"County Council reverses course, will contribute $195K to Lowcountry Economic Alliance"
You may want to read Packet/Gazette as background, but it is not necessary.
http://www.islandpacket.com/2014/10/13/3368658/county-council-to-review-decision.html?sp=/99/257/
The Silver Bullet Syndrome Will Not Get the Job Done
The question for Beaufort County Council is not about saving or not saving the Lowcountry Economic Alliance (LEA).
LEA is but a symptom of County Council's Silver Bullet Syndrome of looking for the quick fix for an age old problem that cannot be fixed, like many other challenges that are solved with a vote and money.
If it was simply about money, though it has not made headlines or seemed controversial, County Council has done a lot in the name of economic development in recent months:
* they offered $1 million, along with the Town of Bluffton and the School Board, for a project at Buckwalter that never materialized; they
* they borrowed $4 million for a spec building for which there is no prospect to be put on County land in Bluffton; and
* they paid $500,000 down toward an $11 million price tag for the Graves Tract which, though they are not sure what it will be used for, some members are talking about a Medical Technology Park. (By the way, Port Royal, has considered the notion of re-purposing the Naval Hospital as a Medical Research and Technology Center when it is abandoned by the Navy which seems to be in the cards though no one can tell when.)
At that same time they have spent months struggling to write a check for dollars already budgeted, which are matched by state dollars, to the marketing arm they created and whose plan they endorsed.
What is this all about?
My Lessons from Business
Don't be under capitalized. It takes time to get traction and one needs the staying power through the ups and downs of the business cycles.
Know the market you are seeking to harvest.
Have a plan and stick to it regardless of temptations to make quick changes thinking you will find a silver bullet to get yourself out of trouble.
Know the competition, their mission, available resources, the leadership and capital assets so you can craft a strategy that differentiates you and your product from what was already out there with a head start.
And finally, make sure your board, company leadership, partners, employees and other stake holders are behind you through the ups and downs, resisting the temptation to cut bait and run or seek magical answers.
Beaufort County and Economic Development
Without pointing fingers, taking a position on funding or not funding the Lowcountry Economic Alliance, I'd like to share some history about the challenge to diversify Beaufort County's job base during my lifetime.
Because it serves the County's entire population (including the municipalities whose residents pay the same taxes as those who live outside our boundaries) and has a larger budget and takes a regional approach, local governments have historically relied almost solely on Beaufort County Council to lead economic development. Regardless of the many tacks they have taken, they have failed us.
Let me explain:
A Personal Experience
When I returned to Beaufort just over twenty years ago, I worked with a boat manufacturer who was eager to locate in Beaufort County. (After a German petrochemical plant and iron works were turned away in the late 1960's and mid 1970's, the community said "we need clean industry like a boat maker."
Governor Campbell invited Baron Yachts, a partnership between the builder of high end "Formula" boats and a Hilton Head Island businessman, to locate here.
Beaufort County Council embraced the opportunity because "finally we have the clean industry we've been looking for". County Council facilitated the transfer of land, the State Ports Authority purchased for economic development at Victoria Bluff, to the boat builder. Based on this support, the company invested hundreds of thousands of dollars in planning, permitting and undergoing multiple public hearings at which they were jeered at by "environmentalists" who believed that testing 15 new boats a year, built in a plant buffered by about 1000 feet upland from the water, would ruin the Colleton River.
In the end, Council reneged its support, asked the manufacturer to leave Beaufort County and returned their money including out of pocket expenses. Ironically, when one rides up the Colleton River by boat today, one finds huge houses with yards reaching down to the river and docks with covered pier heads that inadvertently direct more pollutants into the river than the boat plant could have ever have done.
A good company, with better paying jobs, health and dental insurance, retirement plans and fifty two weeks' pay for fifty week's work was chased away sending a clear signal that Beaufort County wanted only tourism and retirement living as the economic engine and job providers for the young people who grow up in the Lowcountry. The military was then and remains a principal economic driver in Northern Beaufort County. But we still need diversity.
