Economics

For a greenway to have any noticeable impact on a city’s economic activity, planners must understand the local economy’s strengths, weaknesses, growth goals, and specifically how greenway users can best contribute. The trail route should be planned only after pinpointing the types and locations of key industries to be involved – tourism, entertainment, lodging, food, and retail in this case.

Staunton’s Economic Development Department was formed in 1988 after a significant period of economic stagnation. The new department created its first economic development plan the same year to guide various initiatives and shape the development of 11 acres of recently annexed land. A description of the city’s most recent economic development plan is summarized below:

Recent Achievements
The most recent 2001-2002 plan points out some key objectives from the original which have been or are being accomplished:

• Development of the Green Hills Industry and Technology Center (after 30 years of little industrial growth)
• Establishment of the Staunton Enterprise Zone
• Implementation of a retail and downtown development program
• Creation of a tourism promotion program and the addition of several new attractions (i.e. Frontier Culture Museum, Blackfriars Playhouse)
• Completion of the New Street Parking Garage adaptive reuse project
• Initiation of the major CBD infrastructure project (including burying utility lines and streetscape improvements)
• Reduction of the machinery and tools and real estate tax rates

Troubling Facts & Trends

The plan then goes on to describe a number of indicators and trends which must factor into a fully realistic assessment of Staunton’s economic performance during the past decade and the city’s place in the regional economy:

• Industrial sector employment is not as strong as it should be
• Property tax revenue is too reliant on residential and does not collect enough from commercial property
• Unlike other independent cities in the western part of the state, Staunton is not a regional commercial center and instead shares much of its retail sales with Augusta County and Waynesboro
• The service sector has been growing across the U.S. but has been shrinking in Staunton because of:
  • Medical industry competition from the new Augusta Medical Center in nearby Fishersville
  • The move of all Augusta County government’s administrative, court-related, and law enforcement functions from Staunton to the nearby Augusta County government complex in Verona
  • State reductions at Western State Hospital and the Virginia School for the Deaf and Blind
• Staunton’s revenue stream is much smaller and less dependable than other independent cities because of:
  • The lack of a revenue sharing agreement with Augusta County
  • No ownership and operation of an energy utility
  • A relatively small industrial and commercial tax base
  • The city not being a regional retail destination

Although Staunton’s workforce decreased from 1990 to 2000 because of population shifts from the city to Augusta County, the city showed a 17% increase in the number of jobs (much better than Waynesboro’s 11% decline and competitive with Augusta County’s 21% increase).  Unfortunately, even though Staunton added more jobs they do not appear to be very high-paying positions. In spite of the strength of the generally well-paying Financial, Insurance, and Real Estate sector in Staunton, the city’s average weekly wages are 25% lower than Waynesboro, 20% less than Augusta County, and 49% below the state average. One reason for this difference is the Staunton’s weakness in the typically better-paying Manufacturing sector and Construction sector.

Economic development officials acknowledge that Staunton’s desire to recruit more commercial businesses and capture more of the regional retail sales and traveler spending will be difficult.  National and regional retail chains often require certain minimum personal income and spending levels that the Staunton area falls short of. Even though Staunton has shown solid growth in both real taxable sales and traveler spending since 1989, Waynesboro and Augusta County have either remained flat or declined since 1989. This regional slump has allowed the Harrisonburg / Rockingham County market area to outpace the Staunton / Waynesboro / Augusta County market in retail recruitment and sales.

Short-Term & Long-Term Economic Strategies

To combat its negative economic trends, Staunton officials have chosen a two-phase plan to increase city tax revenues in the short term and develop the community’s personal and capital wealth in the long term:

Short-term Strategies to Increase Tax Revenues

• Development of new retail sales tax revenue (will dedicate 25% of Economic Development staff and resources to this)
  • Highest priority given to recruiting large retailers to locate within four primary areas of the city (see Map 10) –   1) big box and destination retail at the new Virginia Crossroads Business Park directly north of the current Western State Hospital   2) a mix of big box retail, restaurants, and smaller national/regional retail on the Richmond Avenue corridor near Wal-Mart and Lowe’s   3) retail chains not requiring major entrance corridor exposure in the vacant Wal-Mart and Rak-n-Sak buildings on Statler Boulevard   4) smaller retailers for the CBD
• Development of additional higher wage and capital-intensive industry investment to create more machinery and equipment tax revenues (will dedicate 20% of Economic Development staff and resources to this)
  • Through expansion and recruitment of manufacturing and service businesses into the Green Hills Industry and Technology Center and the Virginia Crossroads Business Park – (targets include automotive part manufacturing, metal fabrication, electronic component manufacturing and services, information technology, regional sales and service centers)
• Capture of additional tourism spending to realize higher lodging, meals and retail sales tax revenues (will dedicate 15% of Economic Development staff and resources to this)
  • Compete with Augusta County’s highway-centric travel spending by creating “stronger attractions in the central business district… to draw more tourism business inside the city limits”
  • The priority project is the Stonewall Jackson Hotel and Conference Center

Long-term strategies to develop the community’s personal and capital wealth

• Downtown history, arts, and cultural tourism development to attract more tourists, new businesses, and new residents (will dedicate 10% of Economic Development staff and resources to this)
  • Staunton Cultural Development Alliance will help coordinate and market several new high-profile downtown projects in various stages of development (Blackfriars Playhouse - completed, Staunton Globe Theatre, Woodrow Wilson Presidential Library, R.R. Smith History and Art Center, New Dixie Theatre – completed)
• Staunton Enterprise Zone incentives (will dedicate 10% of Economic Development staff and resources to this)
• Telecommunications infrastructure development (will dedicate 5% of Economic Development staff and resources to this)
  • Should attract higher paying white collar, information technology, and service businesses to the city)
• Comprehensive Plan update (will dedicate 5% of Economic Development staff and resources to this)
• Regional economic development, small business development, and workforce development (will dedicate 5% of Economic Development staff and resources to this)
• Strategic Plan update (will dedicate 5% of Economic Development staff and resources to this)

If executed properly, these short-term and long-term strategies should positively impact Staunton’s economic turnaround. In addition, the Staunton Frontier Trail will contribute to the city’s economy by attracting more visitors, future residents, and current residents then guiding them to key economic locations in the city. By increasing the city’s overall quality of life, the trail will contribute to efforts to recruit higher-paying white collar jobs. By putting trail users in close contact with tourism attractions, entertainment options, retail locations, and food establishments, the Staunton Frontier Trail should keep more spending and tax revenue in the city as opposed to surrounding jurisdictions.

Attracting the Creative Class and Families

Service sector and information technology employees from what has recently been called the “creative class” are most attracted to cities with a diverse list of cultural and recreational amenities.  As Richard Florida writes, “Creative class people value active outdoor recreation very highly.  They are drawn to places and communities where many outdoor activities are prevalent - both because they enjoy these activities and because their presence is seen as a signal that the place is amenable to the broader creative lifestyle…  [A]menities - like bike lanes or off-road trails for running, cycling, rollerblading, or just walking your dog - benefit a wide swath of the population.”  Florida goes on to say that, “Creative-class people do not lose their lifestyle preferences as they age. They don't stop bicycling or running, for instance, just because they have children. When they put their children in child seats or jogging strollers, amenities like traffic-free bike paths become more important than ever.” Just as importantly, if tourists (especially families) are given safe and attractive ways to walk and bike throughout the area, they will further personalize their visit through exploration of key locations as well as unique spots they can make their own.