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AEDA Looks at Economic Collaboration, Part Two |
Bill Hudson | 3/31/08
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Read Part One
When keynote speaker Clarke Becker, President and CEO of the Colorado Rural Development Council, stepped up to the stage of the Centerpoint Church during the Archuleta Economic Development Association’s annual meeting last Thursday, backed by a huge, gold-fabric-draped Cross, he made joke about “preaching to the choir.”
The joke was apt. The room was packed with business owners and community leaders who are very concerned about economic development — especially as this rural community seemingly finds itself heading down into another “bust” period of its ongoing “boom and bust” cycle. Continued...
Clarke Becker addressing the AEDA luncheon last Thursday. |
Following a devastating recession during the 1980s, the Pagosa Springs economy has been on a mainly upward trend through the 1990s — and right up into 2005. The past couple of years, however, have seen a decline in nearly every economic indicator. Even sales taxes — which benefit from tourism, and have been seeing annual increases in the double digits in recent years — are struggling to keep even with inflation.
Becker started off his speech recounting the importance of rural Colorado to the rest of the state — and the very real problem, that urban Colorado does not always recognize that importance. And with 80% of Colorado’s population living in urban areas — and 80% of the state legislators representing those urban populations — rural Colorado is at a definite disadvantage in getting its needs addressed by the state government.
“If we pound our fists in Denver and say, ‘What about us?’ the answer is likely to be, ‘Well, what about you?’ But think about it: when the folks in the Denver tourism office market Colorado, what do they market? They market the beauty that you get to live in."
Meanwhile, rural areas are challenged by a lack of infrastructure, and by transportation issues and physical isolation, Becker said.
“It’s the very thing that makes rural Colorado special that’s also our Achilles heel. Life’s just a little bit slower here. And we like it that way. But while the rest of the world is taking off, we need to make sure we position ourselves in rural Colorado to compete with that.”
Key issues in rural communities throughout Colorado, Becker said, include health care access, water supplies, education and workforce availability.
“Quality of life begins with a good job. Not just with any job, but with a good job. And that is what AEDA and everybody in this room is trying to make happen: to create an environment that attracts good jobs.”
 Becker noted that economic development is a long term project. “Your local Chamber of Commerce is vital to the economic health of your business community — but their work is more immediate, more focused on the day to day effort. But economic development is more long term. Your community’s wealth is based on both your pubic and your private wealth. Does your community have a tax base that can support your local governments, so they can provide the services that your citizens expect? And do you have citizens with enough disposable income to contribute to that? Folks, they go hand in hand.”
“If I am a corporation looking to relocate, I have probably made 90% of my decision based on profitability — not on ‘quality of life.’ Do you have an environment that’s conducive to doing business, that can help me be profitable — and then secondarily, gives me a quality of life for my employees.”
“Change is coming, with or without you. Knowledge is increasing at an exponential rate. I have a nine-year old granddaughter. 75% of the jobs that will be available to her, when she is old enough to enter the workforce, do not even exist today.”
Becker then turned to some specific facts and figures about the Archuleta County economic portfolio, specifically with a look toward economic diversity.
“Your number one economic driver is tourism. You already know that. Your second most important economic driver is retirees. Number three is your position as a regional center for national services. If you add up those top three drivers, you can see that they contribute 65% of your local income and jobs. Do you have a diverse economy? Some of you would point to construction. I would argue that although construction is important to your local economy, it cannot be your economic driver. We need to consider ‘primary jobs,’ the jobs that bring new income into the community — a product is created that leaves the community, and new dollars come in.
"That’s why a construction business cannot be a primary employer. It’s the new money coming in, that really drives your economy.”
Becker noted that commercial development — especially ‘primary’ commercial development — constitutes the true wealth of the community. He noted that commercial properties pay taxes at nearly four times the rate of residential properties.
“You have an obligation to help educate your local citizens about the importance of your business community to your local economy. I don’t want to hurt anybody’s feelings, but residential growth does not pay its way. If you are a community that is overly dependent on residential growth, you will find yourself struggling — because at some point you will not be able to generate the revenues you need to provide the services that your citizens expect. I’m not making a judgment — it’s just a well-documented fact.”
Becker suggested that a close working relationship between local governments and the business community is crucial in rural areas — as are two other components: the availability of a “well-trained workforce,” and housing in a price range that the workforce can afford.
“The reality is — if you don’t have those three components — I submit that your economy is going to struggle. Folks, you have all got to be on the same page if you are going to move this community forward.
“It’s all about teamwork. I’m very passionate about that. What do successful organizations have in common? They work as a team. You’ve got to get the right people on the bus, and in the right seats. Ad you have to get the wrong people off the bus. When you are working as team, you can change your direction whenever you need to — you will always be going in the right direction, because you are moving together.” |
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