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Economic development effort a lip-smackin’ success for Scottsville KY

(source BIPPS – Bluegrass Institute for Public Policy Solutions)

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It would be appropriate if J.M. Smucker’s new plant in Scottsville began making its “uncrustables” on April 2, which is “National Peanut Butter and Jelly Day."

Attracting Smucker’s to the community of 4,700 near Bowling Green is the result of a proactive economic development plan led and implemented by local citizens. By enhancing the ability of the Scottsville-Allen County Industrial Development Authority, community leaders made possible the offer of low-risk incentives to a stable company that will inject $4 million into the local economy annually in wages and benefits paid to 150 employees. The authority handled the entire financing for the project, including securing $2 million in one-time Kentucky Rural Development Authority (KREDA) incentive funds.

The value of the Smucker’s 50-acre site is estimated to be $15 million at completion of construction. Policymakers demonstrated proactive leadership by designating an additional $40,000 in anticipated annual property tax revenue to the authority for use as future incentives. Accommodations to meet Smucker’s need for natural gas, water and wastewater treatment also were made and will result in construction that provides an infrastructure improvement that should also prove attractive to other new companies.

Many cities have made similar “economic announcements,” but are dominated by state government officials betting that particular companies will be “winners,” and in turn offering them millions of taxpayer dollars to locate or expand in Kentucky. Often, these operations fail to live up to expectations and taxpayers are left holding the bag.

Scottsville, however, demonstrated how economic development should be done. By implementing their own development plans and investing local money, communities like Scottsville are making sound decisions and attracting companies that are a "good fit" and good jobs through low-risk incentives. Such an approach increases accountability and the chance for the kind of success demonstrated by the marriage of Scottsville and Smucker’s.  This policy is almost as good as a peanut butter and jelly sandwich!

Source: (Scottsville) Citizen-Times, “Large New Industry Coming to Scottsville,” Dec. 26, 2002; “Smucker’s Plant to Bring New IDA Revenue,” Jan. 30, 2003 “Utilities Upgraded to Supply Smuckers,” July 17, 2003

Source: www.smucker.com

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