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Mayor Francis H. Cicchinelli, Jr.
April 14, 2000
Stark County Chapter of the Institute of Management Accountants
Why has the City of Massillon been a model of
economic development?
There are four essential factors that are
necessary for economic development to occur. These same factors
must remain in place so that development that takes root, grows
to bear quality results. What are these four factors?
They are Resources, Character, Attitude, and
Drive. The lack of any one of these elements dramatically decreases
the chances for any substantial or sustained economic development.
Together they foster a synergy that takes a critical mass to a level
far beyond the combination of the separate elements.
Resources, in many forms are economic development
keys. Power, land, transportation, water, and community are
all important elements.
Power from the times of the earliest settlers
derived from the abundant streams in the area. Grist mills, woolen
mills and early industries sited and thrived at locations where
streams could be impounded, mill races built and the power of falling
water harnessed to drive machines. Flowing water is no longer a
power source worth a mention in Stark County, but the need for power
for industry has promoted vitally strong public utilities.
Stark County has a powerful electrical distribution
grid in place. Municipal electric power communities, Ohio Edison
(First Energy) and Ohio Power (American Electric Power) are backbones
that power the communities of the County. The ability to take on
additional demand makes the electrical power supply a real power
advantage.
The Stark County area remains a rich natural gas
field. It both produces and stores vast quantities of this desirable
natural resource. Various transmission and consumer supplier companies
have a strong Stark presence. East Ohio Gas and Columbia Gas are
but two.
An extensive transportation network means that
the specialized need for other fuels is easily met. Coal and fuel
oil are readily available.
Land is essential for economic growth. But
just any land is not what we are discussing. Land, to be useful
must, itself, have a number of attributes.
First, location is primary. Stark County
is ideally suited being an extension of the greater Cleveland metropolitan
region. The vast Cleveland-Akron-Canton-Massillon market provides
raw materials and markets for goods produced. And it absorbs a dedicated,
skilled and motivated labor force. Additionally, it adds to the
already rich quality of life available within the county. Not to
forget, Stark county is not only a southern extension of metropolitan
area, it lies comfortably north of Columbus and well placed between
Mansfield and Pittsburgh. The extensive transportation network of
highways, rail and air facilities makes our location enviable.
Second, land is not useful to economic development
unless it is available. The cost of land throughout the county
in developed and undeveloped areas remains reasonable. And the range
of sizes of available tracts offers attractive options to developers
and firms wishing to relocate to remain. Further land must be acquirable.
Stark County is blessed with much land that is available for development,
raw and previously developed (and available for redevelopment).
Third, land must be suitable. Land for economic development
must be zoned for the proposed use or readily capable of being rezoned.
Stark County is fortunate in that land use planning within the county
and within individual communities has long been a priority. The
soils and topography have been positives for development. The gentle
contours and carefully engineered surface water drainage favor development.
Additionally, the proximity to utilities and the transportation
network adds much to suitability for development.
Fourth, land must be developable, even if
it is providently located, available and suitable. Overall community
support for growth and development must be present. While some areas
of the county are substantially developed much land remains developable.
Much virgin land remains strategically situated. Brownfield reclamation
opportunities are also available. Many industrial sites and structures
may be recycled as homes for new industries. In fact, Civil war
area factory buildings are home to diverse industries. Urban sprawl
has been present in the County since at least the 1950's, while
efforts to preserve greenspace and farmland have surfaced more recently.
One interesting development is the land use plan model promoted
by Madison County, Ohio, whereby further industrial growth is concentrated
in and adjacent to already industrial areas (read primarily cities.)
This is a model that Stark County can and should adopt.
Transportation has been referred to several
times so far in this discussion. This fact highlights the importance
of transportation. Stark County and Western Stark County in particular
have grown and prospered. The Ohio-Erie Canal was a solution to
an early 19th century lack of ability to get abundant local production
to market. It served as an early development enticement. Massillon
provided the vital industrial, financial and community leadership
to extend what became the Pennsylvania (and later PennCentral and
Conrail) railroads into Stark County. In fact, Massillon was the
western terminus during the 1850's. While the Tuscarawas River has
never been commercially navigable, it is an important recreational
transportation resource. The highway system in Stark County is enormously
important, I-77, US 30, State Routes 21 and 62 provide ease of transport.
They tie together our communities, the Canton-Akron airport, various
rail links (including the Neomodal Intermodal facility) and the
greater metropolitan area.
Water, clean, abundant and affordable, is
a development resource that is in want in many hot development areas
of the country. Stark County is especially blessed by abundance
of water that is clean, abundant and affordable. Private water (primarily
though Consumers Ohio Water Service Company) and municipal water
systems provide available treated water. Private wells are also
abundant. The area's wealth of groundwater resources is a real draw
for development. And our steams in the Tuscarawas River watershed
make the cost-effective treatment of sewage and industrial waste
feasible. Sophisticated waste water treatment facilities offer treatment
for much of the County.
