Job creation incentives vs. actual results -- a delicate matter

I've watched economic development for a long time. In 1996, when I began reporting on business for the Post Register, the big concern was job cutbacks at the Idaho National Engineering Laboratory (now just the Idaho National Laboratory.)

With outfits like Initiative 2000 (now Grow Idaho Falls), the Community Reuse Organization and the Regional Development Alliance leading the charge, a lot of money has been spent in the last 20 years on companies promising jobs to our area. Some have panned out and some have laid an egg. There's no need to go into names, but I attended a lot of groundbreakings and openings where officials were singing "Blue skies, shining on me ... " Likewise, I am personally acquainted with people who feel bitter at what they feel to be promises that were not kept.

It has always struck me that economic development is something that communities, states and nations must engage in, if only for the sake of self-protection, i.e. if you don't do it, somebody else is going to eat your lunch.

But putting public money down on what looks to be a great bet can't be for the faint of heart. It's one thing to score transportation funds to get a road widened or improved. But laying out incentives for a factory or power plant -- watch out.

Exit question: When an economic development deal goes sour, who ends up holding the bag?

What got me started this morning was a story that ran today on Bloomberg Businessweek about which states do best at keeping track of job creation incentives vs. actual results. In the study it cites, Idaho ranks 38th, tied with South Carolina.

http://www.businessweek.com/news/2012-01-18/states-fail-to-verify-that-incentives-produce-jobs-study-says.html

Keller-Williams seeks to aid family following agent's untimely passing

It is with great sadness that I report the passing of Galen Bush, who died Saturday afternoon after suffering a heart attack while riding his bicycle.

Galen Bush

Galen was an agent with Keller-Williams Realty East Idaho, which has set up a fund at Scenic Falls Credit Union to help his family cover funeral and ongoing expenses. This Friday would have been his 45th birthday. He leaves behind a wife, Lisa, and four sons, ages 19 to 7.

Keller-Williams broker/owner Jim Windmiller said the family has a history of heart disease, something Galen was doing everything he could do to guard against by eating right and exercising. "He will be missed," he said. "It was his sense of humor that always got to me."

Galen was a Dave Ramsey Preferred Realtor and had 13 listings at the time of his death. Keller-Williams agents are working to close the deals he had pending and will donate all commissions to the fund that has been set up for his family. "Anything that's in the works goes to them," Windmiller said.

As a footnote, I want to mention that Galen played drums and sang with me three years ago in a band called Obsidian. His talent and attitude were fantastic, and he was a pleasure to know. There may even still be a few videos of us on YouTube. He was reluctant to sing "Night Fever" by the Bee Gees, but he could do the falsetto part like nobody I've ever met. I'm really sorry to be writing this.

Here is a link to his obituary: http://www.legacy.com/obituaries/postregister/obituary.aspx?n=galen-bush&pid=155518944

Stores try to cope with rising tide of food assistance customers

The news this week is that a record number of Idahoans are using food stamps -- 235,000 people in December. Currently, federal food benefits totaling $30 million are distributed monthly.

On Monday, Idaho Department of Health and Welfare Director Tom Shanahan went before legislative budget writers to suggest changing the program by staggering the day that benefits become available. Grocery store operators are backing the proposal, claiming the flood of food stamp users at the first of every month causes supply problems. But Shanahan estimated the change would cost an extra $220,000 a year, because four people would have to be added to field calls from recipients.

I've posted a link to a story from Bloomberg Businessweek that suggests how important the federal Supplemental Nutrition Assistance Program is to the grocery business. Does anyone else find it significant that while they are administered at the state level by Health and Welfare, food stamps originate from the U.S. Department of Agriculture? Our nation's food policy affects not only the people who eat it, but farmers, agribusiness and grocery chains, i.e. a lot of people with jobs.

http://www.businessweek.com/news/2012-01-17/supervalu-led-stores-chasing-55-billion-in-food-stamps-retail.html

INL buoys Idaho Falls construction numbers for 2011

It's human nature to want more -- more jobs, more money, more security -- but the plain fact of existence is that adaptation is how the human race has survived.

Suppose the building boom of five years ago was an aberration, and that we are now living in normal times? On a national level, suppose the economy we have right now is how it's going to be for the foreseeable future? In either case, we have to adapt.

Looking at the city of Idaho Falls Building Department's report for 2011, two things stand out. First, building activity and valuation held steady from the previous year. Second, if it weren't for the Idaho National Laboratory, things would be a lot worse.

The multi-million dollar Idaho National Laboratory Testing & Demonstration Facility pushed construction valuation for Idaho Falls to over $30 million for the second straight year.

The overall total, $36.9 million, was down 4 percent from 2010, but was still almost twice the low of 2009, $19.7 million.

