Businesses avoid area,

Kleppinger says

 

By Hilary Craig

 

After 11 years of trying to bring new industry to Rockbridge County, David Kleppinger questioned whether the county he recently left is becoming too old for change.

“You don’t find too many retirement communities that have economic developers on staff,” said Kleppinger, who resigned in July as executive director of the Rockbridge Partnership.

According to Kleppinger, it’s difficult to bring new businesses into Rockbridge County because of the strong influence of elderly residents. Nearly 16 percent of the population in the county is age 65 and older, compared to 12.4 percent nationally.

“Many people who move to Rockbridge County move away from suburban sprawl and new development,” he said. “For the most part, they don’t want to see the area change.”

The partnership’s primary purpose is to attract new industries to the area.

Not everyone sees the influx of older residents as a hindrance. Chamber of Commerce Executive Director Sammy Moore said that those residents add life to the area.

“It’s an aging population, but I also think it’s an active population,” said Moore. “Some people come to retire, but they also want to give back to the community.”

Earlier in the year, Kleppinger was offered an economic development job in Alleghany County. He gladly accepted, ready for change.

“I was sort of at a point where [their offer] was music in my ears,” said Kleppinger. “It’s much more fun to work in an area where they want what you do.”

In the seven weeks he has worked in Alleghany, Kleppinger said, he has more prospects for new businesses than he did in Rockbridge when he left. Unlike Rockbridge, he said, Alleghany has “rolled out the welcome mat and let people know that [they] want and need new jobs.”

Rockbridge, he said, might be getting a bad reputation among businesses.

As executive director of the Rockbridge Partnership, he said, he found new industries to fill every vacant building that existed in Buena Vista when he arrived. In addition, he said, he helped secure the future of Mohawk Industries in Glasgow, the county’s biggest employer.

Despite such successes, Kleppinger said, he faced a citizen uprising after the Buena Vista City Council agreed to allow MeadWestvaco, a paper-products company, to open a 600,000-square-foot distribution center in the city.

“MeadWestvaco walked out of a public hearing and turned to me and said, ‘It looked like an AARP convention in there,’” said Kleppinger. “What was that going to do for them?”

The citizen protest led Buena Vista’s City Council members to “change their mind,” said Kleppinger. MeadWestvaco has since sued Buena Vista for $7 million, alleging that the city backed out of its agreement to allow the company in. The suit was turned down twice by a circuit judge, but the company will argue its appeal of that decision before a state Supreme Court panel on Oct. 17, according to Mayor Todd Jones.

Officials with the Rockbridge Partnership agree that the county needs more industries, but according to Carroll Comstock, a member of the partnership and a county supervisor, the overall economic condition of the county is promising.

“We’ve not been as successful as we’d like to be with landing businesses around the area,” said Comstock. “But we’re moving in the right direction. We’re in a pretty competitive marketplace to get businesses in here.”

Robert Lucas, vice chair of the partnership, said that while the county has a lot of small businesses, few local industries have any size or significant tax base. He added that most young people raised in the Rockbridge area must move elsewhere or take a job that doesn’t pay enough for them to live in the county.

The Chamber of Commerce’s Moore agreed that it is tough for young people to start careers in Rockbridge, which has one of the largest income gaps of any county in Virginia.

“We have the haves and the have-nots,” said Moore. “It makes it tough, with real-estate values being what they are, for two young people to be able to afford property.”

The partnership is looking primarily to attract retail businesses. One reason, Lucas explained, is that many larger manufacturers are outsourcing overseas.

Also, big industry brings complaints.

“You get a little grumbling when you start saying trucks and distribution centers,” Lucas said. “But you have to take advantage of what’s offered, especially if it’s a decent paying job.”

Comstock blamed some of the area’s economic problems on large employers leaving. For example, Dana Corporation, a car-parts manufacturer, pulled out of Buena Vista a couple of years ago, leaving 300 workers unemployed.

Still, the county’s unemployment rate of around 4 percent is low compared to the rest of southwest Virginia.

“We’re doing really well, but we’re not the best,” said Comstock.

The partnership’s primary focus now is finding a replacement for Kleppinger. Businesses interested in locating to Rockbridge are being referred to either Lexington City Manager Jon Ellestad or County Administrator Don Austin. Both Ellestad and Austin are performing “double duty,” Lucas said.

“They’re doing their regular job plus Kleppinger’s old job, but not to the extent he was doing it or to the extent it needs to be done,” he said.

The new executive director, while trying to persuade new businesses to come, might also have to persuade residents to trust his or her judgment. Lucas emphasized that without the support of residents, the executive director cannot generate the industrial development needed to solve the county’s economic needs.

“The citizens of the county have to get behind [the director] or he’s not going to be a success,” Lucas said. “In my opinion, there’s no sense in having an economic director if the county isn’t going to back him.”

According to Valerie Lewis, secretary for the partnership, members hope to have their current draft of the advertisement for the new director approved at the group’s next meeting on Oct. 9, and start advertising on Oct. 10. The advertisement would appear in several state-level websites and newsletters, including those of the Virginia Association of Counties, the Virginia Municipal League, and the Virginia Economic Development Association. Lewis said that the Partnership would likely advertise for six weeks.

Kleppinger’s post-Rockbridge assessment was not entirely negative. He said the county has strong resources, including Southern Virginia University, Virginia Military Institute, and Washington and Lee University, that will help maintain its economic vitality.

“The universities make Lexington and Rockbridge County very recession proof,” he said. He also said that the Virginia Horse Center is a tremendous asset that brings in a lot of tourist dollars. In addition, he noted that Rockbridge is strategically positioned at the intersection of Interstates 81 and 64.

Lucas echoed that mixed view.

“Rockbridge County has a lot to offer,” he said. “We just need somebody to get us in the playing field instead of sitting on the sidelines right now. We have to decide if we’re going to be a retirement community or have some kind of business merit.”
 

Local business legacy

The Rockbridge Partnership

Seasoned Voices

Produced by Washington and Lee journalism students.

Lead supervisor:      Prof. Brian Richardson

Prof. Phylissa Mitchell

Reporting supervisors:

Prof. Doug Cumming

Prof. Pamela Luecke

Technical supervisor:  Michael Todd