The Economic Development Administration's Public Works Program AN EVALUATION Volume II: Individual Project Reports U.S. DEPARTMENT OF COMMERCE Economic Development Administration I The Economic Development Administration's Public Works Program AN EVALUATION Volume II: Individual Project Reports U.S. DEPARTMENT OF COMMERCE Maurice H. Stans, Secretary Rocco C. Siciliano, Under Secretary Robert A. Podesta, Assistant Secretary for Economic Development July 1970 Since 1966, the Economic Development Administration has approved over 1700 public works projects. From January to May, 1970, an EDA task force used a mail/telephone survey methodology to evaluate the effectiveness of 125 completed public works projects. The projects were analyzed in terms of their process, job, structural, and service impacts on the community. The results of this study indicate that EDA has been able to stimulate the economic development process in many depressed areas across the nation EDA has saved or created 9,994 direct jobs and 3,708 indirect jobs as a result of the 125 projects The average EDA investment per direct and in- direct job was $1,708. Volume I presents a summary of the findings and a discussion of the survey methodology. Volume II presents the individual project reports. WATER/SEWER TABLE OF CONTENTS Project No. City, State Page No. 010100032 010200243 020100146 030100004P 030100055P 030100068 030100111 030100118 030100156 030100158 030100159P 030100211 030100218 030100245 030100358 030200243P 040100031C 040100095C 040100099 040100144 040100167 040100177 040100193 040100346 040200168 060100104 060100105P 060100115 060100140P 060100144P 060100284P 060100287 060100307 060100309P 060100341P 060100347P 060100353 Berlin, New Hampshire Harrington, Maine Ohiopyle, Pennsylvania West Somerset, Kentucky Richlands, Virginia Spruce Pine, North Carolina Washington, North Carolina Columbia, North Carolina Zanesville, Ohio London, Kentucky London, Kentucky Nicholasville, Kentucky Rowland, North Carolina Whitesburg, Kentucky Middleport, Ohio Middleport, Ohio Sumter, South Carolina Buena Vista, Georgia Alto, Georgia Sardis, Mississippi Guin, Alabama Alligator Point, Florida Dayton, Tennessee Greenville, Tennessee Guin, Alabama Crosby, Minnesota Greenbush, Minnesota Grand Rapids, Michigan Lexington, Nebraska Peever, South Dakota North City, Illinois Elizabethtown, Illinois Salem, Indiana Auburn, Michigan Marble Hill , Missouri West Plains, Missouri Lexington, Missouri 16 18 21 35 37 74 76 79 Project No. City, State Page No. 060100354 060100399 060100471P 060200126P 060200187 060200311 070100107 070100206 070100312 070100409 070200170 080100020P 080100037P 080100047P 080100087 080100108 080100111 080100182 080100237P 080100265 080100515P 080100516P 080100524 080100526 080100536 080100563 080100582 080100625 080100729 080200075C 080200245 080200289 080200408 080200517 Higginsville , Missouri Linton, Indiana Emma, Missouri Walthill, Nebraska Peever, South Dakota Auburn, Michigan Auburn, Washington Orofino, Idaho Sunnyvale, California Evergreen, Montana Orofino, Idaho Eudora, Arkansas Trinidad, Colorado Davis, Oklahoma Roosevelt, Utah DeQueen, Arkansas Sterling, Kansas Melbourne, Arkansas Independence, Louisiana Monticello, Arkansas Cokeville, Wyoming Cokeville, Wyoming Ft. Garland, Colorado Fountain Greene, Utah Ladonia, Texas Altus, Arkansas Navasota, Texas Pioche, Nevada Weslaco, Texas Monticello, Arkansas Eudora, Arkansas Roosevelt, Utah Ladonia, Texas Cokeville, Wyoming 89 92 95 67 76 98 100 103 105 100 108 110 112 115 118 120 122 125 127 130 130 132 134 136 138 141 144 146 127 108 115 136 130 INDUSTRIAL/COMMERCIAL 010100075 010100209 020100029P 020100085 020100172 030100077 030100093 Calais, Maine 148 Lyons, New York 150 Newell, Pennsylvania 153 Darlington Township, Pennsylvania 155 North Union Township, Pennsylvania 157 Middlesboro, Kentucky 160 Middlesboro, Kentucky 160 Project No. City, State Page No. 030100094 030100116P 030100120 030100288 030100311 040100055P 040100109P 040100162 040100184 040100209 040100214 040100257 040100318 040100336 040100374 040200337 040200375 060100138 060100139 060100173 060100306 060100580 060100640 070100057 070100090 070100132 070100508 070200509 080100145 080100258 080100279 080100281 080100282 080100292 080100548 080100565 080200072P 080200112 080200564 080200573 Sparta, North Carolina Logan, Ohio Paintsville, Kentucky Middlesboro, Kentucky Paintsville, Kentucky Washington, Georgia Monticello, Georgia Monticello, Georgia Gloster, Mississippi Greeneville, Tennessee Greeneville, Tennessee Dillon, South Carolina Clarksdale, Mississippi Canton, Mississippi Greeneville, Mississippi Canton, Mississippi Greeneville, Mississippi Lower Brule, South Dakota Ft. Thompson, South Dakota Little Falls, Minnesota Scottsburg, Indiana St. Francis, South Dakota Green Bay, Wisconsin Hood River, Oregon Tacoma, Washington St. He 1 en ' s , Oregon Harlem, Montana Harlem, Montana Poteau, Oklahoma Waurika, Oklahoma Chandler, Arizona Coolidge, Arizona Dock, Arizona Baxter Springs, Kansas Zuni, New Mexico Parker, Arizona Russellville, Arkansas Waurika, Oklahoma Zuni, New Mexico Parker, Arizona 162 165 167 160 167 170 174 174 177 180 180 182 185 187 190 187 190 193 196 198 201 203 205 207 210 213 215 215 217 219 222 225 228 230 233 236 239 219 233 236 EDUCATIONAL FACILITIES 060100315 070100152 080100542 Houghton, Michigan Astoria, Oregon Rio Grande City, Texas 241 243 245 Project No. City, State Page No. PUBLIC BUILDINGS 060100134 Belcourt, North Dakota 248 080100212 Ash Flat, Arkansas 250 030100219 Monroe Township, Ohio 253 040100126 Myrtle Beach, South Carolina 255 WATER/SEWER Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/economicdeveloOOunit Project Type: Water Main Project Number: 010100032 Applicant: City of Berlin, New Hampshire project Financing: Total: $368,000 EDA Grant: $185,000 Date Approved: May, 1966 Date Completed: October, 1967 PROJECT BACKGROUND Berlin, population 17,820, is located in Coos County, an area that is eligible for EDA assistance on the basis of a state plan. The industrial economy of Coos County is based almost entirely on forest products. Two companies in this industry employ 76 percent of the total number of people in manufacturing jobs in the county. One of these firms, the Brown Paper Company, is located in Berlin. Another large employer in Coos County is the Granite State Rubber Company which is also located in Berlin. In 1965, Berlin's water was supplied by an old wooden pipe line that had been in service for forty years, was in hazardous condition, created a fire hazard for the city, and was unable to provide additional quantities of water for a new 20-million dollar paper mill and a new expansion of the Granite State Rubber Company factory. In order to assure the development of these and other industries, EDA granted $185,000 to help construct a new 20-inch water transmission main. