Driving Local Economic Growth through Strategic Development

Nicole Toulouse, Economic Development Director, Town of Vienna, VA Government

Nicole Toulouse is a public-sector economic development professional with over a decade of experience across various local and regional economic development organizations. Her background combines municipal economic development, federal and state policy and advocacy. She leads the efforts to promote business development and enhance the overall economic infrastructure of Vienna.

In an interview with Government CIO Outlook, Toulouse shared her insights on building economic development strategies, business retention plans, the challenges faced by towns and balancing development with community character.

Building Economic Development Strategies

The approach to economic development varies across different governments, with each operating differently. Understanding the sources of tax revenue shapes an effective economic development strategy.

There are different levers for generating tax revenue. In counties and cities, increasing the assessed value of buildings can boost revenue. This can be achieved through redevelopment, decreasing vacancies and recruiting new businesses while retaining existing tenants. For towns, the focus shifts to sales, meals and hotel taxes, along with promoting tourism and marketing small businesses to encourage local spending.

Business Retention and Ecosystem Building

70 percent of economic development centers on business retention. To ensure the success of existing tenants, it is important to build an ecosystem that supports the growth of small businesses. This includes creating opportunities for small contractors and government contractors to partner with large firms. We facilitate a forum for interactions and collaborations for businesses within the key markets.

At the same time, many firms are increasingly focusing on right-sizing by enhancing the quality of office space and reducing its overall area. This shift has led us to focus on retention efforts by engaging with businesses that are approaching lease renewal periods. The implementation of business retention and expansion visits is a key component of this strategy.

Existing Economic Challenges in Towns

Towns face budget constraints, and it is important for them to collaborate with local counties. Partnering with organizations such as small business development centers offers invaluable one-on-one support for local enterprises.

Most municipalities in Northern Virginia face the challenge of the rising cost of labor. Building a supportive ecosystem involves ensuring businesses have the necessary funds to sustain and grow their workforce. Cultural costs like child care and housing costs contribute to higher labor expenses. There is hope that the state will address these issues in the near future.

Balancing Economic Development and Community Character

Balancing development and maintaining community character is a policy choice made by the elected officials. For instance, Vienna has height restrictions, even though taller buildings and residential development can significantly increase tax revenue. We focus on preserving the town’s charm while creating market opportunities for small businesses.

The council takes public sentiment into account while making decisions on economic development initiatives like real estate projects and grant programs. To ensure transparency and community involvement, we conduct surveys that provide public input. These surveys, along with economic impact reports, are provided to the council for informed decision-making.

For direct engagement with the public, I hold open-door office hours. Each month, I dedicate one hour to meet with anyone who wishes to discuss matters, whether it’s a business trying to get through a permitting issue or a resident proposing an idea for us to consider. It’s an open feedback forum, which has been invaluable to me.

Advice for Aspiring Economic Development Professionals

There is no singular path to approach the field, as everyone enters with a different background and perspective. However, it is important to understand the purpose behind your work, as it improves your performance. Finding meaning in my work and understanding its impact has helped me prioritize my job and provide purpose to my life.

In economic development, you can often point out your tangible successes. The key is to ask questions and learn how your work can benefit your community.

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