THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, August 12, 1995 TAG: 9508100011
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 69 lines
James Babcock, chairman of First Virginia Bank of Tidewater, had a terrific idea last year, and he took it to the Hampton Roads Mayors and Chairs Caucus.
His idea was that the 15 cities and counties in Hampton Roads that make up the caucus would refrain from grabbing businesses from one another. Instead they would collaborate in recruiting business to the region.
Twelve of the 15 localities have signed on to the economic-development truce that Babcock suggested. Basically, they've agreed not to offer incentives to steal businesses from each other and not to engage in bidding wars against each other for outside businesses.
The document begins by recognizing that Hampton Roads cities and counties, ``while involved in competition for economic development, also share a mutual interest in managing that competition in ways that foster the region's growth without unfairly affecting the economic interests of each other. . . .''
``The incentive thing is a very controversial situation,'' said Perry DePue, chairman of both the Mayors and Chairs Caucus and the James City County Board of Supervisors. ``It's become the modus operandi for economic development. You can't put the genie back in the bottle. Incentives are out there all the time. You can't really change that, but you can limit that by cutting down on the amount of cutthroat between neighbors.''
As staff writer Mylene Mangalindan reported Sunday, some view the truce as a step toward attracting companies that appreciate regional cooperation.
``I think it's important,'' said Norfolk Development Director Robert Smithwick, ``because it serves as a springboard for the region to work as one marketing unit.''
Under the agreement, a locality unsuccessful at recruiting a prospect would refer the prospect to neighboring cities or counties.
Depending on whether the localities collaborate or compete, Hampton Roads is (1) a vigorous region of 1.5 million residents or (2) a hodgepodge of 15 communities working at cross-purposes.
The former is more attractive to most businesses looking for a place to settle.
Newport News and Portsmouth have yet to consider the truce but presumably will sign on. Virginia Beach Economic Development Director Donald L. Maxwell said his city is concerned about the language of the document, which will be discussed at the next Mayors and Chairs meeting in September.
As DePue noted about the new policy, ``It's strictly a code of ethics, and it's not binding. It's only morally binding.''
The hard truth is that the way Hampton Roads is set up, the city or county that recruits a business gets the taxes from it. Adjoining cities might get spin-off businesses eventually, or they might not. Thus the temptation to lure away businesses from neighboring cities is strong. The truce document states, ``In order to further regional cooperation, revenue sharing is a concept which the economic-development officials believe needs to be immediately pursued.''
Some Virginia Beach City Council members, at a recent two-day goal-setting retreat, said regionalism is a concept less workable than its supporters promise.
``So far,'' said council member Linwood O. Branch III, ``regionalism has appeared to mean what's best for other cities. Regionalism to me now is a way to take Virginia Beach's money and take it to another city.''
But if this region cannot act as a region, it will continue to be clobbered by regions that do.
Once again, leadership in the move toward regionalism has come from the private sector. Lots more good leadership will be needed. by CNB