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been little change in theeconomic development process of Berlin. The degree of planning for and support of community development efforts has remained the same. There has been no increase in the number of other State and Federal programs. However, the local government's attitude toward the community's development has become more favorable, and the public facilities have improved. Community leaders who were familiar with the project responded that the EDA project had been a factor in the economic development of Berlin. Grade C - little change, some EDA influence JOB IMPACT Number of direct jobs 2 50 EDA investment per direct job $ 740 Number of direct job equivalents 195 Number of possible future jobs £ Number of indirect job equivalents 117 EDA investment per direct and indirect job equivalent $ 593 Firm where jobs were created: Converse Rubber Company, Granite State Division , was able to expand its operations because of the improved water supply. The improvements have also minimized the possibility of shutdowns from lack of water and have reduced the fire hazards. The firm employs 1,090 people in the production of canvas footwear. Approximately 250 of these jobs were created when the company expanded its operation. STRUCTURAL IMPACT Employee information was not available. The project has assured the continued operations of Berlin's major manufacturing employers and related industries, thereby increasing the stability of employment. More jobs have been created in an existing industry, but there has been no diversification of the local economy. Grade C SERVICE IMPACT This project now provides two-thirds of the city's water. By increasing and improving the water service, the project has lowered the cost of fire insurance in the area by changing the State Fire Underwriter's rating from two to one. The project provides an adequate water supply for two major industries in Berlin; the Brown Paper Company uses 1/2 million gallons per day and Granite State Rubber uses 100,000 gallons per day. Grade B- - significant improved service to the community at large. Project Type: Waste Treatment Plant Project Number: 010200243 Applicant: School Administrative District 37, Harrington, Maine Project Financing: Total $124,000 EDA Grant: $50,000 Date Approved: April, 1967 Date Completed: October, 1968 PROJECT BACKGROUND A small town with a population of 710, Harrington is located on the northeast seacoast of Maine in Washington County. This area had unemployment rates ranging from 17.6 percent in 1964 to 10.6 percent in 1968, and it is de- signated for EDA assistance on the basis of persistent unemployment. In early 1967, School Administrative District 37 applied for and received EDA funding to supplement a basic Federal Water Pollution Control Administration grant for construction of a waste treatment plant, outfall, and appurtenances. These facilities were intended to serve a regional high school which would act as a stimulus to upgrade human resources in the area and help further the objectives of the Economic Opportunity Act of 1964. It was also claimed that the project would eliminate pollution of local rivers, which would preserve the jobs of about 220 clam diggers. ECONOMIC DEVELOPMENT PROCESS Since early 1967, the only factor in the economic development process of Harrington that has shown any improvement is the areas public educational facilities. In most other factors there have been no changes, and there was some evidence that the local development organization had decreased its activity during this time period. One community leader also expressed a feeling that the willingness of local citizens to finance local develop- ment projects had decreased since early 1967. All of the community leaders questioned who are familiar with the EDA project feel that it has had little influence on Harrington's economic development. Half of the community leaders questioned were not familiar with the EDA project. Grade D - general lack of change; little EDA impact. JOB IMPACT The project proposal speculated that the waste treatment plant would eliminate pollution of local rivers and preserve the jobs of 220 clam diggers. As the waste treatment plant only serves the regional high school, the EDA project has only prevented pollution which otherwise would have resulted from the high school. The project has aot had its proposed job impact. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT All of the service provided by the EDA project goes to the regional high school, so that the project's only service impact has been the prevention of pollution which might have resulted from the operation of the school. Grade D - marginal service to community at large. Project Type: Water and Sewer Facilities Project Number: 020100146 Applicant: Borough of Ohiopyle, Pennsylvania Project Financing: Total: $676,000 EDA Grant: $473,000 Date Approved: May, 1966 Date Completed: August, 19 PROJECT BACKGROUND Ohiopyle is a small town of approximately 290 people situated on the Youghiogheny River approximately 60 miles southeast of Pittsburgh. Ohiopyle is located in Fayette County, an area that has been marked by high unemployment ranging between 10.5 and 6.8 percent from 1964 to 1968. The area is designated for EDA assistance on the basis of this persistent unemployment. The Borough of Ohiopyle is surrounded by an 18,000-acre state park which in early 1966 was under development as a major tourist and recreational area. Borough officials applied for EDA assistance in construction of a new water treatment and distribution system, and sewage collection and treatment system. These facilities were needed both for local residential use and for the expected influx of visitors to the area after completion of development of the state park. It was anticipated that between 1966 and 1980 the number of tourists annually visiting the area would increase from 50,000 to 1,300,000. Studies projected that the construction of recreational facilities envisioned for the area, including a golf course, ski facilities, numerous camping sites, and motel accommodations, would result in the creation of approximately 405 direct jobs for the area by 1980. ECONOMIC DEVELOPMENT PROCESS The major attitudinal and institutional change that has taken place in the Ohiopyle area since 1966 has been greatly increased planning for the area's physical development. Ohiopyle's participation in the planning and executing of Fayette County economic development has also significantly increased. Public facilities in the Ohiopyle area have been improved, increasing the attractiveness of the area. Most other factors in the economic development process have seen slight improvement since 1966, except for the activity of local lending institutions in development financing, which has remained at a constant level . Of four community leaders familiar with the Ohiopyle area, two feel the EDA project has been a significant factor in Ohiopyle 's economic development, and one feels that it has been one factor among many of equal influence. The fourth community leader feels that while the EDA has had little influence upon local economic development to date, the water and sewage projects will gain increasing significance as the state park area is further developed. This community leader feels that in the future the state park will be a major tourist and recreational area that is bound to increase property values, create fresh community income, and provide new taxes. Grade C+_ - limited process changes; some present and potential EDA impact JOB IMPACT None STRUCTURAL IMPACT Not applicable SERVICE IMPACT Residents of Ohiopyle are the primary beneficiaries to date of the water and sewage facilities provided by the EDA - funded project. In an area previously lacking a water distribution system or a sewage collection and treatment system, 57 families presently are utilizing about 6,000 gallons of water per day. Ninety percent of the total quantity of service goes to families earning incomes less than $3,500 a year. Contaminated wells have been eliminated, and raw sewage that formerly was discharged directly into the Youghiogheny River is now being treated by the sewage system. Grade A+_ - significant new service to substantial percentage of low-income residents Project Type: Water System Facilities Project Number: 030100004P Applicant: Pulaski County Water District til, West Somerset, Kentucky Project Financing: Total: $482,000 EDA Grant: $289,000 Date Approved: June, 1966 Date Completed: July, 1968 PROJECT BACKGROUND The city of West Somerset is located in a recreational area near Lake Cumberland in south central Kentucky. West Somerset, population 900, is in Pulaski County, an area that was made eligible for EDA assistance on the basis of