THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, March 3, 1996 TAG: 9603020193
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Long : 163 lines
Heading down the hallway toward his office with a cellular phone in hand, Robert T. Skunda looks as poised as a model strolling down a fashion show runway.
And in a stylish dark, pin-striped suit, he's just as well-dressed.
Looking sharp is practically a necessity for the state Secretary of Commerce and Trade, who oversees 14 agencies, including the Virginia Employment Commission and the Department of Economic Development.
Skunda hobnobs daily with myriad government officials, senators and corporate executives. And now that Virginia has instant name recognition with the semiconductor industry - thanks to a $3 billion deal with Motorola and a $1.2 billion pact with IBM/Toshiba for computer chip factories announced last year - Skunda is being courted by more people than ever.
But the Michigan native isn't content to collect congratulations. His main charge from his boss is to generate even more jobs.
With Skunda's help, Gov. George F. Allen surpassed his campaign promise to create 125,000 new jobs. More than 150,000 new jobs have been created by the private sector under his watch, Allen announced last week, including a record $5.93 billion investment for 1995.
In Skunda, the governor chose an articulate, respected advocate for business interests who recognizes there's still work to be done in Virginia. A lot more.
``We've got a long way to go with the whole spectrum of businesses who, for years, have been influenced by what they've been hit with in the way of positive perception about the North Carolinas, the Georgias, the Tennessees,'' said the 49-year-old. ``Even in spite of our success . . . we do not have `top of mind' awareness with many CEOs. And that's where we need to get to.''
Others agree that Virginia has yet to distinguish itself. And its success in creating jobs can be attributed to the improvement of the state's economy - not magic worked by Allen's administration.
``You're talking about more fundamental economic forces,'' said Doug Woodward, an economics professor at the University of South Carolina who follows regional and urban economics. ``All states are getting more aggressive. So has Virginia. They've been doing better at attracting capital and attracting jobs.
``You may say, `Wow, Virginia's doing really well.' Well that's true. But so are other states.''
At the very least, Skunda has capitalized on the state's prosperous economic times and pro-growth image.
Well-known in state circles for his work as chairman of the Virginia Chamber of Commerce and the Fairfax County Chamber, Skunda continues to be a ``big picture'' guy, supporters say.
``Bob Skunda has the long view, the history,'' said Greg Wingfield, president of the Greater Richmond Partnership. ``When he was tapped by Gov. Allen to be Secretary, he brought the kind of focus and the kind of things that needed to be done to enhance economic development for Virginia.''
Sincere and knowledgeable, Skunda presents a professional and efficient public persona. He shares thoughtful opinions about how the state can help existing companies grow: less burdensome tax and regulatory policies; allowing local government help manage and plan for growth and development; use incentives by establishing a policy and writing agreements into contracts with companies.
Some argue that the Allen administration has championed business interests so devotedly that the environment has suffered. At a recent General Assembly meeting in early February, a former employee of the Department of Environmental Quality, Art H. Buehler III, criticized political decisions favoring business over environmental protection.
``The commonwealth already has a Department of Economic Development,''
Buehler said during the meeting about Secretary of Natural Resources Becky Norton Dunlop. ``We don't need two.''
Skunda has a solid grasp of the relationship between the state and its various constituencies of existing companies, regions of the state like Hampton Roads and corporate prospects.
And he knows how to steer major projects.
He helped expand the Opportunity Virginia fund, started under former Gov. Douglas Wilder, but firmly established himself as a ``deal closer'' under current Gov. Allen.
``He's just a brilliant guy,'' said Karl Nelson, president of InsurMark Group in Reston, who worked with Skunda at the Fairfax County Chamber. ``One of the things I don't think he's been given enough credit for is his ability to be measured and at the same time sell people on the ideas that he's put forward.''
Skunda spearheaded Allen's effort to win legislative approval for the $163 million incentive for the proposed Walt Disney Co. historical theme park in Northern Virginia. When a preliminary draft of the report leaked to the media with the untested financial numbers, Skunda had to defuse general alarm over the size of the deal.
But he never lost his cool.
``I never saw him get rattled in a crisis,'' said Burwell Gund, executive vice president of Crestar Bank who worked with Skunda in Fairfax County. ``He has a great political sense about him. His approach is to build as much consensus as possible. He's always respected people of opposing opinions.''
A transplanted Virginian, Skunda was born in Flint, Mich. He received his bachelor's degree in architecture and his master's degree in urban planning at the University of Michigan. A college football fan, his license plate reads ``GO BLUE1.''
Before taking the Cabinet position of Secretary of Commerce and Trade, he was the managing principal of the East Group of Dewberry & Davis, an architectural and engineering services firm, where he oversaw marketing, business acquisitions and expansions.
A tireless and meticulous worker, Skunda ignored doctor's orders after he injured his back during the holidays. He brought work home and went into the office after his surgery. He'd work for a while, stop, rest and then continue working.
Friends describe him as a likable, gracious man with a great sense of humor. During his free time, he enjoys playing golf and spending time with his wife, Cheryl, his daughter, Courtney, and his son, Kevin, a student at the University of Virginia.
Many familiar with the intricacies of economic development say that an improved economy and a better understanding of the interstate rivalry have helped Virginia's competitive position.
In the 1980s, Virginia was among the top five in job creation, Wingfield said.
``We had some huge announcements,'' he said. ``Hampton Roads was a part of that'' with Mitsubishi, Lillian Vernon, QVC and other local companies expanding.
``When the recession came and budgets were cut across the board, there wasn't any advertising and companies cut back,'' Wingfield said. ``What happened on the state level also happened on the regional and local levels. Their budgets were cut mostly because businesses were. With what was happening at the time, Virginia was not a major player in the marketplace.''
``The mind-set in Virginia for industrial development has matured,'' said Hugh Keogh, president of the Virginia Chamber of Commerce. ``There's a better acceptance by policy makers of what it takes to close deals.''
For years, states have used incentives to lure business. They include tax rebates, cash or free rent. Alabama reportedly used $200 million in inducements to land a Mercedes-Benz plant in 1993.
With the creation and frequent use of the Opportunity Virginia Fund, as well as performance-based grants, Skunda and his leading deputy, Wayne Sterling, director of the Virginia Department of Economic Development, benefit from an improved mind-set among legislators and others of how the game is played.
``They have more tools,'' said Keogh, who served as economic development director from 1987 to 1992 under Gov. Gerald Baliles and the first half of Wilder's administration. ``It took some time, an evolution really, for Virginia to be comfortable with (incentives). They have to be applied with discipline. You have to be willing to go into the market and wheel and deal.''
Skunda and Sterling have done just that.
The state's inch-thick economic development list has grown from 72 active prospects, when both men started, to about 400. But leads are only a starting point.
``Why aren't businesses just beating a path to our door?'' Skunda asked. ``Well I don't think any business is going to beat a path to your door necessarily unless you promote yourself and you are able to demonstrate to them how they are helped and why they would want to, as they continue to expand, take advantage of these resources.''
On the top of his to-do list, Skunda wants to concentrate on business retention and corporate growth. But he acknowledges that recruitment of new and expanding companies will still take up much of his time. Many say the job isn't done.
``What are the challenges? It would be keeping up with expectations,'' Wingfield said. ``With all the success from last year . . . you hear the comment, `well that was last year, what have you done for me lately?' '' ILLUSTRATION: Graphic
ROBERT T. SKUNDA
[For complete graphic, please see microfilm]
KEYWORDS: PROFILE BIOGRAPHY VIRGINIA
ECONOMIC DEVELOPMENT by CNB