(Part 3 of Tuesday’s meeting of the Economic Development Corp. of Clark County.)
Del Boyette of Boyette Strategic Advisors met with the EDCCC Tuesday at Dawson Cooperative, giving the 15 voting members and others present an update on the “blueprints” his economic development firm has advised the county to follow.
Boyette covered a range of topics from comparing Arkadelphia to other markets and the strengths and weaknesses of Arkadelphia and Clark County, and creating an incentives policy for prospective industries.
He also gave “strategic recommendations” in his 27-page report on his firm’s economic development blueprint for the EDCCC and the Arkadelphia Regional Economic Development Alliance to follow.
Of those recommendations, major topics he discussed included looking into the feasibility of developing an outlet mall and addressing the issue of being a dry county.
The process of developing the Clark County Strategic Plan 2007-2017 began in April 2006. The plan identified initiatives focused on improving quality of life as well as economic opportunities.
The Alliance hired Boyette Strategic Advisors to develop the blueprint to “enhance current efforts to attract jobs and promote the area as a business location.” While the plan addresses many economic development issues, the blueprint focused on issues that are the responsibility of the Alliance and that affect new business recruitment and expansion and retention of existing industries.
Business
recruitment
The seven greatest opportunities for targeting businesses for Clark County are: Alternative energy-biofuels; customer development centers; distribution/logistics; green/sustainable building products; healthcare services; retail; and retirement services.
Boyette said marketing dollars and other funds “must be” allocated to support targeting activities, and that additional Alliance staff or possibly student interns could be used in assisting with the efforts.
Relating to the distribution/logistics sector, Ouachita Baptist University currently offers two distribution-related courses, and both Ouachita and Henderson State University have shown an interest in pursuing more courses in the field or perhaps offering a degree program in logistics.
To target green or sustainable building products, Clark County needs to be a “progressive community,” he said. A study performed in March showed that 11 states and 37 cities and counties have offered some type of incentive for Leadership for Energy and Environmental Design certified construction. LEED certification can be at the silver, gold or platinum level. Enacting such an incentive, Boyette said, is indicative of a progressive community. He said Clark County and its cities should “explore the possibility” of enacting an ordinance that would require future government buildings to be LEED certified, and should consider a LEED certified incentive for companies and developers that achieve the certification.
Under the healthcare services sector, Boyette noted that Clark County would be an ideal place for healthcare services, as the need for pharmacy technicians is growing and because Arkadelphia is home to W.P. Malone, Inc., and a branch of Baptist Health Medical Center. Remington College in Little Rock is the nearest that offers a program for pharmacy technicians. He suggested the Alliance hold discussions with representatives from Henderson and Ouachita about adding additional courses or a pharmacy technician program to their curriculums in the future. Employment in the field of pharmacy technicians is expected to increase through 2016, he said.
The Clark County Strategic Plan spells out the creation of a “retail/entertainment” corridor along Interstate 30 from Gurdon to Caddo Valley that would include venues for retail shopping, dining, entertainment and lodging. “Clark County has not had a lot of success in the retail arena in recent years. As retail is now a targeted business sector of Clark County, the Alliance should take the lead on retail development coordinating with any current and ongoing efforts of the Arkadelphia Area Chamber of Commerce and any efforts ... under the Plan.”
Boyette’s study recommends the Alliance gather data that supports the need and buying power of the community for new retail development, include a retail section on the new Alliance Web site, identify potential commercial or retail sites, consider attending trade shows sponsored by the International Council of Shopping Centers, develop relationships with national retail developers, consider establishing incentives from the county or a city to induce private developers to undertake retail projects, and explore the feasibility of an outlet mall development in the county.
Recruiting retirees is a strategy Boyette also idenfitied as successful in offering retirement services, one of the major sectors he listed. He suggested that the Alliance develop a special section on its new Web site that would highlight the area’s qualities as an attractive place for businesses in retirement services to locate; identify developers of retirement services facilities, explore the possibility of developing a retirement community or assisted living facility on, adjacent to or near university campuses; and consider offering incentives to induce private developers to undertake retirement services projects. Locating a retirement community near one of the universities, he said, would appeal to retirees who want to take advantage of their resources (such as the Huie Library or the Riley Hickingbotham Library).
Another important topic that needs to be addressed for growth is access to broadband services. While the Plan supports the improvement of broadband Internet services in the county, Boyette said the Alliance should “take the lead” in ensuring that the services are provided throughout the county, taking recommendations from Connect Arkansas and searching for federal stimulus money from the Rural Utilities Service.
Geographic targeting
For the county to compete with Dallas, Boyette suggested that Shawnie Carrier, executive director of the Alliance, build relationships and market to site selection consultants, real estate brokers and representatives of companies in the Texas market. He said Carrier should also join the CoreNet Southwest Chapter, which includes north Texas, Arkansas, Louisiana and Oklahoma.
