News from Boyette Strategic Advisors

Report recommends targeted development in several sectors

Starkville, MS – 08/29/2007

By PAUL SIMS
Starkville Daily News

To foster economic development, Starkville should exploit opportunities in research in three fields and advance its position in a fourth, a report finds.

The four industries personnel from Boyette Levy identified in their report are aerospace and automotive research and development, biomedical science with a focus on veterinary medicine and the defense/homeland security sectors.

Boyette Levy, a strategic advisory firm based in Atlanta, Ga., conducted the research to generate the report for the Targeted and Prepared Community program offered through the Tennessee Valley Authority and in partnership with local power distributors. Starkville/Oktibbeha County was one of four TVA communities selected for the TaP program, which officials say is designed to help communities improve their economic development work.

Approach, sector results outlined

Del Boyette and Tracy King Sharp, both with Boyette Levy, presented the findings to an audience of various university, local government and business leaders at the TVA Customer Service Center Tuesday. “We just feel like the strength of (Mississippi State University) really needs to be played upon,” Sharp said.

The report was developed using several approaches, including:

* Performing a leadership audit.
* Developing an assessment of the current economic development framework.
* Locating the community’s strengths and weakness in the economic aspect, conducting stake holder interviews.
* Reviewing industry sectors to find industries appropriate for the community in light of local features.

Overall, Boyette Levy personnel project growth in the four sectors they identified in their report. A few points of justification in each sector include:

* Aerospace research and development — Several companies already have relationships with MSU’s Raspet Flight Laboratory and “the aerospace industry has a long history of success in Mississippi,” the report reads.
* Automotive research and development — MSU is one of seven universities in the Automotive Research Alliance, set up this year to foster the Southeast’s competitiveness for future R&D projects, according to the report.
* Biomedical science — The community could capitalize on a growing demand for biomedical knowledge by developing companies out of MSU research and drawing firms to work with the university in such areas.
* Defense/homeland security — Starkville already has some local successes in this industry and MSU’s enhanced focus on fuel cell technology could bolster growth in this area.

Officials with Boyette Levy plan to present eight companies to Greater Starkville Development Partnership officials across the four sectors as potential fits.

MSU is top strength

Strengths determined from the stake holder interviews include:

* MSU.
* A solid work ethic and a workforce with high levels of education.
* The Thad Cochran Research, Technology and Economic Development Park.
* Recreational opportunities, a friendly community conducive with raising a family and an active downtown.
* East Mississippi Community College, TVA and sound local banking institutions.
* Weaknesses discovered in the stake holder discussions include: A lack of teamwork between local government officials, the university and the GSDP.
* Needed improvements in the county and city schools.
* Competition between West Point, Columbus and Starkville.
* A gap in housing opportunities in the $110,000 to $175,000 market.
* Needs for adequate air service and interstates.
* Infrastructure concerns.
* Needs for retail operations and restaurants.

GSDP President David Thornell provided thoughts on the study in a broad statement issued on the report.

“We view the report as a useful guide that simply outlines the many opportunities before us, based on all that we can offer to support various types of businesses and to recruit visitors and new residents.” All of the target industries and the recommendations will be pursued vigorously, with the mission to improve upon the quality growth that our county is already experiencing.”

Thornell notes that the study points out that the GSDP needs to do a better job of communicating what is doing and has already done. One of the recommendations outlined in the report is for the development of a communications plan to inform people about work taking place in the community and its results.

In spite of a perceived weakness in economic development, the community has seen a 500 percent increase in new jobs and a 350 percent jump in capital investment announced since the GSDP was formed, Thornell said.

The GSDP is the umbrella organization for three member groups which focus on community, retirement, economic and tourism development for Starkville. It was founded about six years ago. Also, recommendations like increasing recruitment in the retail sector “show that many do not realize that our retail sales tax increases just over the past year are more than double that in Oxford, Columbus, and even Tupelo,” Thornell said. “We will work harder to inform others of all the many things that we should be proud of,” he said in the statement.

Thornell thanked TVA and Boyette Levy for the chance to “take advantage of this unique strategic planning opportunity.”

One point in the report included addressing the lack of infrastructure at Cornerstone Industrial Park. Officials are working on sewer needs in the park and water can be obtained if needed, Oktibbeha County Economic Development Authority President Jack Wallace said.

Some other recommendations

Remaining recommendations from the report include:

* Develop incubator operations near MSU.
* Back the expansion of the Research Park.
* Work with economic development organizations in the region to tout Starkville as the research and technology hub.
* Create an atmosphere and support structure for entrepreneurs.
* Target retail development.
* Seek the creation of a conference center-hotel.
* Build up retirement as an industry connected to the university.
* Fortify the program designed to help existing business.
* Iron out an agreed-upon local incentives policy.
* Bring the GSDP’s Web site up to date.
* Create measurements for success for the GSDP.
* Work to make public education a major GSDP focus.
* Continue work with other Golden Triangle economic developers and Golden Triangle Regional Airport to address the need for increased service at GTRA, the region’s commercial airport and the epicenter for recent major economic development in the region.
* Review organizational structure changes.
* Work to build a united economic development effort at the local and regional levels.