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All Together Now
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A Retrospective
Look at Regional Progress and Accomplishments from 2000 to 2005
By Dave Kovalak
Like much of the country, the St. Louis region looked upon the new
millennium with hope for a bright future. And why shouldn’t it?
The national economy had been rapidly expanding since the mid-1990s,
largely driven by advances in communication, technology and science
(and the resulting increases in worker productivity). The Internet
was opening a new world of information and commerce that virtually
assured any new business in the field would succeed (or so it was
thought). The world at large was reasonably stable and peaceful.
Projections of a vibrant revitalization of the St. Louis region
were aggressive, but not unreasonable. The Phase I regional economic
development campaign (1995 to 1999) of the three-phase, 15-year
civic initiative exceeded the goal of producing 100,000 net new
jobs during the period, with 112,000 jobs. As the Phase II campaign
started in the year 2000, hopes were high for St. Louis to reverse
over 50 years of declining population and economic stagnation.
Like many Midwestern regions, St. Louis would have to overcome a
number of significant challenges in its return to “greatness”. The
positive momentum of the new century alone could not reverse decades
of: out-migration (“brain drain”), economic stagnation, significant
defense and manufacturing downsizings, a severely challenged school
system, loss of manufacturing jobs, decline of the center city,
and an aging and insufficient infrastructure. Nonetheless, the “civic
mood” following an intensive two-year strategic planning process
led by RCGA chair and chair-elect Dick Beumer and John Bachmann
in early 1998 was beginning to show signs of optimism.
As everyone now knows, the period from 2000 to 2005 has been anything
but smooth. Terrorism, recession, war, the “technology bust, “downsizing”
and “outsourcing” were just a few of the many challenges during
this period. Putting it mildly, this was an unstable and uneasy
period for all. Despite the enormous challenges facing the country,
the St. Louis region moved forward with a strong agenda for continuing
turnaround. Though the agenda was already in motion by 2000, it
proved doubly important as the region contended with both known
and unknown obstacles.
Planning + People = Positive Momentum
While the “best laid plans of mice and men” don’t always come true,
it’s best to at least start with a plan. In 2000, St. Louis had
a plan for retooling and revitalization—the eight-initiative regional
agenda called Shaping a Greater St. Louis. It would require
unprecedented cooperation between planners, elected officials (at
all levels of government), real estate developers, philanthropists,
economic developers, academics, economists and, of course, regional
business leaders.
Shaping a Greater St. Louis provided a holistic view of what
it takes to make Greater St. Louis, well, greater. Making
the community a better place to live, work and play, benefits current
St. Louisans, while also making the region more attractive to future
talent necessary for 21st century growth.
THE EIGHT REGIONAL INITIATIVES:
1. Forward Metro St. Louis
2. Regional Business Council
3. Region-Wide Infrastructure Improvements
4. Regional Economic Growth and Vitality
5. Distinctive Industry Clusters
6. Workforce Enhancement
7. Revitalizing the Region's Central City
8. Community Capitalism
Considering the mountain of obstacles to success (old and new),
St. Louis Regional Chamber and Growth Association (RCGA) Chairman
(2000-2002) John Bachmann, put it best when he commented in 1999
that, “We have a good game plan. But we will rely on the dedication
of pragmatic, focused business and civic leaders to provide a new
commitment to improving our region’s quality of life, a new energy
to push our region’s plan forward and a distinctive St. Louis place
in the new economy…” He identified a basic truth that would guide
St. Louis through a tumultuous period—the right people do make the
difference.
As difficult as the years 2000 to 2005 were, area residents can
celebrate many accomplishments from the Shaping a Greater St.
Louis plan. In addition to tangible achievements, the greatest
outcome may be the way the community has coalesced around common
region-wide goals. For the first time in years, disparate groups
were coming together and acting “All Together Now.”
This report presents a brief summary of the progress made on the
eight regional initiatives from 2000 to 2005.
Forward Metro St. Louis
One of the first steps in applying business leadership for change
was forming a coalition known as Forward Metro St. Louis.
By recruiting business and civic leadership and aligning the strengths
of three metro business organizations—the RCGA, Civic Progress,
and the then newly-formed Regional Business Council—the business
community spoke with one voice on targeted regional public policy
issues. In addition to outstanding volunteer talent, RCGA recruited
Tom Irwin to serve as its senior vice president for Public Policy,
and to staff the initiative.