persistent unemployment, but that is not now designated. Prior to application for EDA assistance, the water system of West Somerset was totally inadequate for the residents, and it precluded any possibility for industrial expansion due to the high cost of fire insurance rates. Motel and restaurant construction had also been curtailed because of an insufficient supply of water. During the summer, water had to be hauled from supplement wells, springs, cisterns, and creeks, creating a financial burden for West Somerset. In 1966, the Pulaski County Industrial Foundation applied for and received an EDA grant to install a new water distribution system, consisting of water mains, fire hydrants, gate valves, service connections, meters, and storage tanks. At the same time the Foundation obtained a two-year option for the purchase of 170 acres of land which were to be used as an industrial park. Although no firms were located in the park by early 1970, the water system has allowed several firms to remain and expand in the area. ECONOMIC DEVELOPMENT PROCESS Since 1966, the local government's attitude toward West Somerset's economic development has become much more favorable in the opinion of most community leaders questioned. This is partially reflected in increased local planning for the area's physical development during the same time period. The area has increased its participation in the district development program at the same time as the number of other State and Federal programs active in the community has increased. The one area in which there had been no improvements since application for EDA funds was in the local leadership's concern for the poor, which is significant in an area which was eligible for EDA assistance on the basis of persistent unemployment. While most community leaders feel that the EDA project has had some influence upon economic development in the West Somerset area, opinions ranged from those who felt the EDA project has been the major reason for economic develop- ment to those who felt the EDA project has had little such influence. There was some sentiment raised by community leaders for the re-designation of the Somerset area of Pulaski County as eligible for EDA assistance, implying the value of EDA funding to the community while it was a designated area. Grade B - general development change; some EDA influence. JOB IMPACT Number of direct jobs 138 EDA investment per direct job $ 2 ,094 Number of direct job equivalents 86_ Number of possible future jobs 40 Number of indirect job equivalents 26 EDA investment per direct and indirect job equivalent $ 2 , 580 Firms where jobs were created or saved: The Cumberland Wood and Chair Corporation manufactures a variety of furniture products. The insured availability of water for fire safety and everyday use that resulted from the EDA-financed project was the major factor enabling the company to remain in West Somerset, save 115 jobs and expand its operations, creating 20 more jobs. The EDA project enabled the company to increase its total capital investment by $200,000 to $1,200,000. Cumber- land Wood and Chair hopes to create 40-50 new jobs at its West Somerset plant within the next two years. The William Thurman Dairy , a family owned farm producing milk products, has a total capital investment of $100,000, 60 percent of which was an increase as a result of the EDA project. The new water distribution system enabled the dairy owner to add his son as a partner, and employ in addition his grandson and a full-time hired hand. The dairy farm's herd of cattle was increased from 25 to 100, and two new silos were built for storing feed. STRUCTURAL IMPACT Saved jobs: 97% living in county where firm is located 100% heads of households Created jobs : 100% living in county where firm is located 100% heads of household 100% increase in income 100% previously unemployed The firms which credited the EDA project with helping them to save or create jobs were located in West Somerset prior to the project's inception. They do not represent industrial diversification for the area, but their stability is somewhat enhanced by their prior location in West Somerset. Almost all the jobs saved or created are with the Cumberland Wood and Chair Corporation. Most of the manufactured products are exported more than 15 miles from the plant location. Grade B SERVICE IMPACT The installation of the new water distribution system in Pulaski County Water District #2 furnished the district with approximately 41,000 gallons per day. Of this total, roughly one-third is used by commercial, industrial and public consumers, with the remaining two-thirds being used by residential consumers. Of the total water service used by residents in the district, about 14 percent goes to families with annual incomes of less than $3,500. The availability of the fire hydrants furnished as part of the EDA project resulted in the purchase of a fire truck and establishment of a volunteer fire department within the Water District. Grade A - significant new service to the community at large. Project Type: Water Treatment Facilities Project Number: 030100055P Applicant: Richlands, Virginia Project Financing: Total: $186,000 EDA Grant: $111,600 Bate Approved: June, 1966 "Bate Completed: April, PROJECT BACKGROUND Richlands is a small, poor town with a population of about 5,000. It is located in Tazewell County which is situated in the western tip of Virginia. Tne county is designated as an EDA qualified Redevelopment Area on the grounds of high unemployment. It is part of the Cumberland Plateau Economic Development District and Richlands is an Economic Development Center . This application grew out of the town's need for water. The manufacturers of the community agreed to meet certain requests of the town, including considering expanding their local operations, in exchange for a water treatment plant. The town also expected that it would be seriously considered as a site for a regional health center if it could show a plentiful supply of clean water. The town also wanted to forestall an impending water shortage; water that is needed for sanitation, fire protection and product processing. The project is now supplying water to homes and existing industry, and is being used to attract new industry. ECONOMIC 1DEVEL0PMENT PROCESS This is a town in which interest in development has always been high, and since the application date, activity seems to have accelerated somewhat. Planning and participation in planning organizations, in- cluding the OEBP and district program, have become more extensive. Both the government and citizen groups are showing greater support for the community's economic development. Money is more available for development financing because of the increased activity in this area by lending institutions and an increased willingness on the part of citizens to finance local improvements. There has been a great improve- ment in public facilities and an increased presence of State and Federal programs in the community. As a result of this project, the town is in a position to provide water for a housing project which is essential to a large mine develop- ment. The mine development is currently the greatest economic factor in the area. Considering the level of economic development activity in the area prior to the EDA project, the project is viewed as only a factor, one of several, in the economic development of the area. Grade C_ - some improvement, little EDA impact JOB IMPACT None STRUCTURAL IMPACT SERVICE IM PACT This system was badly needed by Richlands and now supplies adequate water to both residences and industry, though the main portion of the new service is used by the residents of the city. The Clinch Valley Clinic Hospital is benefiting from the new service . The service contributes to the general health and well-being of