Should local government invest in shovel-ready commercial sites before businesses commit?

POINT: To Attract Business, Clay County Must Be Ready

When a company begins looking for a place to build or expand, Clay County isn't just competing against neighboring counties. We are competing against communities across Kentucky and, in some cases, across the country.

That means being interested in economic development isn't enough. We have to be ready for it.

Clay County should invest in developing shovel-ready commercial and industrial sites before a company commits to coming here.

Businesses looking to expand often want property where construction can begin quickly. They need adequate water, sewer, electricity, broadband and highway access. They want to know whether environmental studies have been completed and whether the property can accommodate their project.

If we wait until a company calls before beginning that work, we may already be too late.

Consider how we prepare for almost everything else. We don't wait until students arrive before building a school. A restaurant doesn't wait for customers to walk through the door before buying tables and kitchen equipment. Preparation comes before opportunity.

Economic development isn't much different.

Yes, preparing property costs money, and there is always a risk that development won't happen immediately. Taxpayer dollars should never be spent carelessly. Any property considered for development should have realistic potential, and investments should be based on research rather than wishful thinking.

But doing nothing also carries a cost.

For generations, one of Clay County's biggest challenges has been creating enough good-paying jobs for people who want to remain here. Too many young adults graduate and leave because opportunities are greater elsewhere.

Changing that requires more than saying we want businesses.

It requires giving businesses a reason to choose us.

Clay County has advantages. We have available land, improving infrastructure, proximity to major highways and a workforce with generations of experience in manufacturing, construction and other industries. Our location in Eastern Kentucky can also position us for opportunities that may not have existed a generation ago.

But companies cannot build on potential alone.

Imagine an economic-development prospect considering five Kentucky communities. Four can immediately show property with utilities, access and necessary studies already completed. The fifth says, "We can probably get all of that done."

Which community has the advantage?

Being shovel-ready doesn't guarantee that a company will come to Clay County. Nothing can guarantee that.

What it does guarantee is that when opportunity comes looking, Clay County can sit at the table and compete.

Economic development requires patience, planning and sometimes calculated risk.

Instead of waiting for someone to choose Clay County and then getting ready, perhaps it's time to get ready so they can choose us.

COUNTERPOINT: Taxpayer Dollars Shouldn’t Be Spent on a Maybe

Everyone wants to see more jobs and businesses come to Clay County. The disagreement isn't over whether economic development is important.

The question is how much taxpayer money government should risk trying to make it happen.

Buying property and spending potentially millions of dollars preparing commercial or industrial sites before a company has committed to locating here can become an expensive gamble.

Clay County has many needs competing for limited public dollars. Roads require maintenance. Water and sewer systems need improvements. Emergency services must be funded. Parks, recreation and other public facilities also require investment.

Every dollar placed into speculative development is a dollar that cannot be spent somewhere else.

Supporters of shovel-ready sites make a reasonable argument: Companies often want locations where they can begin construction quickly. But being ready doesn't necessarily mean government must purchase and develop large tracts of property hoping someone eventually arrives.

There are other approaches.

Local officials can identify privately owned properties suitable for development, work with landowners and utility providers, complete planning work and establish partnerships that allow government to respond quickly when a legitimate prospect emerges.

That can make Clay County competitive without placing taxpayers in the real-estate business.

There is also no guarantee that an expensive industrial or commercial site will attract the type of development the community wants.

Across Kentucky and the nation, communities compete fiercely for businesses. Even a fully prepared site can remain vacant for years. During that time, taxpayers have money tied up in property that produces few jobs and little economic activity.

Clay County should certainly invest in infrastructure that benefits everyone. Better roads, reliable water and sewer service, broadband and workforce development make the county more attractive to businesses while also improving life for existing residents and employers.

Those investments provide value whether a major company arrives next year or 10 years from now.

Economic development should also include helping businesses already here expand and encouraging local entrepreneurs. Sometimes creating 10 jobs at several existing businesses can have as much impact as waiting years for one large employer promising 100.

When a serious company expresses interest in Clay County and demonstrates that jobs and investment will follow, public participation may be justified. At that point, officials can evaluate the number and quality of jobs, projected economic impact and amount of public investment required.

That's different from spending first and hoping later.

Clay County needs economic development, and we should aggressively pursue it.

But being aggressive doesn't mean being reckless.

The best economic-development strategy may be to prepare our infrastructure, strengthen our workforce and identify potential sites — then make major public investments when a genuine opportunity is standing at the door.