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2016 Comprehensive Economic Development Strategy Update

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2016 Comprehensive Economic Development Strategy Update Sykes Serco BUCHANAN COUNTY DICKENSON COUNTY 2016 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY UPDATE Cumberland Plateau Planning District Commission Serving Buchanan, Dickenson, Russell and Tazewell Counties Northrup Grumman Pemco RUSSELL COUNTY TAZEWELL COUNTY ` TABLE OF CONTENTS CUMBERLAND PLATEAU PLANNING DISTRICT COMMISSION CEDS 2016 UPDATE PAGE EXECUTIVE SUMMARY ........................................................................................... i-iii 1. BACKGROUND – REGION’S ECONOMIC DEVELOPMENT SITUATION .........1 2. ANALYSIS OF REGION’S ECONOMIC DEVELOPMENT PROBLEMS AND OPPORTUNITIES ..........................................................................................................62 3. GOALS AND OBJECTIVES .........................................................................................79 4. COMMUNITY AND PRIVATE SECTOR PARTICIPATION ..................................85 5. STRATEGIC PROJECTS, PROGRAMS AND ACTIVITIES ...................................86 6. ACTION PLAN ................................................................................................................89 7. PERFORMANCE MEASURES .....................................................................................97 Cumberland Plateau PDC 2016 Comprehensive Economic Development Strategy 2016 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY CUMBERLAND PLATEAU PLANNING DISTRICT COMMISSION EXECUTIVE SUMMARY The Cumberland Plateau Planning Commission has been working since 1968 with member governments, regional organizations, state and federal agencies and other public and private entities to diversify the regional economy which was based primarily on coal. This effort began with the basics of providing public infrastructure to support economic growth. Then came efforts to develop industrial sites, parks and shell buildings to attract new jobs to the region. That effort resulted in some major new automotive related industries locating in the area in the late 1980’s. At the same time, efforts were being made to support the establishment of the Appalachian School of Law in Buchanan County. The success of this endeavor prompted the County to support the establishment of the Appalachian College of Pharmacy. Recently, Buchanan County supported the establishment of the Appalachian College of Optometry with the goal of opening in 2016. In the early 2000s, the PDC joined with Lenowisco PDC to initiate a regional fiber optic broadband deployment project with the financial support of EDA and the Virginia Tobacco Commission. With Bristol Virginia Utilities Authority and Scott County Telephone Cooperative as partners, this project now provides state-of-the-art broadband services to thousands of businesses, industries, institutions and governments in the region. A regional 4G wireless project in cooperation with Verizon Wireless, initiated in 2012, will be completed by the Winter of 2016, making Southwest Virginia one of the few rural areas in the nation with 4G coverage. This project provides a transformational economic development tool for the Cumberland Plateau and Lenowisco Planning Districts. A recent report released by the Wireless Infrastructure Association projects that private investment in wireless infrastructure will generate as much as $1.2 trillion in economic growth and create 1.2 million jobs over the next several years in the U.S. This represents a staggering 2.2 percent increase in GDP by 2017! The report also points out that wireless broadband development “is akin to other disruptive technologies, such as deployment of electric infrastructure, the national railroad and interstate highway systems, the invention of the combustion engine, the global impact of the personal computer, as well as the Internet and the World Wide Web.” The District is committed to making this asset a major piece of local regional and state marketing plans. With the availability of this robust twenty-first century technology network, several major IT companies have located in the district, including CGI, Northrup Grumman, Sykes, Cumberland Plateau PDC 2016 Comprehensive Economic Development Strategy Page i AT&T and Serco. Other companies, such as Pyott-Boone in Tazewell County, have been able to expand due to the availability of our broadband infrastructure. The district now hosts over 1,000 high-wage, high-skill IT jobs not here just ten years ago and serves over 1,000 business, industry and governmental customers. On the negative side, the late 2000’s also saw the loss in the District of several of our largest automotive manufacturers, including IAC and Alcoa Wheels. With these closings largely due to problems in the American auto industry, nearly 