Are economic development subsidies worth it?

It’s hard to know if they are not measured.  I came across an interesting column by David Campbell in the New Brunswick, Canada, Business Journal.  He pointed out that “… despite offering the most lucrative business incentives in Canada, Investissement Québec claims to have a cost-benefit ratio of 3.74 to 1.”  He goes on to say that he looked at a dozen economic development agencies, and only two reported a cost-benefit analysis of their efforts.

Does your state, county or town follow-up its economic subsidies with a cost-benefit analysis?

The Low Side of the Street

Spoke to the Rotary Club in Eupora the other day and had a delicious meal at the Magnolia Grill on N. Dunn Street.  Cynthia Wilson, Executive Director of the Webster County Development Council, gave me directions telling me that it was on, “…on the low side.”  I wasn’t certain what that meant and did not ask.  I found out later that the west side of North Dunn Street in downtown Eupora is literally higher than the east side.  The locals use “high side” or “low side” to refer to which side.

That’s the kind of little thing that makes a community unique.

By the way, if you like good food and good people in restaurants in restored, downtown buildings the you will like the Magnolia Grill in Eupora, the Crown in Indianola and Kittrell’s on the Square in Lexington.

What? No company database?

Eric P. Canada & Nancy A. Blane, of Blane Canada, an economic development consulting firm, write in their latest newsletter that “…seven out of 10 economic development organizations we work with do not have a database of the primary companies in the community.”

Every economic developer should be on a first name basis with the largest employers in the community.