Think regional for economic development

By Pat Baird

On Tuesday, a forum will be held at Kirkwood's Center for Continuing Education exploring the merits of regional economic development. Great news. It's time for a coordinated economic development strategy for the Cedar Rapids/Iowa City corridor.

As a 30-year employee of AEGON USA, I've seen communities where we have operations become transformed into regional heavyweights simply by changing how they think and react to economic development opportunities. With all the advantages we have in this area, we can do the same.

AEGON USA has increased its work force in Cedar Rapids from 800 jobs in 1993 to more than 3,600 today. While we employ more than 12,000 nationally in cities such as Baltimore, Louisville, Los Angeles and others, Cedar Rapids is by far our largest site. The costs are reasonable here, the work force is well-educated and the work ethic is second to none. In addition, the state of Iowa and its secondary educational institutions have done a great job of supporting the insurance industry.

While many of our employees come from the area, as I do, we still recruit many nationally and even internationally. Those of us who live here know the advantages: a great quality of life, outstanding educational institutions, short commutes, safe neighborhoods, Big Ten sports and proximity to countless recreational and cultural opportunities.

Iowa City and Cedar Rapids, together with the surrounding communities in between, are indeed all very different places. When we recruit new employees from outside the area, we sell not only the collective advantages of life within the Corridor, but the uniqueness of each community.

Because commute times are relatively short, we have learned that work force demands can also be met by the success of other companies. When a new company adds jobs or relocates employees from other locations, we know that spouses and other family members of those new hires present us with additional work force alternatives. A win for Iowa City is a win for those of us growing a business in Cedar Rapids, and visa versa.

Correspondingly, flood recovery for this area is also a direct form of economic development. During this past year, I had the privilege to serve on the state's I-JOBS Board, which awarded competitive and non-competitive grant money to communities to jump-start flood-recovery projects, as well as to provide economic stimulus. The board had a “geographic diversity” mandate to spread competitive grant moneys throughout the state. It is important to note that the board examined the state by quadrant, and not by city or county.

Other communities where AEGON USA conducts its business have recognized economic development has gone regional, and some have even gone so far as to regionalize their government. The city of Louisville, in particular, has regionalized its government solely for purposes of promoting economic development. While no one is promoting this idea for our area at this time, it illustrates the thinking and efforts of other communities with which we compete to attract new employers and/or encourage the expansion of our existing employers.

We endorse and will support the initiative to develop a coordinated economic development strategy for the Cedar Rapids/Iowa City Corridor. Dotted lines that divide the region into cities and counties are totally irrelevant to business and economic development. The attributes we share in this region are far more valuable than those things that divide us.

It's time we focus the efforts of our local chambers of commerce, economic development groups and academic institutions on these attributes.

It is also time our local governments form a collaboration among themselves and with the regional economic development groups to ensure they are constructive partners in regional economic development.

It is also as important never to allow the parochial interests defined by these dotted lines on a map to become a deterrent to what is right for the Corridor. If we accomplish this, we all win.

Pat Baird is chief executive officer of AEGON USA in Cedar Rapids.