By Chrissy Nethercutt, The Republic Reporter
Last of a 10 part series
Columbus’ next challenge in attracting the businesses of tomorrow will lie with convincing entrepreneurs already here to reinvest in the community.
While the Columbus Economic Development Board’s efforts in recruitment and retention once were enough, mastering a third element — growing new business — will be the key to future success.
F.A. “Buck” Ritz, who took over as board chairman Dec. 21, said one of his objectives is to better coordinate the many organizations that are becoming increasingly important in economic development.
The welcoming community, Chamber of Commerce, Columbus Area Visitors Center and schools are some of those responsible for making a business want to locate here, he said.
The Columbus Enterprise Development Center business incubator also is demanding attention as an economic development player.
“We want to grow these new businesses, but they’ll help us make sure the businesses being created are the right businesses,” Ritz said. “Businesses that are focused on high tech.”
Ritz said he thinks Columbus is not yet attracting the skilled work force it needs.
“Supporting entrepreneurs who want to start a business in Columbus is absolutely essential,” he said.
Tracy Souza, board member and Cummins Foundation president, agreed that entire communities are responsible for creating an environment where “knowledge workers,” those who will fill the newly created high-tech positions, will want to live.
“The component of growing new companies is a third ball you suddenly can’t take your eyes off of,” she said.
Because workers can increasingly “work from anywhere,” communities must sell their lifestyle merits when attracting entrepreneurs, she said.
Souza said Columbus needs to “get smart” about creating an environment where knowledge workers want to live.
“People are going to be the economic engines of the future,” she said.
“In the same way we used industrial recruitment to offset manufacturing job loss, the entrepreneurs will provide the real growth of the future.”
Souza said the Columbus Young Professionals Group is one step in the right direction toward creating a welcoming environment where the youth who will turn ideas into businesses will want to live.
Education
The board also is largely concerned about improving secondary and post-secondary education.
Mayor Fred Armstrong said that companies are more likely to come to an area with a strong educational system.
Ivy Tech Community College, IUPUC and the new Columbus Learning Center were “huge successes” toward this end, he said.
“When we talk with potential customers, it’s a big asset to tell them we have a trained work force and the facilities to train people for them,” Armstrong said.
Board member Bob Haddad said education efforts are necessary, but he fears they are taking place at the expense of efforts to place current workers.
Haddad, Columbus Container CEO, said he thinks an educated work force will attract companies, but the city may be forgetting about its unemployed workers.
“We still need jobs to take care of those who can’t qualify for high-paying jobs,” he said.
“If we only bring high-tech jobs, we’re going to have a severe unemployment problem.”
Development tools
Ritz said the re-established redevelopment commission, tax-increment financing districts and a certified technology park are some of the economic development tools that will help CEDB to be successful.
He said Columbus also needs to add commercial and industrial park space, improve its broadband infrastructure and employ Economic Development Income Taxes to stay competitive.
“It’s how other communities are keeping their edge,” he said.
But Haddad said he disagrees with incentive competition.
Haddad said he is concerned that by relieving a company’s costs — through tax abatements, TIF districts and other economic development tools — officials are placing undue costs on residents.
He illustrated that if a company is lured to town with the promise of free or reduced water utilities, its use places extra load on the water system. The costs then are spread among other water customers.
“I understand we have to compete because other towns are using these tools. But if somebody makes the wrong choice, do we follow that wrong choice?” he asked.
Haddad said he thinks Columbus should sell itself on merits of the community, schools and other benchmarks that make the city unique.
“Competition with incentives is only going to get worse, and we need to sell the things that make Columbus a place companies want to be and a place workers want to live,” he said.