deirdre.conner@roanoke.com 981-3340

If regional economic development is like football, then area business leaders are hoping the team can keep the game plan going this year. But they'll have to do it without financial assistance from the state.

The Fifth Planning District Regional Alliance said at a conference Thursday that its member organizations have made progress in 19 of 23 initiatives identified in 2002 to transform the area from a declining manufacturing economy to a "knowledge-based" economy. Although the group's budget for this year is zero, chairman Victor Iannello said it won't stop the alliance from promoting a regional economic strategy introduced two years ago.

Iannello cited the creation of venture capital funds, the Smart Way commuter bus from Roanoke to Blacksburg and the "NewVA" brand creation as the most significant accomplishments.

And later this month, the group is expected to release the results of a study looking at the growth characteristics of the district's industries. The study should "help us to focus on what specific [industry] clusters are there, which ones are viable and which ones aren't as viable," Iannello said. He would not comment at length on the preliminary results of the study, but said they contained "some surprises."

The alliance, which was funded by the state legislature through the regional competitiveness program, received no money for this year, Iannello said. A committee is looking into finding other sources of funding, potentially from local businesses, grants and existing organizations. But Iannello said the alliance, as a "virtual organization" that unites local governments and economic development organizations, needs little money to operate. Its administrative needs are taken care of by the Roanoke Valley-Alleghany Regional Commission.

"I think the state's been short-sighted in not wanting to fund the regional economic competitiveness program," said John Williamson, president of Roanoke Gas' parent company, at the conference Thursday. "A lot of us felt like for the last 10 or 15 years, we lacked a regional strategy," and are now encouraged to see the alliance's economic strategy getting under way.

State Del. William Fralin, R-Roanoke, said he wants to introduce a budget amendment to get funding for the group next year.

"If nothing else, just bringing all the local governments together and employers in the same room for meetings is vital," Fralin said. "I think it's appropriate for the state to chip in. That's something that we need to take care of."

Beth Doughty, president of the Roanoke Regional Chamber of Commerce and vice chairwoman of the alliance, said the strategy is important to make sure municipalities and other groups are moving in the same direction.

"You could have the best people on that team, but if you don't have a game plan, you can't win," she said.

While initiatives such as the creation of a brand identity and a study of the area's economy were funded directly by the state money, Iannello said promoting those results costs the alliance no money - it's just integrated into the planning of member organizations.

Earlier this year, the alliance introduced NewVA, the brand identity it assigned to the region, which includes the Roanoke Valley, the New River Valley and the Alleghany Highlands.

"It's certainly going to help inasmuch we can integrate the visibility of the resources in the region. Certainly we've been on the radar where we haven't been before," Iannello said. He said the brand has been used by the Roanoke Valley Economic Development Partnership to attract businesses. "It is now in the arsenal of tools they have to promote this region."

A NewVA billboard on Hershberger Road now greets travelers coming from the Roanoke Regional Airport, an airport where, Iannello pointed out, they could have taken advantage of free wireless Internet service.

While they might be saving on Internet access, travelers are not yet seeing a discount on their airfare. Current hopes for attracting a low-fare airline to Roanoke, one of the alliance's strategies, are dim.

"We pointed out that this was something that needed to happen," Iannello said.

The alliance's strategy is intended to address problems identified in a 1999 study that found the region lagging behind state and U.S. averages in population growth, employment growth, manufacturing, educational attainment and per capita income.