In tandem with a continued strong comprehensive legislative agenda
through the RCGA Public Policy Council, Forward Metro St. Louis
identified and lobbied for a member-driven legislative agenda that
would enhance the region’s business climate, making the bi-state
metro area more attractive for business retention, expansion and
recruitment.
Public
Policy Successes: Helping to conclude public and private
partnership transactions to make the
Cardinals Ballpark and Ballpark Village realities.
Supporting
incentive legislation encouraging the growth and retention
of high-tech life and medical sciences companies, such as
Pfizer, Sigma-Aldrich, and Monsanto. |
Some of the major Public Policy successes
during the 2000 to 2005 period included:
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Passage in 2005 of meaningful reforms to both Tort and Worker’s
Compensation. These issues were on the regional business community’s
agenda for the past five years, but were finally enacted into
law in 2005.
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Passage in 2005 of the Quality Jobs bill added major new incentives
for growing Missouri businesses and recruiting new companies.
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Preservation of the Historic Preservation Tax Credit and the
Brownfield Tax Credit, in spite of continued budget challenges,
reaffirmed a solid economic development policy for the State
of Missouri.
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Supporting incentive legislation encouraging the growth and
retention of high-tech life and medical sciences companies,
such as Pfizer, Sigma-Aldrich, and Monsanto.
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Lobbying to extend “Quick Take” authority for the Southwestern
Illinois Development Authority.
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Securing passage of “Quick Take” authority for the expansion
of MetroLink in Illinois.
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Establishing a Budget Business Task Force to recommend improvements
to Missouri’s State budgeting process.
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Helping to conclude public and private partnership transactions
to make the Cardinals Ballpark and Ballpark Village realities.
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Helping to defeat a number of employer tax increases.
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Regional
Business Council
An early success of Shaping a Great St. Louis in 2001 was the creation
of the Regional Business Council (RBC). While the region had long
enjoyed leadership from Civic Progress’ large-cap companies, the
region lacked a focused civic vehicle for engaging St. Louis’ mid-cap
companies.
With support from philanthropist Des Lee, in 2000 the RCGA brought
together mid-cap CEOs, and with them designed, recruited staff,
and subsequently incubated the Regional Business Council. Within
a year of its founding, the RBC gained enough momentum to spin off
as a separate 501(c)(3). Its network of 90+ mid-cap CEOs is now
a civic partner with RCGA and Civic Progress in a variety of public
policy, infrastructure, education, and diversity initiatives.
Region-wide Infrastructure Improvements
By 2000, the region was well behind the curve in addressing its
critical infrastructure needs. Interstate highways needed reconstruction,
lane expansion and, most importantly, construction of a new Mississippi
River Bridge downtown. Without surface transportation improvements,
St. Louis traffic congestion could double, while already long commute
times could triple. Furthermore, the aging Lambert-St. Louis International
Airport needed terminal improvements and a new runway to remain
competitive with other air transportation hubs.
Bringing
together MoDOT, IDOT, and the City of St. Louis to reach
a consensus on the initial plan for the proposed
new Mississippi River Bridge.
Staffing
the Business Task Force on Lambert’s future, and successful
advocacy for federal funding and completion of a billion
dollar plus Lambert expansion. |
The RCGA Board led the effort to attract
hands-on private sector involvement in infrastructure. Here are
a few of the accomplishments from 2000 to 2005:
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Bringing together MoDOT, IDOT, and the City of St. Louis to
reach a consensus on the initial plan for the proposed new
Mississippi River Bridge.
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Organizing the discussion on how to fund the Mississippi River
Bridge, including establishing Partners in Transportation.
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Co-sponsoring national workshops on funding large transportation
projects.
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Successfully lobbying the Federal government to include the
Mississippi River Bridge project as a national priority in
the multi-year Federal Transportation Bill.
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Endorsing the new federal Water Resources Development Act
to fund locks and dams on the Upper Mississippi and Illinois
rivers.
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Advocating a fair Army Corp of Engineers Annual Operating
Plan for the Missouri River to provide reliable navigation
and use of the waterway.
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Supporting the federal National Heritage Designation for Confluence
Greenway.
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Successfully advocating the expansion of the Airport Commission
to include airports in St. Charles and St. Clair counties.
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Mobilizing private sector influence for the I-64 reconstruction
project.
