Seeking stories on the rise and fall of McLeodUSA

We Create Here was an initiative within the Gazette Company to develop evolving narratives and authentic conversations throughout Iowa's Creative Corridor. read more

I believe that some companies can have a multiplying effect.

Consider Parsons Technology, which employed around 1,000 people in Cedar Rapids in the 1990s. Both GoDaddy and TaxACT have ties to the former Parsons, employing many former Parsons technologists. These two companies are nationally-known names with a large presence right here in the Corridor.

Another example might be the former McLeodUSA.

Based in Cedar Rapids, McLeod grew to be one of the largest telecom providers in the nation before going public during the dotcom bubble and eventually going bankrupt.

During my year and a half of living in the Corridor, whenever I've heard the name "McLeod" mentioned, it's in hushed tones. The pain is still evident, like a scar on our community's collective past.

But look at the other side: companies including ImOn Communications, Involta, RuffaloCODY and more were founded by former McLeod employees. Many others who originally moved here for jobs at McLeod still live and work in the region.

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Could there be a ripple effect from this one failure that is ultimately positive?

Earlier this year, I had a conversation with Steve Gray, the former president of McLeod (and currently, the leader of a group working to bring a casino to Cedar Rapids).

“If we truly want to ‘create here,' we have to understand that people are going to stumble – and sometimes stumble in a big way,” he said. “Yet, there's more often than not a greater good, in terms of economic development and jobs created."

What do you think? I would love to speak with anyone with opinions or experience on McLeod, or any other companies that have had a far-reaching impact. Drop me a line: sarah.binder@sourcemedia.net

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[wc_box color="inverse" text_align="left"]Related:

"A time to plant, a time to uproot," by Troy Miller on Welch Avenue - Miller discusses McLeod from an entrepreneur's point of view.

"You failed. Now what?" by Alex Taylor on We Create Here.

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