ECONOMIC DEVELOPMENT/JOB CREATION
With Ford battery plants on horizon, economic development strategies must be proactive, effective
Economic development/job creation, public safety and education, my top priorities, are intertwined. A well-educated and skilled workforce attracts businesses that will bring well-paying jobs to Louisville. It’s a simple statement not easily achieved. That’s why my experienced leadership as a successful Mayor matters when it comes to business attraction and retention and job creation.
The most significant economic development opportunity in decades is on the horizon for Louisville Metro with Ford Motor Co. and SK Innovation’s twin electric vehicle battery production plants headed for a site just south of Jefferson County in Glendale, Ky. The $5.8 billion investment is expected to create 5,000 jobs.
But that is just a start with economic investment and job creation related to the battery plants.
Since United Parcel Service Inc. located its Worldport air hub in Louisville, hundreds of businesses have located in the Louisville region to serve and be close to the UPS operation.
The same will happen with the battery production plants. With their location in Glendale, those suppliers and other businesses will have a choice which direction they go for their locations — north toward Louisville or south toward Bowling Green, Ky., and Nashville. We have to pull out all the stops to get them to choose Louisville.
We also need to be prepared to welcome the thousands of employees who will work at the battery production plants and ancillary businesses. Many of them will want to live in a metropolitan area that can provide a wide price range of housing, parks, recreational activities, entertainment, dining and arts offerings that Louisville has. But we will need to have a focused effort to attract these families to our community.
Louisville has to be prepared to attract businesses to locate here so they bring investment, jobs and families to our community. We have to be ready to act promptly, efficiently and proactively. That’s what successful cities do. It’s what I have done in Jeffersontown for the past 11 years and continue to do today.
As Louisville Mayor, I will move forward with dynamic business attraction and residential development strategies to ensure Louisville is a welcoming location of choice.
Below are some of my economic development priorities:.
• Best practices call for collaboration of private sector and government
• Regulatory processes must be effective and efficient
• Entrepreneurs, small businesses are important economic engine
• Ensuring minority-owned businesses have opportunities
• A safe and welcoming downtown is imperative for economic growth
• Workforce development in crisis mode
• JOBS incentive program brings well-paying jobs
• Louisville needs a fresh mentality for economic growth
Best practices call for collaboration of private sector and government
Business and employee attraction starts with business-to-business interactions. This is true for local business growth and attracting other businesses to our region. Government needs to come in when needed then get out of the way.
That structure is proven in other regional peer cities and once was the structure here when GLI was formed and before that with the Greater Louisville Economic Development Partnership. The Partnership was driven by corporate leaders teamed with experienced economic development specialists. Funding for GLI’s efforts was stripped away by the current Louisville Metro Government Administration.
The Louisville Mayor’s Office needs to collaborate with the private sector entity to ensure an inviting business climate with the right legislative priorities, incentive programs and tax structure that make sense for Louisville to be a location of choice for companies of all sizes.
Regulatory processes must be effective and efficient
Clear and reasonable regulations that guide development are important for a city to have as new construction and redevelopment projects get under way. But these rules must not hinder wise, well-planned development. That’s a key factor in how a city grows and provides opportunities to its citizens.
Our team’s approach for 11-plus years in Jeffersontown has been to review businesses’ plans to ensure they meet guidelines — then get out of their way. When worthy projects needed approvals at the state level, I have gone to Frankfort on many occasions and advocated for legislation that would enable projects to proceed or worked to help businesses obtain permits or funding for infrastructure that would allow job-creating development to move forward.
For example, early in my tenure as Mayor, a company that wanted to locate in Jeffersontown ended up establishing their operation in Indiana after company officials learned they would have to wait six to nine months to receive a needed zoning variance. That was not acceptable. I worked with state legislators to get state law changed to allow Jeffersontown to have its own Board of Zoning Adjustment so a loss of that kind would never happen again. This change has cut months of delays and helped Jeffersontown land projects.
We also created unique zoning designations (CTC-1 and CTC-2) for our town center to allow creative uses of properties. It enables us to have a walkable, family-friendly downtown for all ages. We are the new cool place with everything from sand volleyball to pinball to craft beer to various restaurants.
At the onset of the pandemic, Jeffersontown was the first local government to allow businesses to expand use of outside areas for food and drink and to allow carry out and delivery of alcoholic beverages. We also worked with the state ABC to change its regulations to match what we did. Metro Government later followed our lead.
