Cedar Rapids city officials eye larger role in business attraction

CEDAR RAPIDS — City Hall is looking to carve out a greater role in attracting new businesses and workers to Cedar Rapids while supporting those already here.

An update to the city’s economic development strategic plan looks to build upon the successes Cedar Rapids has seen in spurring economic development after the devastating 2008 flood. City Manager Jeff Pomeranz was tasked with fueling the city’s rebirth when the City Council appointed him to lead daily city operations in 2010.

To refresh the plan, the City Council previously awarded $50,000 in federal American Rescue Plan Act funds to partner with Austin, Texas-based Angelou Economics, which helped form the city’s initial 2014 strategic plan. ARPA funds were used to address COVID-19 impacts and workforce issues that the pandemic exacerbated, and to align economic development strategy with the equity-focused Community Climate Action Plan.

Mayor Tiffany O’Donnell has vocally supported this elevated focus on business attraction. The city allocated $390,000 for economic development programming in fiscal 2024, the budget year spanning July 1 through June 30, 2024.

“I’m thrilled about the commitment to economic development,” O’Donnell said at the council’s February budget session. “... As a city, we all believe in regionalism and the power of working as a region. My definition of regionalism is making sure that Cedar Rapids, as the economic driver of the region, is the best Cedar Rapids it can be.”

Business retention and expansion

Angelou Economics hosted roundtable discussions with business leaders, workforce and education providers and economic development partners and also surveyed citizens to understand public sentiment surrounding economic development.

Additionally, consultants looked at the city’s performance in terms of attracting new businesses by surveying site selectors the city has and has not engaged with to understand how Cedar Rapids does when site selectors look at Cedar Rapids as a place to do business. The consultant also did a mock site search as if they working on behalf of a client to see how the city performed.

City Economic Development Manager Caleb Mason said in a Tuesday presentation to council that the analysis reaffirmed the city’s target industries — the main industries that present growth opportunities for the city. Those industries are:

“They were pleasantly surprised” to see progress since the 2014 plan was rolled out, Mason said. “... There was an affirmation that we’re doing a lot of things really, really well. We can always make tweaks to improve things, but by and large, there was the affirmation that our economy is growing. It’s strong, it’s diverse, but we can continue to focus on those target industries.”

There is an opportunity for continued focus within those target industries, Mason said, to reap the rewards of ancillary opportunities for joint ventures and other partnerships to realize circular economic growth.

Creating amenities and attractions that support quality of life, such as enhancing the trail network, was also identified as an opportunity.

“We hear that all the time with business retention,” Mason said. “I think there was an acknowledgment that we’re doing really well in this area, but it’s an area where we can continue to put our (foot) on the gas pedal.”

Business attraction

The city should better align its business retention and attraction strategies, Mason said.

“As we’re out meeting with businesses and understanding who are your suppliers, it’s identifying those opportunities where there’s overlap and crossover,” Mason said. “Those become our strategic priorities for business attraction.”

The city also is well-positioned with the passage of its Community Climate Action Plan in 2021 to attract businesses that prioritize sustainability.

This plan, which lays out targets for reducing greenhouse gas emissions and achieving net-zero emissions by 2050, shows this is what Cedar Rapids officials want in the community. It also calls for the creation of green jobs and more sustainable economic development.

“There are a lot of new and burgeoning industries in sustainability, and from a marketing standpoint the fact that we have this Community Climate Action Plan is a tremendous asset that we need to be leveraging more, getting out in front of these prospects where there’s overlap,” Mason said.

Workforce

The city’s 2014 analysis didn’t include a robust discussion of workforce issues, but now Mason said the assessment envisions a larger city role in that sphere.

Iowa already struggled to find enough skilled workers to fill all open jobs, but now employers grapple with the lingering effects of remote work from the pandemic and a worsening worker shortage.

“This has become the main topic of concern for business attraction and retention,” Mason said.

Economic Development Specialist Ana Stomp said the plan urges understanding of the workforce ecosystem and opportunities to support both residents and the private sector.

Overall, Stomp said Cedar Rapids already has core services such as access to higher education institutions, nonprofit supports and informed, supportive leadership. But she said the city is not immune to workforce constraints and it could be easier for residents and employers to navigate workforce services.

Cedar Rapids lost 5,700 workers between 2020 and 2022, she said.

“Investing in efforts to raise (workforce) participation will be a significant part of our plan this year,” Stomp said. “To do this, we'll focus on examining the intersection between workforce elements and root causes that prevent employment.”

Barriers include access to affordable child care and support for English language learners for immigrants who are new to Iowa. Breaking these barriers requires an investment in serving these populations, connecting them to stable employment and creating career pathways, she said, so the city will look at its workforce supports.

The city should enhance marketing efforts to draw potential new businesses and prospective talent, Mason and Stomp said. This will be key to attracting businesses that otherwise overlook Cedar Rapids and to recruiting workers, they said.

What’s next?

City staff will work to improve the business attraction process with requests for proposals for certain services, Mason said, and tee up initiatives to bring back to council that address workforce issues.

Comments: (319) 398-8494; marissa.payne@thegazette.com