Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, October 19, 1994                   TAG: 9410190041
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium

SELLING THE STATE TO OTHERS

The "Opportunity Virginia" plan, being developed with the assistance of 18 regional advisory councils, will identify a core of Virginia industries from aerospace to tourism that should be the focus of the state's development efforts.

The plan also will help guide public investments in economic development by establishing why such investments are important, Skunda said. And under the state's governmental structure, in which the governor's office changes hands every four years, the plan will help provide continuity to the state's economic development efforts, he said.

Skunda was a luncheon speaker Tuesday at a gathering of local business operators and economic developers. The gathering was sponsored by Sen. Brandon Bell, R-Roanoke County.

His talk ranged from the development initiatives of Gov. George Allen's administration to the fallout from the Walt Disney Co.'s decision to abandon its theme park plans in Prince William County.

One of the challenges of the incoming administration was to "jump start" the state's economic development efforts, Skunda said. As a consequence, everyone from the governor on down has become a salesman for Virginia, he said.

Another challenge was to restore the state's competitiveness, he said. Part of that involves convincing people that economic development has to be a team effort, he said.

A new business tax credit has helped Virginia build its reputation as business friendly, Skunda said. The credit is worth $1,000 to a business for every new job that's created over 50 or 100, depending on the unemployment rate of the community where the company locates.

Expansion of the number of business enterprise zones in the state, a legislative proposal that was carried over until next year's General Assembly, is also needed, Skunda said. A bill that would raise the number of zones from 25 to 50 is part of a package of development incentives, including other possible tax credits, explained Bell, a sponsor of the proposal.

An enterprise zone in Pulaski County was part of the reason Virginia was able to keep the expansion of the Volvo-GM truck plant at Dublin from going to the Carolinas instead, Skunda said. The Volvo-GM plant itself serves as a magnet for other business, and the state is working with a company coming to the area because of the plant, he said. State officials declined to identify the prospect.

Skunda said the state is trying to determine what damage was done to its reputation by the Disney company's decision to abandon plans for a historical theme park and real estate development in Prince William County. "We can demonstrate Disney was a one-of-a-kind situation," he said.

State officials talk with Disney executives on a regular basis, Skunda said. The state remains encouraged that Disney will pick another Virginia location for a redesigned project that will consist of the theme park without the real estate development, he said.

Disney is still looking primarily at Northern Virginia for a location, he said, and has advised against communities spending money in an effort to woo them.

After the luncheon, Skunda met with Roanoke government and business leaders who are trying to set up a business incubator in Roanoke. Incubators provide start-up companies with low-rent facilities and other shared services.