SBDC focuses on capital investment, jobs

As the Ozarks continues to grapple with fallout from the economic downturn, a wholly owned subsidiary of the Springfield Area Chamber of Commerce remains engaged in helping the city capitalize on its strengths and opportunities.

Since its inception in 1983, the Springfield Business Development Corp. has focused on its mission to foster economic growth and spur capital investment in a 10-county service region.

“Our economic development program is more focused and aggressive than it has ever been,” said Ryan Mooney, senior vice president for business development with the Springfield Area Chamber of Commerce.

The SBDC recruits member-investor businesses at five contribution levels starting at $2,500 to support its efforts. The highest level, Diamond investors, requires a minimum investment of $15,000 a year. SBDC now has 131 investors.

“That money is then pooled into our economic development program at the SBDC, and that’s what helps us execute the program of work that we’ve outlined,” Mooney said.

Among its recent accomplishments, the SBDC secured state development-ready certification for 51 acres in Partnership Industrial Center, aimed at enticing developers to the property.

“We support any initiative … that is pro-economic development, and the SBDC is on the front lines of that,” said David Ross, director of operations for member-investor Morelock Ross Builders, which invested $2,500.

In addition to fostering collaboration through coalitions such as the Ozarks Regional Economic Partnership, SBDC assists businesses interested in coming to or expanding in Springfield, from helping them secure tax incentives and negotiate real estate options to identifying work force training opportunities and connecting with state and local government agencies.

Partnership for Prosperity I, SBDC’s five-year capital campaign, launched in 2003, resulted in nearly 24,000 regional jobs and $214.8 million in direct capital investments, outpacing goals, Mooney said.

The second campaign, launched in 2008, has to date added 1,750 local jobs, including 850 in 2010, against a goal of 9,000 net new jobs in the metro area. Those gains helped offset area unemployment, as the region suffered a net loss of 12,000 regional jobs at the end of 2010, according to the SBDC’s 2010 annual report. The report also noted that the jobs brought to the area had average salaries of $35,000, higher than the Missouri Department of Economic Development’s estimated Greene County average of $33,924.

At the end of 2010, Partnership for Prosperity II had tallied $220 million against a goal of $225 million by the campaign’s end in 2012.

In 2010, the SBDC provided direct assistance for Expedia’s expansion into the former Springfield-Branson National Airport terminal, as well as expansions at Gold Mountain Communications and Kraft Industries, leading to the addition of nearly 850 new jobs to the local economy.  

“They were a tremendous amount of help … through all the paperwork to apply for some tax credits (and introduced us) to the chamber as well, which helped us put together a grand opening,” said Hank Seevers, president of telemarketing company Gold Mountain Communications LLC.  

In June 2010, Gold Mountain was approved for $376,000 in Enhanced Enterprise Zone tax credits, which helped fund a $960,0000 investment in additional staff and a lease in the Elfindale Center, 1701 W. Sunshine St.

Gold Mountain quadrupled its staff of 50 in April 2010, and Seevers plans to add another 140 jobs this year.

The SBDC helped secure state incentives in tax credits and training funds for Kraft, which added 50 new jobs in February 2010, and helped Kraft management develop training programs with Ozarks Technical Community College, Mooney said.

Last year, SBDC worked with Market Street Services, a national consulting firm, to identify potential growth opportunities for Springfield. Findings of the target cluster review identified manufacturing, medical research and services, supply chain management, corporate services, and technological and social innovation as potential growth areas.

“We’ve been able to identify a number of companies locally that are expanding where we can provide some sort of assistance,” he said. While he declined to name specific companies, Mooney said he expects growth in the back-office, manufacturing and distribution industries.[[In-content Ad]]