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Then and now: a time of change

We are all aware that this is an improving period of time in the region’s economy, but I think that it is always good to look retrospectively at our history so that we can replicate the good and not repeat the bad. I spent more than 36 years with the city of Fort Dodge, which has allowed me to view, be part of, and to have knowledge of various events and activities that shaped our history. My observations, therefore, as with all of us, are shaped by my own experiences and associations.

This region in the recent decades has suffered from some significant population declines. If we look at the counties of Calhoun, Greene, Hamilton, Humboldt, Pocahontas, Webster and Wright we see that decline. Populations in the seven counties including and surrounding Webster County since 1960 have lost between 20.49 percent in Webster County to 48.64 percent in Pocahontas County. There are multiple reasons for this decline including smaller family sizes, larger farms and fewer homesteads. In the seven counties, the number of farms decreased 52.85 percent in Calhoun County to 59.99 percent in Hamilton County. These declines lead to less retail, service, health care and other business.

It is generally believed that in Fort Dodge alone that the primary economic downturn occurred when Hormel, American Can and Iowa Beef closed their doors in the early 1980s. Fort Dodge went from building an excess of 100 new homes per year in the late 1970s to zero new housing starts in 1986. This was, however, during a short period in the late 1970s when the inflation rate was higher than the mortgage rates resulting in people arbitraging gains because of it in real estate. It clearly was devastating to the community and the region, but similar effects were occurring prior to the early 1980s, just over a more extended period.

In 1970, Fort Dodge had a population of 31,263 and by 1980 it had dropped to 29,423 with a loss of 1,840. In 1990 after the loss of 3,000 jobs, the population dropped to 25,894 but has been stable and has actually grown slightly since that time. The population decline in the 1970s was already 50 percent of the loss that occurred with Hormel and Iowa Beef in the 1980s. This was a time when along with changes in agriculture, business was becoming much less dependent on regional economics and was becoming more national and even more global. With the improvements in transportation and logistics as well as in technology, business was not so dependent on locating next door to its customers. Mergers were also increasing and business competition was increasing. Areas other than the rural Midwest were the preferred growth locations.

Reacting to change

With all of this change, it seems that Fort Dodge was acknowledging the change and beginning to react as well. In the mid-1980s, the first countywide economic development organization was formed in order to confront the competition for business that had not been as acute previously. Cold-calling and other expanded forms of marketing began with some success, which included bringing Carnation Can (now Silgan Containers) to Fort Dodge as well as Tursso and several local expansions. It was, however, the first half of the 1990’s that I believe Fort Dodge and Webster County had the first real defining moment in their economic development evolution.

Carnation (now Nestle) acquired ALPO Pet Food and was being required to divest ownership in one of their plants by The Federal Trade Commission. I believe that this was to become an extremely important moment in moving ahead to where we are today. At that time, I still saw a lot of local competition and saw less collaboration than today. We tended to work in silos, and even worse, were skeptical of working together as community organizations. I even recall a community leader contacting me to tell me that it was a waste of time, money, and effort to attempt to get a divestiture reversal so that the plant could remain with the current ownership. The requirement stated that the plant go to a generic producer and yet this plant produced four times the entire generic cat food market in the US annually; so nothing good could have occurred.

In any case, this was the first time in my career, that I really saw all elements of the area on the same page with the same purpose of working together. The city, the county, Iowa Central Community College, the schools, the churches, the Chamber of Commerce, Gov. Branstad, Attorney General Tom Miller, the various Development Corporations, the Economic Development Corporation, Scouts, day cares, service clubs, retailers and many other individuals and organizations all worked together with a common cause. To our credit, after letters and trips to Washington and after a very good case was presented, The Federal Trade Commission, reversed the divestiture ruling. The Nestle plant is here today, and it has expanded a number of times and currently has the highest employment level ever.

Working together

I believe that the divestiture reversal was the beginning of a better way of working together. A year later, a similar process was undertaken to bring a medium security corrections facility to Fort Dodge. Around 20 other communities applied and Newton won the award; Fort Dodge was second by one point. The following year we again collaborated on applying a second time for the next corrections facility and beat out 18 other communities for the award. I believe this reinforced what it takes in an extremely competitive world to learn to collaborate successfully and to understand how to be successful. I occasionally wonder however, where we might be today if we had said to ourselves, “We agree that we shouldn’t try to reverse the FTC ruling because the odds are against us.” Put another way, as Confucius said, “If you don’t change direction, you’ll get where you’re headed.”