the people in the area. Grade C - some new service to the community at large Project Type: Water System Extension Project Number: 030100068 Applicant: Town of Spruce Pine, North Carolina Project Financing: Total: $200,000 EDA Grant: $100,000 Date Approved: March, 1966 Date Completed: July, 1967 The Town of Spruce Pine, population 2,5>00, is located in Mitchell County, North Carolina, an area which is eligible for EDA assistance on the basis of persistent unemployment. In March 1966, Spruce Pine received an EDA grant to expand its water system through the construction of a pumping station and the extension of a water main for 3-9 miles to serve the Henredon Furniture Company's new plant. The company planned to create 5>00 jobs when in full operation, with an estimated annual payroll of $2 million. Its plans also included using the natural resources of the area for raw materials and training previously unemployed or underemployed labor to work in the plant. In addition to servicing the Henredon Company, the project has opened up an area for future industrial users and also provides water for a residential area. ECONOMIC DEVELOPMENT PROCESS There has been a definite upsurge in the economic development process of Spruce Pine since 1966. The community leaders polled responded that there had been either favorable or extensive improvement in all eleven process factors . The community leaders responded that the EDA project has been a major factor in the economic development of Spruce Pine, by helping to secure a new industry, thereby reducing unemployment, and by opening up an industrial and residential area. Grade B+ - significant improvement, major EDA impact JOB IMPACT Number of direct jobs 315 EDA. investment per direct job $ 317 Number of direct job equivalents 202 Number of possible future jobs 50 Number of indirect job equivalents 60_ EDA. investment per direct and indirect job equivalent $ 382 Firm where jobs were created: The Henredon Furniture Company occupies 200 acres on the outskirts of Spruce Pine. Both the EDA project and the available work force were factors which made it possible for the company to locate in the area. The firm has a total capital investment of $3?^ million at the plant. Bedroom and occasional furniture is manufactured at the plant, where there are currently 315 employees. Fifty more employees will be hired within the next two years. STRUCTURAL IMPACT 80% living in county where firm is located 90% heads of households — % increase in weekly average income 20% previously unemployed The Henredon Furniture Company has provided the area with a large, stable employer. The company exports over 70% of its final output out of the area. SERVICE IMPACT Ninety-four percent of the total quantity of service is used by the Henredon Company. The remaining service provides water and fire protection for over 100 families and one church. Over 50% of the residential users are low-income families . Grade C+_ - improved service to the community at large, including a substantial number of low-income residents. Project Type: Water and Sewer Extensions Project Number: 030100111 Applicant: Washington, North Carolina Project Financing: Total: $224,000 EDA Grant: $108,000 Date Approved: March, 1966 Date Completed: February, 1967 PROJECT BACKGROUND Washington, North Carolina, population 9,930, is located in Beaufort County, which was previously eligible for EDA assistance as a carry over from ARA, but has now been dedesignated. In 1966, the City of Washington applied for and received an EDA grant to extend the water and sewer lines for two miles and to construct an elevated water storage tank. These facilities were needed to serve a new plant of the Hamilton-Beach Company. The company originally expected to employ 800 people at the new location, and made plans to train the new workers in the skills needed for manufacturing electrical appliances. The EDA project, while providing adequate water and sewer facilities for the original Hamilton-Beach plant, also provided the water capacity required for the fire insurance for an additional warehouse. Added in 1968, the warehouse brought the total number of Hamilton-Beach employees up to 1,200 — 400 more than originally expected. The project has greatly improved the water distribution system and the sewage system for an area much larger than the plant site. Facilities have been made available to residential areas and housing developments as well as an airport and a nursing home. ECONOMIC DEVELOPMENT PROCESS Since 1966 there has been a positive change in the economic development of the area. Along with the improved public facilities, the willingness of local citizens to finance local improvements has also increased. The local government's attitude toward the community's economic development has become much more favorable. However, there has been no agreed upon change either in the activity of the local lending institutions in development financing or in the support of development efforts by community groups. All the community leaders who responded answered that the EDA project has been a significant factor in the economic development of the area. One community leader claimed that the project has raised the standard of living for 400 to 500 families, has provided jobs for youth who were leaving the community to find jobs elsewhere, and has caused some migration into the area. Grade B - favorable improvement, significant EDA. impact JOB IMPACT Number of direct jobs 1200 EDA. investment per direct job $90 Number of direct job equivalents Number of possible future jobs -- Number of indirect job equivalents -- EDA investment per direct and indirect job equivalents - Firm where jobs were saved or created: Hamilton-Beach, Division of Scovil is located on a 25-acre site. In addition to the facilities provided by the EDA project, the availability of labor, local cooperation, and the climate were factors mentioned by the firm which contributed to the establishment of a plant in Washington. The total capital investment of the company at this location is $7,000,000. Electrical appliances are manufactured, and 1,200 people are currently employed. STRUCTURAL IMPACT Information on employees was not provided. However, a letter grade can be assigned on the basis of information about the Hamilton-Beach Corporation. By bringing a new type of industry to Washington, Hamilton-Beach has helped to diversify the economic base of the area. A division of a large national firm, the plant exports over 70% of its goods out of the area. Grade A - (based on information available) SERVICE IMPACT The EDA project serves several other segments of the community besides the primary benficiary, and is intended to aid future industrial and residential growth. Smallwood, a housing developing east of the Hamilton-Beach plant, receives its water supply through the EDA-funded facilities (sewer facilities are on a separate system east of the development) . Both water and sewer services are now available to residents west of the plant. In addition, Warren Airport and the Beaufort County Nursing Home are serviced, and a pro- posed development north of the plant will also be serviced. Grade A - significant new service to the community at large. Project Type: Sewer System Project Number: 030100118 Applicant: Town of Columbia, North Carolina Project Financing: Total: $103,000 EDA Grant: $52,000 Date Approved: May, 1966 Date Completed: March, 1968 PROJECT BACKGROUND The Town of Columbia is located along the Suppernong River which has some fishing industry and tourist trade. Columbia, population 1,099, is in Tyrrell County, an area that was made and remains eligible on the basis of low income and high unemployment. In 1966, the town applied for and received an EDA grant to eliminate the pollution of the Suppernong River. One of the major sources of the