The Free Press, Mankato, MN

Local News

September 30, 2009

Regional development gets boost

By Dan Linehan

MANKATO — Regions will be the economic competitors of the future and Greater Mankato’s formation of one of only a handful of such entities in the state puts it ahead of the curve, a prominent state official said Wednesday.

Cities are too small and states too cumbersome to compete as well as regions, which can offer a wide array of opportunities and industries, said Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development.

He praised Greater Mankato Growth’s new joint services agreement marketing the economic development assets of eight cities and counties. They are: Lake Crystal, Eagle Lake, Mapleton, Madison Lake, St. Peter, Le Sueur as well as Blue Earth and Nicollet counties.

McElroy said he knew of only two similar groups — one near Rochester and another in northwest Minnesota.

Jonathan Zierdt, president and CEO of Greater Mankato Growth, uses an analogy about downhill skiing to describe how companies choose where to locate.

Say you’re looking for a place to ski. You probably don’t want to see just a picture of a single slope.

You want a good hill or mountain. Then you “filter down” based on other criteria, maybe a place that’s kid-friendly.

That’s a bit like how companies choose a place to go, Zierdt said.

The name “Mankato” means little or nothing to a prospective company. But a Web site with many site options and demographic statistics gives a site selector the kind of information they can use.

And if lots of options helps a company come to this area, everyone will benefit.

Having a one-stop clearinghouse also helps to prevent job poaching — when cities compete to lure a new business.

Cooperation over competition was definitely the idea Wednesday, as representatives from each city or county ceremonially signed the agreement at Greater Mankato Growth’s Mankato headquarters.

Lake Crystal City Administrator Bob Hauge said he’d like companies to see his city’s rural setting, railroad access, four-lane highway and ample space.

But Hauge and Mayor Pat McKinzie said the city will get jobs, residents and school children even if a company decides to locate in a different city. And if they can help that happen, they’re in. Lake Crystal will pay $2,805 for the first year, $1.05 per person. That cost will rise to $5,957 by 2012.

Even in a time of steep state aid cuts, local government leaders were enthusiastic about the partnership. Even counties, which traditionally do little or no work attracting business, have joined up.

“We feel that the benefits will far outweigh the dollars we spend,” Nicollet County Administrator Bob Podhradsky said.

His county will pay for 6,345 residents, which doesn’t include St. Peter, which is a member, and North Mankato, which isn’t.

Last December, North Mankato left what was formally a partnership between it and Mankato. It had paid $36,000 annually to help market the city but decided it could spend the money better itself.

The new members will together will pay $45,964 during their first year of membership and $96,910 by 2012. According to the deal, they will be represented on the Greater Mankato Board of Director by two voting members picked from their ranks. That representation has yet to be voted on by the board.

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