Chapter 7: Economic Development Strategy The Comprehensive Plan identifies the economic development goals for the City. These include developing unique local businesses, providing sites for industrial / business development, enhancing Ohio University and community partnerships and strengthen heritage tourism. Also included, is the need to address Uptown parking and pedestrian accessability (Uptown development strategies are discussed separately in the context of the Uptown Plan). The Comprehensive Plan also offers a four-pronged economic development strategy for the City focusing on four key areas: Better harnessing the research and technology forces of O.U. as source of new high-tech jobs for Athens. Uptown development and heritage tourism. Regional coordination and collaboration between the City, O.U., other CDC s, Athens County and adjacent counties. Development of unique local businesses. It should be noted that elements of a city economic development strategy are reflected throughout the Draft Plan and this implementation element. However, to develop these strategies further, the following specific material is provided. Better Harnessing the Research and Technology Forces of O.U. as Source of New Jobs Relying on O.U. as a generator of new high-tech business start-ups from places such as the Innovation Center, the City of Athens should focus on providing places for such industries to locate, once they are able to become viable stand-alone businesses. The goal of such a partnership is to help Athens evolve toward a place such as the Research Triangle found in Raleigh/Durham. Ideally, locations for new businesses are provided in the City limits so that the City can have maximum benefit from the standpoint of positive tax impact. This strategy is clearly centered on industry clusters that draw on the strengths of O.U. such as biotechnology and avionics. The City now offers only a few places for new industrial and office development. Limited sites for office development are found along Columbus Road and Richland Avenue. Industrial sites include opportunities for building reuse along East State Street and a few vacant sites along S.R. 56 at the west edge of town, and along S.R. 32/U.S. 50. The City of Athens is fortunate from the standpoint of currently having broadband internet access throughout much of the City. Increasingly, high-speed internet access is a necessary component of support for local business and industry. In some places, the lack of high-speed internet acces has prompted local industries to leave a community (particularly rural ones) to gain access to high-speed internet access to send and receive large amounts of data and information. 7-1
Workforce Development and Training As the City strives to stimulate new high technology businesses, it must also ensure that adequate job training and work force development programs are in place so that local residents can fill these jobs. Sites For Research and Technology- Short Term In the absence of the development of a large scale high-tech business park project at the fairgrounds (or elsewhere), the City will need to rely on sites outside of the existing City limits, and the isolated sites in the City. In terms of redevelopment sites that may require clean-up, the City can rely on the Clean Ohio program for assistance any clean-up activities. The Clean Ohio Assistance Fund (COAF)is a $10 million annual appropriation dedicated to brownfield redevelopment in eligible areas (which includes Athens). Eligible applicants undertaking projects may expend the dollars on three activities: Phase I and Phase II Assessments, Brownfield Cleanup, and Public Health Projects. Sites For Research and Technology - Funding The City and O.U. should continue to pursue the development of a High-Tech Industrial Park with the knowledge that there are many sources of grant funding that could aid a project of this nature. Regardless of where the future high-tech industrial park is located, the following funding sources are available to support new development or redevelopment. One particularly well suited program is the Ohio Department of Development s Research Park Roadway Infrastructure Assistance Fund Program. This program was specifically created to assist communities wishing to establish business parks developed for the purpose of attracting high-tech companies. This program provides up to 80 percent of the total roadwork infrastructure costs, with a maximum grant of $500,000. This program is similar to ODOD s roadwork development (629) account, except that it is specifically geared toward high-tech business parks and companies. Other potential funding sources include programs available through the U.S. Department of Commerce (EDA) and the Appalachian Regional Commission (ARC). EDA recently funded infrastructure improvements related to high-tech business in Crestline, Ohio (northeast of Columbus). In terms of ARC, Governor Bob Taft recently announced that the IT Alliance located in Athens, will receive a $247,626 grant to staff and equip specialized computer labs used to test interactive computer games and software. The IT Alliance, Ohio University College of Communications, Shawnee State College, Washington State Community College, Adena Adventures and the Appalachian Regional Entrepreneurship Initiative, will partner to develop interactive technology programs and centers. In addition to academic uses, the center will be available for use by businesses to develop and test new products. The center will also function as an incubator for entrepreneurs to develop, refine and launch their ideas. More broad-based collaboration among higher education institutes, businesses and the community will lead to more students receiving practical jobs skills, and those jobs becoming available in their local community. Finally, other sources of funding include those specifically targeted to high-technology and include Ohio s Third Frontier Project, which is a $1.6 billion, ten-year plan to expand Ohio s high-tech research capabilities, is to help fund efforts that support high-tech start-up companies. For example, the Wright Centers of Innovation program provides grants to support large-scale world-class research and technology development platforms designed to accelerate the pace of Ohio commercialization. Wright Centers are to be collaborations among Ohio higher education institutions, nonprofit research organizations, and Ohio companies in the areas of advanced materials, bioscience, power and propulsion, information technology and instruments, controls and electronics. 7-2
