1. Alabama, Mississippi Partnership

Never before have two states in the South joined together in the recruitment of industry in an official capacity. That changed in 2003 when Alabama Gov. Bob Riley and former Mississippi Gov. Ronnie Musgrove signed an agreement to market the border regions between the two states to expanding and locating industry. During the signing ceremony, Riley and Musgrove both agreed the partnership will "change the way economic development is practiced in the South and in America."

It is interesting to note that the two states have landed four of the last five new auto assembly plants announced in the South. The partnership could simply be a vehicle that will share the cost in landing another assembly plant within the next two to three years.

2. Utilities Ramping Up Efforts

For all of the mid-to-late 1990s, the utility industry was somewhat rudderless when it came to economic development. Even the highest level executives of major Southern utilities didn't know where their industry was headed. Cases in point: energy trading, the race to deregulate and the race to delay deregulation.

For all practical purposes, the deregulation of utilities in the South is done for now. So, what do utilities in the South do? They go about their business like they did in pre-dereg days. And that includes ramping up their economic development efforts, which for many utilities, were essentially abandoned with the prospects of deregulation. After all, in a retail energy world, utilities don't have allegiances. But with regulated territories, utilities in the South certainly have to defend their turf.

3. Tobacco Settlement Money Spent Wisely

Some states in the South are spending their tobacco settlement money wisely when it comes to economic development and others are simply tossing all of the millions into their general funds. Those states that are investing directly into economic development can help you gain larger incentives.

North Carolina and Virginia are two states that have chosen wisely. The Golden LEAF Foundation, established by the state of North Carolina to use money from that state's tobacco settlement, announced it would provide an $85.4 million economic stimulus package in 2003. When the package is implemented, it is estimated that it will provide at least $350 million in new investment in the Tar Heel State. The centerpiece of Golden LEAF's initiative is an investment of $42 million in the advancement of the life sciences in North Carolina.

Virginia is also using tobacco settlement money in an effort to improve its economy. The Virginia Tobacco Indemnification and Community Revitalization Commission is targeting rural economies in the state. Their focus is in tobacco growing regions such as the economically depressed Southside and Southwest areas of Virginia.

In its five-year existence, the commission has spent over $125 million on economic development in the state, including infrastructure improvements such as bringing high-speed Internet service to rural areas, new industrial parks and expanded sewer lines. Other economic development initiatives undertaken by the tobacco commission in Virginia include funding research into agribusiness alternatives to tobacco, education funding and the recruitment and marketing of motor sports in the state.

4. State Efforts at Bringing the Rural South Online at High Speed

My wife and I just built a second home in the rural South. If we were without school-aged children, we'd live and work up there with one exception: my business requires high-speed Internet connections. But it doesn't exist where our second home is located.

Yet, throughout much of the South a sense of urgency by states to connect the region's rural areas is taking shape. Combining high-speed Internet connections with a rural working environment will be attractive to many people who believe that there has got to be an alternative to sitting in traffic two hours a day. If anything, it will create an entrepreneurial environment in the South's rural regions that doesn't exist today. We have maintained for a couple of years now that the automotive industry is the rural South's best chance at reinventing itself. Add high-speed Internet to that assertion.

5. State Incentive Makeovers

You've seen makeovers on Oprah. Now look for them when you negotiate with Southern states when incentives are brought to the table. Remember, the South invented the advent of incentives for industry 57 years ago (if you want to know about the history of economic development in the South, buy the book at www.TheSouthernAdvantage.com or at www.SouthernAutoCorridor.com). A changing economy means a change in the variety of carrot that dangles on the stick that brings you here. Arkansas, for example, approved legislation in 2003 that consolidated its incentives. No longer will that state pay you big bucks based on how many jobs you will create. Now Arkansas wants to know what your payroll is going to be before they dole out breaks. In fact, Arkansas' Consolidated Incentive Act of 2003 is something other states in the South will be implementing soon.

6. Tennessee's FastTrack

This FastTrack thing the Volunteer State announced in December of 2003 touches the very core of what we deal with everyday.

Since this magazine was founded, we have judged economic development organizations in part by how quickly and efficiently they provide us with information. We've found over the years there are generally two types of economic development agencies in the South, those folks you deal with directly in your site search. There are those who are confident, quick to respond, adaptable, inventive and extremely good at communicating. Then there are those that are skeptical, slow to respond and, for the most part, really tough to deal with.

By Executive Order, Tennessee Gov. Phil Bredesen launched a great economic development initiative in 2003. Called FastTrack, the new service is designed to cut government red tape for prospective and existing businesses seeking to expand or invest in Tennessee. Under the FastTrack Executive Order, the Tennessee Department of Economic & Community Development will commit to providing a response to inquiries from industry seeking information within three business days of the initial inquiry.

7. Tulsa, Okla. Citizens Invest in Future

In 2003, Tulsa County, Okla. voters overwhelmingly approved a one-cent sales tax increase to finance over $500 million in improvements in the Sooner State's second-largest market. Projects targeted include a new downtown events arena, more than $100 million in facility construction at higher learning institutions in the Tulsa area, and other capital improvements and community enrichment projects.

8. Auto Research Campus in S.C.

Clemson University broke ground on the 400-acre Clemson University International Center for Automotive Research campus in November of 2003. While the Southern Auto Corridor remains the hottest spot in the nation for automotive manufacturing, the region has a long way to go on automotive R&D. This new auto research park and center located in Upstate South Carolina is a great start.

9. Virginia's Motor Sports Initiative

Virginia Gov. Mark Warner launched the Virginia Motor sports Initiative last year. Comprised of public and private sector partners, the initiative will promote and support motor sports activities in Virginia as a means for economic development. Among other things, the initiative will recruit companies involved in motor sports to Virginia with newly designed incentives exclusive to that industry, support the state's 37 racing venues, and nurture research and development and work force training in the motor sports business.

10. Florida's Financial Services Industry Initiative

Public and private sectors in Florida joined forces in the summer of 2003 to form the Florida Financial Services Cluster Initiative. Over 300,000 Floridians are employed in the financial services industry and the sector is one of the fastest growing in terms of job creation in the South right now. In fact, Florida added 10,000 new jobs in financial services in 2003. In addition to Enterprise Florida, the state's economic development agency, the new initiative has some impressive partners including J.P. Morgan Chase, Citigroup, MetLife and Bank of America to name a few. The initiative aims to establish a vision and strategy to grow the sector in the state and develop strategies to maximize Florida's effectiveness in attracting financial services companies.