Key Terms to Know in Economic Development
May 16, 2025
BRE, TIF, FDI, RFP, OJT, DMO, EDO… If you’ve ever felt like economic development professionals speak in code, you’re not wrong.
From alphabet soup acronyms to phrases like “shovel-ready sites,” learning the language of economic development can feel like decoding a secret manual.
But mastering these terms is more than just industry jargon—it’s the key to understanding the programs, strategies and policies that shape communities and fuel local economies. Whether you’re a seasoned practitioner or just starting out, this final part in our ongoing economic development marketing 101 blog series will help you get fluent in the lingo that drives regional prosperity.
ARPA Funds
Short for American Rescue Plan Act Funds, this federal funding source was created to help state and local governments respond to the economic impacts of the COVID-19 pandemic. It has been a cornerstone of equitable economic recovery efforts across the country.
BRE – Business Retention & Expansion
This program strengthens local economies by focusing on the success of existing businesses. BRE initiatives involve proactive engagement—such as surveys, one-on-one meetings, and local business events—to understand challenges and support growth.
Brownfield
These are former industrial or commercial properties, often in urban areas, that may be contaminated but hold strong potential for redevelopment. Revitalizing brownfields is a priority for sustainable and equitable growth.
Business Clusters
Also known as industry clusters, these are geographic concentrations of interconnected businesses and institutions in a specific field. Clusters drive innovation, attract talent, and boost competitiveness in the region.
Business Development
This refers to the strategies and actions businesses take to grow—such as entering new markets, forming partnerships, and expanding customer bases. It’s a key part of economic development programs aimed at supporting entrepreneurs and local companies.
CapEx – Capital Expenditure
Capital expenditures refer to funds spent by businesses to purchase, upgrade, or maintain physical assets like buildings and equipment. High levels of CapEx often signal major economic development projects.
CBD – Central Business District
Often referred to as “downtown,” the CBD is the commercial heart of a city. It houses a mix of offices, retail, and services, and plays a central role in urban economic vitality.
CDA/CDP – Census-Designated Area or Place
These statistical regions represent unincorporated communities identified by name and used by the U.S. Census Bureau to provide accurate data. They’re vital for tracking demographic and economic trends in rural or suburban zones.
CDBG – Community Development Block Grant Programs
Administered by HUD, these grants provide funding to municipalities for housing, infrastructure, and economic development projects that benefit low- to moderate-income residents.
Chamber of Commerce
A local association that advocates for and supports the business community. Chambers often collaborate with EDOs and local governments on economic development initiatives.
C-Suite
This term refers to senior executives within a company (e.g., CEO, CFO, COO). Engaging C-suite leaders is critical when recruiting or retaining high-impact companies.
Destination
A place recognized for its unique assets or appeal, whether for tourism, talent, or investment. Destinations build their brand around livability, amenities, and opportunity.
DMO – Destination Marketing Organization
A group responsible for promoting a location to tourists, conventions, and business travelers. DMOs play a growing role in economic development by enhancing a region’s visibility and attractiveness.
Economic Development (ED)
At its core, economic development is about creating better economic opportunities and improving quality of life. It includes efforts like attracting investment, retaining businesses, and building inclusive job markets.
EDC – Economic Development Corporation
These nonprofit entities are dedicated to driving growth in a particular region. They often provide services like business recruitment, site development, and incentive management.
EDO – Economic Development Organization
A local or regional group that helps businesses navigate site selection, permitting, and growth. EDOs are often the first point of contact for companies considering expansion or relocation.
FAM Trip/Tour – Familiarization Trip
These curated visits introduce site selectors and other influencers to a region’s assets—like real estate, infrastructure, and workforce. FAM tours are a powerful tool for building relationships and securing future investment.
FDI – Foreign Direct Investment
This refers to investment from international companies into domestic operations—whether through acquisitions, new facilities, or joint ventures. FDI brings capital, innovation and global ties to local economies.
FTE – Full-Time Equivalent
A measurement used to assess the total number of full-time work hours across part-time and full-time positions. It’s essential for evaluating workforce needs and impacts.
Greenfield
These undeveloped sites are ideal for new construction projects. Unlike brownfields, greenfields don’t require environmental remediation, making them attractive to businesses seeking speed-to-market.
IEDC – International Economic Development Council
The leading professional organization for economic developers. IEDC provides training, research and a strong peer network for practitioners across North America.
