Small Town Living, Big City Benefits

Companies are finding that it's easy to do business in Tennessee's rural communities.

By Kimberly D. Acreback

There is no shortage of success stories in rural Tennessee. Many counties are experiencing record growth and many more are on the rise. These communities are scenic yet well situated, inexpensive yet highly developed, and hospitable yet hard-working. They also offer incentives that are tough to outdo.

Dunlap, Tennessee, the fastest growing town per capita in the state, is an obvious example of rural achievement. Nestled in the center of the Sequatchie Valley, the charming community boasts low crime, low taxes and extraordinary hospitality. In addition, it has a well-designed industrial park with available acreage, a new superhighway running north and south, a strong labor force and a strategic location making it easy to reach major markets.

The town's economy recently received a big boost when Japanese-owned Seymour Tubing decided to launch its new $25 million, 80,000 square-foot facility in Dunlap's industrial park. Seymour Tubing, which manufactures steel tubing components for the automotive industry, celebrated the grand opening of its new plant in November 2001.

Barry Ferguson, Seymour's director of human resources described the town as "open, warm and friendly." He said, "It's easy to do business in a small town. You know who the players are and there's a lot of cooperation between industries."

To date, Seymour has created 85-90 new jobs in the county and expects to add up to 140 more in 2002. Within the next five years, company officials hope new jobs will climb to approximately 450. Mayor George Wagner said, "The Department of Economic and Community Development (ECD) and other state officials partnered with Dunlap and worked hard to make it happen."

Tennessee is also working hard to help out those counties that have great potential, but haven't had the opportunity to show off their gifts. The ECD's answer to helping out these counties is the Special Enhancement County Program.

The program is designed to enable all Tennessee counties to share in the record growth experienced by communities like Dunlap. Open to any county that meets certain economic criteria, the program allows participants to apply for extra funding, and to take advantage of interest rates well below prime as well as flexible payment schedules. The added benefits enable these counties to proactively build infrastructure, develop spec buildings, and to prepare sites and work forces that rival those offered by larger communities. As a result, businesses locating in these communities enjoy big city facilities at small town prices. In addition, they benefit from the lower cost of living and solid work ethic associated with a rural area.

Grundy County, a farming area consisting of six small towns at the foot of the scenic Cumberland Plateau, is one of the 22 counties taking advantage of the Special Enhancement County Program. The county used its special enhancement status to apply for infrastructure funds. Grundy's status entitles it to 50 percent more money than counties that are not specially enhanced, and also enables it to designate a private company as the principal recipient of the benefits.

The county began reinforcing the infrastructure in its new industrial park in May 2001. As a result, three months later, Grundy welcomed its first large automotive project, a $12 million seat plant for Toyo Seat USA Corp. Contractors, government officials and local utility companies worked together to successfully finish out the project by October, when Toyo Seat started production.

Toyo, which currently employs around 60 people, provides the best benefit and wage package of anyone in the county, and will eventually become Grundy County's largest employer with plans for 200+ jobs. Prior to its arrival, most residents were commuting to manufacturing jobs in other parts of the region, but now many Grundy County locals are working in their home county for the first time.

When asked why Toyo selected Grundy County, Vice President Johnny Smith said, "Our new location affords us a top-notch work force while allowing us to be near many of our customers and suppliers."

Grundy County Executive Ladue Bouldin knows his community has a lot to offer, but he partially credits the county's Special Enhancement status with Grundy's ability to quickly pull together the resources - totaling in excess of $4 million -- to implement the infrastructure Toyo required.

Scott County is another great example of a community that is using the Special Enhancement County Program to boost its economic strength and attract potential commerce. Its story starts in the late 70s, when coal mining and timber production were the economic lifeblood of the community. During the recession in the early 80s, the industry nose-dived and unemployment reached 28 percent in the county.

The community began to revamp its economy and build up its infrastructure by putting in water, sewer and gas lines, and building roads from the interstate into the county. They constructed ready-to-go spec buildings in preparation for new industry, and they put together "Team 21," an impressive group of decision makers who can answer any question about Scott County in five minutes. Before September 11, the county unemployment rate was down to 3.9 percent.

How did the county accomplish this amazing turnaround? According to Scott County Executive Dwight Murphy, by "teaching people to take pride in their community and in themselves. The pride residents have in their community carries over into pride in their work. Companies that locate in this county can expect to find loyal employees who are second to none."

Scott County uses its Special Enhancement status to receive priority over other counties in its quest to obtain funds necessary to reach its goals. So far, it has been able to open a community college and a technology center to prepare a work force tailored to meet employers' needs. It has also used government and private money to build all new schools in one of its districts.

"Our last frontier has been kids," said Murphy. When kids realize the potential they have to be successful, "their whole attitude towards life changes," he said. "It's a complete transformation." The newly built school district's scores recently ranked in the top five in Tennessee, an honor few rural systems receive. The high priority Scott County places on education and wellness not only ensures a well-prepared work force for today, but also for generations to come.

Dunlap, Grundy County and Scott County are just three examples of the good things happening in small communities across Tennessee. Companies looking for a strong work force, low operating costs, easy access to grant and federal funding, and the ability to partner with a community that's interested in mutual success will find rural Tennessee hard to beat.

 

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