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Supporting the expansion of MetroLink into Southwestern Illinois
and Shrewsbury.
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Completing the “Metro Action Plan” to articulate needs for
the region’s roads, bridges and transit.
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Staffing the Business Task Force on Lambert’s future, and
successful advocacy for federal funding and completion of
a billion dollar plus Lambert expansion.
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Initiating a bonding package that set the stage for a statewide
transportation funding bill (the first in a decade).
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Working with the Governor and the Commission on improving
accountability at MoDOT.
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Distinctive
Industry Clusters
One of the most important developments in the long-term transformation
of the region’s economy was the creation of a five-cluster strategy
for growth. Cluster theory suggests that by focusing on the vertical
nature of various industries, a region can attract not only single
companies, but also an array of businesses and related institutions
that vertically support that industry. Talented workers, companies,
and investors tend to gravitate to regions with thriving opportunities
for joint ventures and ready sources of venture capital.
Through the initial work of Harvard Business School professor Dr.
Michael Porter and consultants Celeste & Sabety, the RCGA and Civic
Progress identified the five most likely areas for success, including:
1. Plant and Medical Sciences
2. Information Technology
3. Advanced Manufacturing
4. Financial Services
5. Transportation/Logistics
Subsequently, indepth cluster strategies were completed with the
Battelle Memorial Institute—the largest independent research institution
in the world—setting the stage for economic development in the plant
and medical sciences, information technologies, and advanced manufacturing
industry clusters.
Accomplishments included:
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Conducting Battelle strategies for the Advanced Manufacturing,
Plant and Life Sciences and Information Technology clusters.
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Establishing the Plant and Life Sciences Coalition to implement
key elements of the region’s Plant & Life Sciences Strategy.
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Enlisting Washington University Chancellor-emeritus Dr. William
Danforth to chair the Plant & Life Sciences Coalition.
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Launching the BioBelt brand for St. Louis’ plant and life
sciences cluster.
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Positioning St. Louis nationally and internationally through
BIO international.
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Advocacy for establishment of the Life Sciences Research Fund
from the tobacco settlement.
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Stimulating venture capital sources, such as Peter Brooke’s
St. Louis-based Vectis Life Sciences Venture Fund ($83 million
and the 3rd largest fund of funds in 2004), and generating
nearly $500 million of early-stage life sciences and technology
funding.
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Partnering in the development of CORTEX, the vehicle for developing
a midtown biomedical business corridor.
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Helping design and establish a new Commercialization and Tech
Transfer Center, called BioGenerator.
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Designing, and subsequently implementing—in partnership with
the NIDUS Center—the region’s angel investment group, the
St. Louis Archangels.
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Regional
Economic Growth and Vitality
As Shaping a Greater St. Louis worked to improve the “product” of
the region, RCGA also continued shepherding business retention,
expansion, entrepreneurial development and business recruitment
during a very challenging period. If the decade of the 1990’s was
an era when “all boats rise with the tide,” the start of the new
millennium was becoming a period of basic economic survival.
RCGA and the Greater St. Louis Economic Development
Council created the Greater St. Louis Economic Development Network.
This Network helped foster the following successes from 2000 to
2005:
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Development Strategies Inc. recently documented over $18 billion
in public and private investment either just completed or
now underway in the St. Louis region.
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Identifying 13 themes that would help guide economic revitalization,
such as: stimulating entrepreneurial growth, and pursuing
stronger business development with women- and minority-owned
businesses.
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Fostering the expansion, retention and attraction of key job-producing
companies, such as: Daimler Chrysler, Reuters, Centocor, Dial
Corporation, Hershey Foods, Unigraphics Solutions, Johnson
Controls, PeopleSupport, and Sigma-Aldrich, to name a few.
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Helping attract/retain jobs in the region. Growth came from
progressive companies such as: American Healthways, McCormick
Scientific, KV Pharmaceutical, Harman/Becker, Access Point
Medical, Sequoia Sciences, and Pfizer (2005 announcements).
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Successfully recruiting smaller, high-growth companies that
will typify 21st century growth in the five targeted industry
clusters.
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Workforce
Enhancement
Building an economy for the 21st century requires building a workforce
that’s up to the task. This includes training and upgrading skills
of existing workers, while also attracting talented, qualified new
workers from outside the region.