We didn’t let the pandemic stop projects either. Our business licensing and project review process never shut down. Permitting approval and development plan review continued on schedule so their would not be a gap in development activity.
On another front to promote efficiency, Jeffersontown recently took over landscape review to expedite the approval process.
Because Jeffersontown has the largest commerce park in Kentucky with 1,800 businesses, I am well versed in working with businesses of all sizes and scope to help them get established and thrive in the city I now serve. I will take this experience to all of Louisville Metro and implement it.
Regulatory processes must be efficient so projects can proceed. I am already knowledgeable about Metro’s land-use procedures. I was part of the group that created the new 2040 Comprehensive Plan and have read all 987 pages of the Land Development Code.
We worked hard to increase efficiency in the permit and approval process in Jeffersontown to have a true business-friendly environment. Businesses and residents appreciate the steps we’ve taken to streamline permitting processes. They look forward to our common sense approach moving to Louisville.
Entrepreneurs, small business are important economic engine
We have to do more to encourage, invest in and nurture entrepreneurs in Louisville. I’ve seen too many talented entrepreneurs with inspiring innovations take their businesses elsewhere because they could not thrive here. There has to be a collaboration of private capital and government support to get this done. It’s how it works in other successful cities.
For decades, Louisville leaders have talked about the need to stop the “brain drain” of young college graduates leaving their hometown for greener pastures — with little progress on that front. We also must stop the “innovation drain” that takes away the seeds of our future business community. Need I mention Humana Inc. to illustrate how that works?
Several efforts to support startups have been launched in Louisville in recent years, but none have had sufficient success or inertia to truly make a difference.
If you want to know where Louisville stands among peer cities in regard to the entrepreneurial sector, I can tell you it’s not great. Louisville made Inc. magazine’s 2020 Top 50 list of the best U.S. cities to start a business. But we came in at No. 43 – below peer cities. Nashville was ranked No. 4, Indianapolis No. 25, St. Louis No. 33, Cincinnati No. 42. Wouldn’t it be great to be ranked above at least one of those cities? Click this link https://www.inc.com/surge-cities/best-places-start-business.html to check out Inc.’s article and data.
When it comes to entrepreneurism and small business ownership, Louisville needs a Mayor who truly gets it — someone who has walked the walk and doesn’t have a large personal bank roll cushion to rely on.
I understand the opportunities and challenges entrepreneurs and small business owners face. For 35 years, I operated the Dieruf Hardware store that was started by my father in 1946. Dieruf Hardware is the longest-operating family-owned business in Jeffersontown.
I know what it’s like to hold a checkbook in my lap and have a sharp eye on cash flow to keep my business on track. I can relate to both the satisfaction and stresses that come with being a small business owner. I was energized every time I had the opportunity to meet a customer’s needs — whether they wanted a 5-cent nut or a $30,000 bobcat. We are always dedicated to solutions with the WOW of customer service.
That’s how you build a stable clientele at a small business. It’s also the correct mindset to have as a leader of a city. It’s what I’ve done in Jeffersontown, which has come a long way in the past 12 years. And it’s what I will do in Louisville Metro.
Ensuring minority-owned businesses have opportunities
As Louisville Mayor, I will acknowledge that a level playing field has not existed for our Black citizens. Black businesspeople should have access to influential business relationships and capital — keys to success that have been sadly lacking.
Ensuring success for Black-owned businesses is not just a matter of providing affordable storefronts for Black entrepreneurs to open shops and restaurants. We must mentor minority businesspeople to help them succeed in all walks of life — in professional careers and as entrepreneurs whether they own a technology firm, restaurant, retail shop or a construction company.
As a former instructor of business management at the University of Louisville, I know the importance of management training. We need a program offering mentors across the spectrum of business operations to provide ongoing advisory services for both minority- and women-owned businesses so they can be profitable and grow.
We also need to ensure there is a comprehensive database of local minority- and women-owned businesses and publicize it so that other companies are able do business with them.
How do we make it work? Experienced businesspeople need to be mentors, and a combination of city investment and private sector investment should underwrite these efforts. PPPs exist so government and the private sector can collaborate in innovative ways like this.
A safe and welcoming downtown is imperative for economic growth
My No. 1 priority is improving public safety, which is a crucial objective for the recovery of downtown Louisville. Chief Rick Sanders and I will put in place law enforcement strategies that we know are effective so that locals and visitors feel safe in our central business district.
