What does the future hold for jobs in Roanoke?

Hearing the term “economic development” may induce an immediate and deep sleep for those who don’t know what it really means. But it’s something that means a great deal to all of us. Quite simply, it means “more jobs.”

It means jobs for you and me, and jobs for the hundreds of recent college graduates and 20-somethings who leave our region each year in search of good-paying jobs they can’t find here.

More jobs not only means our young people might stay in the region, but it also helps those of us who are already here. More jobs means more competition among companies for employees, and that often leads to higher wages.

Roanoke’s economic development department is one important key to attracting new employers to Roanoke and helping existing businesses in the city to grow. The department’s director, Beth Neu, is leaving the position as her husband starts a new business venture, American Leak Detection, in Richmond.

I talked with Beth about Roanoke’s strengths and weaknesses in attracting and growing businesses. I asked her to take a look back over her last four years with the department and give an assessment of what the city was doing right and what it might want to improve upon.

Gottstein: What accomplishments are you proudest of over the last four years?

Neu: The department worked hard to develop relationships with the business community. We held breakfasts every month with small groups of businesses and the city manager. We also tried to respond to businesses’ needs as best and as quickly as we could when they called upon us.

We also got the state to approve a new enterprise zone in the city after the old one expired after 20 years. An enterprise zone is an area that may have some deterioration and needs some renovation and new job growth to bring it back to life. Financial and tax incentives are offered to businesses that rehabilitate structures, expand, or hire employees from the area. The new zone includes downtown, the Shenandoah Avenue area, the Williamson Road area, the Roanoke Industrial Center on Ninth Street in Southeast Roanoke, parts of Melrose Avenue, plus other small nodes.

In addition, we had several business expansions, including the new press building for the Roanoke Times, and we renovated and are leasing Warehouse Row in downtown to technology companies. It’s at 90 percent occupancy.

Gottstein: What is Roanoke doing right in its economic development efforts?

Neu: We are working more with other governments and businesses in the region, cooperatively to attract new businesses. We are also working to jointly market with the New River Valley and Virginia Tech to “sell” businesses on the region, its high tech nature and educated workforce.

Gottstein: What is the biggest strength Roanoke has in attracting new businesses and expanding existing businesses that want to grow?

Neu: We have very little traffic, great people, wonderful natural surroundings, a tremendous array of restaurants, a great downtown, and lots of amenities for a city our size – live theater, museums, festivals, etc.

We also have the available infrastructure – sewer and water, low electrical rates, and plentiful fiber optic cabling for businesses to access the Internet at high speeds.

Gottstein: What are the biggest impediments to business growth in Roanoke?

Neu: Government regulates very well, but we need to think about how our regulations impact businesses’ decisions to move or expand here. Many regulations cost manpower and money for businesses to comply with them. Regulations include zoning ordinances, taxes, environmental permits, building permits, and more.

Our department conducted many focus groups with small business owners, and we asked them what the city could do to make expansion here more attractive. The number one response was to reduce the regulatory burden to make it easier to do business in the city – basically to get government out of the way of business.

We would also like the economic development department to be more responsive to small business needs. Our biggest job growth is coming from our existing small businesses, but they all have so many diverse needs, and we don’t have enough staff to address all of them like we want to.

In addition, coming from Indiana, I can tell you that Roanoke is a hidden diamond in the rough. We have to better market Roanoke to the outside world and tell them that this is a great place to live and do business. It takes a lot of money to raise awareness throughout the nation through advertising and other marketing, but we need to take that step.

Gottstein: In addition to marketing Roanoke to the nation and looking at the impact of government regulations, what priorities should we continue to focus on?

Neu: We have a great downtown, but we can’t stop – we need to constantly update and improve this asset. Your downtown is your core: Even if businesses don’t locate there, they still care about a strong and attractive core, or city center. When businesses come to visit Roanoke, one of the first places we take them is downtown.

We also have to keep our technology infrastructure current with wired and wireless high-speed Internet access.

Gottstein: It seems that attracting new businesses to the region is often left in the hands of government. What are ways the private sector can get involved in economic development?

Neu: First of all, it would be great if many of our Roanoke businesses would add the city’s new brand logo to bottom of their stationery. It would build that consistent awareness of Roanoke to their vendors and customers throughout the world. Businesses – and all of us – should be proud of our community, and talk about its attributes to our friends, customers, and vendors. Our personal testimonials can be our region’s best sales tool.

Secondly, it would be great if more seasoned companies who aren’t looking for an immediate return on investment could take more risks and invest in their community, like Carilion did in creating the economic engine of the Carilion Biomedical Institute, or like the new venture capital fund, the Roanoke-New River Valley Investment Fund. It’s a private enterprise to fund technology and health care companies willing to begin operations in or relocate to the Roanoke and New River valleys. Carilion, the Virginia Tech Foundation, Third Security, and other private investors have contributed to the fund.

Beth Neu will be leaving Roanoke sometime in the next two months.

Brian Townsend, the city’s director of planning, building, and development will serve as interim director.