Community Vitality Update

August 2005 Issue No. 20

This newsletter provides community leaders, economic developers, entrepreneurs, and other Iowans interested in community vitality with features on innovative strategies, updates on CVC projects, and info about opportunities for learning and networking.

Iowa Ranks 3rd Lowest in National Cost of Doing Business Index

The Milken Institute released its 2005 Cost of Doing Business Index on August 11. States with the lowest costs of doing business are South Dakota, with costs at 28 percent below the national average; North Dakota, with costs at 23 percent lower than the national average; and Iowa, with costs at 19 percent below the national average. Hawaii is the most expensive state in which to do business this year and also in last year’s index. According to the Milken Index, Hawaii has business costs that are 43 percent higher than the national average. Second-place New York has costs 30 percent higher, and third-place Massachusetts has costs that are 25 percent greater than the U.S. overall. California is fourth, with costs more than 24 percent greater, and Connecticut is fifth, with costs greater than 22 percent. For the latest report hit the Milken Institute link see here.

The Milken institute index weights five factors. Average annual wage per employee for all industries is weighted as 50 percent of the index. Average annual state and local taxes as a percent of personal income receives a 20 percent weight. The additional factors include commercial and industrial electricity rates in cents per kilowatt per hour (15 percent), cost of industrial warehouse space on a square foot basis (10 percent), and cost of renting office space on a per square foot basis (5 percent).

Rand Fisher, President of the Iowa Area Development Group has recently inquired as to whether CVC might help develop a measure for cost of doing business in rural Iowa. Based on the 2000 metro definitions plus Story County, nonmetro Iowa accounts for approximately half of the state’s income and employment. While no index has been developed yet, we do know that Iowa’s nonmetro counties have costs lower than the state average for several key factors. The annual wage across all industries averaged for all nonmetro counties in 2003 was 17.5 percent below the statewide average annual wage across all industries. While not true in all potential comparisons, other studies have indicated that nonmetro counties often provide lower costs for land, office and warehouse space rent, and local taxes. While such indices are not designed to provide a detailed analysis of cost of doing business for a particular industry or firm, they do provide a general indication of key business costs for the economy as a whole. CVC has compiled Iowa’s annual wages by county and ranks. To see your county rank click here.

CVC Entrepreneurship Academy Set for October 21 at Manning Hausbarn

October 21st at the Hausbarn in Manning is the date and location for CVC’s 2005 Community Entrepreneurship Academy. Over the past decade, Manning Iowa has emerged with a reputation for being one of the most entrepreneurial small communities in Iowa. This year’s academy provides a unique opportunity to learn the secrets of Manning’s success. The morning panel will share keys to success and the role of community leaders in such entrepreneurial projects like Tall Corn Ethanol, Struve Labs, Caleris, Plastico, and others. The conference is being held at one of Manning’s most entrepreneurial ventures, the 350-year old Manning Hausbarn is a symbol of local heritage and the community’s “never take no for an answer” spirit. The Hausbarn was disassembled and transported from Germany. Reconstruction at the Konference Centre location in Southeast Manning was completed in 2000.

Brian Dabson, Associate Director for the Rural Policy Research Institute and Co-Director of the National Rural Entrepreneurship Center will provide a keynote presentation in the morning. Last year, Brian headed up the Kellogg Foundation/CFED rural entrepreneurship initiative. He will present some interesting perceptions about entrepreneurship nationally and internationally in rural communities and regions. The lunch will feature German dishes as well as tours of the Hausbarn and winners of the CVC Community Entrepreneurship Awards. Afternoon workshops include Capital Financing and Technical Assistance for Community Entrepreneurs and a workshop on Wind Entrepreneurship is in the planning stages.

The program is scheduled for 9:00 AM to 4:30 PM with registration starting at 8:30AM. The conference registration fee is $35 until October 11 and $50 thereafter. Registration and program information will soon be available here.

Regional Forums for Business Leaders on Recruiting Mature Workers

To help Iowa prepare for changing workforce demographics and the need for workers in the future, Governor Vilsack is inviting the state’s business leaders to participate in one of the six regional business leader forums during September in Des Moines, Ottumwa, Davenport, Council Bluffs, Cherokee or Waterloo. The purpose of the forums is to examine ways that business leaders can use the untapped workforce of mature workers to continue contributing to the state’s economic health. Due to the greater proportion of older workers in non metro counties, it is particularly important for rural business leaders and employers to participate in the forums to help plan strategies for dealing with the expected future erosion in workers available in the state.

Each forum will bring together members of the Governor’s Task Force on Mature Worker Issues, Iowa’s Community Colleges, the Iowa Department of Elder Affairs, and the AARP Foundation for a two-hour discussion of the opportunities and barriers to expanding employment for mature workers in Iowa. CVC and ISU Extension have representatives on the Governor’s Task Force and have been developing fact sheets on Iowa’s older workers that will be provided during the regional and state meetings. Findings from these sessions will be recorded and used to guide development of a statewide conference on mature workforce issues in the spring of 2006.

Sessions are planned in Ottumwa, Davenport, Council Bluffs, Cherokee and Waterloo, and at the Historical Building in Des Moines. Each meeting will highlight the best practices businesses used to recruit, train, and attract older workers, and bottom line results that older workers have produced. The meetings are free and open to all businesses in the state. More information about the forums and on-line registration is available here.

School Foundation Meetings

The Midwest School Foundation Conference will be held on September 29th at the West Des Moines Marriott and will provide an opportunity for school administrators, district education foundation staffs, school board members, and other community volunteers and foundation interests to network, gather ideas, share resources, and increase knowledge about current opportunities in K-12 foundations and fund raising. Such meetings can provide an opportunity for local philanthropy interests to identify relative strengths and to discuss ways to coordinate local community philanthropy strategies so that unintended consequences don’t occur. Richard Koontz, Iowa Non-Profit Resource Center Director will highlight a session on forming a School Foundation. Chip Muston of Indianapolis based e-Tapestry, will speak on Internet Fundraising. For more information see the National School Foundation Association website.

Call for Innovative Community Entrepreneurship Challenge Grants

CVC is now accepting proposals until September 1st for Innovative Community Entrepreneurship Mini Grant projects. The maximum award for each project is $10,000 and requires a local match. The purpose is to help communities and regional entrepreneurial support networks to implement innovative entrepreneurial development concepts locally or to feature lessons learned from an existing innovative project that would be of interest to leaders in other communities. The Community Vitality Center has funded five or six mini grants to communities each year of the past three years. Local projects have included development of Community Entrepreneurial Centers, Entrepreneurial Coaching and Mentoring Programs, organization of Community Entrepreneurial Support Committees and Business Plan Competitions, Entrepreneurial Training Support, Sirolli workshops, and others. Application materials and spending guidelines are available here. Applications should be submitted by email to cvc@iastate.edu by September 1, 2005 for the July 2006-2007 fiscal year and are contingent on funding availability.

Call for CVC Board Nominations

The CVC Board Nominating Committee is receiving nominations of leaders that would be interested in serving on the CVC Board. The CVC mission is to serve as a catalyst for innovative projects and initiatives designed to improve the vitality of Iowa communities, particularly those in nonmetro counties. The CVC facilitates networking among small and medium size rural communities, sponsors policy analyses, engages communities in dialogue, and fosters discussion among rural and urban interests. CVC Board members serve 3 year terms and are expected to attend quarterly board meetings to establish budget priorities, set center policy and monitor projects and initiatives of the center. To submit a nomination, please Email the name and contact information for the nominee in addition to the name and contact information for the nominator to cvc@iastate.edu by September 1, 2005.