pollution was the Jagars Fish 'Company, an employer in the area. The seafood processing plant was unique in that it processed catfish which were previously considered a nuisance and shipped them to a growing Midwest market. Because of the excessive pollution, the seafood plant may have been forced to close by the State Sanitary and Pollution Agency. With the construction of a waste treatment plant, pumping stations and outfall, the plant was able to remain and expand, providing the local independent fishermen with a continued market for catfish. It was also anticipated that further industrial and tourist expansion would be possible with adequate sewer facilities. ECONOMIC DEVELOPMENT PROCESS There has been somewhat of an improvement in the attitudes and institutions in Columbia since 1966. While the local government has become somewhat more favorable in its attitude toward the community's development, the 0ET3P group has remained the same. Local planning for the physical develop- ment of the area has become more extensive, but the local development organization has essentially remained the same. Community groups, on the other hand, have greatly increased their support of community development efforts. Citizens are also showing a greater willingness to finance local improvements, which may have been stimulated by the benefits the greatly improved facilities are bringing them. The people of Columbia are very pleased with this project. It was the concensus of opinion of all the community leaders polled that the EDA project has been a factor in the economic development of the area. Grade C_+ - some improvement, some EDA impact JOB IMPACT None Jagars Fish Company benefited significantly from this project, however, it cannot be specifically established whether or not it either saved or created jobs. The firm has been in the area for 2£ years and has expanded periodically. Although the firm was a major source of pollution of the Suppernong River, there were no specific plans or threats to close it down. Action might have eventually been taken against the company but the situation was too indefinite to credit the project with saving jobs. STRUCTURAL IMPACT None SERVICE IMPACT This project has improved the sewer service to the entire population of Columbia. It is eliminating private sewage facilities by providing better service. Pollution, especially from Jagars Fish Company, has been sig- nificantly curtailed. Grade B - improved service to the community at large Project Type: Water Main Replacement Project Number: 030100156 Applicant: Zanesville, Ohio Project Financing: Total: $88,000 EDA Grant: $HI,000 Date Approved: June, 1966 Date Completed: October, 1967 PROJECT BACKGROUND Zanesville is a medium-sized community located in Southeastern Ohio, with a population of 39^070. The county in which it is located, Muskingum, was designated as a Redevelopment Area on the basis of excess unemployment, but its status was terminated six months later. For some time Zanesville has been trying to improve its condition, primarily through urban renewal and industrial planning. Important to its develop- ment is the presence of a branch of Ohio University. The campus was hoping to expand its facilities to meet the increasing student enrollment. The county had donated a 179-acre site for that purpose. To facilitate the expansion, the applicant proposed to replace an existing water main by a new line to insure an adequate water supply to the campus . The completed project was designed to accommodate student enrollment of approximately 1,800 by 1968. University officials felt that this would create a need for approximately 128 new jobs. Besides the University, a commercial industrial plant along the water line is making use of the project. The project has also improved the quality of the city's water service in much of the western section of the city. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been a significant change in the attitudes and institutions in Zanesville. At the forefront of this change is the local government whose attitude toward economic development has become much more favorable. Reinforcing this change is the local leadership's greatly increased concern for the poor and minority groups in the com- munity. The citizens are lending their support to community development through various groups and are also showing an increased willingness to finance local improvements. Planning on both the local and district level has become more extensive, and both the 0EDP group and local development organization have become more active. There has been only marginal change in the development financing activity by local lending institutions. The community as a whole has received new benefits from the general improvement in the public facilities and the greatly increased number of State and Federal programs in the community. The building expansion to Ohio University was dedicated in June, 1967 and now serves approximately 1,000 students annually. While providing water to the University, the new line has also improved supply and pressure in the area. As a result, a restaurant has expanded, a branch bank has opened and the insurance costs for both residents and businesses located nearby have decreased. Property in the area is now more desirable because of the higher water pressure and more certain supply. It is also expected that the effects of this project will continue to increase as the city is able to make exten- sions and connections to other parts of the water distribution system. The EDA project is credited with being a significant factor in the economic development of the area. Grade B - favorable improvement, significant EDA impact JOB IMPACT Number of direct jobs 50 EDA investment per job $ 880 Number of direct job equivalents -- Number of possible future jobs 10+ Number of indirect job equivalents — EDA investment per direct and indirect job equivalent -- Institution where jobs were created: Ohio University at Zanesville has chosen to remain and expand in the area partly because of the EDA project. Another major factor keeping it in Zanesville is the 180 acres of flat land which the University owns. So far, the total capital investment has been three million dollars with a capital expenditure of one million dollars anticipated during 1970-71. Of the 50 jobs which the EDA project helped create, approximately 50 percent are full- time. The University plans to continue expanding and faces the possibility of becoming a four year institution. STRUCTURAL IMPACT Created jobs: 100% living in county where institution is located 957o heads of households --% increase in weekly average income --% previously unemployed As an expanding state institution, Ohio University in Zanesville represents a stable, though limited, source of employment. Although it is not an industry, it lends diversity to the economy of the area. SERVICE IMPACT While the initial intent of this project was to serve the University, it has also brought service and benefits to the residents along the path of the line and in the vicinity of the school. Residents using the city water now have higher water pressure and a more certain water supply. Grade D - some improved service to a part of the community. Project Type: Improvement of Sanitation Facilities Project Numbers: 030100158 and 030100159P Applicant: London, Kentucky Project Financing: Total: $1,404,000 EDA Grant: $496,000 Date Approved: May, 1966 Date Completed: August, 1968 PROJECT BACKGROUND London is located in Laurel County in southeastern Kentucky. It was designated as an EDA Redevelopment Area on the basis of excess unemploy- ment from January 1965 until June 1968 when it was dedesignated. Poverty is common throughout this county of 2lj.,900, where the median family income is $2,312 a year. The population of London is 4,030. The limited existing