Existing business support and retention
“It is typically less costly and time intensive to retain an existing business than it is to recruit a new one,” Boyette’s study notes.
The Plan spells out the need for a Business Retention and Expansion effort, and Boyette said he agrees with the recommendation. The components of a successful BRE include bi-annual visits to each company in the county, especially to larger employers, visit corporate headquarters of parent companies outside Clark County, and track corporate visits and existing industry activity.
The blueprint suggests that it “may be necessary” to hire a new full- or part-time staff person to oversee the BRE or existing industry program.
Real estate
The Clark County Industrial Park currently has 313 acres — 160 of which is undeveloped.
The Clark County Business Park has 48 acres with room for expansion.
There is one marketable site in the City of Gurdon.
With over 200 acres available to prospects, Boyette’s blueprint suggests the EDCCC acquire or option more property in the near future. Boyette recommended identifying potential property and consider the construction of a spec building. Another recommendation which is also spelled out in the Plan is developing and maintaining a buildings and sites database of property, to be updated to the Alliance Web site on a monthly basis.
Boyette also suggested renaming the industrial park to the Clark County Commerce Park, and renaming the business park to the Clark County Business and Technology Park “to reflect the initiative to create high-paying and skilled jobs” in the county.
Entrepreneurship
The HSU Small Business Technology Development Center provides consulting, training, research and technology services for small business owners in the area, and four out of the five benchmark cities Boyette’s firm interviewed (see Wednesday’s edition) also have a similar program. The entrepreneurial program in two of those cities also manages business incubators, which reduce start-up costs and overhead expense for new entrepreneurs looking to start a business.
Creating a “superior” system, Boyette said, would call for the development of an Entrepreneurship Program that would coordinate with SBTDC to eliminate any overlap in services. He said Clark County should consider collaborating with HSU and OBU to develop courses in entrepreneurship and possibly an undergraduate program in the field; hold quarterly meetings for networking and educating entrepreneurs in the area; and explore the creation of a business incubator located in a LEED certified building.
Education and workforce development
Many stakeholders whom Boyette Strategic Advisors interviewed said available workforce can “sometimes be a challenge” and that the workforce lacks some of the high-tech skills needed. A lack of white collar jobs was also identified as a weakness for Clark County. Also, the fact that numerous residents leave the county for work, especially those who make higher salaries, is a challenge. Many interviewees also mentioned a lack of jobs for workers with college degrees.
To address the issues, Boyette recommended that Clark County gain a better understanding of the labor availability and skill sets of its existing workforce and its labor shed area by creating a labor assessment or study be conducted within a 50 mile radius.
Tourism
An estimated 2 million tourists visit Clark County each year for DeGray Lake, the Caddo and Ouachita rivers and the Ouachita Mountains. It was estimated that, between July 2008 and June 2009 that more then 451,000 visitors went to DeGray Lake.
Boyette recommended, as spelled out in the Plan, establishing a county-wide Tourism Commission with a full-time executive director and staff that organizes and promotes the county’s overall tourism activities and coordinates such efforts with current and potential tourist-related businesses and other economic development organizations. One of those steps, he noted, is currently in process as the Diamond Lakes Visitors Center will be located in Caddo Valley.
Boyette said the Alliance should be involved in the process to hire an executive director of the Tourism Commission, then focus on developing a marketing plan specific to tourism opportunities.
Alcohol sales
Boyette’s study offered a brief history of alcohol sales and the effects of the 1920-1933 Prohibition.
As for the economic impact of alcohol sales, Boyette said billions of dollars in economic activity and state and local taxes and millions of direct jobs are contributed to the U.S. economy each year from the alcoholic beverage industry.
Evidence from across the U.S., he said, showed additional sales revenue is the “usual result” of allowing alcohol sales, and a recent study in a small Texas city with a population of 25,000 showed that an annual $19 million was spent and 185 jobs were created from alcohol sales. The sale of distilled spirits resulted in an additional $5.8 million in annual spending and 55 jobs in the local economy.
“There are significant issues related to alcohol abuse, including alcoholism, crime and drunk driving,” the report states. “However, being a dry county ... does not necessarily impact the consumption of alcohol.” Boyette’s study noted that those who want to drink will drive to a neighboring county, resulting in a “loss of sales tax and business activity for the area.”
In addition, he said, the number of fatalities associated with alcohol-related crashes “actually decreased” as alcohol has become more available in Texas. In Kentucky, a higher proportion of dry counties’ residents are involved in such crashes, the reports states.
Boyette Strategic Advisors interviewed about 30 people and surveyed about 135 Clark County residents related to the issue. A majority said being dry limits growth related to restaurants and retail stores, and is the county’s “biggest challenge.” Allowing alcohol sales, the majority wrote, is the “one thing that really needs to happen for Clark County to be successful in the 21st Century economy.
Boyette said he understands the sensitivities associated with the wet/dry issue in Clark County, but that it “does need to be addressed in the near future.”
