Fargo Politics Forum: Economic Insights: We’re Going to Have to Pay to Play

My father used to say you have to invest money to make money. Put another way, you have to pay to play.

In economic and workforce development, Greater Fargo Moorhead is capable of becoming a global player. To become one, we are going to have to invest in improvements attractive to businesses that will drive our country’s future prosperity. How we make those investments remains to be seen.

A few weeks ago, a front page headline in The Forum proclaimed, “Half-cent sales tax on priority list.” The story discussed the possibility of Cass and Clay counties implementing a half-cent sales tax to fund economic development initiatives. The story was accurate in terms of the discussions that are taking place regarding how to fund economic development initiatives, but it was somewhat premature.

The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) is engaged, with business, education and civic leaders, in a community strategic planning process. The goal is to transition to a stronger, tech-based economy.

We are now competing in national and global economies where, beginning today and into coming decades, businesses in high-tech sectors will create the majority of high-paying jobs. We want to make certain Greater Fargo Moorhead is well positioned to participate.

I’ve made the case numerous times in this space for the need to improve our business, education and communication infrastructures. Greater Fargo Moorhead needs to stay ahead of competing communities, or at least keep pace with them, or our population and job growth will slow dramatically; good, high-paying jobs will become even harder to come by; and we will be in an even weaker position for retaining our young people and attracting professionals from outside the region.

The community strategic planning process is ongoing. Good, workable ideas are evolving objectives supported by action plans. As we’ve have progressed, it’s become clear that it will cost money to make the necessary infrastructure improvements. There is just no way around that.

Naturally, then, recent discussions have included possible funding mechanisms. These are appropriate conversations, not only for an economic development entity such as the GFMEDC, but also for business, education and government leaders who have a stake in our collective future. We absolutely should be talking about improving our communities’ economy and what needs to happen to make it happen. If we weren’t having these conversations, we wouldn’t be doing our jobs.

Most communities, and certainly those we now compete with, fund economic and workforce development initiatives through sales tax, property tax, incentives from their states or a combination of all three.

With that said, I want to make it clear that no decisions have been made, by the GFMEDC Board of Directors or anyone else. We have a long way to go before we determine what will be the most effective way to fund the infrastructure improvements we need to become a hub of high-tech business. A sales tax is just one is one of several options we have an obligation to consider.

The GFMEDC and our partners take seriously our responsibility for creating good, high-paying jobs and positioning our communities for future prosperity. The results we desire won’t come about without focused and deliberate efforts that include discussions regarding funding.

It would be a wonderful political world if we could promise continuing prosperity at no cost. Unfortunately, that would be a fantasy world.

The high-tech economic development game is anything but a game, and communities have to pay to play. The stakes are high, with future economic health and prosperity of both citizens and communities hanging in the balance.

This won’t happen overnight. Re-engineering an economy is a long-term process that takes years of planning, guidance and execution. Fortunately, we have a great start. Once we’ve determined exactly what needs to be done, next steps will include figuring out the best way to pay for it.

All of this is about creating opportunities in Greater Fargo Moorhead for our children and grandchildren. In my judgment, those are priorities worth investing in.

Walters is the president of the Greater Fargo Moorhead Economic Development Corporation. He can be reached at 701.364.1900 or bwalters@fmedc.com.