sewage treatment facilities had resulted in emer- gency measures being invoked. Water was rationed for both industrial and household use, and several plants in London had received warning notices from the Kentucky Water Pollution Control Commission. New industrial plants could not obtain sewer service and existing ones were prevented from expanding because of the inadequate sewer service. The County Department of Health had ordered that a new Federal low-rent housing project be delayed in its opening until sanitary services were installed. Faced with these problems, the City of London turned to EDA for assistance. Two projects were subsequently approved which provided for improvements to and expansion of the existing sewage collection system, and for the construction of a waste treatment plant and lift stations. As well as alleviating the problems listed above, the project was to assist London with the development of a 125 acre industrial park and to make possible the expansion of several local industries. It was the intention of the Griffin Pie Company, Inc. to expand operations by additional plant facilities and employment of approximately 15 employees. The Avalon Cheese Company intended to expand operations by additional plant facilities and employment of approximately 10 employees. The project is now providing improved sewage treatment for the residents and industries of the community. ECONOMIC DEVELOPMENT PROCESS Since 1966 there have been some positive changes in the attitudes and institutions that relate to the economic development of London. At the forefront of change is the more favorable attitude of the local government toward the community's economic development. The citizens lend their support to this change by participating in the community development efforts of community groups. Their new support seems to stop short of personal commitment, though, for there has been no increase in the willingness of the citizens to finance local improvements. Lend- ing institutions, on the other hand, have become much more active in development financing. Planning on the local level for the physical development of the area has become more extensive. The OEDP group has become much more active, but the local development organization has only become somewhat more active. Participation in the district program of the area has increased greatly. Other notable changes have come in the form of a slight increase in the number of State and Federal programs in the community, and through greatly improved public facilities. The improvement and expansion of the sewerage system that these projects provided has brought development advantages to London. Some new industry has located there because of the improvements, and the capacity of the system facilitates future growth. The community leaders polled were evenly divided in their opinion of the degree of influence the EDA project has had on the economic develop- ment of the area. Half stated that it had been only a factor in the economic development, while the other half felt it had been a significant factor. Grade B- - little EDA influence, some improvement JOB IMPACT None Aval on Cheese Company, Warner Skinwear Company, and Griffin Pie Company expanded after the EDA project was completed. Since the expansions may have occurred without the EDA project, the additional jobs were not counted. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT The current bulk of users of this service are residents of London. They are enjoying the new service to their homes and the benefits of the relief from contamination and the prevented spread of disease that the system provides. The new sewage treatment facilities are also reducing the pollution of the Little Laurel River. Grade significant new or improved service to the community at large. Project Type: Water System Project Number: 030100211 Applicant: Nicholas ville , Kentucky Project Financing: Total: $UlO,000 EDA Grant: $205,000 Date Approved: June, 1966 Date Completed: December, 1968 PROJECT BACKGROUND The City of Nicholasville is located on the fringes of Appalachia, 13 miles south of Lexington on a main federal highway and the main line of the Southern Railroad. Nicholasville, population 1|,270, is in Jessamine County, an area that is eligible for EDA assistance on the basis of persistent unemployment. The city was suffering from an inadequate supply of pure water. Im- provement of the water system was absolutely necessary to insure the continued adequate operation of what was then the Canada Dry Company, Inc. Since application, this firm has changed hands and is now the Kentucky River Distilling Company, Inc. This firm had increased its employment by forty people on the agreement with the city of being fur- nished an adequate water supply. More pure water was also needed to attract additional industries and maintain growth in the established industries. The project was also needed to provide water for a proposed 120-acre industrial park and to assure pure water to the people of the area. In 1966, an EDA grant helped the town improve and expand its water intake, its treatment plant, and its distribution lines. The industrial park, the Kentucky River Distilling Company, the citizens of Nicholasville and three adjacent communities are now benefiting from the improved water service. No new industry has located in the area as was hoped. ECONOMIC DEVELOPMENT PROCESS The community of Nicholasville has experienced some changes in attitudes and institutions which relate to its economic development process. The local government has become more favorable in its outlook toward the community's economic development. The citizenry is also showing greater interest in the development of the community through increased group activity and a greater willingness to finance local improvement. The local lending institutions have become much more active in development financing. The other factors of the economic development process have shown signs of improvement with two significant exceptions: local planning for the physical development of the area has remained the same, as has the local leadership's concern for the poor and minority- groups. The community leaders polled felt that the EDA project had been a factor in the economic development of the area. Grade C - limited improvement, some EDA influence Number of direct jobs UP EDA investment per direct job $5,125 Number of direct job equivalents 3% Number of possible future jobs none Number of indirect job equivalents 11 EDA investment per direct and indirect job equivalent $14,1+35 Firm where jobs were saved: Kentucky River Distilling Company, Inc. fulfilled its agreement with Nicholasville and added forty new jobs, all of which were made possible by this project. The increased supply of water made it possible for the company to build a new bottling house and to transfer its blending- bottling operations out of Hudson, New York to create a combined oper- ation. Because the company was able to combine these operations, it was further induced to remain and expand in the area. One shipping point was created for better freight costs, and it was hoped that over- all business would improve with the ability to ship six different products from a centrally located shipping point. The total capital investment of the firm at this location is in excess of $2 million of which approximately $1 million represents the increase in capital investment as a result of the EDA project. At least 70 per- cent of the company's product is exported out of the area. On the average, there are approximately 115 people employed by the firm. An increase in employment cannot be foreseen at this time. STRUCTURAL IMPACT Created Jobs: kh% living in county where firm is located jE% heads of households 17$ increase in weekly average income ^0% previously unemployed By