THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, December 10, 1994 TAG: 9412100210
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 69 lines
Business leaders in Virginia say they need to play a greater role in solving the problems of economic development in urban areas.
And city officials are only too happy to have them share the burden.
``Almost universally these efforts are led by the business community,'' Norfolk Mayor Paul Fraim said. ``If they sense that the jobs are going elsewhere, they're losing competitiveness. There's more incentive for them.''
At the first-ever Urban Summit in Richmond this week - a meeting of academics, city officials and business people from 15 cities in the state - the chief executives of Virginia Power, First Union National Bank and Crestar Financial Corp. advocated greater public-private partnerships to solve metropolitan problems.
The private sector's desire to promote economic growth dovetails with the philosophy of Gov. George F. Allen. Earlier this week, his administration unveiled its ``Opportunity Virginia'' plan, which is based on a private-public partnership. The governor proposed to form a new quasi-public agency aimed at attracting new business to the commonwealth.
The board, to be called the Virginia Economic Development Authority, would be run by business leaders.
The reason for corporate involvement in these partnerships is not always altruistic, said James T. Rhodes, president and CEO of Virginia Power, the summit's keynote speaker.
``As the state's largest electric utility, Virginia Power's future is closely linked to the communities we serve - especially those in the so-called `urban crescent' that stretches from Hampton Roads through Richmond and into the Northern Virginia suburbs of Washington, D.C.,'' he said.
But aside from the revenues the company gains or the taxes it pays, Virginia Power works with cities, regional entities and state organizations in a mutually beneficial relationship to help attract new industry and jobs to the commonwealth.
``Cost-effective energy services and competitive rates are key factors cited by businesses and industries seeking locations for new or expanded facilities,'' he said.
He and others agreed with studies presented by University of Virginia and Virginia Commonwealth University academics that urban problems affect suburban neighbors. In turn, cities' problems drag down the state's competitiveness.
Richard G. Tilghman, CEO of Crestar, addressed the need for greater cooperation between competing sister cities, which will not come easily.
``You need to look at the legal issues of how to share revenue and solve problems,'' he said. Regionalism sounds great in name only because more practical, concrete issues usually stymie true cooperation.
For example, North Carolina's government and legal structure incorporates cities and counties together.
``It's easier because their tax structures are not competitive with each other,'' he said.
In addition, cities tend to restrict their scope to their region or the nation instead of harboring a global vision, said Warner N. Dalhouse, First Union's CEO.
``We must recognize Virginia and its cities are compared to other states and cities every day, and how we look is a relative thing so we need to be among the best,'' Dalhouse said.
All three businessmen acknowledged greater participation on the part of corporate leaders.
``Business leaders are taking real interest in these issues and what's happening in their communities,'' Tilghman said. by CNB