As published in the August 1, 2007 Toledo Business Journal
Steve Arndt
Ottawa County Commissioner
Ottawa County investments the result of public/private relationships
Toledo Business Journal recently interviewed Steven Arndt, Ottawa County Commissioner. He shared the following thoughts.
Toledo Business Journal: During the past year, companies announced $130 million of investment in Ottawa County. Can you discuss the role of public and private sector leaders in economic development in your area?
Steven Arndt: I think it is critical to understand and acknowledge up front that public officials do not create jobs. The private sector creates jobs but can only do so when the business climate and environment are conducive.
Having said that, in Ottawa County the public / private leaders operate as partners in economic development. The majority of the $130 million of investment that were announced in Ottawa County last year were for expansion projects of companies that have a presence here.
A very critical part of our economic development effort is our focus on our Retention & Expansion Program. As part of that program, our public leaders regularly meet with private businesses to better understand their operations, current business environment, future needs and challenges, as well as future opportunities. These meetings result in a shared knowledge of what support system presently exists and what assistance is needed in the future. The capital investment projects that occurred took months and years of planning and development by the private sector, as they were significant investments for their companies.
Because the public and private leaders in our community have positive relationships, we believe Ottawa County was placed in a strong position for consideration for the plant expansions. Working together, the private and public sectors were able to put together innovative development packages that best fit and met that business’ needs, making Ottawa County the best choice for the location of its investments.
Had we not developed the positive relationships between the public / private leaders and innovative development packages, Ottawa County probably would not have been presented these opportunities, and it would have risked job losses at existing plants and the closing of at least one plant.
TBJ: Fenner Dunlop, Brush Wellman, ARES, and other companies have announced major investments to their Ottawa County facilities. Do you see further opportunity for suppliers (to these and other companies) to locate to Ottawa County?
SA: Yes, because of logistics at least one expansion project presents the real possibility of suppliers locating here. However, all of the investments will have a positive impact on our economy based on the spin-off effects of the investments from both the direct and indirect natures of their activities.
TBJ: Can you discuss the issue of infrastructure investment and how Ottawa County has approached this issue in order to impact economic development?
SA: In 1992 we looked at the 1990 census data, which showed Ottawa County losing both population and business while experiencing double-digit unemployment rates. In light of this, we completed a business retention / expansion survey, which identified the presence of a negative business environment. Clearly, action to correct this issue was needed. We also learned of a lack in some of the most basic infrastructure systems and a skilled workforce.
With that information, we began our steps of developing a white paper together with the elected officials in Ottawa County, the chambers of commerce, and, most importantly, the business community. The white papers have been our five-year plans, focusing on and prioritizing capital improvement projects and support systems that best improve the business environment. These white papers have identified infrastructure needs and support systems, from typical transportation and water / sewer infrastructure improvements to a not so typical Community Resource Centre.
The Resource Centre is home to agencies and support services specifically for the business community. Those include operations such as the Community Improvement Corporation and Job Store, which provide services such as workshops for businesses and workforce development training activities.
Another challenge we faced was the lack of public water and sewer systems. For the most part, public water and sewer systems were non-existent outside of incorporated areas. What did exist in the unincorporated areas was a large number of private systems, which had reached their life expectancy and were challenged to stay in regulatory compliance. It was determined that the most cost effective long-term solution was the construction of public water and sewer systems to replace over 117 small and 8 large treatment facilities. This would also provide opportunity for future development.
To date, we have invested nearly $160 million in water and sewer projects in the unincorporated areas with water projects totaling over $70 million. That includes a new 9 million gallon per day water treatment plant, 170 miles of water lines, and 3 water towers. Sewer projects included two new wastewater plants and 147 miles of sewer lines. We continue to expand these systems at a rate of $15 to $20 million a year to support new growth. The white papers have allowed us to build a consensus and focus our efforts on critical infrastructure needs.
Since the completion of these projects we have turned the corner, so to speak, and have reversed the trends. The population and number of businesses have increased, and unemployment rates are down. Since 1992, the private sector has made capital investments of more than $335 million in new and expansion projects that have either retained or created over 1,600 jobs.
TBJ: Can you discuss efforts to attract alternative energy investments to Ottawa County?
SA: We have had several informational meetings for the public and private sector to share and gain information with state and federal agencies about alternative energy efforts. These meetings have identified interests, opportunities, and challenges in and for Ottawa County. Presently we have two locations that have anemometers collecting wind data for commercial grade wind turbines, along with several residential turbines in operation. One community is considering “going Green” as well as developing a Green subdivision that meets the LEED Certification or the Energy Star Standards. We presently are working with several companies in Ottawa County, which have identified developing alternative energy and renewable energy sources as a major focus. In addition, along with the private sector, we have attended numerous meetings, including local and national conferences.
TBJ: FirstEnergy’s Davis-Besse plant is located in Ottawa County. Has this facility impacted the county’s economic development efforts?
SA: We have learned and gained much from Davis-Besse’s experiences and processes. It has been very supportive of our economic development efforts by sharing its knowledge and expertise with our businesses and the County.
TBJ: Are there any other issues or perspectives that you would like to discuss?
SA: Operating and managing a business in today’s global economy is extremely complex and sophisticated. Small hometown businesses no longer compete with only businesses across town.
The complexity and challenges of understanding strategic positioning in a global marketplace is crucial to a business’s future. The rate of change in which the global economy operates presents both opportunities and challenges for our business community. A business’s ability to timely and accurately process information, gather intellectual knowledge, and incorporate new technologies into their operations largely determines successes and new business opportunities.
Given this business environment, the traditional types of infrastructure and supportive services from the public sector will be forever changing. In our community, we firmly believe that new opportunities will develop if we create an environment where businesses can succeed and thrive. The relationships built between our public and private leaders, including our willingness to work together with a clear vision and do what is necessary to succeed, will determine the success of our communities.