remaining in Nicholasville and expanding its operation there, the Kentucky River Distilling Company, Inc. has made a significant con- tribution to the structure of the economy in that area. Because this firm is a subsidiary of a large, national firm, Summerset Importers of Naw York, it can be considered a stable employer. Grade Bj- SERVICE IMPACT Approximately 90% of this service goes to the residents of Nicholas- ville and the surrounding communities. The project has increased the water volume and pressure. The city's pollution problem has been alleviated by the new sewage treatment facilities. Grade B - improved service to the community at large Project Type: Water and Sewer Systems Project Number: 030100218 Applicant: Rowland, North Carolina Project Financing: Total: $230,000 EDA Grant: $111,000 Date Approved: June, 1966 Date Completed: October, 1967 PROJECT BACKGROUND The City of Rowland, population 1,408, is in Robeson County, an area that is eligible for EDA assistance on the basis of low-income and high un- employment. In 1966, Rowland applied for and received an EDA grant to construct a water treatment plant, waste treatment plant and sewage collection lines. These facilities were believed necessary to help Townsend Company (liquid fertilizer) and Rowland Wood Products (plywood) expand and create new employment opportunities. It was also anticipated that the water and sewer facilities would benefit local residents and aid the community in attracting new industry. The EDA project presently provides good water and adequate sewage disposal for 500 families and three industrial plants. However, two of these firms (Rowland Wood Products and Rowland Manufacturing Company) claim that the EDA project was not responsible for their expanding in the area. As a result of the EDA project, Rowland now meets State requirements for sewage disposal and pollution control. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been a positive change in local attitudes and institutions of Rowland. The city government and lending institutions have become more favorable toward economic development. Local leadership's concern for the poor and minority groups has increased considerably. The OEDP group and development organizations have become much more active while local planning efforts have increased. In addition, the willingness of Rowland citizens to support and finance public improvements has increased greatly. The number of State and Federal programs in the area has grown, and local participation in the district program has mounted. All community leaders polled consider the EDA project to have been a factor in the local economic development. Grade B - favorable improvement, EDA impact JOB IMPACT Number of direct jobs _4 EDA investment per direct job $ 27 ,750 Number of direct job equivalents 1_ Number of possible future jobs 1 or 2 Number of indirect job equivalents 1_ EDA investment per direct and indirect job equivalent $37 ,000 Firm where jobs were created: The Town send Company produces liquid fertilizer for local farmers. The expansion of the firm, made possible by the EDA project, has resulted in greater production and an increase in capital investment of $50,000. STRUCTURAL IMPACT Created jobs: 1007, living in the county where firm is located 757, heads of household 28% increase in weekly average income 507o previously unemployed The economy of Rowland remains based on local industry. The EDA project merely aided one small firm to expand facilities and operation. This firm exports less than 407, of its goods outside the immediate area and employs less than 6 full time people. Grade D SERVICE IMPACT The EDA project services all citizens of the town and rural children who are bused to Rowland schools. The good water and proper sewage disposal is available to 500 people who never had it before. The total service reaches a community where 407 o of the people are black, 567, are white, and 47c are Indian. In this community, 507, have family incomes under $3,500 per annum. Grade A+ - significant new service to substantial number of low-income residents Project Type: Water Storage Dam Project Number: 030100245 Applicant: Whitesburg, Kentucky Project Financing: Total: $188,000 EDA Grant: $98,000 EDA Loan: $90,000 Date Approved: November, 1966 Date Completed: November, 1967 PROJECT BACKGROUND The City of Whitesburg, Letcher County, Kentucky, population 1,770, like most smaller communities in the southeastern part of the State, relied on wells for its source of raw water. It built a new water treatment plant, but the wells started to dry up. Problems of contamination arose and the State Health Department advised the city to abandon the wells because of high chloride content and to use surface water instead. Accordingly, the city began pumping raw water from the North Fork of the Kentucky River which flows nearby. Originally a fire truck pumped water into the treatment plant as a temporary measure. In order to release the fire truck for the use that it was intended, the city rented a pump and used fire hose for mains. This, at best, was an improvisation which could be affected by floods, drought or freezing. A prolonged breakdown of this arrangement could have been disastrous to Whitesburg. The Coca Cola Bottling Company indicated that it would be forced to move if a permanent solution to the water problem was not found. With an unemployment rate of 9.0% (designating this area eligible for EDA assistance on the basis of persistent unemployment) and a median family income of $2,615, the loss of these positions would aggravate an already bad situation. The City of Whitesburg, realizing the urgency of its problem, applied for and received EDA grants and a loan to construct a water storage dam, intake structure, and pumping station to insure an adequate (both in quality and quantity) water supply for industrial, commercial, and residential needs of the community. ECONOMIC DEVELOPMENT PROCESS The attitudes and institutions of Whitesburg have undergone a favorable change since 1966. The local government has become much more involved in the community's economic development. For the first time, Whitesburg is moving into county-wide planning. Both local banks have shown a far better attitude about lending for housing and business. The City Council has agreed to increase city taxes, and is currently studying various possibil- ities. Higher taxes are neededfor both higher operating costs of city government and improved public services. 0E0 Special Impact monies have been used by the Whitesburg Industrial Foundation to develop an industrial park of approximately 20 acres. At the same time, the willingness of community groups to support community development has remained consistently high. One community leader asserted that the most notable change is a marked note of confidence that industrial, economic and community development efforts eventually will succeed. Yet, while optimism about community growth prevails, the situation in whitesburg is still a bad one. The Whitesburg sewer plant and sewage collection system have broken down', the town is threatened with court action by State health authorities unless this is corrected. At the moment, Whites- burg is unable financially to do anything about it. All community leaders polled agreed that the EDA project has been a signi- ficant factor in the economic development of the area. One commented, "... no growth could even be considered without the water dam and resulting water supply." Grade B+ - some change significant EDA impact JOB IMPACT Number of direct jobs 26 EDA investment per direct job $7 ,231 Number of direct job equivalents 23 Number of possible future jobs Unknown Number of indirect job equivalents ]_ EDA investment per direct and indirect job equivalent $ 6,267 Firm where jobs were created: The Coca Cola Company