Leaders get behind ED plans

The Commercial Appeal
August 21, 2007
By Amos Maki

A who's who list of local business and political officials came together Monday night to raise money for a new economic development campaign supporters hope will generate thousands of new jobs.

Leaders of the area's most prominent companies joined Memphis Mayor Willie Herenton and Shelby County Mayor AC Wharton at The Peabody to get businesses on board with Memphis ED, a five-year, $60 million economic development campaign.

"For everyone who loves Memphis, now is the time to step up and take action," said Charles Burkett, president of Tennessee and national banking for Memphis-based First Horizon National Corp., First Tennessee's parent.

Memphis Tomorrow members -- the 22 largest corporations in Memphis -- have committed $5 million toward the first year budget of $12 million. In addition to a combined $3 million from the city and county, the state is expected to commit $1.5 million, bringing the total amount committed so far to $9.5 million.

On Tuesday, attendees to last night's event and other donors to previous economic campaigns will receive a FedEx-delivered package describing the plan in detail and a request for a financial commitment.

According to the economic development plan, Memphis and Shelby County's economic development budget paled in comparison with those of peer cities such as Nashville, Knoxville, Louisville, Ky., Atlanta, Charlotte, N.C., Orlando, Fla., and Richmond, Va.

Memphis ED is the economic development portion of Memphis Fast Forward, a four-part economic growth strategy that focuses on crime, economic development, government efficiency, and education and work force development.

Memphis Fast Forward was spearheaded by Herenton, Wharton, Memphis Regional Chamber of Commerce and Memphis Tomorrow.

According to the plan, which the Chamber will be responsible for implementing, the city and county would target four key industries: logistics, music/film, biosciences and tourism.

Groups like the Memphis Bioworks Foundation, Mid South Minority Business Council, Memphis Music Foundation and Mpact Memphis will play key roles in growing each of the targeted industries.

"Memphis means music and music means business," said Dean Deyo, music foundation president.

Benchmarks include significant increases in job creation, wages, per-capita income and minority-owned companies, combined with equally large decreases in unemployment and poverty rates.

Officials hope the the five-year plan will create 49,395 jobs, about triple the number of jobs created from 2004-2007. Supporters say those new jobs could generate $53.3 million in new tax revenue annually for the city and $32.1 million in new tax revenue annually for the county after five years.

Herenton and Wharton said economic development and job creation are the only way to provide the services constituents expect and the tax rates they dream of.

"If there is no economic growth and development the tax base shrinks," said Herenton. "And thus government does not have the necessary revenues to provide for schools, infrastructure, the essential needs of a city. Economic development is the most essential aspect of a community."

Tom Schmitt, president and chief executive of FedEx Supply Chain Solutions and next Chamber board chair, said Memphis ED will be a committed, sustained effort.

"This is not a sprint," said Schmitt. "This is a marathon."

-- Amos Maki: 529-2351