IPA – Investment Promotion Agency
These are government-led entities tasked with attracting investment to a region. IPAs often collaborate with EDOs and other stakeholders on marketing and policy development.
Location Advisors
Also called site selection consultants, these professionals guide companies through the process of choosing where to expand or relocate. Building relationships with them is essential for long-term business attraction.
LAD – Location Advisors Database
This proprietary database provides contact information for key influencers in site selection, including consultants, brokers, and advisors. It’s an essential tool for targeted outreach and relationship-building.
Megaproject
A massive, complex initiative—often costing $1 billion or more—that can transform entire regions. Think new airports, tech campuses or regional transit systems.
Megasite
Large, shovel-ready parcels of land developed to attract major employers or clusters of businesses. Megasites often come with pre-installed infrastructure and are key tools in competitive site selection.
MSA – Metropolitan Statistical Area
These federally defined regions group together urban cores and surrounding areas with economic and social ties. MSAs are often the unit of comparison for demographic and workforce data.
Municipality
A town, city, or village with its own local government. Municipalities are central to implementing zoning, permitting and infrastructure plans tied to economic development.
OJT – On-the-Job Training
Practical, hands-on instruction that prepares workers for new roles or technologies. OJT is a critical component of workforce development.
Projects
Economic development projects typically involve real estate, infrastructure or incentive strategies that make space viable for business use. They’re the tangible results of strategic planning.
P3 – Public-Private Partnership
A collaborative model where government and private entities share the cost and risk of delivering infrastructure or services. P3s leverage the strengths of both sectors for long-term public benefit.
Redevelopment Areas
Designated zones targeted for revitalization. These may include underused buildings or vacant land and often involve tax incentives or infrastructure upgrades.
Region
A geographic area with shared characteristics or challenges. Economic developers often work across regional boundaries to coordinate growth strategies.
Regional Economic Development
This approach emphasizes improving the economic well-being of entire regions through collaboration, shared resources and collective investment.
RFI – Request for Information
A critical part of the site selection process, RFIs allow companies to gather data from potential locations. A strong RFI response can make or break a community’s chances of landing a project.
RFP – Request for Proposal
A document inviting detailed proposals from vendors or consultants. RFPs are commonly used for services ranging from marketing to construction.
Shovel-Ready
Describes sites that are fully prepped for development, with permitting and infrastructure already in place. Shovel-ready sites offer a competitive edge in time-sensitive projects.
Site-Ready
These properties meet the baseline needs of most prospective projects—such as access to utilities, roads, and zoning approvals. They are a step down from shovel-ready but still highly marketable.
Site Visit
A firsthand tour by company executives or consultants to evaluate a location’s suitability. It’s a pivotal moment in any project and must be carefully coordinated by EDOs.
SSC – Site Selection Consultant
A strategic advisor who helps companies assess and select locations that align with business goals. Their role is central to attracting high-value investments.
Talent
People with the skills and experience needed to fill jobs. Talent is now one of the most critical site selection factors for companies.
Talent Attraction
This involves promoting a region’s lifestyle, affordability, and career opportunities to draw skilled workers. It’s an increasingly vital function of economic development teams.
Tax Abatements
These temporary reductions or exemptions in taxes are used to entice businesses to invest in a community. They can significantly influence site selection decisions.
Tax Incentives (ED)
Broader than abatements, these incentives may include credits, deferrals, or refunds and are designed to support job creation and capital investment.
Tax Incentives (Tourism)
These are levied on visitors and used to support tourism infrastructure and marketing. While not always a direct part of ED, they enhance a region’s appeal and hospitality capacity.
TDA – Tourism Development Authority
A local government body that manages tourism funding and promotion efforts, often funded through occupancy taxes.
TIF – Tax Increment Finance District
A tool that uses the future increase in property tax revenue to pay for current infrastructure improvements. TIFs can jumpstart development in underinvested areas.
Workforce
The pool of available workers in a given area. A skilled, ready workforce is essential for attracting and retaining employers.
Workforce Training
These programs help upskill existing employees or prepare new workers for in-demand roles. Economic developers often partner with community colleges and industry leaders to design effective training initiatives.
Need an agency to help you navigate the economic development landscape? Reach out to Vice President Hanna Gbordzoe at hanna.gbordzoe@old.aboutdci.com to learn how our services can benefit your EDO.
Economic Development and Talent Attraction Marketing 101
Navigating the Talent Attraction Marketing Landscape
The Vital Role of Site Selection Consultants
