County challenged to work with cities for development goals
Staff reporter
Community development success may be at the fingertips of Marion County. However, the one element that is necessary for this success is cooperation within the county which means cities working together.
Leon Atwell, the leader of Hometown Competitiveness for Kansas, believes to sustain funding for economic and community development, those who moved away from communities as youth need to be enticed to return to their hometowns.
More than 30 people representing the counties of Marion, Chase, Dickinson, Morris, Geary, Wabaunsee, Lyon, and Greenwood heard about HTC July 11 at Lincolnville Community Center.
During the 90-minute presentation, Atwell said in addition to capturing the entrepreneurial spirit of these people who left their communities, sustaining wealth is a part of the component.
Four critical issues that rural communities face are:
— Historic youth out-migration trends.
— Loss of farms and small businesses.
— Erosion of leadership capacity or lack of leadership.
— Generation wealth transfer when parents die and the family's assets go to a relative who doesn't live in the community.
The beginning
HTC started in Nebraska when four agencies developed a partnership.
Nebraska Community Foundation, Center for Rural Entrepreneurship, Heartland Center for Leadership Development, and Center for Rural Affairs came together to address the four trends.
"The partners believe that those who are raised in small, rural towns have the heart for the towns and have the need to emotionally re-connect with them," Atwell said.
The backbone of the program is focused on people.
"If communities don't have people, it doesn't matter," Atwell said, and development cannot be as successful.
The four pillars of the program that are focused on people are:
— Leaders.
— Entrepreneurs.
— Donors.
— Young people.
"Most economic development is focused on attracting outside businesses to the community," Atwell said.
When the tax abatements end, often times businesses relocate to other communities to enjoy the same perks.
Atwell made this suggestion to community leaders.
"Instead of attracting outside business, attract entrepreneurs, or better yet, grow your own entrepreneurs," he said.
Through local, home-grown entrepreneurism, new jobs and wealth are created with the bucks staying at home.
Leadership is another important aspect. With a successful program, communities will see an increased diversity in community leadership, enhanced leadership knowledge and skills, more volunteers, and more people willing to run for public offices.
By having more youth, such as middle and high school students, involved in the community and entrepreneurism promoted to young people, there is a greater chance that the youth will either stay in the community or return to own and operate their own businesses.
To reverse "brain drain" or out-migration of youth, communities need to establish stronger partnerships with schools, and offer entrepreneurship classes and opportunities.
The secret to success?
So, how does this all work together to make sustained development?
With additional, homegrown wealth a community-based endowment could be established.
Atwell defined an endowment as a fund where only earned interest is actually spent.
By using the endowment for community development, there would be funds available — virtually forever.
For example if a community or county establishes a $7 million community endowment, based on five percent interest, there could be approximately $350,000 per year available for development, based on five percent interest.
In Valley County, Neb., population 4,600 with its main city, Ord, which is the same size as Marion, this endowment funded projects, and two full-time and one part-time economic development positions.
Here are the steps Valley County took that led to its success:
— 1999: No game plan or program.
— 2000: Economic development board established, staffing proposed.
— 2001: Tax support approved.
— 2002: Joined HTC, focused on development goals, moved toward entrepreneurship.
— 2004: Hired a business coach.
Following is the youth attraction goal set by Valley County. Youth is defined as those between the ages of 20 and 45.
— 1990 population: 5,169; 2000 population: 4,647; a loss of 10 percent.
Simple math indicates the county lost 52 people per year between 1990 and 2000. Of the total population, there were 1,207 people classified as youth, which made up 26 percent of the total population.
The average graduating class in the county was 67 people.
The goal then was set to attract 18 people who are classified as youth.
"Right now, they are at 25 people," Atwell said. He continued that it didn't sound like a lot, but consider that those 25 identified people might bring spouses, children, and other family members.
In addition, those new residents might bring their businesses and employees, or open a new business which could attract new employees from outside the county.
Atwell then used the example of the business coach who was hired.
"Her husband moved his Internet business to Valley County," he said.
Valley County had the goal of eight business transitions and currently have had 12.
The endowment got started when a Valley County family stepped up and donated $1.5 million. When all funds are collected, the county anticipates nearly $6,750,000 of charitable giving.
In the end, the question on everyone's minds was "Can our county, and the cities within, work together for a common cause?"
If yes, then the group should move forward with a regional workshop, Atwell said, to brainstorm with other counties that might want to do the same thing in their counties.