It should come as no surprise that residential building was down from 2010 and way down from 2006. The most encouraging news, such as it is, may be on the commercial renovation front. Even though there were fewer projects than 2010 (10 vs. 22) valuation was up nearly 74 percent: $12.7 million in 2011 compared to $7.3 million the previous year. 

The 2012 construction year has already got a jump start, thanks again to INL, which will break ground on its $30 million, 46,163-square-foot, Research & Education Laboratory complex, across the street from the INL Testing & Demonstration facility.

Day of reckoning approaches. Am I nervous? What do you think?

Hey, I got my name in the Post Register Friday! It was the first time in a few years, and considering how many times it appeared in the paper as a byline between 1981 and 2008 I didn't expect it to be a big deal, but it was.

I was interviewed for a story about the Dancing With the Idaho Falls Stars benefit at the Civic Auditorium this Wednesday night from 7 to 9. I will be one of four men dancing with partners from Extreme Ballroom. I meet my partner at 2 this afternoon for a crash course. I don't expect to be asked to wear a tear-away tux or a puffy shirt and satin trousers. Rather, I anticipate my main focus will be to smile and stay upright.

As Lindsey Bush's article in the paper stated, the cause is the American Cancer Society's Relay for Life. My personal connection is two-fold: my mother-in-law, Evelyn Juell, died of cancer in August; my wife, Karen Juell, is a cancer survivor (Hodgkin's disease, 1985) who is now looking at chemotherapy for ovarian cancer.

Yes, it's scary, but don't hang the crepe yet. We are determined to fight, for ourselves and for everyone who faces the challenges of cancer. As I said in a previous post, our purpose in this world is to live.

If you want to contribute money to the cause, here is a link: http://main.acsevents.org/site/TR/RelayForLife/RFLFY12GW?px=17013538&pg=personal&fr_id=38333. Contrary to what the page says, I have raised $125 so far, thanks to the kind folks at St. Luke's Episcopal Church.

If you want to give, bring your checkbook or spare bills to the event Wednesday. Every dime counts. The women will be dolled up, I guarantee. As for me, I own a tux and people say I clean up nicely.

Oh yeah, here's the link to the local Relay for Life Facebook page: http://www.facebook.com/?ref=hp#!/idahofallsrelay.

Hope to see you Wednesaday night!

INL team recognized by DOE for energy saving work

U.S. Deputy Secretary of Energy Daniel Poneman has recognized a five-person team from Idaho National Laboratory with a DOE Sustainability Award for its work to save taxpayers money and reduce energy consumption at laboratory buildings.

The team -- Stephanie Austad, Kimberly Frerichs, Matthew Hammond, Christopher Ischay and Tad Pearson -- was recognized for the following work:

• Coordinating the installation of energy-efficient white roofs on several INL facilities.
• Securing INL's first Leadership in Energy and Environmental Design (LEED) building certification.
• Revising two building design and planning standards to include sustainability concepts.
• Moving from fuel oil to electricity for steam heating at the Materials and Fuels Complex.
• Increasing the availability and use of alternative fuels by more than 62 percent.

These and other activities resulted in annual cost and energy savings at INL of more than $1.6 million, more than one million kilowatt hours of electricity, nearly 600,000 gallons of fuel oil and about 190,000 gallons of diesel fuel.

President Obama in 2009 signed an executive order calling on the federal government to reduce its greenhouse gas emissions, and implement aggressive energy and water efficiency programs. In response, DOE established its Sustainability Performance Office to implement the goals. In all, DOE Sustainability Awards have been given to 31 teams and individuals for outstanding contributions in managing pollution, waste, energy, water and vehicle fleets.

Sitting tight until word comes from Costco

Before Christmas we reported that Costco is looking at locations in the Idaho Falls area. That sort of news is BizMojo Idaho's stock in trade, the stuff that keeps people coming back and the kind of story we'd like to break every day.

With January nearly half over, we figured it was time to check in with Brent Wilson of Pentad Properties and ask whether he had any news that might cause mass Pavlovian salivation.

No such luck, but it doesn't mean nothing is happening. Bound by non-disclosure agreeements, Wilson was limited in what he could say except that there are a number of restaurant chains looking at the T.G.I.Friday's location on Hitt Road.

The big question remains Costco, however. Now that the news is out, any company that might be considering a location in Idaho Falls or Ammon is waiting to see what direction the membership warehouse chain makes first. Some sites that might be out of the question now could become very appealing if Costco decides to plop down in the neighborhood.

Such is the psychology of developers. We have no commitment from Costco, true, but the Magic 8 Ball is answering, "Signs point to yes," and that's good enough for them.