Trust key to multi-state economic partnerships

Published 12:00 am Sunday, April 17, 2005

State lines and community borders show up on maps, but potential industries don’t see those lines when they come looking for land and labor.

And Mississippi and Alabama are looking for ways to erase the lines even further as they partner for major economic development projects.

&uot;If you look at finances, every state legislature is dealing with tough financial decisions,&uot; Meridian Mayor John Robert Smith said.

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That means states looking for the &uot;next big deal,&uot; he said, likely don’t have the funds for an incentive package to land the project on their own.

The idea behind the partnership, however, is that states &045; each of which has at least one major car maker &045; could pool their resources when trying to land large industries like those automobile manufacturers.

But that’s easier said than done &045; on several levels.

Partnership on paper

First, states have to have the mechanism in place to work together. Alabama and Mississippi have started with an agreement, signed by Alabama Gov. Bob Riley and then-Miss. Gov. Ronnie Musgrove.

Riley has since met with Gov. Haley Barbour to continue talks on the agreement.

The Mississippi Legislature this year passed a bill that would allow for an economic development partnership with Alabama. Alabama, whose legislative calendar is later than Mississippi’s, has legislation is pending. As of Friday, it had not yet been filed but was expected to be filed this month.

Even after those agreements are made, though, there is more paperwork.

&uot;Once we get to an actual project, there remains a lot of work to be done,&uot; said Scott Hamilton, direction of communications for the Mississippi Development Authority.

The states would have to enter a compact, approved by the state Legislatures.

But they would also have to determine how to share tax receipts &045; not necessarily an easy task if an industry were located, say, in Meridian, but York, Ala., wanted to share in the tax revenue.

The division of those receipts would have to be approved by the states and the federal government, Hamilton said.

Building trust

Of course, those challenges might pale in comparison to another obstacle &045; making partners out of competitors.

&uot;That’s always a bit of a challenge,&uot; Hamilton said. &uot;We live in an economy today where most companies have learned the benefits of cooperation.&uot;

To partner, states and communities that are accustomed to competing for industries and businesses have to be willing to share some information on projects.

But that doesn’t mean the states stop competing &045; in fact, they have to learn when to compete and when to work together.

&uot;People who are reasonable can recognize Š when it’s advantageous to partner, and when it’s advantageous to be competitors,&uot; Hamilton said.

For Smith, it comes down to trust.

&uot;It will take massaging of egos,&uot; he said. &uot;Creating trust is the first thing you have to do.

&uot;You don’t share your innermost thoughts with competitors, you share them with partners. It can’t be they win, we lose.&uot;

Can it happen here?

Hamilton said Mississippi is willing to discuss a partnership with Louisiana, as well.

&uot;I would definitely say it’s something we’re willing to look at,&uot; he said. &uot;One of the hallmarks of the Barbour administration is regionalism.&uot;

A meeting between leaders of Adams County and Concordia Parish just more than a week ago was promising, as residents and leaders discussed ideas for economic development.

Vidalia Mayor Hyram Copeland said the next step should be setting up committees to look at ways a partnership could succeed.