Achievements in workforce enhancement included:
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Completing a comprehensive labor market study for the region.
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Enlisting private-sector participation in a Regional Workforce
Policy Group.
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Identifying and validating skill sets required for the health
care and technology sectors.
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Helped establish the IT Academy, a vocational cooperative
for students in grades 9–12.
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Undertaking year-long Kotkin Study on recruiting/retaining
talent in St. Louis, and integrating findings into pragmatic
economic development and entrepreneurial agendas.
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Working with St. Louis Public Schools and life sciences leaders
to design and create a biotech curriculum for the new Clyde
C. Miller Career Academy.
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Revitalizing
the Region’s Central City
The City of St. Louis has added population for the second straight
year, reversing over a 50-year trend of population loss for the
City.
Shaping a Greater St. Louis
demonstrated the following results:
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Partnered with City, Downtown Partner-ship, St. Louis 2004
in establishing Downtown Now! as a vehicle for implementing
master plan for revitalization of downtown. In the past 4
years, over $3.2 billion in new investment has been made in
downtown revitalization.
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Aligning stakeholder interest in the four key districts of
the Downtown Now! Action Plan–the Washington Avenue Loft District,
the Old Post Office District, the Laclede’s Landing/Riverside
North District, and the Arch Grounds District.
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Joining in raising $1 million for pedestrian improvements
on the Eads Bridge.
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Working with the Governor, the Mayor and the St. Louis County
Executive on the soon-to-be-completed initial phase of the
Ballpark/Ballpark Village project.
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Partnering with Advantage Capital in completing the $30 million
St. Louis Revitalization Fund and the $35 million New Market
Tax Credit for mixed-use downtown development.
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Community
Capitalism
In addition to enhancing the physical quality of the region’s center
city, it’s critical to stimulate for-profit, business-driven expansion
that brings job growth and investment to the urban core. RCGA partnered
with Civic Progress and the Black Leadership Roundtable to engage
Harvard’s Michael Porter, founder of the Initiative for a Competitive
Inner City (ICIC), to develop an action plan for center city revitalization.
Some achievements included:
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Partnering with the St. Louis Clergy Coalition in providing
development assistance for several hundred faith-based organizations
in the center city. This initiative eventually became a separate
non-profit 501(c)(3) organization known as the St. Louis Faith-based
Community Economic Development Institute.
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Leading neighborhood and city leaders in building a new 24-hour
daycare facility in the inner city, as an integral component
of the revitalization of several neighborhoods.
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Conducting business workshops for 150 center city entrepreneurs.
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Selected as one of five regional business organizations by
Ford Foundation; earning a $100,000 grant a part of a national
demonstration project to encourage corporate involvement in
wealth-building opportunities in the urban core.
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Elevated
Involvement, Elevated Results
The greatest result of Shaping a Greater St. Louis is the
way regional business leaders became engaged in strengthening the
region’s economic development competitiveness. In the process, over
2,000 RCGA members were engaged in the process.
As the overall plan entered its third, five-year phase in 2005,
while there is still much to be accomplished, at last, the regional
business community is speaking with one voice— “All
Together Now.”
St. Louis—Centered, Connected, Ready For Growth In 2006
The St. Louis region rolls into 2006 with a new spirit of optimism
not seen here for quite some time. A driving force for this renewed
optimism was the launch by RCGA last October of a new regional branding
and marketing campaign for economic development.
A full six months in development, this regional marketing and branding
campaign is unprecedented for the St. Louis region in several ways,
notably its use of new, research-based communications materials.
These materials include the logo and tagline—“St. Louis. Perfectly
Centered. Remarkably Connected.”—designed to highlight the 16-county
region’s distinctive attributes in the national and global economy.
RCGA leaders were a bit surprised by the results of research conducted
in the early stages of the campaign. Extensive research fielded
among 700 business decision makers —both in market and across the
U.S.— suggested that about half national business leaders had practically
no perception of St. Louis at all. On the other hand, over
one-third of interviewees had positive perceptions of the region,
and were able to name specific quality of life advantages of St.
Louis.
For the purposes of economic development and “branding” the region,
this finding is a good news/bad news situation. Good news—we have
a blank slate to work with in positioning the region as a great
place to live and work. Bad news—it will definitely take a lot of
hard work and dedicated resources to get there.
