Success in Numbers: North Florida Economic Development Partnership Gives Rural Counties an Upper Hand

By Laura H. Corbin

In rural Florida’s quest for its fair share of economic growth, the adage “safety in numbers” never rang more true.

The 14-county north/northeastern region of the state, the third of three Rural Areas of Critical Economic Concern (RACEC) designated by Gov. Jeb Bush, is wasting no time in taking advantage of that designation.  They have received $2 million in state funding to form the North Florida Economic Development Partnership, have narrowed their target industry segments for recruitment, and are in the process of identifying sites for two mega-projects that will benefit the entire region with tax revenues, job creation and economic investment.  The designation includes Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette, Levy, Madison, Putnam, Suwannee, Taylor and Union counties; 39 municipalities are included.

“The potential that these 14 counties have as being members of this partnership is huge,” says Rick Breer, director of tourism and economic development for the Taylor County Development Authority, who serves on the NFEDP board of directors.  “Each community has its own resources, but being smaller, more rural areas, they aren’t always able to compete.  The potential of the partnership is combining these resources into a single site, with agreements from the participating counties that if we are able to attract a mega-project each of us can get a percentage of the taxes generated from the project.”

An area designated by the governor as a RACEC receives priority attention from state agencies to ensure its communities receive the assistance needed to further economic development initiatives and local projects.  The RACEC initiative also allows the governor more flexibility in applying criteria requirements or similar provisions of economic development incentives through the Rural Economic Development Initiatives (REDI).  This multi-agency initiative, led and coordinated by the Governor’s Office of Tourism, Trade, and Economic Development, assists rural communities in solving problems affecting their fiscal, economic or community viability.

Incentive programs for use in the designation include: Qualified Target Industry Tax Refund, Quick Response Training, Road Fund, Brownfield Redevelopment Bonus, and Rural Job Tax Credit.  In addition, the designation provides greater access and flexibility within the Rural Community Development Revolving Loan and Rural Regional Development Grant programs.

The first RACEC designated included eight rural counties in the northwestern part of the state; the second included six counties in the south central part of Florida.

Each of the counties in the NFEDP has its own contributions to the partnership, Breer notes.  Putnam County has a coal-fired plant that provides power to 10 distribution cooperatives, while Columbia County has a thriving homebuilding industry, for example.  Taylor County is known for its manufacturing base, enhanced earlier this year by the announcement that Lance Manufacturing LLC will expand its production facility, creating 52 high-value jobs.  Lance is revamping its manufacturing facility in Perry and will purchase new equipment to expand its production capabilities.  With the changes, the facility will be used to produce the company’s Cape Cod kettle cooked potato chips and other Lance brand salty snacks.

The diverse, skilled workforce, efficient transportation infrastructure and pro-business environment and teamwork are what make Florida an “ideal location” for Lance’s growing business, company officials said.  The partnership with the Governor’s Office of Tourism, Trade and Economic Development and Enterprise Florida helped Taylor County in convincing Lance to make the expansion, Breer says.

The new NFEDP should ensure continued new and expanded investment into the region, he says.  “There has been a commitment by this administration in Florida for economic development, and Gov. Bush has done a fantastic job of making certain that rural counties are included.  His strategic economic plan includes eight items, one of which is devoted to rural development.  He has tried very hard to make sure that rural areas get the benefits that metropolitan areas are receiving.”

All 14 of the region’s counties have signed letters of agreement to participate in the partnership, Breer says.  The $2 million in state funding has been provided to Enterprise Florida, which now is working to define, organize and create a feasibility study for two mega-projects for the region.  “We’re in the process of deciding what it is that sets this region apart in terms of target industries,” he adds.

The NFEDP has narrowed its focus to two industry segments – distribution centers and transportation, and building materials manufacturing and distribution.  Other segments that had been considered included air service/aeronautics, biofuels, and medical manufacturing and research.

The region has focused on two target clusters, rather than one, because the area is very large and diverse, especially compared to the other two RACECs in Florida.  “From east to west, this region is between two and a half hours and two hours, 45 minutes driving time,” Breer says, noting that the area has a population of about 380,000.  The area is diverse – from a county with a population of about 5,000 to one with more than 80,000.

The workforce also is diverse – from agriculture to manufacturing to everything in between.  “It’s a workforce that is competitive to other rural areas and to metropolitan areas as well,” Breer says.

Other selling points for the future NFEDP mega-project include having an infrastructure-ready site and an affordable cost of doing business.

Dozens of public and private entities are part of the economic development partnerships, including Progress Energy, which serves 10 of the 14 counties in the NFEDP area.

“This region has figured out that the call of many is louder than the call of one alone,” says Bob Rohrlack, senior vice president of Enterprise Florida Inc., a public-private partnership responsible for leading Florida’s statewide economic development efforts.  “The region is aggressively working to take their well-kept secret of an outstanding location call to prospective businesses that then can find success in the region with quality labor and outstanding sites.  The most exciting element is the positive, aggressive approach the region is displaying in the process.  They are determined to be successful and local jobs.  EFI is committed to working with them for success.”

Rodney Carson, senior economic development executive with Progress Energy, says as the region hones in on a location for its mega-projects, it is “on the cusp of mobilizing its efforts that are going to pay off for the region.”

In the two years since being designated as a RACEC, the region has made significant progress and is close to a decision.  “Progress Energy’s involvement is to help provide expertise and marketing assistance for the region,” Carson says. “We’re providing research assistance, and we are a major investor.  We’ve made a long-term commitment to help ensure the success of this program.

“The biggest advantage of this partnership is that it is taking a different approach to economic development,” Carson continues.  “This gives the region another venue for attracting tax dollars and investment, beyond traditional tourism.  These will be long-lasting, higher paying jobs.  We believe in regional partnerships, and if they are done right – which the North Florida Economic Development Partnership is doing – they will provide great benefit to residents and the state.”