CEO Corner: What does economic development mean in Skagit County?

By John Sternlicht, CEO

When I was hired 10 years ago to lead EDASC, the board of directors wanted a significant shift in how economic development happens here in Skagit County. That’s not to say that the previous way was wrong. Rather, it recognized that the world – local and regional economies, businesses, technology, consumers and the workforce – had evolved to such an extent that we had to adapt.

In prior decades, economic development focused largely on industry recruitment, and large incentives were given to land those companies. For the record, I was never a big proponent of incentives unless they benefited the entire community and were retained in the community even if the recruited company left. In fact, I was the first in the country to suggest that companies should be legally liable to repay their incentives if they did not meet their stated goals. (This is what happens when you let an attorney practice economic development!)

Research showed that incentives seldom made a decision happen, and we also learned that more than 90% of new jobs came from existing businesses. That caused seismic shifts among data-driven economic developers. 

Business attraction still matters because it helps to put new blood (suppliers, customers) into an economy, but the focus needs to more closely match the results. That means we need to focus much more on the care and feeding of existing businesses, known as business retention and expansion, or BRE in the lingo.

What does BRE look like? Business owners’ talents focus on the nature of the business itself, rather than the nuts and bolts of how to run an enterprise. Permitting, regulatory requirements, environmental and zoning issues, employment and workforce issues, and even business and marketing plans might be foreign to an entrepreneur who knows loads about how to do or make what they do or make. That’s where EDASC comes in – we can connect companies to potential customers, suppliers, or partners, or facilitate discussions with regulatory agencies or jurisdictions, or look for resources from partners that could help that business or organization. 

We regularly also work with fellow nonprofit organizations to help them achieve their goals, improve their processes, or reach a broader audience. In fact, every EDASC team member has served on the board of directors of a sister nonprofit organization in Skagit County. Nonprofit organizations comprise an important sector of the economy and provide many significant jobs. They also work to support the fabric of every community and make it a better, healthier, more attractive, and more prosperous place to live. That’s why we feature arts and culture nonprofit organizations on the cover of this issue.

EDASC has been at the forefront of the current trend in economic development to take a more holistic approach, addressing critical issues such as workforce development, housing and child care, all with equitable, inclusive and sustainable values. It’s all about removing barriers for businesses and entrepreneurs; barriers that impede success and creation of generational wealth. 

Meeting these and other important community needs is referred to as “wraparound services,” analogous to the social services context where the phrase is more commonly recognized. This reflects the understanding that economic development doesn’t exist in a vacuum, and we must address the entire range of issues to facilitate building more widespread generational wealth. At EDASC, we often think of offering wraparound services in the context of building capacity in these areas, allowing the community as a whole to better meet those needs.

We at EDASC are proud of our approach and the work we do in the community. We couldn’t do it without the partnerships and hard work of countless organizations, municipalities and businesses that support this effort. What we hope is that it will continue for many years to come. What we know is that the work, and the needs it addresses, will change continually over those years.