THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, November 5, 1995 TAG: 9511040455
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
LENGTH: Long : 113 lines
Q: Now that you've been Virginia Beach's economic development director for a couple of months, how do you like it?
A: It's been tremendous. I think I've gotten general direction and the authority to implement activities. I'm extremely pleased with the private-sector community. That not only goes for developers and land owners, but it goes for architects and engineers, at least in providing assistance and helping to sell the people in the community. It also goes for the existing businesses we have, the large ones as well as the small ones. When I've called them, they've been more than willing to sit down and talk to people who have similar types of labor requirements or various needs or services. They've been very responsive to meeting with us and helping sell the city.
Q: How do your years in Hampton help your perspective?
A: Certainly experience helps. I feel that we were somewhat innovative on certain approaches in Hampton. But innovative doesn't always mean good. It taught me patience. You want to be aggressive. At the same time, you need to know when to be aggressive. You don't want to scare that client off. There's just too much competition today. You want to get the best deal for the city but you also want to be fair to the businesses coming in. When I say fair, that means that you want to create a good atmosphere for them so they'll want to expand. The greatest majority of projects we deal in always have expansion opportunities.
Q: Everyone talks about how your approach to economic development is different from your predecessor's. Is that primarily because there's so much emphasis on closing the deal and not as much on bringing prospects in?
A: I'm a firm believer in communications. I think one of the things we've done in the department is we've opened it up more. I want to make sure every City Council member knows what's on that agenda. If they have questions, we're on the phone communicating back and forth. When our development authority meets, sometimes we have members of the council attend. Also, I'm a firm believer in delegation of responsibility. If someone is going to sit down at the table it doesn't have to be the director.
Q: Are you targeting certain industries?
A: I don't have a magic plan in front of me right now. As a matter of fact, I have someone who's going to be coming in Nov. 6 and assisting me. We need to sit down and take a look at what we have to offer here in Virginia Beach vs. where the hot markets are right now. Where do we have to competitive advantage: Is it in the labor? Is it in the taxes? Union situations? We certainly in the past have not wanted high water users. We want to make sure that we have the resources.
Q: You're trying to combine marketing efforts in the region. How would you propose doing that?
A: Through Forward Hampton Roads (the economic development arm of the Hampton Roads Chamber of Commerce). Hans Gant (president of Forward Hampton Roads) is leading that effort. We'll all have an opportunity to try to encourage them to come to our specific communities.
Q: You mentioned before that you talked specifically about recruiting companies from the Northeast. Is that still a goal?
A: I still think that's the best market. But I think there are some opportunities with major corporations that have West Coast headquarters that don't have a regional headquarters on the East Coast. That's part of the reason I'm getting some assistance right now from some of the people that have expertise in that market. Our markets are going to continue to be New York and Washington. But at the same time I want to expand to L.A., San Francisco and Seattle, because I think the potential's there. If you take a look at us between Maine and Florida, we are the geographic center. And we also have that port capability to service a lot of other areas.
Q. One controversy in economic development nowadays is the use of incentives. What's your philosophy on that?
A: I'd like to call it an investment rather then incentive. They open up other opportunities, so the benefit doesn't just go to a company. It really needs to be a public benefit. Don't pay money to relocate somebody here. But I do think you need to take a look at the overall package and see what the opportunities are going to be. Put dollars in that will help encourage public investment for other entities.
Q: When you're trying to determine what sort of investment you want to have in construction for a company that may be relocating here, is there a standard formula you use for every single company?
A: When we go to provide financial assistance, we have a policy that is adopted by our City Council that's based on job creation, on capital investment and tax revenues.
Q: So the investment has to be performance-based?
Yes. That's correct. The other thing I've had to put into contracts, which previously was not done, is penalty clauses. In the event that they don't produce the number of jobs then money has to come back to the development authority.
Q: Will there be a similar procedure or evaluation for existing companies if they should get money from the city?
A: Sure. We do it for new firms that come in or for expansions of existing firms.
Q: And they would be asked to sign a contract?
A: I feel that's a given. Normally its going to conform with what they say they're going to do.
Q: Are you pleased with the way Corporate Landing is shaping up?
A: Yes. It's my understanding that Corporate Landing has been in existence for six years. Prior to coming here, I guess we had zero businesses. Right now we've got three projects that are either under construction - two of them are under construction - and the third one will be starting construction in about 30 days. We are currently working with a couple of other firms right now about the possibility of moving into the Corporate Landing, which I hope we can solidify within the next several months.
Q. Do you see that becoming a high-tech industrial park?
A: Yeah, I think it'll begin to get a certain image. And those are the types of firms we'd really like to see in there. ILLUSTRATION: Color photo
Graphic
DEVELOPMENT ACTIVITY
[For complete graphic, please see microfilm]
by CNB