Scholarships the answer to economic growth?
Last week I mentioned Fire Station No. 2 not having a steady tenant since 2001. A-1 Fire Equipment Inc., a fire extinguisher sales and service company, has been in business at 313 Lakeland Blvd. (fire station # 2) for 2 months. The owner tells me they have had a very strong beginning and hopes to be in that location for years to come. This is a great second use for this building and as long as they are in business, a historic structure is a little bit safer. Good luck to A-1 and keep them in mind next time you need a fire extinguisher.
Now on to this weeks column;
I have said many times that if Coles County wants to turn the corner on economic development, they are going to have to think outside of the box. Any community can offer abatements and other tax incentives, but this puts an unfair advantage to new companies over existing competing companies. And more and more, developers are looking for more than a tax break when they choose their location.
Quality of life issues such as quality roadways, high technology infrastructure, educated workforce, comprehensive parks and bike system, and low crime rate are all things that more and more companies seem to like, and it seems like they are also factors in Economic Development.
The catch 22 is without business, it is hard to improve quality of life issues, and without a high quality of life, business will pass you by. So if a community is lacking in these departments, and traditional incentives fail to attract business, what can they offer to attract companies to the area?
Kalamazoo, Michigan has found a way to do such a thing. The Kalamazoo Promise gives every public high school graduate a chance to attend any State funded college or university. Every graduating student, regardless of grades gets free tuition to any Michigan State secondary school.
This promise is already seeing an increase in housing in the Kalamazoo School district. Increased demand for housing will improve housing values and make opportunities for infill housing. With more housing units and people in the City, there would be more opportunity for small businesses and other services.
Larger companies will look to Kalamazoo as a prime location for their business. The enticement of free college tuition for the children of its employees will bring is an incentive no other town gives them.
A similar program should be studied for Coles County. With Lake Land College and Eastern Illinois University being located in the County, maybe something on a smaller scale can be worked out with these institutions. If graduating students from Mattoon, Charleston, or Oakland were given an edge on the ever-rising tuition costs, the economic impact would be tremendous. We could expect similar results to those in Michigan.
An anonymous donor funded the Kalamazoo Promise. The amount was not disclosed. The interest from a $16 million trust could fund tuition for 200 graduates for 16 semester hours at Lake Land College. While this seems like a lot of money, Mattoon School District has spent close to $40 million in renovations and construction in the last 10 years. And as of the fall of 2004, they had $20 million in reserves.
The most effective economic development strategy is to create a community where businesses want to be. There are many factors, including economic conditions, desirable housing and neighborhoods, shopping and entertainment, quality schools, labor force, environment, and etc. that go into creating such a place. The promise of a college education is one incentive few communities can offer. Its value towards economic development is immeasurable.