1,000 good-paying manufacturing jobs were lost. The end result has been that, despite great progress in diversification of the regional economy, the region is still losing jobs and population. The District’s four counties collectively saw a 4.5 percent population decline from 2000 to 2012, a trend that continues. The region is supporting the creation of Centers of Excellence to provide better training for the advanced manufacturing and other industries being recruited to the District. Despite success in attracting IT and higher education jobs to the area, the continued loss of population has made it apparent that more needs to be done to improve the quality of life in the district in support of creating more manufacturing jobs, jobs for which the District workforce is well suited. This realization has led to the initiation of several cultural heritage tourisms efforts and a robust downtown revitalization program that is transforming Southwest Virginia and its small towns into a national and international tourism destination. Based on the unique music and craft traditions of the region and on the magnificent outdoor recreation assets of the area, Southwest Virginia has seen tremendous growth in tourism over the past ten years. This has resulted in at least three new motels in the district and many new restaurants, bed and breakfast operations, convenience stores, and other tourism-related businesses that greatly enhance the region’s quality of life. These new tourism-related businesses and jobs cannot be shipped to other states and other countries and do much to make the region more attractive to young people. Recent numbers show an increase in 25-34 year olds with college degrees. Coupled with the availability of state-of-the-art broadband, both fiber and wireless 4G, the region’s quality of life is tremendously improved and the ability to attract new jobs is greatly enhanced. There is a need for a more robust marketing effort to highlight these assets which are rarely found in America’s rural areas. While the District has been at the forefront of these various economic diversification efforts, other partners, such as the Virginia Coalfield Economic Development Authority, the Virginia Economic Development Partnership and the Southwest Virginia Workforce Development Board, are the primary entities that market the District to new businesses. These organizations under the banner of the e-Region, are focusing on advanced manufacturing, electronic information technology, energy, higher education, emerging technologies, existing businesses, and enterprise (Made in the USA). The industry clusters for IT, energy and higher education are already well established and the potential for growth is great. The Crooked Road, Cumberland Plateau PDC 2016 Comprehensive Economic Development Strategy Page ii ‘Round the Mountain, Appalachian Spring the Southwest Virginia Cultural Heritage Foundation, Heartwood: Southwest Virginia’s Artisan Gateway and the Virginia Tourism Corporation, are marketing the region’s cultural heritage and outdoor recreation assets to the world with great success. The Virginia Coal Heritage Trail, the Spearhead Multi-Use Trail System, the TransAmerica Bike Trail and other trails are attracting tourists and will bring more in years to come. Southwest Virginia tourism revenue increases have led the state for the last few years. All of these developments to promote economic development in the District and in Southwest Virginia have been supported by the CPPDC and its local governments. The growth in targeted business and industry clusters, especially in advanced manufacturing, is happening and the District’s economy is more diversified. The challenge is to build on the successes and attract more IT, higher education, clean energy, advanced manufacturing and tourism jobs and to further improve the economy and the quality of life in the District. With the support of its many partners, the CPPDC will continue to provide leadership in promoting the economic development strategies set for in this document. Cumberland Plateau PDC 2016 Comprehensive Economic Development Strategy Page iii 1. BACKGROUND-REGIONS ECONOMIC DEVELOPMENT SITUATION A. General Description of Area The Cumberland Plateau Planning District is in Southwest Virginia and encompasses the counties of Buchanan, Dickenson, Russell and Tazewell. The District borders West Virginia on the north and Kentucky on the northeast. Wise, Scott, Washington, Smyth and Bland Counties in Virginia form the boundaries on the west, south, and east. The District is 67 miles long and 40 miles wide and covers approximately 1,848 square miles. The District is divided into two physiographically distinct regions, both lying in the Appalachian Highlands. The counties of Buchanan and Dickenson, along with the northern portions of Russell and Tazewell Counties, lie
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