COVER STORY, NOVEMBER 2009

KEEPING THE BUSINESS ALIVE
Economic development agencies embrace private/public partnerships in order to attract new businesses.
Amy Bigley

As the market continues to weather the economic recession, cities and economic development agencies are looking for ways to attract new businesses. This is difficult, and while not all is lost – development is still happening – some areas need an extra push through development and tax incentives to bring in the new business. Heartland Real Estate Business spoke with two organizations that are using private/public partnerships to spur interest and development in the Midwest.

Indiana-based Hoosier Energy, a wholesale electric utility that provides electric power to electric cooperatives throughout Indiana, is continuing with its company mission of meeting end-user needs through reliable service at competitive rates despite of the down economy.

“We focus on economic development projects that grow the commercial and industrial sectors through investment and job creation in our communities, as well as improvement to our electric load profile,” explains Harold Gutzwiller, manager of economic development and key accounts with Hoosier Energy.

To attract new business, the communities that Hoosier serves are emphasizing the area’s abundant skilled labor force, which includes many trained and experienced manufacturing veterans. The life science and electric vehicle industries are bringing new growth and life to the Indianapolis and Bloomington regions, while these areas also are seeing growth in the transportation, distribution and logistics sector due to their proximity to major interstate interconnections and airfreight services. Additionally, Indiana’s central location allows for easy access to the Midwestern, East Coast, Southeastern United States and Canada markets. The state’s governmental prudence has also kept Indiana sheltered from recession-induced tax increases, which gives Indiana-based firms a low-cost advantage in a state that continues to invest in the maintenance and improvement of its transportation infrastructure.

On the incentives front, Hoosier introduced a program to help commercial and industrial customers defray the cost of energy-efficient lighting, motors and HVAC equipment. Due to its success, the program will be extended into 2010, notes Gutzwiller. Hoosier is also providing assistance to local communities to help provide the documentation of shovel-ready status for sites so the sites are more accessible for new projects and government funding. By maintaining a close-knit relationship with its communities, both Hoosier and the marketplace are able to benefit from new development and business.

Just east of Indiana, Ohio’s Fairfield County continues to bring developments and business to the area with the help of its Fairfield 33 Development Alliance. With a main focus on the U.S. Route 33 Corridor, which runs from Lancaster to the Franklin-Fairfield county line near Canal Winchester and Pickerington in the northwest, the partnership has seen an influx of development and interest since its inception.

“The corridor is marketed by the Fairfield 33 Development Alliance, which is made up of a committed group of public and private entities within the Fairfield 33 Corridor,” says Travis Markwood, president of Lancaster/Fairfield County Chamber of Commerce and treasurer of the marketing committee with Fairfield 33 Development Alliance. “The Alliance serves as a liaison between businesses interested in the corridor and the many resources available to assist with business development in the area.”

With a well-educated work force of approximately 1 million and proximity to Interstates 70 and 71, Fairfield 33 Corridor is looking to attract manufacturing, logistics and technology industries to the area. The alliance’s diverse makeup of multiple private and public organizations, including several different municipalities and townships, allows the organization to offer localized incentive and development programs depending on the area of interest. To round out the area’s attraction, Fairfield 33 Corridor also offers a multi-faceted transportation system, an abundant supply of natural resources and diverse cultural and recreational opportunities.

One of the main benefits of the alliance is its powerful marketing footprint. With more than 35 partners, Fairfield 33 Corridor is able to pool funds and resources to offer more in-depth marketing opportunities than the organizations would be able to provide independently, explains Markwood. “We also intend to continue to recruit more investors and alliance partners to ensure we can continue a robust marketing effort for the corridor.”

As cities and regions continue to face the effects of the economic downturn, new and innovative programs and incentives are beginning to draw attention from developers and businesses nationwide. The Midwest still has many opportunities for new development and business, and locally based organizations offer some of the best advantages and resources to find local incentive programs for new projects. With its central location, willing workforce and affordable land opportunities, the Midwest should not be overlooked for development and business opportunities during current economy and once the rebound begins.

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