Anthony Smith: Positioning Pinal County for growth

In my last editorial, I identified the Resolution Copper Mining Project and the Union Pacific Red Rock Project as opportunities that will make a big difference in diversifying our economy, providing good paying jobs and building additional job growth opportunities.

If elected as your Pinal County Supervisor, I will continue to pressure local, state and national officials to move these projects from the drawing board into reality.  

In this article, I will outline several economic development-related changes I believe will position Pinal County for sustainable job growth. Pinal County needs to make these changes to be more innovative and business-friendly.

During the last few decades, Arizona lost its focus for attracting strong manufacturing and R&D based businesses. Arizona was seduced into relying on an economy based primarily on the housing industry. Housing is an important industry, but relying on the housing industry as our bread-and-butter industry devastated our economy.

For example, in the five-year period from 2006 to the end of 2011, the Metro-Phoenix area lost 53 percent of its construction-related jobs. The Tucson area lost 45 percent of its construction-related jobs. Housing will continue to be important to our state and especially Pinal County, but it is not the foundation to build a sustainable economy.      

Looking back, this wasn’t always true. During the early 1980s, Arizona was a pacesetter for industry research and development funding. From 1980 until 1986 Arizona beat the national average in R&D funding.

The Morrison Institute for Public Policy indicates R&D funding is crucial for attaining increases in labor productivity and that ultimately translates into improvement in prosperity. Since 1986, Arizona has tracked about 25 percent less in R&D funding than the national average. This is a dismal trend that must change.   

Pinal County needs to become a magnet for R&D type businesses. Industries such as agri-business, information technologies and health care are a good match for our county.

I believe Pinal County should add two tools to our economic development toolkit. First, create a “deal-closing” fund similar to the funds created by the state and our neighboring Maricopa County. A “deal-closing” fund could make the difference between winning or losing important business opportunities. Second, offer discounted Development Impact Fees (DIF) for innovation and R&D type businesses.

As mayor, I have witnessed the need for development to pay for growth. However, the fees associated with development need to be reasonable and competitive. As your supervisor, I will insist that Pinal County conducts an analysis of our Development Impact Fees (DIF). Too many businesses have told me the existing fee structure discourages business expansion.

To become an economic powerhouse, we need to create a 21^st century workforce. With proper workforce development we can close the gap between skills desired and skills delivered.

It is important we draw from Central Arizona College (CAC), Arizona State University and University of Arizona the best workforce development ideas and practices.