Bacon's Rebellion

Another Economic Development Post … zzzzzzz

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by

James A. Bacon
in

Our friend Snoopy at River City Rapids has written an excellent defense of the Greater Richmond Partnership (GRP), inspired mostly by Jim Bacon’s comments to a post I wrote about the organization. Jim and I share a deep interest in economic development, though we come at it from different angles. We both wish economic development had the blog snap, crackle and pop of a Blue Dog post, but we’ll take what we can get, and that’s Snoopy.

Snoopy leaves the impression that he thinks I’m somehow opposed to GRP, possibly because I’m a resident of Chesterfield County. Chesterfield is thinking of withdrawing its support to the GRP, a $390,000 annual contribution. The City of Richmond is also thinking of withdrawing, leaving only Henrico and Hanover in this award-winning regional organization. Half the members leaving would effectively kill the GRP.

I’m not opposed to the GRP and I’m certainly a fan of effective regional cooperation. I am, however, a believer in honest accounting and efficiency. The GRP says it “helped” bring in 71 companies to Chesterfield. Yes, I’m curious about the level of “help” they provided for each project. Did they make a cold call on an executive in Germany or did they receive a phone call from a consultant? I suspect that if you checked, the Virginia Economic Development Partnership also has those 71 companies on its “helped” list, as does Chesterfield County’s own economic development organization. Shouldn’t we rationalize all this “help?” How many layers of help do we really need? How much double and triple counting is going on to justify the layers?

Some of the 71 companies on the “helped” list have since left the County or laid workers off. Has that negative impact been subtracted from the investment figures given? Are any incentives the state/county paid been subtracted out?

Jim has written about changes that have swept the economic development field and how the Greater Richmond Partnership has been a leader in reacting to those changes. I agree that the GRP has been a nimble innovator, but at least one little thing bothers me. The internet is now the tool of choice for many company and/or consultant relocation efforts. Go to Google and do this search: “locate a business in Richmond, VA.” The GRP’s website does not come up on the first two pages! Heck, the City of Richmond’s economic development office and the Virginia Economic Development Partnership don’t come up until the second page. Maybe there’s a good explanation for that, but I think I’d buy a sponsored link on Google before I went to a trade show in China.

I’m opposed to any jurisdiction just pulling the plug on its participation in the GRP, but I can’t say that I’m in favor of blindly continuing to fund it without asking some questions.

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  1. Scott Avatar
    Scott

    This is a good post.
    Richmonders should be asking more questions.

    Economic development should mean more than tax abatements and corporate welfare.

    Question: Will the Greater Richmond Partnership and/or Richmond Renaissance and/or VaPAF make a public statement against homophobic, state legislation that discriminates against citizens? Or are they just for economic development/artistic renaissance for some Richmonders?

  2. Will Vehrs Avatar
    Will Vehrs

    Scott, a good question and a tough one for any organization that ultimately reports to elected politicians.

    Some businesses and individuals probably screen Virginia in or out based on “lifestyle” issues–on both sides. An organization is damned if it does, or damned if it doesn’t in terms of making a public statement.

    I think this is the kind of thing that leaders of these organizations convey to politicians quietly. They don’t want to become lightning rods and that’s understandable.

  3. Snoopy Avatar
    Snoopy

    I do not think you are against the GRP Will; just that you – like Wilder – want to know what you are getting for your money. And that is good. I know what I am getting with the GRP and support it.

    “Help” in their case can take many forms. It does not mean (but can) they are solely responsible for bringing companies. It can mean finding companies that otherwise may not have thought to locate here and provide them an introduction into the area and with local officials.

    Or it could be as simple as a local official calling the GRP to get help when an existing business wants to expand or a new business wants to relocate, and the locality does not have the resources, tools, or time to perform a specialized task(s).

    The VDEP may have their hand in it as well but are not as well versed in the region specifically as they focus on the entire state. The governor’s office (no matter the governor) also plays a role at a larger level.

    It is indeed mutual cooperation that works and being there when another group needs you. That is why the GRP hands off intersted groups to localities b/c they know all the details.

    As for the internet search, that is a good catch that I will certainly recommend they follow up on improving their visibility on the web.

  4. Ray Hyde Avatar
    Ray Hyde

    I love it. Excellent post.

    One of the problems with special interests (or political parties) is they put too much spin on the ball and leave themselves open to criticism/(informed advice) such as this.

    We have ten groups saying “the only answer is…” instead of one group saying “an answer we can live with is ….”

    I think Ed Risse calls it the winner take all mentality.

    I’m not from Richmond, but I wish them the best of luck as long as its not at my expense: they deserve it.

    Will – with all its warts, Virginisa lifestyle has a lot to recommend it. In terms of whacko and geography it is somewhere between Alabama and Massachusetts.

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