Community is the primary development element
that is distinct from the other resources. Land, water and transportation
(to the extent that transportation routes follow topography) were
all in place before the settlement of the County. But it is community
that makes development possible. And it is community where Character,
Attitude, and Drive all reside.
Community is more than the existence of a governmental
structure. It is the heart, soul, guts, and spirit, that make a
City an organic being -- its character, attitude and drive.
The character of a community is how its
various components work together. A true community has a majority
vision that takes into account the wants, needs, desires and even
vision of those not represented in the community. It represents
the collective efforts of the business, industrial, governmental,
social, service, and neighborhood elements. It is composed of the
physical layout and the "personality" attributes of the
community as a whole. Both size and cohesiveness of a community
help develop its ability to foster development.
The attitude of a community, in relation
to economic development, determines whether development in general
is encouraged or discouraged. We all can cite examples of communities
that have embraced a "No Growth" attitude. An attitude
that favors development may, however encourage only selective kinds
of development.
A community that has a character and an attitude
that favors development will seldom succeed without drive.
Drive is a combination of desire and a willingness to succeed.
In some cases the drive of a community is pervasive, in others the
drive is resident in a select few "cheerleaders' and "promoters"
within the community. But without the enormous efforts of the organizations
and individuals who exhibit this drive for economic development,
the spark never catches flame.
You may notice that I have mentioned the City of
Massillon little in this presentation. While Massillon is favored
with all of the elements necessary for economic development, the
message is that any community within Stark County can use these
"secrets". And I encourage responsible, balanced development.
I am a firm believer in the Keynesian notion that "a rising
tide raises all boats". What is best for Massillon is a strong
development mindset throughout the county. And what is good for
the county raises Massillon's boat too.
Let's talk a little more about Massillon....
Massillon is a center and anchor of the economy
of Stark County. In total square miles, Massillon is the second
largest City at over 18 square miles. My estimate is that the
2000 census will show Massillon with a population of over 32,000.
Massillon is an industrial and commercial center. More than half
of the jobs located in Massillon are held by people who live outside
of the City. Massillon is growing and growing and growing. Requests
to annex are frequent. And from all sides of the City. Massillon
with a strong history of annexation has more than doubled in
size in less than thirty years. And Massillon will continue
to grow.
Historically, Massillon came into being because
of the canal. It forced a change in the development pattern of Western
Stark County. Small nearby population centers were absorbed. The
fringe growth that occurred around the Massillon limits are progressively
being incorporated through annexation. With the natural gifts that
Massillon possesses and with the great sense of community, it will
certainly grow more.
Massillon is an innovator in transportation. After
luring the canal, it lured the railroads. Capitalizing on its natural
advantages, the city became a railroad center. When the Lincoln
Highway route was selected, Massillon was a natural location. In
the days before the interstate, the prime north-south state highway
was Route 21, again through the city. Massillon has always been
the home of economic promoters. Massillon is the home of U.S. Presidential
candidate Jacob S. Coxey, whose primary economic development tool
was the government financed construction of "good roads".
Local machinery manufacture Charles M. Russell pitched Massillon
and secured the railroad. The turn of the Twentieth Century Board
of Trade (now the Chamber of Commerce) invited (and aggressively
lured) industry to Massillon. The current Chamber of Commerce and
its associated Massillon Development Foundation have been strong
supporters and promoters of Massillon. The Stark Development Board,
private investors, owners of businesses and even multinational conglomerates
have worked closely with the City to make Massillon "home"
to business and industry. Massillon prospers today by building on
this strong cooperation , historically and currently, that assists
business.
It is not to be said that Massillon has had only
boom times throughout its history. The decline of the downtown from
the late 1950's through the early 1960's and the weakening of the
City's strong steel-centered industrial base in the 1970's are examples
where the City and the business community sat on their laurels and
failed to be as aggressive as required.
The 1970's decline spurred efforts to "revitalize"
and "grow" the City of Massillon's economic base through
industrial development across a more diverse base than primarily
steel. The City embarked on an aggressive annexation plan in the
late 1970's.
It is a fact that industries factor development
incentives into their decision on where to locate, expand, remain
or relocate. A strong concerted effort of the business community
and the City government has aggressively constructed packages of
inducements for industries. It is no secret that the City of Massillon
offers generous financial and tax incentives to retain and expand
established businesses and lure new businesses. The assistance offered
by the city has been varied in kind and amount. It has always sought
to carefully target the needs of the business seeking the assistance
while fostering self-help and strengthening of business enterprises.
Has all of the assistance been successful. Most has! Yes, it has
been expensive! Yes, it has paid big dividends! But the city has
retained, grown and diversified its industrial base.
What is the City's secret? It has many elements.
