The Economic Development Association of Alabama (EDAA) Summer Conference was held July 11-14^th at The Grand Hotel in Point Clear, AL. There were over 300 people in attendance including economic development representatives from 59 counties in the state. This year's conference had many notable speakers and provided a wonderful setting for professional networking.

The first speeches of the conference were made by Governor Bob Riley and outgoing Alabama Development Office (ADO) Director Neal Wade at a dinner Monday night. Both stressed the importance of future economic development in the state.  Riley and Wade alike reinforced calls to change Alabama's current recruiting incentives stating that aggressive incentives and cuts to business taxes would feed tax collections and build the state's economic prosperity.  "Tax cuts do work," said Riley.  Both agreed on the importance of international trade and investment stating that free trade has been a great benefit to Alabama and the entire southern U.S.  Riley and Wade also urged attendees to stress the importance of economic development to gubernatorial candidates.  Furthermore, candidates should be prepared to put a great deal of consideration into who they would appoint the next ADO Director.  

Speaker of the House Seth Hammett received a standing ovation at the dinner Monday night for his exceptional contributions to economic development in the state of Alabama. Hammett, who is retiring as speaker of the House has worked tirelessly with governors from diverse political parties with great ease.  Hammett has expressed a hope that his successor will continue non-partisan cooperation between the administration and Legislature to keep a competitive advantage over other states in economic recruitment.

Sid McAnnally, Vice President of External Affairs for Energen Corporation, discussed the current political situation and its implications on economic development.  Prior to Alabama's primary elections, the presentation ranged from Alabama 2010 primary trends to state workforce challenges.

Norfolk Southern Industrial Development Manager, Mike Grim, gave attendees a tremendous overview of the new Norfolk Southern intermodal facility to be built in Jefferson County and addressed its economic impact not only in Alabama but the United States as well.

Tuesday morning speaker, Alexandra Segars, CEO at Kohlbecker U.S. LP, shared very insightful information on how communities can be better prepared to work with industrial prospects.  Alexandra covered a large number of Kohlbecker projects in Alabama, the United States and internationally and shared important site selection criteria with attendees. Segars has an extensive background in the European market and currently represents a project that is looking in the Coastal Gateway region.

Retail recruitment has become a major focus in rural and metropolitan areas in Alabama as a way to increase jobs and boost the local tax base. The EDAA put more emphasis on retail recruitment than ever this year, devoting hours to the topic.

Alex B. Leath, from Balch and Bingham, LLC spoke about the importance of offering retail incentives.  Offering retail incentives can help to keep local dollars local, draw sales from outside areas, improve a community's quality of life and create new sales tax revenue. There are numerous incentive methods that include: Amendment 772, infrastructure assistance, revenue sharing, tax increment financing, cooperative districts, and other non-financial tools. Amendment 772, passed in 2004, allows a city or county government to "lend its credit to or grant public funds and things of value in aid of or to any individual, firm, corporation, or other business entity, public or private, for the purpose of promoting the economic and industrial development of the county or the municipality." For more information regarding Amendment 772, please click here.

Hugo Isom of The Shopping Center Group, LLC. gave a report on the status of retail in Alabama. Isom shared some interesting information from the 2009 Shopping Habits Report with attendees.

Isom stated that while the majority of consumers in North America rated their current financial situation as good (35%), fair (40%) or excellent (7%); only 18% rated their financial situation as poor.

The report found that consumers are somewhat optimistic regarding the next 12 months. Over 40% believe their financial situation will improve over the next 12 months, while 47% believe their situation will stay the same and only 11% say their situation will get worse.

Over 75% shoppers reported spending cut backs. Over half of the cutbacks were made on fine dining, casual dining, movie theater attendance and salon/spa services. Between 40%-50% reported cutting back in most retail categories. The least affected retail outlets were discount stores, grocery stores and other necessities.

The report found that consumers made spending cuts due to precautionary measures more than to economic reasons such as job loss or wage reduction. Furthermore, shoppers' perception of their financial situation had a bigger impact on their shopping behaviors than did their income.

Other interesting facts include: 75% of those with incomes of $100,000+ reported cutting back. Also, women report a spending cut back more than men. Reason being, women are typically responsible for the majority of household shopping.

While 80% of consumers reported cutting back over the last 12 months, only 40% report that they expect to increase their shopping behavior when the economy improves.

The greatest likelihood of increased retail spending found were shopping trips in general, department store visits and purchase of discretionary goods.

Isom warned attendees that the road to economic recovery throughout 2010 will remain turbulent as many downside risks remain. However, Isom applauded the strong retail programs currently in Alabama such as sports teams (i.e. retail spending as a result of the Alabama Crimson Tide in the 2010 National Championship) and the strong presence of automotive manufacturing in the state. 

Communities should put their current retail recruitment focus on value oriented stores such as: the Dollar General, Golden Corral and Save-A-Lot.  Other retail outlets Isom recommends communities recruit are: Cato, Factory Connection, Big Lots, Baskin Robbins, Lenny's Sub Shop, Huddle House, and Ace Hardware, etc.

Isom expressed the importance of researching and targeting what companies are a good fit for your community. Identifying targets prior to attending the ICSC Convention and looking at other communities success stories are just two means of doing this.

Last, Isom urged attendees to be prepared for economic recovery. Having an up to date and navigable website is crucial along with retail marketing materials. Communities should compile demographics in radius rings & trade area (polygon along with traffic counts, schools, major employers and residential information).

New ozone limits and attainment regulations are coming for the U.S. Conference attendees received an update from Ron Gore of ADEM on what areas of the state could soon fall into non-attainment status with newer, stricter regulations from EPA.

If you were unable to attend the 2010 Summer Conference the EDAA Winter Conference is being held February 7-9, 2011 at The Wynfrey Hotel in Birmingham, Alabama.