Written by guest blogger Ethan Laufenberg, business intelligence intern
For this month’s blog post, business intelligence intern Ethan Laufenberg conducted an interview with Jim Cleveland, Vice President of Economic Development at Envision Greater Fond du Lac. Jim has worked with Envision Greater Fond du Lac and its predecessor, Fond du Lac Economic Development Corporation, for 14 years. Prior to this, Jim had a career in the banking sector. Ethan’s interview with Jim centers around the general economic development process in the Fond du Lac area, its inner workings, and what factors might influence this process. They also discussed common misconceptions and aspects the public might be unaware of when it comes to development projects, specifically how lengthy and complex the process can become.
Ethan: Can you give an overview of what the general economic development process looks like?
Jim: Typically, a business that is considering a move to the Fond du Lac area or may be adding a second location will engage with a site selector* to reach out to targeted communities for potential sites or buildings. EGF will respond to these Requests for Proposals* (RFPs) with properties that meet the specific criteria for the project. If our response makes the first round of cuts, an on-site tour of the property is arranged for the prospect. If the property is ultimately selected, negotiations on property acquisition will ensue and hopefully end with a successful conclusion.
Ethan: What is the average length of an economic development project? Why can these projects take such a long time?
Jim: This varies depending on the project and the complexities of it. We have had some projects take very little time to some that may take over 5 years. Economic conditions can play a part as well as negotiations on land/building acquisition, which can be lengthy. Additionally, internal operations of the company may ebb and flow causing delays as well.
Ethan: In your opinion, what is the main source of complexity or problems when it comes to economic development projects?
Jim: Currently, the Greater Fond du Lac area has a shortage of available industrial buildings. Many prospective businesses want an existing building, due to in part to high construction costs. Finding the space to meet the RFP criteria is challenging in this area.
Ethan: Why do economic development projects often take place “behind the scenes”?
Jim: For a variety of reasons, projects are confidential until a company is ready to launch/build/locate in an area. This can be due to competition, financial or, perhaps, existing workforce considerations. By being behind closed doors, all the negotiations and due diligence can be completed without the project being compromised by misinformation and confidentiality considerations.
Ethan: What do you perceive as the biggest misconception people have about the economic development process?
Jim: That it is easy. I have been told that all we need to do is pick up the phone and ask a business to come to the area. That can be a good start, but many more considerations need to be taken into account. One main area we work with our municipal partners on is, will this project be a good fit for our community? Does it meet the current zoning codes? Will we have the right workforce for this business to be successful? Is our median household income sufficient to support a business? Some businesses require communities to meet certain criteria in order for them to view the prospect as a viable opportunity. These are just some of the areas a community looks at. Then, there are all the other issues previously stated that make economic development a complicated process.
Ethan: What should people be aware of when thinking about and discussing economic development?
Jim: I feel people need to understand that this is not a short game. Rather it is the long game and it is, at times, complicated and challenging to make deals happen. Also, economic development itself is changing. In the past, it was about how many jobs would be created by a project and the square footage built. Now, with the workforce shortage, automation and upskilling of the workforce are some primary considerations.
Ethan: After my interview with Jim, it became very clear just how complex and lengthy the economic development process can be. Numerous factors need to be considered for every project, multiple steps are involved (all of which could halt or delay the process), and current limitations within Fond du Lac County need to be considered. I hope this interview and information can help shed some light into the economic development process and give people in the community a greater understanding and value of the topic.
*Definitions:
Request for Proposals (RFPs): A project announcement that solicits bids from qualified entities to complete a project. In this realm, an RFP might ask communities to submit eligible sites for facilities or new builds that meet a variety of criteria, including but not limited to: broadband internet access, utility usage minimums, access to interstate highways, workforce requirements, and more.
Site Selector: An individual or entity that assists a business in finding a new facility location. Site selectors measure the needs of new projects against the merits of potential locations to find the most suitable location for the new facility.