July was a great month, with the star-spangled hoopla associated with the anniversary of our nation’s birth and the excitement of the Madison County 4-H Fair.
We enjoyed having a booth in the community pavilion and seeing so many old and new friends! We recorded interviews with everyone – from kids to politicians. Many were played on my radio show, Kevin Smith Reports (Saturdays from 10 a.m. to 1 p.m., WHBU AM-1240) and others are posted on our web site. Tune in, and you’ll get an idea of the great folks of Madison County we encountered!
Excitement in Marion
Marion Mayor Wayne Seybold was a guest in July on Kevin Smith Reports. Efforts directed at China by the Marion economic development team produced success in late June when it was announced that manufacturer YK Furniture would be establishing its North American headquarters there.
Mayor Seybold also disclosed exciting, yet preliminary news: a second Chinese furniture manufacturing company that had planned to locate in Tennessee conducted a site visit to Marion recently. A decision will be made by that company in the coming weeks!
“A whole ritual took place before the dance happened.
Now we have one Chinese company locating here and another has come to visit. I always say, ‘friends first.’”
Wayne Seybold
Mayor of Marion, Indiana
How does one community generate excitement in job creation and growing the community’s economic base while other communities seemingly languish? Mayor Seybold disclosed some revealing facts that convey his understanding of how to make his community grow:
- Today’s economy is indeed global and today’s companies are borderless; they locate where it makes financial sense. While labor may be cheap in Asia or in emerging nations, the cost of shipping, the uncertainty of politics and pirates nearly levels the playing field for U.S. workers – it has suddenly become economically viable again to manufacture goods for North American markets in the U.S.
- The basic requirement for getting foreign companies to establish in your community is to build relationships.
Mayor Seybold did ask the owner of YK Furniture to locate in Marion, but it was much more than that. The mayor explained that he met the owner’s family, then Seybold’s family was introduced to the Chinese. Seybold visited the factory in China, and the company made a visit to Marion. It all involved more than four trips back and forth. - Successful economic development depends upon a whole team of individuals, not just one visionary mayor! Because the city was targeting Chinese companies, the mayor hired a staff person who was fluent in Chinese. When Mayor Seybold first met the owner of YK Furniture, it was 4 p.m. China time – and 4 a.m. Marion time. The mayor texted his staff to put together a full packet of information on Marion for the company and e-mail it. Twelve hours later, the packet had been sent over the internet, and when company officials arrived for work the next day, YK had a host of information about Marion and undoubtedly very impressed! The mayor said as many as 50 people will contribute to an economic development project, including financiers, legal and engineering firms.
- Communities must establish budget priorities to be successful in economic development. Marion is experiencing the same economic shortfall as other communities, but dollars are set aside for economic development and the city is disciplined how it spends its tax dollars. Companies aren’t interested in locating according to a community’s four-year political cycle. Communities must put on their best face every year, demonstrate they are a better place to do business, and continue to work toward their long-term goals.
Speaking of Economic Discipline – Shelbyville!
A couple of weeks ago, the Indianapolis Business Journal published an important and thoughtful piece on the very different use of the millions of dollars in tax revenue channeled to Shelbyville and Shelby County where the Indiana Live! Casino
is located, versus Anderson and Madison County where Hoosier Park Racing & Casino is situated.
Shelbyville is directing 60% of its casino revenues – presently $1.6 million and likely $2.4 million by the end of the year – to economic development projects and Shelby County, with $2 million in gambling tax revenues, has voted to spend 65% of its revenues on economic development.
Compare to Anderson and Madison County, where the funds are going to the respective general funds to pay day-to-day government expenses.
Because gambling revenues are not reliable or stable, John Ketzenberger, president of the Indiana Fiscal Policy Institute, explained that local governments
are better off by using the revenue for one-time purchases, such as street upgrades or economic development. “To dedicate it to ongoing expenses is foolish,” he said.
A member of the Shelbyville City Council was quoted, “We need to trick ourselves into being wise by locking this money up for what we really need it for.”
Public/Private Beautification on a Huge Scale
Another recent article in the Indianapolis Business Journal heralded an unusual partnership between the city of Indianapolis and Eli Lilly and Company – a 12-hour beautification project along six miles of I-70 through downtown Indianapolis to be performed by 9,100 employee and volunteers. The Indiana Department of Transportation and the Federal Highway Administration have been asked for permission to close six lanes and five interchanges from 6 a.m. to 6 p.m. on Oct. 7, 2010. The project will include sculptures, artwork and nature-park landscaping. The 100,000 vehicles that traverse the stretch per day may be inconvenienced, but the beautification of our Hoosier capital will have a far-reaching benefit!
Until Next Month …
Keep listening on Saturdays, check our website often for newsletter and radio show archives, and contact me if you have a comment or point of refutation!
