HITS P3 – Step 2: Will your project qualify for incentives?

HITS P3 is the 2nd step of the process

HITS P3 is the 2nd step of the process

HITS is the starting point

If you read the article about HITS (http://tinyurl.com/sehits), you will discover that HITS is designed to be a quick way to determine if a company could take advantage of many of the economic and workforce development resources available.  It looked at whether you had a traditional economic development project (Hiring and Investing), or if you could take advantage of resources (just I or T) or use ED services (just H or S), even if you didn’t have a traditional ED project.  If a company is looking to hire and invest, then the company has a “traditional economic development project” and the HITS P3 process is done.   

What is HITS P3?

It is the next step after a company has indicated that they are both hiring and investing (i.e., going to be talking to me, David Zak).  It is my method for gathering information about a project, so that (1) the project can be evaluated to see if it will likely qualify for incentives (the HITS P3 process) and if that looks good, (2) to be defined in a way that allows economic development incentives to be assessed and plugged in (this is the HITS P12 process).  The goal of HITS P3 is to define the basics of the economic development project and see if it would likely qualify for available economic development incentives.  In order to give a preliminary assessment of those incentives and their potential value, a company will generally need to provide the more detailed information provided through the HITS P12 process, which breaks each of these areas down into four more areas and asks questions in a total of 12 specific areas.  

It’s important to note that this can be done verbally or in writing.  It’s up to the company/client.

HITS P3 looks at three areas: (1) company information or a Profile of the company; (2) Project information; and (3) timetables and information about the site selection project or the Plan for the project.  Getting detailed information about the Profile, the Project, and the Plan is critical for an accurate assessment of incentives.  The Profile, Project, and Plan are the 3 main areas of the HITS P3. 

P1 – Profile: information about the company

I may get very little information here, particularly if the company is being represented by a consultant, a broker, or a larger economic development entity (e.g., Dayton Development Coalition or Ohio Department of Development), but the more information I get, the better.  If can get the company name and base of operations, I can usually get much of this information on my own from the Internet.  If I can’t get that I try to get industry (the more specific the better), the product category, and the size of the company.  It is also important to note that I typically assign projects code names, which allows me to provide information on the project without providing the name of the company. 

P2 – Project: information about the economic development activity

This is the most critical area of the three for getting assistance and typically looks at a three-year timeframe and should include information about the project and any other growth activity that will/would occur during those three years (even if not directly related to the project).  Information on the number of existing jobs and new jobs created and their wages, as well as the investment in fixed capital assets is the backbone of any economic development project.  

P3 – Plan: information about how things will move forward

Lastly, I want to receive information on how the company wants to run the site selection and project process.  When does it want/need to receive an initial proposal by and when does it look to select a site?  What other locations are being considered? 

To go through this process and get a preliminary assessment, contact David Zak, Vice President of Economic Development at the Greater Springfield Chamber.  (937) 631-5315 (cell), (937) 521-1935 (direct office), dzak@greaterspringfield.com.  Twitter: @springfieldedge, Blog: http://tinyurl.com/edgeblog, LinkedIn: http://www.linkedin.com/in/davidzak.

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 27 other followers

%d bloggers like this: