The Little Dixie Region of Oklahoma Capitalizes on Economic Opportunities

By Laura Corbin

Nobody wants to be left out, left behind. Especially when it comes to economic opportunities, to prosperity and to a future.

Rural southeastern Oklahoma isn't about to let that happen, and it's getting help from some pretty powerful hitters. Gov. Frank Keating himself, in his 2000 State of the State Address, challenged legislators to appropriate millions of dollars to continue the state's ambitious road program that has linked more rural communities to commerce-building highways.

"Over the last 10 years, we created over 300,000 jobs in Oklahoma," he said. "Of those, 140,000 were created in the last three and a half to four years. That is the good news for Oklahoma.

Southeast Oklahoma appreciates the support, but it's not sitting around waiting for a handout. The area, especially that portion called the Little Dixie Region, has positioned itself for growth and it's paying off.

The Little Dixie Region is taking advantage of legislation especially beneficial to rural communities--the Rural Venture Capital Formation Incentive Act and its revamp of Enterprise/Empowerment Community designation, and the Quality Jobs Program, for example.

Officials with the Little Dixie Community Action Agency and the Choctaw Nation have been recognized by Oklahoma Secretary of Commerce Russell Perry for their efforts that earned the region designation as an Enterprise Community, and the granting of $3 million in funding for a 10-year strategic plan aimed at improving the area's infrastructure.

"Rural development is absolutely critical to the future of our state," Perry said when he recognized the local officials. "It is important that we pause and recognize the efforts of citizens of Choctaw County to successfully link economic, physical, community development and other activities to meet the goals of the area. Their involvement with the Empowerment Zone/Enterprise Community initiative signals a vital partnership between the federal government and southeastern Oklahoma--a partnership that recognizes the importance of a bottom-up revitalization process where people can seize opportunities for themselves."

The Enterprise Zone provisions were overhauled in the Rural Venture Capital Formation Incentive Act. Those provisions make targeted investment in land or buildings eligible for tax credits along with companies located in the zones. The act creates a tax credit for investment in quality, rural, small-business ventures and is expected to help with the start-up of entrepreneurial companies.

The Little Dixie area of Oklahoma has benefited greatly from a one-stop capital shop and business information center started several years ago. The center is a resource for entrepreneurs and existing business owners interested in starting a company, or needing financing or other technical assistance. The center is a partnership of several entities, including Rural Enterprises Inc., the Oklahoma Department of Commerce, the Small Business Administration, the Oklahoma Small Business Development Center, Little Dixie Community Action Agency, and the Choctaw Nation of Oklahoma, headquartered in Durant in Bryan County.

"Improving economic conditions is what we're all striving for, and the partnerships we've formed with various entities have enabled us to leverage resources," said Jerry Pool, Little Dixie's director of operations. "Several hundred jobs have been created as a result of these efforts, and there are great things ahead for those who live in southeastern Oklahoma."

The Little Dixie area officials have been innovative in their efforts to create economic opportunities. Take the U.S. Highway 70 expansion project as an example. A little-known federal grant--Grant Anticipation Revenue Vehicles--was used to fund the $53 million project. Now, other parts of Oklahoma are attempting to access the same grant monies for other projects.

The widening of this 43-mile section of U.S. 70 between Hugo and Idabel could facilitate up to $1 billion in additional commerce and new economic development, southeastern Oklahoma economic development officials have estimated.

Weyerhaeuser, a national timber company, has indicated the road project played a key role in its decision to spend $300 million to expand its southeastern Oklahoma operations. The company processes pine trees from 505,000 acres in McCurtain County into lumber at its Wright City mill and lining for cardboard boxes at its Valliant mill. Weyerhaeuser employs 1,200 Oklahomans.

One Weyerhaeuser official has said the highway widening could mean the company would hire up to 1,000 temporary workers over the next five years while rebuilding two of its three machines that make cardboard box lining. Company officials encouraged approval of state legislation that allowed the highway project to proceed, noting, "it will open up some opportunities in southeast Oklahoma that we have not seen before."

The highway project qualified for Oklahoma's Quality Jobs Program, which provides an automatic 5 percent net benefit rate for the creation of new jobs and training for workers.

The Little Dixie Community Action Agency has received other recognition for its innovative economic development partnerships, receiving a Rural Community Development Initiative grant of almost $543,000. The grant went to fund an economic development partnership involving Little Dixie, the Choctaw Nation of Oklahoma and the Oklahoma Department of Commerce.

Bob Yandell, Little Dixie executive director, said 20 communities in an 11-county area are eligible to receive assistance through the grant. As part of its commitment to the project, the Oklahoma Department of Commerce has provided a full-time economic developer for a portion of the area, who will partner with other Commerce regional economic developers in other counties.

Rural southeastern Oklahoma is getting its piece of the new economy pie because of its commitment to economic development and making itself ready.

Durant was ready for CustomerLinx, an interactive company that facilitates outsourced e-commerce transactions from businesses to their customers. Company founder Jeff McDermott and his partners found Durant.

"One of the many factors in our favor during the location process was the fact that we had an available building," said Tommy Kramer, economic development director for the city of Durant. "In addition, a labor analysis conducted by the Commerce Department and the University of Oklahoma showed we had an ample work force for CustomerLinx."

The company was looking for the best people with the proper work and service ethic. Officials also were impressed by incentives made available to it, including the Quality Jobs Program and the Oklahoma Department of Vo-Tech's TIP program for work force training. They received more than 1,000 applications for the first 100 jobs; the company eventually will employ 600 people.

The pro-business climate helped in snagging CustomerLinx, too, Kramer said. "It took a lot of different entities working together to make this deal happen. The Oklahoma Department of Commerce, the State Department of Vo-Tech, the Choctaw Nation, the Durant Industrial Authority, the Durant Area Chamber of Commerce, Southwestern Bell, and Southeastern Oklahoma State all played critical roles.

"I think the message that is conveyed about a location such as CustomerLinx is very telling," Kramer added. "E-commerce is coming to rural Oklahoma. That trend is occurring because companies realize rural areas have the available work force, and more importantly, a good work ethic. That makes for great employees."

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Laura Corbin is a freelance writer specializing in business and economic development issues.