Rural Revival

Tennessee’s smaller communities are on the FastTrack

By Sharon H. Fitzgerald

When it comes to appreciating existing industry, Shelbyville in Tennessee’s Bedford County made its mark in 2004. That’s when the town changed monikers for a day, calling itself “Sharpieville” to salute the 40 th birthday of the permanent Sharpie® marker. The celebration recognized the Sanford Corp.’s decision to expand its Shelbyville operations by moving its Sharpie production from the Chicago area, bringing 250 new jobs to the rural Middle Tennessee community.

Sanford knows what more and more businesses and industries are discovering, that Tennessee’s nonurban sites offer a host of assets. “I think there are a lot of young people in Tennessee who are college graduates who have important skills who would love to live in some of our beautiful rural communities,” says Tennessee Gov. Phil Bredesen. “It’s a wonderful quality of life, and the big city is not for everybody.”

That’s part of Walt Wood’s standard pitch. As chief executive officer of the Shelbyville-Bedford County Chamber of Commerce, Wood touts wide open spaces, congestion-free byways and eager workers. The formula prompted Josten’s Printing and Publishing to expand its Shelbyville facility, adding 115 new manufacturing and customer-service jobs. Meanwhile, Wal-Mart’s decision for future expansion of its Bedford County distribution center will add 235 new jobs to its 365-employee workforce and represent a $19 million investment.

“As I have, over the last couple of years, watched this process of economic development and recruiting business, it is absolutely clear to me that where it really works is where state government and local organizations – governments, chambers, industrial development boards – are really working together,” Bredesen says. “The state can’t do it by itself, and sometimes it’s hard for local communities to do it by themselves. But when you build these partnerships up, it’s impressive to these companies. You get the best possible package and the best possible sales pitch together that way. Everybody contributes something and brings something to the table, and you can make very powerful arguments for companies to invest in your communities.”

Partnerships get results, and a prime example is the Obion County Industrial Training and Education Center. Launched with nearly $1 million provided by Obion County, Union City, the Union City Electric System and the Obion County Industrial Development Corp., the center is affiliated with Dyersburg State Community College and offers training primarily focused on industrial maintenance and skills enhancement. Local companies, which lobbied hard for the much-needed facility, contract with the center for their workforce education needs.

“We see the power of partnership involving every organization or entity that shares an appreciation for the goal we’re all attempting to achieve,” says Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development. “Whether we’re trying to recruit a company or support an existing one, partnership creates a successful end result.”

Bredesen’s Jobs Cabinet

The power of partnership is the impetus behind an initiative the governor calls his Jobs Cabinet, which he launched soon after he took office in January 2003. The strategy brings to the table the commissioners of seven state departments, as well as representatives from higher education and business trade groups. Quite simply, with that many decision-makers at the table, there’s no excuse not to make decisions.

“Developing jobs is more than just the province of Economic and Community Development. There are many, many departments of state government whose activities bear very heavily on that. Obviously, the Department of Transportation. Obviously, the Department of Education. Even Environment and Conservation,” Bredesen explains. The Jobs Cabinet meets regularly, traveling occasionally to communities so the members hear directly from local leaders their needs and the needs of business and industry.

From this initiative was born the state’s FastTrack Program, which guarantees a response to a business inquiry within three days. Questions about potential sites, workforce training, highway needs, electrical capacity and labor availability are just some of the inquiries the FastTrack team can handle in rapid-response mode. “I hear from corporate CEOs and site-selection consultants on a fairly regular basis now that we’re being successful at differentiating Tennessee by showing how well we work together,” Kisber says.

Calling local communities “a very critical partner in the FastTrack approach,” Kisber says companies look for communities “that are ready to provide the services and the skilled labor that enterprises require. That’s why community development is such an important focus of our department and of Gov. Bredesen. It is imperative that successful community development precede sustainable economic development.”

To boost development efforts and encourage teamwork, communities are encouraged to participate in the state’s revamped Three-Star Program, an incentive-based initiative that earns involved communities state certification.

Why Three-Star?

“Nothing guarantees economic success, but our Three-Star Program certainly gives communities a much better opportunity,” says Joe Barker, ECD’s assistant commissioner of community development. “I feel like we have a program that really does some good for our communities.”

That’s because Three-Star is a whole new ballgame, revamped last year to stiffen certification requirements and add teeth to the planning process. Communities accumulate points and may be certified at three levels. A regional community economic development consultant audits each participating community’s progress. New criteria and performance measures include a five-year economic development plan, an active economic development organization, an adult leadership program, a professional and informative Web site, public health services and a healthcare committee, a program to nurture existing industry, extensive education requirements, and many other must-do and optional components.

Barker says the five-year strategic plan is the “foundation” of the program. “The plan must be asset-based, meaning they look at their strengths and weaknesses and focus on those things that they do well. They should focus their resources on those assets,” he explains.

Walt Wood in Bedford County says the exercise was “a real learning experience” for the county and its four municipalities – Shelbyville, Bell Buckle, Wartrace and Normandy. Bedford County was one of the pilot communities that worked with ECD as it revamped the Three-Star requirements and was the first community to be certified under the new guidelines at the end of 2004. “It was an honor to be chosen to pilot the new and revamped program, and we were committed to pursue the program because of its enhanced activities. We took the challenge,” Wood says. Bedford County involved more than 60 government, industry and community leaders in the process, which was conducted under the auspices of the Bedford County Joint Economic and Community Development Board.

“We had been a Three-Star community for nearly a decade, and learned a lot and grew a lot in the process,” Wood says. “Being the first one certified using the new guidelines, I think we set the bar fairly high for other communities, but also we’ve been able to provide some coaching and encouragement to other communities that called here and are interested in the program. We would certainly recommend it to any community that seeks to better itself.”

Wood says interest from business leaders across the county has been heartening. “Businesses operate with strategic plans and business plans to accomplish their goals and meet their objectives, so we’ve moved in that same direction,” he says. “Businesses understand that and can relate to it.”

The bottom line, of course, is when a prospective business or industry casts its eyes toward a community. That’s when it pays to have jumped through the Three-Star hoops. “If you’re a Three-Star community, you have paid attention to a lot of things that are critical to retaining industry and expanding industry,” Wood says. “And if you’re lucky enough to recruit new companies, there are all sorts of Three-Star components that are impressive to prospective industry.”

Rewards for participants include points for community development block grants and infrastructure funding administered by ECD and discounts for local matches, even FastTrack monies. In addition, U.S.D.A. Rural Development recently announced that Tennessee’s Three-Star communities earn a special designation when applying for federal funding through that program.

By the end of May, ECD had issued about 50 Three-Star certifications, and not just to smaller communities. Hamilton ( Chattanooga), Knox ( Knoxville) and Sullivan ( Kingsport) counties answered the Three-Star call as well. – proof that a sound economic development strategy isn’t a one-size-fits-all proposition.