Though Mayor Chambers and others made some headway bringing some new businesses to the Lowcountry:
- Until last year, they never developed and executed a well thought out plan
- They have not adequately invested the dollars it takes for marketing and incentives, compared to other counties against whom they were competing
- They have never owned land suitable for industry
- Because there was no prior experience with manufacturing, our work force was not suited for the needs of industries
- And finally, and most importantly, on what appears to be a four or five year cycle, the County Council, with no significant signs of achievement, abandons what they are doing for a new silver bullet they hope will produce quick results:
The Silver Bullets:
One Silver Bullet which failed: Beaufort County joined Hampton, Jasper, Colleton and Allendale counties in establishing a Five County Commerce Park near I-95 in Hampton County. This did not work due to a number of facts, not the least of which was political squabbling about one county getting more than the others and no unified marketing plan.
Another Silver Bullet which failed: Then, based on the notion that politicians should put economic development in the hands of the private sector, the Council formed the Lowcountry Economic Network.
Another Silver Bullet which failed: As one of their principal initiatives, the Network purchased and improved what had been a privately held Beaufort Commerce Park which did not have water, sewer, electric and gas service and a storm water system to keep the uplands dry.
Another Silver Bullet which failed: Since there were no spec buildings on the property, or for that matter in the County, and most companies look to move in and save the time and money without starting from scratch, the idea of building a spec building was thrown around for a while with no decision. When the economy tanked, the Network's bank account went dry, the property went into foreclosure and the County did not see reason to save it at a price of about $1.8 million for a property appraised at $3.4 million.
Silver Bullet which failed: Then came along the idea that Beaufort and Jasper County should ally themselves through what became the Lowcountry Economic Alliance. Beaufort County bore the brunt of the cost of about $100,000 to commission a target industry study.
Before the "Avalanche Study" was even completed, the difference of cultures and politics between the two counties' governing bodies drew a divide and Jasper County abandoned the Alliance even though the Alliance had landed two new companies for Jasper County. Jasper County was upset that Beaufort County did not support a new retail center which experts say would have cannibalized existing retail outlets on Hilton Head and in Bluffton. Furthermore, Jasper County was in hot pursuit of a Casino, which Hilton Head did not want because, for marketing purposes, the casino would likely have marketed itself as Hilton Head as others have done all the way out to I-95. Finally, Jasper County Council wanted the Alliance controlled by elected officials when Beaufort County wanted the private sector to lead.
Another Silver Bullet which failed: Frustrated by lack of direction from the County, Hilton Head and Bluffton stood up their own economic development entities as they were impatient with lack of direction and support from the County. While the City of Beaufort did not start a new organization, we did salvage the Beaufort Commerce Park (costs us about $3,000 per month to own) with the expectation that the county would continue with their marketing plan and support our efforts along with those of the other municipalities.
Another Silver Bullet which failed: After adopting the Target Market study and the Alliance created a full scale marketing campaign, it appears that five out of eleven County Council members want to bring it to a halt: the plan costs money, it demonstrated shortcomings in infrastructure compared to other counties across the state, the County Council balked on their commitment.
And now a New Silver Bullet is under consideration: It appears that at least three of the five dissenting members of County Council (three of whom are new to the Council and likely do not know the past, what is currently at stake or the needs of the larger county outside of Bluffton and Hilton Head) are exploring yet another silver bullet which is to join another alliance with surrounding counties, including Jasper, which have little in common with the needs and/or opportunities in Beaufort County. I am all for regional collaboration, but when it did not work three years ago, why should we believe it will work tomorrow?
Economic Diversification is not about Silver Bullets every four or five years. What is necessary is for County leaders to get together, show some imagination, leadership, individual and collective commitment to the plan they adopted, fund it, work collaboratively and achieve something rather than looking for quick fixes when halfhearted quick fixes have achieved little.
And if they think joining others before they get their heads and hearts together and accept the responsibility we have vested in them, they will again be wrong. They will spend more money and, if history repeats itself, they will be looking for another silver bullet in four years.
Meanwhile the children growing up in Beaufort County will wait patiently, not perform in school because they see no better future and we will pay a price significantly higher than a couple hundred thousand dollars a year trying to save them.
Finally:
Since I grew up as a child in Beaufort County, politicians have promised us opportunities for better jobs closer to home. I have no doubt that by working together we can tackle this issue and win for all.
I beg you, Beaufort County Council, through the LEA or by bringing economic development inside (like almost all counties do) please make this a priority, get on the same page with your colleagues, engage the municipalities and the private sector as partners and let's get to work.
Some eye opening facts about diversifying our economic base:
https://www.youtube.com/watch?v=4nzUOoBCYwE
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