The brand tagline of the RCGA’s Greater St. Louis Inc. regional
economic development campaign, “Perfectly Centered. Remarkably Connected,”
captures the essence of what the research revealed is both credible
and distinctive about the region and relevant to business decision
makers the RCGA aims to influence.
A major piece of this new marketing effort is the new RCGA web site—
www.gotostlouis.org—that
provides a wealth of factual information for companies, site selection
executives, venture capitalists, and talent considering the St.
Louis region for startup ventures, relocations, expansions, investments,
or locating new facilities.
To launch the campaign, regional business leaders have been asked
to utilize the collateral when talking up the area to their colleagues
around the country.
Proactive efforts to reach the national audience kick off early
in 2006 with direct mail, trade show collateral, marketing missions,
a national media relations campaign, and additional tactics currently
in development.
This five-year economic development campaign was made possible by
generous community investments—some $21 million to date—along with
a renewed spirit of collaboration that rallies area economic developers,
business and government leaders, to help attract and retain jobs.
UniGroup President Rich McClure, chair of the Greater St. Louis
Inc. Board of Trustees, expressed his enthusiasm for the campaign
by noting, “We have the right governance and organization, competitive
resources, excellent research-based marketing materials, and a rigorous
set of performance measures.”
These are exciting times for the St. Louis region, accented by revitalization
efforts both in the City of St. Louis—with over $3 billion in new
investment in the past five years—and throughout the region overall—with
some $18 billion in new private and public sector investment either
completed or underway. There’s a new spirit of optimism not seen
here for some time.
A Strong Public Policy Agenda For 2006
The St. Louis region has kicked off a very ambitious 2006 legislative
agenda in Jefferson City, Springfield, and Washington, D.C. on behalf
of the regional business community and the entire metropolitan area.
This agenda advances legislation that will enhance economic development
and quality of life in the region.
RCGA Chairman Scott Schnuck and members of the RCGA Board of Directors,
Public Policy Council, RCGA staff and other civic partners, meet
in January with Governor Matt Blunt, Lt. Governor Peter Kinder,
Senate President Pro-Tem Mike Gibbons, Speaker of the House Rod
Jetton, Senate Minority Leader Maida Coleman, and regional legislators,
to discuss legislation dealing with economic development, transportation,
and education.
In 2006:
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The RCGA Public Policy department continues to staff the Forward
Metro St. Louis initiative.
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Continues pro-active lobbying in both Jefferson City and Springfield
to advocate the 2006 RCGA Legislative Agenda.
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RCGA also continues to staff the Private Sector Infrastructure
Council in 2006, as well as continuing efforts to finance
and construct the new Mississippi River Bridge downtown.
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Environmental Council continues to maintain close working
relationships with both Missouri and Illinois regulatory leaders
in advancing a pragmatic environmental agenda for the region.
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Focus
On Members
In 2006, the RCGA sees a membership whose support of the St. Louis
region and the RCGA itself enables the organization to lead the
way among metro chambers of commerce nationally. RCGA members continue
to take advantage of exclusive networking, educational and marketing
programs to enhance their businesses and organizations.
RCGA’s Business After Hours remains one of the most popular business
networking programs, attracting hundreds of members and guests each
month. Likewise, the highly successful Breakfast with the Gazelles
series, which presents the most successful entrepreneurs throughout
the region, continues in 2006.
A sampling of speakers in 2005 included: Express Scripts President
and CEO George Paz; The Newberry Group President and CEO Brenda
Newberry; McCarthy Building Com-panies President and COO Mike Hurst;
and DESCO Group Vice President Gwen Knight.
RCGA’s Leadership Circle members continue to represent a unique
set of core leaders of the RCGA and the region, helping to both
drive a pro-active regional agenda and to constitute a prestigious
one-of-a-kind network. Leadership Circle members are small, medium-and
large-size companies and organizations, which desire to be connected
to the inner workings of the regional business community. These
members support the RCGA as it carries out its critical mission
of actively promoting the region’s economic growth and enhanced
quality of life.
An organization like the RCGA is only as strong as its volunteer
leaders and members. The RCGA is proud that so many volunteers are
active in committees, programs, events and activities. Without the
support and involvement of its members, RCGA past successes and
future growth would not be possible.
It is with an enthusiastic eye toward the future that 2006 and beyond
is filled with so much promise for the St. Louis region, and enhanced
engagement of RCGA members in the process. |
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