Well, we have changed direction and have continued to take positive evolutionary steps in the economic improvement of Fort Dodge, Webster County and the region. We all become accepting of our surroundings and tend to fear change, but in a world that is changing faster each and every day, if we don’t change with it, we become irrelevant in the world. I believe that along with working better together we have taken our blinders off and have looked at ourselves as others do, and therefore recognized that many things can be improved upon.

In 2006/2007 the Development Corporation of Fort Dodge and Webster County conducted a survey called the RA Smith survey in which we asked our primary sector companies what it is that needs improvement or what could be done to make the companies better able to do business, recruit, and retain employees in Webster County. There was significant value in those responses; however, the greatest value came from the way the results were embraced locally. Following, was the undertaking of various studies and policy adjustments that were intended to mitigate the issues identified. Better yet however, is the fact that all of the findings and recommendations are being implemented where appropriate. The city, the county, Iowa Central Community College, the community schools and other groups were committed.

City government

About the time this was occurring, another major change had happened in Fort Dodge municipal government. That change was a move to a city manager form. A major benefit was more continuity of planning as well as continuity of implementation and better departmental collaboration. The mayor and City Council further renamed The Planning, Community Development, and Inspection Department to The Business Affairs and Community Growth Department. This was not only a name change but was also a change in mission by emphasizing business or economic development as a core part of the mission. A business affairs specialist position was added and her primary purpose was to work with existing industry and business, as well as The Development Corporation of Fort Dodge and Webster County. The primary question was to always be, “How does a decision affect economic development?”

The city and the county governments increased their financial support of the Development Corporation of Fort Dodge and Webster County and the two organizations began to collaborate more on economic development initiatives. At that time the Development Corporation’s budget was approximately one-third private and two-thirds public. Today The Greater Fort Dodge Growth Alliance is approximately one-third public and two-thirds privately funded, which demonstrates one other important occurrence: the private sector is much more engaged than ever before.

Growth Alliance

Most recently, The Fort Dodge Chamber of Commerce and the Fort Dodge and Webster County Development Corporation merged into the Greater Fort Dodge Growth Alliance. This, along with co-locating with the Community Foundation and United Way, and Convention and Visitors Bureau has further integrated economic and community development activities and made the approach more efficient, less duplicating, and more productive than we could all be independently, whether with people, finances, or activity. The RA Smith survey, greater private sector engagement, and better collaborative relationships then lead to the recognition that to be effective in helping local business expand and in recruiting new companies we could not distinguish between economic development and quality of life initiatives. In my years in Fort Dodge, I believe today we are more efficient, working together better, and are doing a better job of economic and community development in the region than ever before. Engagement and collaboration, as simple as it seems and as hard as it sometimes may be, produces tremendous results.

Emphasizing this point is that The Growth Alliance with communitywide input developed a Strategic Plan at the time of the merger and has updated it annually thereafter. This year the Strategic Plan was also adopted by a Resolution of Support by 14 other local entities including: Iowa Central Community College, the city of Fort Dodge, the Webster County Board of Supervisors, The Convention and Visitors Bureau, The Fort Dodge Public School Board, the Fort Dodge Catholic Board of Education, Mid-Iowa Growth Partnership, Midas Council of Governments, the Gowrie Development Commission, Trinity Regional Medical Center, the Community Foundation and United Way, the Fort Dodge Betterment Foundation, the Development Corporation of Greater Fort Dodge, and the Webster County Improvement Corporation.

This does not mean that any single entity is driving another, but that our planning is consistent, integrated, collaborative, and that we are all communicating and working together toward common goals. We should all be proud of these joint efforts, and realize that it is making positive differences that are improving opportunities and the quality of life of Webster County and the region. After all, who else can say that in 2011-2012, as Webster County can, that 9.2 percent of the statewide capital investment in primary sector companies was in their county? Who else can also say that in the same period over 17 percent of the statewide global direct investment occurred there? In addition, who else can say as Fort Dodge can, that retail sales have increased over 40 percent since 2010?

None of this happens by accident. It happens because of the engagement of everyone, collaboration, consistency, avoiding past mistakes and learning from our successes. Thank you to all of you for your contributions to an environment of opportunity.

Dennis Plautz is chief executive officer of the Greater Fort Dodge Growth Alliance.

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