How to recruit, support and retain businesses in a tough economy is an issue cities across the country are grappling with.
It was one of the underlying topics of discussion Oct. 1-3 when 150 business and civic leaders from Colorado traveled to Minneapolis-St. Paul as part of the Denver Metro Chamber Leadership Foundation’s annual leadership exchange trip.
Each year, the chamber group visits a different city and hears from top local officials and executives.
Among the topics addressed in the Twin Cities were education, health care and corporate philanthropy.
But as the recession stretches into its 23rd month, there was plenty of talk about creating jobs and strong local economies. Minnesota, with its 19 Fortune 500 companies, including UnitedHealth Group and General Mills, offered a number of insights.
Denver Post business editor Steve McMillan talked to leaders involved about what makes an attractive business climate.
Tim Pawlenty Governor of Minnesota
“Most of the big companies here in Minnesota are the story of some entrepreneur who had a connection to Minnesota, got things going and they stayed. You see that in Best Buy, you see it in 3M and in Medtronic. That is our history and tradition, and we want to make sure we keep it that way.
“And as these big companies go through their changes, you’ve got to make sure you are developing the next generation of bench strength, because if you don’t have new ones starting, some of the old ones are going to fall and change, so you have to have a bench strength as well.”
Richard Davis CEO of U.S. Bank, headquartered in Minneapolis
“Regarding employment and keeping your graduates gainfully employed later in life … ask all of those (regional offices of) Fortune 500 companies that are in Denver to replicate the headquarters circumstance. Be sure that each of those operations allow all the decisions to be made there in the future, all the leadership to have all the control they need, so that people will be inspired to work in what look like satellites but feel like headquarters.”
John Hickenlooper Mayor of Denver
“Companies are going to respond to what helps them become successful. So we need to find more and better ways to partner. Let’s say… a company moves here that is in the dialysis business. How does our community begin coming together to say we want that new company to be super successful? … I think part of it is making sure that when we do have successful companies like Coors or First Data, where the entrepreneurs would spin off and create new companies from them, then we need to provide broad-based community support.”
Peter Bell Chairman of Metropolitan Council, a regional agency in the Twin Cities area
“The role we play is really coordinating infrastructure so it is efficiently delivered at a cheap rate. The example I gave was wastewater and that some of our wastewater charges are among the lowest in the nation, and that’s not by accident. It’s because we provide the wastewater for the entire system. . . . So in that sense, the efficient delivery of government services helps the economic growth of the region.”
Richard Kelly CEO of Xcel Energy, headquartered in Minneapolis
“Denver ought to sell itself. If (companies) are leaving, we are missing something. Denver is a great place to live; it’s got all the things you want. It’s a great place to recruit to. It ought to sell itself.”
Wendy Mitchell CEO of Aurora Economic Development Council
“In comparing the business environments, such as work force, education and tax structure, the two cities actually match up pretty closely. Sales tax for the two metro areas, for example, is nearly equal at over 7 percent. There may be a slight advantage to Minneapolis regarding business property tax, with some recent reforms they have passed and with our own problems brought about by Gallagher (the amendment which keeps taxable values of residential property lower than actual market values). But overall, our metro area is actually more attractive from a tax and business perspective than is Minneapolis-St. Paul.”
Kelly Brough CEO of Denver Metro Chamber of Commerce
“I think we have the capacity to sort out how do we brand ourselves and make sure good companies know the kind of value we have and why they should look at us. Probably more important, though, is looking at those entrepreneurs we have in our garages right now in our region, how do we touch them, support them, and really connect them to our communities so their roots are deep and they see the value and they never want to leave. And that’s a big part of the success they’ve had in Minnesota.”
Ralph Christie CEO of Merrick & Co., headquartered in Aurora
“My impression is that (Minnesota) puts a high priority on not only attraction, but retention. Once they get a large company, which may not even be a Fortune 100 or Fortune 500 company at the time, but has that potential for growth, they want to hold onto it. They prize them as being a member of the community. They help them grow in the community. And it’s totally a priority.
Tom Clark executive vice president, Metro Denver Economic Development Corp.
“The thing that we take away is the world changes, and Minnesota’s economy has changed, and their traditional strategy of being a relatively high tax climate with a huge investment in education infrastructure has eroded over time. And we face the same challenge in Colorado. We are not a high tax structure, but our ability to fund our infrastructure and educational system are the pivotal points of a new economy that we have to compete in globally.”