It has been able to capitalize on resources (power, land, transportation,
water and community) and harnesses the character, attitude and drive
of the community to promote and support economic development. Massillon
has worked closely with other governments, organizations, businesses
and organizations to promote industrial development. It is this
joint approach that has been most successful.
Today, Massillon is proud and prosperous! Today, Massillon is predisposed,
positioned and prepared!
Allow me to shift focus for a few moments. Your invitation to me
included a request to summarize some of the most important current
local events.
Before I proceed with those that I consider primary
on the local scene, there is one national event that has a huge
impact on Stark County -- the 2000 United States Census.
The obvious impacts are the effects on proportional representation
in federal, Ohio and local legislative bodies. Besides, these legal
niceties, numbers bring clout! So every head in Stark County needs
to be counted. I am proud to say that the census in Massillon has
one of the highest return rates in the County. We now have nearly
75% of the census forms returned.
Now, I turn to the biggest success stories on
the local scene, and by local I mean Massillon first, Western
Stark County, next and then greater Stark County in general. However,
when it comes to Massillon, it is hard to chose an order of importance
to impose on local developments.
Certainly, the most anticipated development is
the Massillon Marketplace development at US 30 and State
Route 21. With Lowe's and a Super Wal-Mart as anchors, the commercial
focus in Stark County has been diverted from the "Strip".
Not only because of its size and geographic location, Massillon
Marketplace is significant. It signals that development is occurring
to the South side and West side of Massillon. Also it is a diversification
of major commercial development away from the congested Belden Village-Strip
areas. Significantly the Massillon Marketplace uses a previously
little-used taxation device called Tax Increment Financing (TIF)
where the some of the tax revenues generated from the development
are dedicated to infrastructure additions and upgrades. This is
a 30 Million Dollar commitment.
Massillon's Downtown will continue to thrive.
Massillon Marketplace is expected to actually draw shoppers into
downtown. Of course, downtown merchants are rethinking their business
strategies to become more "specialty" oriented. The Canalview
Center downtown is innovative as a City/Federal/SARTA/Signet/private
working venture bringing countywide transit, hotel and downtown
parking facilities together under one very tall roof. The
Canalview Center development is an 8 Million Dollar anchor
to Downtown that is already spurring street-level improvements.
Of course, no mention of Downtown redevelopment is credible without
some discussion of our new Arena, a multipurpose public events
center that will be the home of the Massillon Gears Professional
Hockey Team. This arena complex will be a $10 Million Dollar
investment. Also Downtown is the location of our 11 Million
Dollar state of the art Recreation Center. Downtown is
further revitalized by the Lincoln Center Phase III project
which will renew the areas around the Arena and the Rec Center with
hotels, restaurants and entertainment venues. Massillon is destined
to be a destination to travel to for entertainment. The Legends
of Massillon golf facility , with its 4 and a half star rating from
Golf Digest and 9 more holes in progress, plus the Massillon Community
Park will have and will continue to add to Massillon's reputation
as a "sports" town. The Ohio Erie Canal Corridor
winding through Downtown, along with the Arena and the Rec Center,
Downtown Massillon will become a tourism destination for the 21st
Century.
Development is not concentrated only in Downtown
and Massillon Marketplace. Our industrial base continues to diversify.
The steel industry is still vital to Massillon. Jindahl,
the largest stainless steel company in India, is the newest steelmaker
to call Massillon home. Other diverse industries of Massillon with
rising profiles are Heinz Frozen Foods, Americold Logistics
(freezer storage), Harwick (chemicals), Zeigler Tire
-- with Michelin (tire retreader plant), Controlled Power, Hercules,
ABB, US Chemical and Plastics, A.R.E. (truck caps), Service
Steel Aerospace, Freshmark and more. Not only are steel and
steel support and manufacturing represented, but the food industry
and chemical and plastics sectors are a growing part of the industrial
mix. Not only are home grown companies represented, national companies,
conglomerates and multi-national corporations are Massillon based.
Development is not only restricted to the commercial
and industrial sectors. Residential Development is booming.
Massillon is home to 15 active housing developments -- from
condo's to affordable housing to the upscale. Already, the year
2000 pace for housing starts is ahead of the record set in 1999
with 47 new single family housing starts year to date and 139 for
all of 1999. Compare Toledo, with 84.3 square miles -- just 2 allotments.
Massillon's 18.2 square miles (and growing) supports 15 allotments.
And the allotments are in three school districts -- 6 in Massillon
City School District, 6 in Perry Local School District
and 3 in the Tuslaw Local School District. In fact, 34% of
the City of Massillon is in four school districts other than Massillon
City School District (land in the Fairless Local School District
was recently annexed).
What does all of this mean? It means that the assessed
valuation for tax purposes is second highest in Stark County
among the cities and grew about 23% over four years. An important
side effect of the City's growth is the school districts in the
City benefit from the City's aggressive development.
Again, Massillon's tide is raising a lot of
boats!
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