Economic development is up dramatically over past year

Page Dowdy/Chesterfield Observer Economic Development Director Will Davis overlooking Interstate 295 where the county hopes to build a cloverleaf interchange as part of the entrance to Meadowville Technology Park.

When your batting average is better than twice as good as last year, you want to share it. That's the case for the Chesterfield Department of Economic Development.

In the fiscal year that started July 1, there has been $75 million in new investment in the county and 534 new jobs - more than double the corresponding period for the previous year of $31 million and 235 jobs.

"Jobs are up, and the increase in payroll is growing faster [than the number of jobs]," says Karen Aylward, the department's development manager.

About 70 percent of new business growth in Chesterfield comes from existing businesses, a typical growth pattern. Those expansions created $44 million in growth and 187 new jobs.

As businesses expand, they usually try to stay in the same area because most of their employees live nearby. A Chesterfield business considering relocating north of the James River, for example, might risk loss of employees in the county because of the cost of tolls and ever-increasing gas prices.

Page Dowdy/Chesterfield Observer Mazda is one of five Japanese companies operating in Chesterfield.

Keeping up with Chesterfield's businesses is Aylward's specialty. "If we don't call on our existing businesses," cautions Economic Development Director Will Davis, "somebody else will."

In county surveys residents give the county high marks for quality of life, but someone has to pay for the services citizens have come to expect. Real estate, personal property and other taxes paid by residents are not enough to pay for those services. Much of that shortfall, estimated to be $2,300-$2,700 for each household, is paid for by local businesses. Put another way: local businesses subsidize the lifestyle of county residents.

But traditionally, the county has lagged behind its neighbor, Henrico County, in attracting commercial development. Only about 20 percent of Chesterfield's property taxes come from businesses compared to 32 percent in Henrico. That's a large part of the reason that Chesterfield's property tax rate is 95 cents per $100 of assessed value while Henrico's is 85 cents.

Page Dowdy/Chesterfield Observer Chesterfield wants more companies to follow Northrop Grumman's lead and locate at the Meadowville Technology Park.

Recognizing the county's shortcoming, more emphasis is being placed on economic development by county leaders and the new board of supervisors. Rezonings are becoming more business-friendly. When development of the new countywide comprehensive plan begins in earnest later this year, it will include economic development.

And business leaders - particularly the nearly 700-member Chesterfield County Chamber of Commerce - recognize they have to reach out to resident groups to explain the role of businesses in providing jobs and lowering taxes.

Eastern business parks

Last week, Davis and Aylward toured business centers east of Interstate 95 - where much of the industrial parks and manufacturing in Chesterfield is located - with members of this newspaper. Unlike retail centers and office parks, these businesses are not highly visible on major roads but help drive job creation in the county. And Chesterfield, which exports more workers outside of the county daily than it has jobs inside the county, has some catching up to do.

Many employment centers - office and industrial parks - like locating off interstate highways for easy access. The decision decades ago to put Interstate 64 through Henrico and not Chesterfield proved helpful to Henrico and hurtful to Chesterfield. With many more miles of interstate highways (including Interstate 295) and more numerous interchanges, Henrico has a strategic business advantage.

But there is a lot of activity in Chesterfield, including the Walthall Industrial Area with four distinct parks off exit 58 of Interstate 95 south of Chester. Among others, Ashton Creek is the home of Filtrona Fibertec (bonded fiber components manufacturing). BluePrint Automation (supplier of end-line automated packaging machinery and robotics) and Eternal Technology Corporation (manufactures photoresist film) are two examples at the Appomattox Industrial Park. Mazda USA (engine remanufacturing and training) and the Rotary Corporation (distribution of small engine and machine parts) are two of the more high profile companies at the Enterchange at Walthall. Nearby, MGC Advanced Polymers (manufacturer of MX-Nylon Polymer) and a distribution center for Haverty Furniture are at Ruffin Mill Industrial Park.

Further north at the Willis Road exit of Interstate 95, the James River Industrial Center is home to Rehrig International (manufactures plastic shopping carts) and Atlantic Constructors (steel fabrication). With rail service available and being next to the James River, UPS has a hub there just some 15 minutes driving time from the Richmond International Airport.

On Route 10 just west of Interstate 295, Carl Zeiss Optical (manufacturing and distribution of eyeglass lenses and lens-related equipment, binoculars and riflescopes) and Merit Medical (medical device packaging) are located in the River's Bend Center. Electro-LuminX Lighting Corporation (electroluminescent technology utilizing phosphors to emit light) and Alcan Packaging Richmond (manufactures cigarette packs and cartons for Philip Morris USA) are there too.

While industrial parks are often thought to be for middle-income jobs, that's not the case, according to Aylward. But distribution centers are more likely conducive to "blue collar and pink collar jobs."

Meadowville

Nearby and backing up to the James River and Interstate 295 is the county's potentially premier business address - the 1,300-acre Meadowville Technology Park. The park's single occupant, Northrop Grumman's Commonwealth Enterprise Solutions Center in a 193,000-sqaure-foot building, manages the computer systems and data center functions of almost 90 of Virginia's executive branch agencies. The high profile firm is decidedly low tech on visibility and avoids most publicity.

The county hopes Northrop Grumman is the pioneer of many more companies to come.

"We're ready to turn dirt at Meadowville," says Davis encouragingly. The county has its collective fingers crossed to raise $40 million from local, state and federal sources to build a cloverleaf connecting to Interstate 295. That interchange would allow easier access for highway travel.

To entice interested parties, the county is offering a "favorable land deal" for someone to build a 2-3 story, Class A office building to start the ball rolling.

Davis envisions a hotel and conference center at Meadowville to host the needs of all those future businesses. "It's a technology park, so we need to find the right companies and put them in the right places," he explains.

With some home sites backing up to the James River, developer George Emerson is building big, brick homes in Meadowville Landing adjacent to the park. There will be some retail nearby, but Davis believes there is demand for significant retail on nearby Route 10.

"Let's look at it and plan for it, so we're not just reacting when it comes," he recommends. Davis wants the county to make a statement with employment centers and retail at every major entrance/exit in the county.