Report on the Louisville Economic Development Alliance (LEDA)

Introduction: A Strategic Partnership for Sustainable Development

The Louisville Economic Development Alliance (LEDA), established as a 501(c)(6) public-private partnership, has completed its first year of operations. The organization’s primary mandate is to generate new employment opportunities and foster innovation within the city. This mission directly aligns with several United Nations Sustainable Development Goals (SDGs), positioning LEDA as a key driver for sustainable urban growth. The alliance’s framework is modeled on successful economic development partnerships in other major U.S. cities, aiming to elevate Louisville’s competitive standing.

Core Objectives and Alignment with Sustainable Development Goals

Fostering Decent Work and Economic Growth (SDG 8)

LEDA’s central objective is to advance SDG 8 by creating high-quality jobs and promoting sustained, inclusive, and sustainable economic growth. A key performance indicator for the alliance is the diversification of Louisville’s industrial base and an increase in average industry wages. While Louisville is a top 50 metropolitan area by size, it lags in wage levels. To address this, LEDA is focusing on vertical growth in high-value sectors.

• Target Industries for Growth:
  • Research and Development (R&D)
  • Engineering
  • Logistics
  • Advanced Manufacturing
  • Food and Beverage
  • Healthcare
• Goal: To establish Louisville as a premier location for company growth within these targeted sectors, thereby creating higher-paying, decent work for its citizens.

Promoting Industry, Innovation, and Infrastructure (SDG 9)

The strategic focus on R&D, engineering, and advanced manufacturing directly supports the objectives of SDG 9. By attracting and nurturing companies in these fields, LEDA aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster a culture of innovation. This strategy is designed to enhance the city’s economic productivity and technological capabilities.

Operational Framework: A Partnership for the Goals (SDG 17)

The Public-Private Partnership Model

LEDA exemplifies SDG 17 by creating a multi-stakeholder partnership that combines the resources and expertise of the public and private sectors. This model is designed to achieve the following:

1. Lessen the financial burden on the public sector for economic development initiatives.
2. Provide the private sector with streamlined and demystified engagement with government processes.

The alliance is governed by a board of over 50 members, representing a cross-section of the local economy. Investment from private sector members, through a dues-based system, provides the necessary resources for LEDA to execute its mission of attracting investment and telling Louisville’s economic story on a national stage.

Commitment to Inclusive Growth (SDG 10)

In alignment with SDG 10 (Reduced Inequalities), LEDA is implementing measures to ensure broad economic participation. Recognizing that significant dues may be a barrier for smaller enterprises, the alliance has adopted a flexible contribution model. Small businesses are encouraged to provide resources based on their capacity. There is a stated commitment to increase small business involvement and representation on the board in subsequent operational years, ensuring that the benefits of economic growth are shared more equitably.

Initial Impact and Case Study Analysis

Case Study: GE Appliances Investment

A significant early success for the alliance is the recent investment by GE Appliances. This project demonstrates the effectiveness of LEDA’s collaborative model in achieving tangible economic outcomes that support SDG 8.

• Project Scope: A new production platform for a washer-dryer line.
• Economic Impact:
  1. Creation of approximately 800 new jobs.
  2. Nearly $500 million in capital expenditure.
• LEDA’s Role: The alliance was instrumental in coordinating a rapid and creative response between the state and Metro Government during complex budget negotiations. This facilitation ensured the project remained in Jefferson County, showcasing the partnership’s ability to navigate governmental complexities and secure major investments for the community.

SDGs Addressed in the Article

1. SDG 8: Decent Work and Economic Growth

   • The article focuses on the Louisville Economic Development Alliance (LEDA), an organization created specifically to “help bring new jobs to the city.” Its mission is “exclusively focused on creating net new jobs and innovation.” This directly aligns with promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The article also mentions a specific success: the creation of “800 jobs” through a GE Appliance project.

2. SDG 9: Industry, Innovation, and Infrastructure

   • LEDA’s strategy involves targeting specific industries for growth, such as “logistics, manufacturing, food and beverage, health care,” and fostering innovation by attracting “More R and D, more engineering industries.” The mention of a “$500 million in [capitol expenditure]” for a new production platform at GE Appliance is a clear example of promoting industrialization and investing in infrastructure.

3. SDG 17: Partnerships for the Goals

   • The entire structure of LEDA is a “public private partnership.” The article details how this partnership model works, bringing together “Metro Government” (public sector) and private companies who “pay dues to be on the board.” It highlights the effectiveness of this collaboration, describing how LEDA “worked with the state” and other entities to secure the GE Appliance project, demonstrating a multi-stakeholder partnership in action.

Specific Targets Identified

1. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation…

   • LEDA’s core mission to create “net new jobs and innovation” directly supports this target. The article discusses the organization’s work to attract companies and projects, such as the GE Appliance deal which resulted in 800 jobs, as a means of fostering productive activities and job creation in Louisville. The discussion around including “small businesses” on the board also relates to supporting entrepreneurship.

2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…

   • Trevor Pawl explicitly mentions the goal of improving “industry diversity” and moving into higher-value sectors. He states, “I’d like to go a bit more vertical in some of these sectors that we absolutely have a right to win. More R and D, more engineering industries…” This shows a clear intent to achieve higher economic productivity through innovation and focusing on high-tech fields.

3. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…

   • The article is a case study of this target. LEDA is described as a “public private partnership” that is essential for economic development, similar to models in “Columbus,” “Indy,” and “Nashville.” The text explains how the partnership functions, with private sector members providing resources (“dues paying board member”) and working alongside “the state” and “Metro Government” to achieve common goals.

Indicators Mentioned or Implied

1. Number of new jobs created

   • This is a direct indicator for measuring progress on job creation targets. The article provides a concrete example: the GE Appliance project is expected to create “800 jobs.” This metric is central to LEDA’s mission of creating “net new jobs.”

2. Amount of capital investment

   • This indicator measures the scale of industrial and infrastructure development. The article cites a specific figure: “nearly $500 million in [capitol expenditure]” for the new GE Appliance production platform. This is a key metric for gauging economic development success.

3. Industry wage levels

   • This is an implied indicator for measuring the quality of work and economic growth. Trevor Pawl notes that despite being a top 50 metro area, Louisville is “not a top 50 when it comes to industry wages.” Improving this ranking is a stated goal, making wage levels a critical indicator of success.

4. Number and diversity of partners

   • This indicator measures the strength and inclusivity of the partnership. The article states that LEDA has “50 plus members of our board” and that there was a deliberate effort to get a “good cross section of the economy” with “all the major sectors represented, small businesses represented.” This demonstrates a metric for evaluating the partnership’s breadth.

Summary of SDGs, Targets, and Indicators

Source: lpm.org