Tuesday, July 24, 2007
Wanted: younger workers
A new executive position is being created to draw creative professionals to Southwest Virginia.
Productive fishing for specific species requires the right bait and a skilled angler. The region's economic development group is searching for both to lure and keep young professionals.
That's the theory, anyway, and the plan.
High-tech businessman Victor Iannello, board president for the Roanoke Valley Economic Development Partnership, told The Roanoke Times on Sunday that the partnership is creating a new position to tackle a fresh marketing strategy.
The new executive's title will be chief executive officer. That person will report directly to the partnership's board of directors. Phil Sparks, 61, has been RVEDP's executive director since 1999. After the hire, Sparks will report to the CEO instead of the board. Iannello insisted Monday that the change does not equal a demotion for Sparks.
The personnel changes simply reflect a new emphasis, he said.
"Right now, the partnership is focused on industrial recruitment," but attracting other high-paying companies, high-end retailers and even outdoors outfitters can hinge these days on a region's quality of life, said Iannello.
Iannello, president, CEO and founder of Synchrony, said Sparks and other staff will continue touting the region to manufacturers, suppliers and other companies.
Sparks' annual salary is $103,000. The partnership's current annual budget is $800,000. To support the new marketing strategy, the annual budget must be about $1.4 million, according to Iannello, who said a fundraising effort with a target of $6.5 million over five years is aimed at meeting the increased financial need.
RVEDP markets the counties of Botetourt, Craig, Franklin and Roanoke, the town of Vinton and the cities of Covington, Roanoke and Salem. The partnership is funded by both public and private sources.
In May 2006, McAirlaid's Inc. announced plans to hire 160 people and invest $85 million over time to build, in Franklin County, the company's first North American manufacturing plant and corporate headquarters. Paul Kasmer, vice president of operations for McAirlaid's, said Sparks played a key role in bringing the company to Franklin County.
"He was instrumental in getting us into Virginia," Kasmer said. "There's no doubt that Phil really pulled things together for us."
McAirlaid's manufactures nonwoven composite materials used for absorbency in medical, food and hygiene industries.
However, in recent years, high-tech entrepreneurs in the Roanoke Valley and Richmond economist Christine Chmura have frequently said that regional economic development efforts need to move beyond attracting manufacturing companies.
Sparks said he would not comment about changes planned for the partnership.
Roanoke City Councilman Brian Wishneff has repeatedly and harshly criticized economic development recruitment efforts by the city, by Downtown Roanoke Inc. and RVEDP, saying none has been aggressive enough.
Wishneff, an economic development consultant and the city's former chief of economic development, learned about the partnership changes from a news release issued after The Roanoke Times contacted Iannello.
"I am disappointed as a local elected official that the first I heard of this was through a news release," Wishneff said.
In an opinion piece in Saturday's Roanoke Times, Iannello outlined the rationale for a new partnership strategy, an approach he said could help accelerate the Roanoke region's anemic annual population growth of 0.5 percent.
"Research shows that young, talented professionals -- the demographic we're lacking in the Roanoke region -- are not focused just on their jobs," he wrote. "What they are looking for is quality of place."
Sabine O'Hara, former president of Roanoke College, led a study that compared the quality of life in the Roanoke metropolitan statistical area with 10 similar MSAs nationwide. Related research suggested Roanoke scored well on measures of cultural amenities, education quality, an accessible airport, outdoor recreation opportunities and a clean environment but fell short on other key measures.
An examination of median household income told her that "we have not been discovered by the creative class work force."
Iannello's op-ed referenced Richard Florida, author of "The Rise of the Creative Class" and related books. Iannello acknowledged that the partnership's new emphasis has been influenced by Florida's theories.
Florida suggests cities must attract and accept artists, ethnic minorities and gays because evidence of such tolerance and diversity attracts smart young people who will start fast-growing companies or work for companies seeking a good quality of life, Florida says.
Florida's theories have influenced numerous cities, where officials encourage development of amenities likely to snag young professionals.
"Everywhere you look, cities big and small are trying to get in touch with their inner Austin," observed Fast Company magazine.
For many company executives today, Florida suggests, things like tax breaks and incentives don't matter as much as finding a hip, open-minded city where smart and savvy employees want to live.
Not everyone buys Florida's ideas. His research methods have been repeatedly challenged.
Jamie Peck, a professor at the University of Wisconsin-Madison, has written that the pursuit of the creative class "has become a cliche of contemporary urban regeneration."
The Fast Company article suggests "there's scant evidence that Florida-esque creativity strategies have moved the needle on traditional economic development gauges such as job and income growth."
Iannello countered that cities such as Asheville, N.C., and Chattanooga, Tenn., have boosted their economies by focusing on improving quality of life measures.
Wishneff said Florida's concepts seem to have merit, especially when applied by a land-locked city such as Roanoke.




