Focus Needs to be on 'Community' Development
Economic development is more systemic than creating jobs.
The most effective economic development is actually “community” development: awareness that infrastructure and local services that provide quality of life are equally important—as are effective relationships with the public and private entities that partner in “community” development.
These are among the significant areas that need continual attention for the community to prosper and grow:
Industrial Tracts-Turnkey
Norfolk has several industrial tracts with good highway access that are fully serviced with utilities, but more sites with rail access, highway access and utilities are needed.
The Elkhorn Valley Economic Development Corporation, in partnership with Greater Norfolk Foundation, has begun acquisition of the Arnold Engineering site, and future utility extensions and rail access with occur. The property will be an invaluable addition to the community’s industrial sites.
Transporation
Transportation is a fundamental community amenity that affects quality of life and economic growth. Norfolk has an excellent street system, and the city works continually to improve it.
High fuel prices and reduced travel have decreased statewide gasoline tax revenues. This has disrupted the Nebraska Department of Roads’ budget, including maintenance and capital funding for District Three that manages much of Northeast Nebraska’s state highway system.
The impact on future expressway funding has been disastrous, and much of the expressway planning on the remaining two-lane segments of US 81, US 275, and Highway 30 has been deferred significantly. Norfolk must collaborate with other Nebraska communities, legislators, our congressional delegation and the Department of Roads to develop new revenues and a reprioritization of rural expressways.
The Nebraska diagonal, proposed by Sen. Joel Johnson of Kearney, is an idea that needs to be fostered across the state. The diagonal would include the four-lane highway 35 expressway from South Sioux City to Norfolk, with eventual inclusion of Highways 6 and 30 all of the way to McCook. Johnson has made a compelling case for this vision.
Nebraska Central Railroad’s short line is an economic artery. The city and Madison County must continue to be vigilant in partnering with Nebraska Central to assure that the short line is maintained properly between Nucor and the Union Pacific main line in Columbus. The Corporation Gulch trestle project that is being funded collaboratively by Nebraska Central Railroad, Norfolk Sanitary District and the Railroad Safety Transportation District will be an important improvement to assure rail transportation for Nucor, Norfolk Iron & Metal and other industries located in Madison County.
The Norfolk airport is a showcase for the community. The airport probably will not have a commercial airline again, but it will provide good service to corporate and business representative who fly into Norfolk to manage their businesses. The airport is as important as other transportation. The city and the Norfolk Airport Authority will continue to develop long-term capital improvement plans for infrastructure needed to maintain runways and airport services.
Incentives
To be competitive, Norfolk needs a municipally-managed economic development incentive program. Nebraska statute provides a local option known as Legislative Bill 840. Typically, LB840 programs are funded by voter approval for an explicit interval, such as 10 years.
An LB840 program can create local incentives that augment state incentive programs. An LB840 program could be used for such things as land acquisition, infrastructure defrayal and revolving loans.
The revolving loan program would provide low-interest financing, normally subordinated to a conventional lender, which would be repaid by the company over some negotiated interval of time so that repaid funds can be reused in future loans to other companies.
Tax increment financing (TIF) is another important statutory incentive. Amendment 6, which was not approved on the November 2006 statewide ballot, would have expanded projects eligible for TIF and allow bond payments for 30 years to redevelop blighted and substandard state-owned properties such as the Norfolk Regional Center. Some versions of Amendment 6 will be reintroduced during the 2007 legislative session for a possible statewide ballot in May 2008.
The City of Norfolk has been a legislative leader through many years of membership with the League of Nebraska Municipalities. An idea currently being discussed with the league and other groups is a new sales tax-increment financing concept. This proposal could defray razing costs for commercial sites with old, depreciate structures where the proposed development doesn’t generate enough real estate TIF to defray site clearance and infrastructure redevelopment.
Community Development Block Grants and Economic Development Administration Grants are programs the City of Norfolk accesses in partnership with the Northeast Nebraska Economic Development District (NENEDD).
NENEDD is an invaluable leader in economic development for Norfolk, Columbus, Fremont, 16 counties and many smaller communities. NENEDD provides grants administration services to all of these members that have developed an effective collaboration over mote than 20 years of working together. This regional collaboration has created a multitude of jobs in small communities throughout Northeast Nebraska, and the partnership must be maintained in the future.
Recruitment/Retention
Historically, recruitment and retention have been the job of the Norfolk Area Chamber of Commerce and, in recent years, the Elkhorn Valley Economic Development Council.
Retention involves seeking to understand interests of existing business and industry and partnering with them as they expand. Recruitment involves attracting new industries. We need to look at our potential for additional retail. Columbus and South Sioux City are doing that now. Norfolk has been the “king of the hill” in retail for many years. To remain in that position, the community must have strategies to recruit a new mix of retail that augments business already here.
Amenities
Amenities are critical to economic development. These include quality schools, recreation and other community services. Local non-profit services—like Elkhorn Valley Museum, the Norfolk Arts Center and Norfolk Family YMCA—need continual communitywide support. New residents do not relocate to a community simply because of tax abatements or LB840 incentives. They come because the community is an excellent place to live.
Norfolk continues to need affordable housing and new recreational services. The city has been working with developers in Meadow Ridge on quality, affordable housing for nearly 15 years. Meadow Ridge is about half built out. The development has taken twice as long as was intended when the project began due to scarcity of block grant funding. The state has a fixed amount of money to put in local housing programs and Norfolk competes for it just like everybody else.
These are a listing of some of the significant factors that contribute to local quality of life, including economic prosperity. Doubtlessly, there are other examples that could be mentioned.
The most important consideration is to never take the community’s future for granted. Perhaps a Japanese word best describes what community development is. The word is “kaizen” that means continuous improvement. Continuous improvement is the attitude most important for Norfolk’s future improvement and sustainability.
Story courtesy of Norfolk Daily News
Posted on: Thursday, March 8, 2007