independent analysis, they’re receiving value for their investment.”

The city of Greeley provided $585,000 in total backing to Upstate Colorado ED – called the Greeley/Weld Economic Development Action Partnership before last year – between 2000 and 2005. The agency also draws funds from Weld County government, numerous smaller communities in the region, and private donors.

The UNC study, authored by economics lecturer Rhonda Corman, measured the direct growth in jobs, income and economic output (the value of goods and services sold) from 33 companies; the companies either relocated to the Greeley area or expanded between 2000 and 2005.

Corman then took the output growth figure for the 33 companies – $163.7 million – and credited Upstate Colorado ED with a slim 1 percent of the responsibility for that figure, or $1.64 million. Even on that basis, the city of Greeley’s $585,000 contribution nearly tripled in worth.

Corman also calculated indirect impacts. For instance, growing companies increase their purchases from local suppliers, which yield more jobs.

During the study period, indirect impacts added up to total economic growth of $235.2 million generated by the same 33 companies. Again applying a 1 percent credit, Greeley’s investment returned 401 percent.

“Even if it’s just 1 percent – and that’s difficult to quantify – you’re still seeing a tremendous return on your investment,” Burkhardt said. “I’ll suggest also that we’d like to feel we have more than 1 percent to do with it.”

According to Corman, the direct and indirect impacts of new jobs are only part of the story.

Corman also evaluated the number of companies that were at risk of leaving the Greeley area but were retained with the help of Upstate Colorado’s actions. The result was 2,330 jobs, $116.6 million in income, $365.6 million in economic output and $426.5 million in total impact.

Upstate Colorado presented the study results after this edition of the Business Report was printed, so city of Greeley officials were not in a position to comment on the figures. But Corman praised the results.

“The activity that UCED is involved in can’t have any other effect than a positive effect,” Corman said. “Some of this activity may have taken place with or without their participation. Still, anytime you have an agency that’s really providing advocacy for your region, basically it’s an information clearinghouse for companies that want to come in.”

GREELEY – Psst. Want to hear the skinny on a hot investment?

Upstate Colorado Economic Development is arguably a blue chip stock for its investors, based on a new analysis of the agency’s performance since 2000.

The assessment, conducted by the University of Northern Colorado’s Economics Department, showed that Upstate Colorado ED’s activities generated a 280 percent return for the city of Greeley in the 2000-05 period.

The report, presented to the Greeley City Council on May 9, showed that Upstate Colorado helped to generate 1,176 new jobs in the city, adding $53.2 million in payroll income in the city, during the…

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