CHAPTER 2

ECONOMIC DEVELOPMENT

2.1 Background

This is the second of nine chapters that comprise Park Falls Comprehensive Plan.

The economy of the Park Falls area is primarily based on natural resources. Historically, the timber in the region provided the very reason for the community’s existence, with several lumber mills located in Park Falls. The lakes, rivers and wooded setting of the Park Falls area have attracted visitors from southern Wisconsin and Illinois for many years, and tourism has become a significant factor in the area economy. Numerous resorts are located on the lakes and rivers, and the Chequamegon National Forest, Price County Forest and nearby Flambeau River State Forest offer thousands of acres of recreational opportunities.

A. Previous Studies

“Comprehensive Economic Development Strategy”

Price County is one of ten counties that the Northwest Regional Planning Commission (NWRPC) assists with economic development. To maintain the federal designation, NWRPC prepares a Comprehensive Economic Development Strategy (CEDS) report for each county and municipality which includes the City of Park Falls. Included in this report is the community and economic development project title and description, proposed year of implementation, estimated cost, estimated jobs retained/created and local priority ranking. The projects begin in 2008 and extend through 2012. It serves as a summary for accomplished projects and as a list of target projects hoped to be completed in future years, depending on finances. Refer to Attachment #2 beginning on page 24 in “Issues and Opportunities” for the City of Park Falls CEDS new projects list.

“Wisconsin Business Retention and Expansion Study”

This study was prepared in 2001 by the Price County Development Association. The purpose of this study was to create a confidential, comprehensive data profile on businesses in the community in order to develop a systematic approach to retention. Re-studies also served as a follow-up; indicating how economic changes have impacted the business community, determining current needs and plans, and verifying past situations have been corrected. These programs enabled the community to develop a targeted retention program as well as identify those areas where it could assist local communities in their retention efforts.

An overall objective of the business retention and expansion project was related to the process itself. By conducting personal interviews to obtain the survey data, business executives were provided an opportunity to have their opinions listened to and passed directly on to municipal representatives. It was a positive step for local government toward understanding the implications of their policies for this very important segment of the community. The underlying goal was to be responsive to business needs.

“Price County Economic Development Diversification Plan”

The NWRPC prepared this plan for Price County in 2001. The following is an overview of the goal and objectives pertaining to the Price County Economic Development Diversification Strategy Plan.

GOAL: “PROMOTE A PROGRESSIVE PRO-BUSINESS CLIMATE TO ATTRACT AND DEVELOP NEW BUSINESSES WHILE FOSTERING THE GROWTH, SUCCESS, AND EXPANSION OF EXISTING BUSINESSES.”

Objective #1: “Build Economic Development Capacity within Price County”—This will be accomplished through improving availability of business technical assistance, increasing access to capital (including county revolving loan funds and venture capital) and by assisting marketing efforts of available commercial real estate. A unified county effort will enhance the possibilities for success through consolidation of necessary resources.

Objective #2: “Attract and Recruit New Businesses to Diversify Price County’s Economy”—A need has been identified to place an emphasis on development and/or relocation of science-based technology businesses (i.e. high-tech agriculture, electronics, manufacturing and wood products) that will compliment existing companies. These science-based technology businesses have the ability to utilize renewable resources, provide potential new markets for raw materials and waste by-products and create higher-waged job opportunities. In addition, inclusion in a Northern Technology Zone that encompasses Price County will be pursued as an added incentive for business development and/or relocation.

Objective #3: “Continue to Foster the Growth and Success of Existing Businesses”—The future success of many of Price County’s Businesses will be dependent upon adoption of cutting-edge technologies that require higher-skilled labor and yield a lower unit cost of production. Implementation of these changes can be supported by providing technical and financial resources and through creation of new localized workforce training programs.

