THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Wednesday, January 1, 1997 TAG: 9701010250
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY KATRICE FRANKLIN, STAFF WRITER
DATELINE: SUFFOLK LENGTH: 112 lines
Two months into his job, Economic Development Director Thomas O'Grady already has tested his luck at two games of political poker - and lost.
The stakes? Twinpak Inc. and Iceland Seafood Corp., two industrial companies looking for a place to house their facilities.
The players: Suffolk and Newport News.
The Peninsula city won. Hands down.
``Naturally, I would've liked for them to come to Suffolk,'' O'Grady said. ``Newport News was very prepared with nice, existing industrial parks already in place.
``Things just seem to move in a cyclical nature. Over the years, companies seemed to come to South Hampton Roads. Now, the Peninsula is doing very well.''
But he predicted, ``The pendulum will swing back our way.''
These days, the former director of development for Forward Hampton Roads is immersed in the learning process.
With Forward Hampton Roads, O'Grady was responsible for selling the region. Now his focus has narrowed to one city.
O'Grady spends much of his time meeting city staff and business leaders. His office, in the old Central Fidelity building downtown, has several older pictures of the city. And his desk is stacked high with papers.
``I'm finding that some people have different priorities than others,'' O'Grady said.
O'Grady takes his new position at a crucial time for Suffolk. The 432-square-mile city, the size of Rhode Island, is experiencing steady growth. The city's population of about 56,000 is expected to nearly double to 92,000 by the year 2015, according to the Hampton Roads Planning District Commission, and many people are looking to O'Grady to help lure business and industry to help the city pay for its needs.
City officials learned recently that a tax increase next year is almost inevitable to pay for new schools and other public improvements - most of which result from growth. The city this year identified more than $40 million in needed capital projects, including $4 million for roads and utilities to develop a new industrial park and about $3.7 million for parks and recreation.
The school system needs almost $130 million for new facilities to meet an influx of students.
While the city can borrow to help meet the needs, officials say the key is a strong economic development plan that attracts industry and adds to the tax base. This year, the city received about $2.5 million from business in property taxes, while about $8.1 million came from the city's residents.
O'Grady said there's definitely pressure on him to perform.
But the 39-year-old is not easily put off.
Success takes teamwork, O'Grady believes. He sees City Manager Myles E. Standish as the leader and himself as a ``lieutenant, out in the field beating the bushes to develop the city and help existing business grow.''
O'Grady is working closely with Forward Hampton Roads and the Virginia Economic Development Partnership - two agencies whose mission is to bring industry to the state and region.
To market the city, he said, you must sell the region first.
``Businesses are attracted first to the region and second to the individual city,'' O'Grady said. ``The region as a whole has good transportation access and a strong labor market.
``It also has good location. We're at an equal distance between Maine and Florida, two big distribution centers.''
Once potential businesses select Hampton Roads, O'Grady then touts Suffolk's assets.
``Suffolk has good transportation access,'' O'Grady said. ``It's near Interstates 85, 95, 64 and 664 and U.S. Routes 58 and 460.
``Land is cheaper here than in other Hampton Roads cities. And we have a lot of it to sell.''
He said, ``As the interstates become more congested, Routes 460 and 58 will become more important because they will be easier to travel.''
O'Grady is targeting industrial, office and manufacturing jobs - the kind of companies that pay at least $8 to $10 an hour.
To meet that goal, he is pushing the City Council to quickly develop Suffolk Industrial Park, 150 acres of vacant land on Carolina Road, between downtown Suffolk and the city's airport.
``If the park is ready for a potential business to move in, it's a lot easier to sell Suffolk,'' O'Grady said.
The center is also important, he said, because it can help develop downtown. The city is building a $14 million courts complex downtown that should be finished within 18 months.
``Professional services will want to be close to the courthouse,'' O'Grady said. ``People are already inquiring about office buildings. The Suffolk Industrial Park can help offer space and employment for those who live near there and may have to walk to work.''
Suffolk has three industrial parks: Bridgeway and Lake View are privately owned and Wilroy is city-owned Two proposed industrial parks, Suffolk and Northgate centers, also would be city-owned.
O'Grady also wants to work on expanding existing businesses. He contacts at least two businesses a week and talks about expansion possibilities. So far, O'Grady said, the response has been positive.
The city is also updating its advertisements. In January, a new, high-tech advertisement will be released in economic development magazines to promote the Virginia Modeling and Simulation Center - a new state facility being run by Old Dominion University in northern Suffolk.
The center, which will work closely with the Joint Training and Analysis Center - where the military uses technology to develop, test and study war strategies - will clone computers, models and simulators that the military uses, and make the facility accessible for local industry and educators to use in daily practices. The city is asking the General Assembly for $750,000 in base funding and $250,000 for equipment.
Standish said O'Grady is off to a good start.
``He's done more in the past month and a half than we have done in a while,'' Standish said. ``He's very energetic and very task-oriented.''
O'Grady admits that he has a lot to do to meet his goals, but ``I relish the challenge to succeed,'' he said. ``Suffolk has a lot to offer.
``No man can accomplish it all. But if we pool our resources, it can be done.'' ILLUSTRATION: Color photo
Thomas O'Grady, Suffolk's new economic development director, touts
the city's easy transportation access and cheap land.
KEYWORDS: SUFFOLK DEVELOPMENT