Apart from funding sources, appropriate zoning should be put in place, along with tax abatement incentives mechanisms such as the Enterprise Zone to help make new high-tech industrial sites attractive and competitive sites. Heritage Tourism - Capitalizing on the Special Attributes of Athens Capitalizing on the special attributes of Athens through special events and regional conferences is an obvious way to attract tourists and visitors, and in turn generate local revenue. This includes creating a unique uptown, preserving historic buildings, supporting the growth and development of local arts and local food production. Clearly these strategies weave in an out of other elements of proposed city development and redevelopment discussed elsewhere. The proposed Arts District (discussed separately under general community-wide initiatives) is clearly a measure intended to stimulate economic development. Boulder, Colorado provides an outstanding model for Athens in terms of providing a place to attract tourists and visitors. In Boulder, most art-related activity is focused downtown which is a destination and focal point for local culture, history and identity. Student and university related activity help maintain a higher level of activity than might otherwise be possible, while new retailing, business and service business are attracted to this area. In Athens, the proposed Arts District is intended to help provide a defined geographic home for local artists and help formalize this activity as a part of the City. Uptown Athens, or an adjacent area, is the proposed location for the Athens Art District. If located Uptown, the City-owned Armory building is a logical anchor for such a district. The Armory is the dominant focal point at the north end of historic Court Street at Carpenter. Seasonal art displays, special events, and cultural activities could be promoted and showcased at the Armory. Many cities have adapted their historic armory buildings successfully to various arts and cultural activities, museums, and like uses. Ohio examples include Defiance, and Bucyrus. Major annual Armory Art Shows take place in Boston, New York, Pensacola, Los Angeles, San Francisco and Santa Fe in converted historic armories. Complementing such strategies are efforts to strengthen and expand heritage tourism with improved and more extensive identification of landmarks and monuments to guide visitors to various historic buildings and features. This builds on related efforts (see general community initiatives) to develop a more complete and extensive historic inventory in Athens. 7-3
Finally, reaching consensus on a City image that incorporates aspects of local heritage is helpful in the efforts to advance marketing efforts designed to attract tourism, draw attention to local creativity and connect with environmental issues. Development of a consistent City image is addressed more fully elsewhere (See General Community Initiatives). Regional Coordination and Collaboration Increased levels of coordination and collaboration are recommended to make the most of limited resources and to bring community and regional partners together. This could take the form of periodic Economic Development Summits to discuss ongoing activities and trends in the greater Athens Region to include the following counties: Athens, Morgan, Washington, Meigs, Vinton, Hocking and Perry. For example, this summit might explore the following topics: Needed efforts to overcome impediments to desired high technology and food industries strategies. Further development and maintenance of list for industrial / business development sites. Opportunities to better define new or emerging technology clusters that can be capitalized on locally. Opportunities to attract new industries that supply existing local industry with products. Such import substitution strategies can often help create synergies among local industry and build on the existing economic base. Examining cost-effective ways to expand existing clusters while enhancing O.U. and Community partnerships and the local economic base. Establishing an expanded process to assist potential unique local business start-ups. Development of Unique Local Businesses Capitalizing on many unique aspects of Athens, the community as a whole should support the establishment of unique local businesses from the standpoint of both job creation and enhancement of local identity. Unique local businesses include the production of local foods and art work. While the City of Athens must rely on private and non-profit interests such as ACEnet to provide most of the actual support for the development of unique local businesses, the City can seek to provide a supportive environment for this activity. Public actions range from generally supportive policies for this activity to identifying and implementing local supportive programs. Actual programs would obviously need to be developed in conjunction with entities such as ACEnet, the Chamber of Commerce, and similar organizations in a collaborative manner. 7-4
Fairgrounds Reuse Initiative Background As described in the Comprehensive Plan, and proposed economic development strategies, the Athens County Fairground factors into the community goal of stimulating economic development and job creation. From a purely land use standpoint, the Athens County Fairgrounds stands out as key parcel that can be considered to be somewhat underutilized. Apart from the seasonal use of the area for the County Fair, this area is used extensively for parking of RV s and for special community-wide events. As many buildings on the property represent original structures associated with the establishment of this site as a fairgrounds, there is an important historical dimension to this property. Apart from its current uses and function, the Fairgrounds have also been viewed in another light, which involves the context of providing a much-needed place for local job creation. As a large and flat parcel of land, it is a precious commodity that could help address the need for physical space for high-tech industrial development. Apart from being large and flat, proximity to compatible and supportive land uses (such as the O.U. innovation center) creates important land use synergies. Consequently, this site is well suited to be redeveloped as an upscale technology park with a campus-like setting. Some discussions leading toward this goal have already taken place and issues of costs and revenues are complicated and will require time to resolve. Some other key points that surround this issue include the following: The City of Athens does not have control over the site or many other variables. It therefore cannot simply take unilateral action and move forward with some type of initiative. Entities such as O.U. and the Athens County Fair Board are key decision makers. Previous discussions have not produced any meaningful progress on this issue, with large associated costs being among the most significant issues to overcome. The City can however encourage continued discussions and seek funding to help eliminate financial obstacles. Since the Fairgrounds is now located in the wellhead protection area, reuse of the site should respect the fact that certain types of uses would represent a potential threat to groundwater quality. Further Action Further exploration and attention on this issue is recommended. It is thought that an effort to redevelop could provide the funding and opportunity to build a new state-of-the-art fairgrounds elsewhere. It is noted that the current fair grounds does not now efficiently meet the needs of campers or for those involved with equestrianrelated events. Further recommended efforts include continued dialog and discussion with the Fair Board toward what might be considered a win-win agreement. The residents of Athens can gain from more employment opportunities, the City can gain from enhanced tax revenue, and the agricultural community can gain from a new and improved fairgrounds facility that better meets current demands. Additional discussion with respect to potential funding sources for development of a high-tech industrial park are found elsewhere (See ) which helps to address this issue in a more broad and city-wide context. 7-5