When neighbors compete for same prize

By The Gazette Editorial Board

In June of 1993, Michael Blouin was asked if the recent migration of a dozen Cedar Rapids and Marion businesses to fast-growing Hiawatha was a negative trend.

Blouin, then president of the Cedar Rapids Area Chamber of Commerce, told a Gazette reporter “No,” adding: “We think growth in this general area is positive, regardless of where a company locates. ... When you have a growing area as we do, it matters little where a company plans to break ground because everybody benefits.”

Fast forward to early June of this year. Hiawatha city officials consider $125,000 in economic incentives to attract Go Daddy and more than 400 Internet-related jobs. Bob Parsons founded Go Daddy and was planning to buy a building in Hiawatha for Go Daddy's move.

Less than a week before the expected June 15 Hiawatha City Council vote, a proposal spearheaded by Cedar Rapids Mayor Ron Corbett surfaces: An estimated $4.5 million in incentives to lure Go Daddy to the former MCI call center in the downtown.

Go Daddy then says its Hiawatha plans are on hold to see if a counter offer will come. Hiawatha city officials say they can't counter. They cry foul.

Is it?

And does this type of competition hinder or help the Corridor Business Alliance's stepped-up efforts to instill a more collaborative approach to economic development that promotes and benefits our region as a whole?

We agree with Blouin's overview. Competition is good - if the results are good for the metro area and region, and if communities don't bicker so much they drive quality business prospects away. We also believe collaboration can prosper within healthy competition.

Sure, the timing of the Cedar Rapids offer could be expected to ruffle feathers. However, Corbett was doing his job as outlined in the city charter - leading economic development efforts. The Cedar Rapids downtown business sector took a horrific hit during the flood. Rebuilding it is vital for the community, as well as the region.

As Corbett told a Gazette reporter, “ ... there isn't any regional expert around that says the No. 1 (largest) city (in a metro area) can die and everybody else will be OK.”

That said, communication among the mayor and all council members could be better at times. Council member Chuck Wieneke publicly chastised the mayor for not having the council vote on the Go Daddy proposal before it was offered. He also was upset about not being consulted before the matter became public.

Wieneke's right about being consulted.

But negotiations with private companies are usually confidential by necessity. Their competitive lives are at stake. Getting the city's ducks in a row before a council vote makes sense.

As long as the proposal is vetted in public before it's approved or rejected, that's simply how the game must be played.