“City of Park Falls Community Economic Development Plan”

This plan was prepared by NWRPC in 1999 for Park Falls. The planning process consisted of a number of activities designed to measure the success of the previous plan; identify new opportunities present in the community and the restructuring of the existing organization to facilitate implementation of new goals. The activities started with a survey of Park Falls area businesses which was compared to the survey completed in the early nineties. This survey indicated a generally improved attitude towards economic conditions and identified a number of new projects for the city to undertake. The survey also showed an improved measure of satisfaction with city activities except for sewer, water, street and sidewalk conditions in the downtown area which were addressed over the next several years.

B. Economic Development Issues

AGING POPULATION

Students are leaving the area after high school graduation for universities, technical colleges, military careers or jobs, and they are not coming back. As a result the area is becoming a haven for retired individuals wishing to enjoy the natural resources and quiet atmosphere in Park Falls. The median age in Park Falls is over 42 years old and will continue to climb if a change does not occur. This is six years above Wisconsin’s figure and a concern for the community. The enrollment numbers at Park Falls School District have steadily decreased and school district consolidations are apparent. The impact of an aging population will have a negative effect on the work force in the next several years. By 2020 the working-aged population 60 years of age and older in Price County is estimated between 40.1 and 49.3 percent. If younger people don’t move to or stay in the area, there will be an appreciable work force shortage. One example of such a company that would be affected is Flambeau River Papers, Inc. and it could be devastating to the local economy. With new attractions, developments and beautification, an enthused generation may be tempted to reside in the Northwoods; however, a balance between offering fresh ideas that appeal to a younger population and activities for an older generation need to be maintained.

Figure 12

AGE DISTRIBUTION-2000

	Park Falls		Price County		Wisconsin
Age	Number	Percent	Number	Percent	Number	Percent
Under 5	132	4.7	770	4.9	342,340	6.4
5 to 9	180	6.4	1,027	6.5	379,484	7.1
10 to 14	206	7.4	1,199	7.6	403,074	7.5
15 to 19	205	7.3	1,117	7.1	407,195	7.6
20 to 24	102	3.7	573	3.6	357,292	6.7
25 to 34	268	9.6	1,619	10.2	706,168	13.2
35 to 44	410	14.7	2,465	15.6	875,522	16.3
45 to 54	366	13.1	2,356	14.9	732,306	13.7
55 to 59	137	4.9	880	5.6	252,742	4.7
60 to 64	120	4.3	835	5.3	204,999	3.8
65 ot 74	247	8.8	1,449	9.2	355,307	6.6
75 to 84	247	8.8	1,051	6.6	251,621	4.7
85 and Over	173	6.2	481	3	95,625	1.8
Median Age	42.3	(X)	42	(X)	36	(X)

Source: US Census Bureau, 2000

INDUSTRIAL SPACE

Park Falls has been successful in filling both of its industrial parks and is currently studying ways to enhance the existing parks or develop a new park. Manufacturing or industrial buildings are also needed to accommodate future developments. Future goals of the community will include both industrial park development and industrial building creation. The City of Park Falls will also support industrial park development by other municipalities in the Park Falls trade area.

ADEQUATE EMPLOYEE TRAINING

With the increased population of older individuals and students not returning to the area, companies in Price County such as Marquip are seeing a shortage of adequate employee training. The strategy is to work with Northcentral Technical College (NTC), Park Falls and area school districts to develop a local business training program. The program would be designed to provide training for area young people that allow them to work or find jobs in the immediate area.

C. Existing Economic Development Activities

One of the focal points Park Falls wishes to have is an inviting atmosphere to entice engaging entrepreneurs. This involves three types of programs: business attraction, business retention, and commercial/industrial development.

Attracting and Retaining Business and Industry

Attraction deals with alerting others to what a community has to offer. Whether it be natural resources, retail stores or industries, it is difficult to grow as a business if people have not heard of it. Some activities used for a business attraction program include:

· Providing updated information on available sites

· Identifying characteristics in a community (labor, population, etc.)

· Offering financial assistance incentives—grants, revolving loan funds

· Target locations that compliment diversified groups and market them

Just as significant as attraction is