Elected officials study 'Economic Development 101'

The Webster Progress-Times

Local leaders learned about their role in Webster County's economic development process during a July 20 seminar at the Eupora Depot.

Eupora, Mathiston, Mantee, Walthall and county governing boards were represented, along with the Webster County Development Council board of directors. Economic development specialist Christie Brown with Tennessee Valley Authority Community Development conducted the training,

"Building Competitive Communities" was the theme of the training, whose aim was to give officials a better understanding of the economic development process. The presentation also sought to help them understand their role in preparing the community before a project visit, what is involved in the request for information on a project, the project visit and other important aspects of economic development.

Economic development is occurring in a community, Brown said, when sales and property taxes are increasing, businesses are opening, manufacturing plants are expanding, the standard of living is rising, families have more income to spend, the per-capita income is increasing and the tax base is sufficient to provide important public services.

For a community, it means more jobs, having a hedge against the inevitable loss of jobs, adding to the tax base, providing opportunities for young people to stay there and an increase in community pride.

Recent trends in the TVA area, she said, include projects with high capital investment requiring fewer jobs and higher skills, competition continuing to increase, energy efficiency and environmental issues. Brown also discussed sustaining a community in the rapidly evolving global economy. She pointed out that 10,000-15,000 economic development organizations are competing for a few hundred significant projects each year.

She said communities need to be preparing now to make the county competitive and that a key to success is finding ways to differentiate the county from others. Shovel-ready sites are important, as are available and suitable buildings for sale or lease. She said businesslike sales behaviors are also critical, including the ability to keep a secret, along with correct and timely information, and committed leadership.

"Everyone needs to be on the same page when it comes to economic development purposes."

Attracting "OPM" - other people's money - is the key to sustained community economic growth, she stated. "Outside income creates more wealth and helps the economy grow."

Discussing the competitiveness of business/industry recruitment, Brown reviewed the evolution of an economic development project: a company has a need, requests information, the community's response, the community visit, negotiations, an announcement, groundbreaking and service after the sale.

Time is of the essence in every project and site selection is a process of qualification and elimination. Brown said consultants often evaluate communities without anyone knowing, using the Internet and other sources to develop a list of finalists to present.

Having spec buildings, emphasizing community appearance and attracting more retail are important, stated Brown. Brown said site selection factors include highway accessibility, labor costs, energy quality and costs, and availability of skilled labor.

The top reasons that communities lose projects, according to Brown, include breach of confidentiality, no sense of urgency, no follow-up, too many or the wrong people involved, inability to work together, a poor track record, verbal blunders, lack of diversity and being a tour guide instead of a deal maker.

One seminar participant said the biggest drawback locally is that much of the local workforce has taken jobs elsewhere after plant closings here.

But Cynthia Wilson, WCDC executive director, responded, "We have to realize that economic development doesn't stop at the city limits or the county line. ... There's nothing wrong with getting outside workers (who can spend money here too)."

Brown, stressing the importance of focusing on existing industry and calling on local companies regularly, said, "If you only have $1 to spend on economic development, spend it on retention."

Regarding community leadership, Brown said everyone plays a role in economic development. She asked participants what community leaders and local officials could and must do to support economic development efforts and make the county more competitive. Responses from participants and tips offered by her included these

cooperating with each other, identifying barriers and fixing them now, helping Wilson listen and look for opportunities she might miss, being informed and engaged, being knowledgeable about the economic development process, being responsive to companies' needs regarding city/county services, providing funding for economic development efforts and appropriate oversight, identifying incentives the local government is willing to provide, supporting local businesses and supporting regional economic development efforts.