Wonderful strides made over the past few decades were decimated in one night when damage to storefronts and office buildings left our downtown looking like a war zone.
Once beautification of our central business district is addressed, we then need to make sure area residents feel safe to come downtown again and for tourists and conventioneers to choose to visit Louisville.
I have met with businesses actively involved in downtown Louisville to know how to move forward. And I will be Ready Day One.
Fortunately our tourism and convention industries are recovering, but government and the private sector must team up to put into action ideas of the Downtown Revitalization Team, which invested much time and creative energy into coming up with strategies to restore downtown’s economy. The Downtown Revitalization Team’s work will move forward with my support as Mayor.
A safe and attractive downtown is imperative. That includes ensuring that homeless people do not camp on Louisville’s front door step. We need to help people who are homeless – we can’t keep relocating them from underpasses to parking lots. That’s the equivalent of moving around the chairs on the Titanic. There are no quick an easy solutions to homelessness because there are several reasons why people wind up with no roof over their head. But I will address this community challenge.
Image building for downtown Louisville starts with new leadership in the Mayor’s office. I will make it a priority as Louisville Mayor to keep our city looking great. My goal is for Louisville to have a welcoming downtown with an appealing live, work, play environment.
Workforce development in crisis mode
Louisville’s labor force participation rate was at an all-time low in 2021 at a rate of 63%, according to Greater Louisville Inc. That does not create a climate for success in our city.
We need people to rejoin the work force, but we have to acknowledge the reasons why they are not.
We will move forward with Frankfort to improve access to child care. We also have to address transportation needs so that employees can get to work at well-paying jobs.
But there are creative steps we can take to attract more workers to Louisville. We need to promote Louisville as a great place to work by attracting remote workers to our community because of its affordability, access to arts, entertainment and a plethora of recreational activities here and within a few hours’ drive.
Louisville Metro should launch a digital promotion campaign that targets employees in other cities and encourages them to move to Louisville. We had a similar campaign in Jeffersontown during the early months of the pandemic that proved to be an effective tool. We could replicate that effort on a larger scale for Louisville Metro.
Programs that offer incentives to get employees to choose to return to or enter the workforce also are useful and ideally would be funded by American Rescue Plan dollars.
One barrier that prevents some people from returning to work is that they lose their health coverage provided through public assistance. A STEP program that maintains health coverage for a predetermined period upon employment would allow people to work in jobs where health benefits are not immediately available. I would work with my connections in Frankfort to get a program of this kind established.
For the long-term, the Academies of Louisville programs stands to be a strong workforce development resource – particularly as students get access to job opportunities at Business Partners’ companies. As Louisville Mayor, I will promote this program and recognize its value in preparing our next generation workforce.
JOBS incentive program brings well-paying jobs
Louisville needs to be smart in offering the right kinds of economic incentives that serve our city well and boost job creation. As Mayor of Jeffersontown, home to Kentucky’s largest commerce park, I have overseen an Economic Development Authority and worked with hundreds of businesses on their expansion and relocation plans.
On my watch we launched our JOBS incentive program that can be used by existing businesses or ones new to Jeffersontown. Employers earn tax rebates through job creation. Since January 2020, a period when many businesses experienced downturns, we approved several JOBS projects that are on course to create 346 well-paying jobs with an average annual salary of $68,500.
Hundreds of other jobs have come to Jeffersontown since the JOBS program was launched eight years ago. Louisville needs programs like this one where incentives are earned by business successes.
Louisville needs a fresh mentality for economic growth
Louisville Metro is stagnant. Before the pandemic-prompted downturn, our economy was in a lull for years. Louisville lags peer cities in business expansion and population growth. There is no well-orchestrated business-attraction effort that compels businesses to choose Louisville.
We must change Louisville’s self-deprecating nature that has thwarted us for decades and take on a fresh mentality and optimistic mantle of community leadership. I don’t like it when I hear residents say: “I want to be like Indianapolis or Nashville.” During my administration Louisville will be the leader that others want to follow.
We must lean on our business strengths and nurture entrepreneurs to not just position Louisville as a great place to visit but as a thriving community with positive, forward motion so people want to live, work, operate businesses and raise their families here. There is much work to be done. I have walked this walk. I know how to get it done. I will be Ready Day One to set this course.