has had a bottling plant in Whitesburg for many years. The plant had good relations with the employees and a fine new building when it was threatened by drying wells and their salty water. The Atlanta Office insisted that unless a new water supply was found, the Whitesburg plant would have to move. The total capital investment at the Whitesburg plant is approximately $500,000 and the average yearly business $700,000. The EDA project made it possible for this plant, with its 26 employees, to remain in White sburg and continue operations under safer conditions. STRUCTURAL IMPACT Saved jobs: 11% living in county where firm is located 100% heads of households The Coca Cola Bottling Plant's decision to stay in Whitesburg protected its jobso The fact that this company did no t move insured continued diversifica- tion of the local economy which is heavily dominated by a Bethlehem Steel Mill which employs 400 people. The Coca Cola firm does business in parts of 3 counties exporting most of its products within a 72 mile radius. Although Coca Cola is a top-rated international company, the 26 jobs it provides in Whitesburg are not enough to make it a major economic force in the area. Grade C- SERVICE IMPACT The water storage dam provides the town of Whitesburg with adequate safe water. The project also furnishes the area with an ample reserve which it did not have and an increase in fire protection. Before this project, industry, hospitals and residents were without safe or adequate water. Grade B_ - improved service to community at large Project Type: Sewage Collection and Treatment System Project Numbers: 030100358 and 030200243P Applicant: Middleport, Ohio Project Financing: Total: $560,000 EDA Grant: $180,000 Date Approved: February, 1967 Dates Completed: November ,196 8( sewage treatment) September ,1969 (sewage collection) PROJECT BACKGROUND A small community of 3,373, Middleport is located on the Ohio River in Meigs County in southeastern Ohio. Meigs County had unemployment rates ranging from 9.4 percent in 1964 to 8.8 percent in 1967, and the area is designated for EDA assistance on the basis of persistent unemployment. Located within the Appalachian belt, the area around Middleport has an economic history of iron and coal mining, agriculture, and salt brine exploitation. Mechanization of agriculture and technological changes in industry have caused declines in these activities, adversely affecting the Middleport area's employ- ment situation. As part of the community's efforts to reverse this trend, the Village of Middleport applied for and received EDA funding in 1966 for two projects designed to modernize its sewage system to aid in the expansion of existing industries and the attraction of new ones. The projects called for the construc- tion of additions and improvements to the existing sewage system, and the building of a waste treatment plant to complement these improvements. It was estimated that these projects would result in the creation of approximately 200 new employment opportunities. Work was completed on these projects in September, 1969. The sewage facilities are being used primarily by residents living along the sewer project lines, with a small percentage of the total service being used by a number of industrial and commercial establishments. The projects have also contributed toward the elimination of the dumping of raw sewage into the Ohio River. So far, none of the estimated new job opportunities have been generated. ECONOMIC DEVELOPMENT PROCESS Community leaders of Middleport feel that except for development finance attitudes of both local lending institutions and local citizens, which have remained generally constant, the factors determining the economic development process have shown slight improvement across-the-board during the last three years. Local governmental officials have shown a progressive attitude toward Middleport' s economic development, and the area OEDP group has increased its activity. Public facilities, primarily those oriented toward recreation, have been somewhat improved. Local concern for the poor and the elderly has increased greatly, and an active Community Action Program has been instrumental in this respect. The influence of the EDA projects upon the economic development of Middleport has to date been minor, an opinion unanimously held by those community leaders questioned about EDA's impact in the area. Grade C_ - varied levels of process change; minor EDA impact JOB IMPACT None STRUCTURAL IMPACT Not applicable. SERVICE IMPACT Of the total quantity of service provided by the EDA projects, approximately 83 percent is utilized by local residents. The remaining 17 percent services a number of industrial and commercial establishments. Closer examination shows that of the total quantity of service, approximately 4 percent services Negro residents of Middleport and 79 percent white residents. Before the EDA projects, while the Village of Middleport had a sewer system, all of the sewers dumped raw sewage into the Ohio River, which is the source of the community's drinking water. Ohio law required the installation of the waste treatment plant constructed as part of the EDA projects in order to clear up contamination of the Ohio River. The EDA projects enabled the sewers to be tied into a trunk line that carries the sewage to a lagoon for treatment before it is emptied into the river. One immediate effect of the EDA projects noted by several community leaders knowledgeable about the Middleport area was the increased cost to residents of both operating the system and paying off the local share of the original cost. Since the sewer system had previously been free to residents of Middleport, and the new sewage collection and treatment system had raised the residents' water bills approximately 50 percent there was some initial resistance to the EDA projects. However, it is now felt that local residents have accepted the cost as being necessary and in the long run will get accustomed to the new rates. A potential service benefit mentioned prominently by a community leader familiar with the poor and minority groups in the Middleport area was increased deliberation by community leaders concerning badly needed public housing. The services provided by the EDA projects have also spurred private citizens to build new houses and improve existing ones, and are credited with increasing the availability of money for building loans. Grade B - significant improved service to the community at large Project Type: Water System Project Number: 040100031C Applicant: City of Sumter, South Carolina Project Financing: Total: $758,000 EDA Grant: $379,000 Date Approved: June, 1966 Date Completed: July, 1966 PROJECT BACKGROUND Sumter, with a population of 23,060, is the trade center of Sumter County and the area around it. The county was made eligible for EDA assistance on the basis of an ARA carry over and was later de- designated. The county is within the jur isdication of the Coastal Plains Regional Commission. The city developed a project for extension of the water system when the Campbell Soup Company agreed to locate its Swanson Division plant in the industrial area established by the City of Sumter. This was on the condition that the city supply the water necessary to meet the plant's requirements for processing of frozen poultry dinners. The city started construction of the required water system in March, 1965. The EDA grant provided the main supplement to the city's funds for this project. The grant was approved only shortly before the project was completed and after the Campbell Soup plant had already been con- structed and was in operation. That company is continuing to use the water supplied by the system which EDA helped fund. ECONOMIC DEVELOPMENT PROCESS While the scope of this project was somewhat limited, there have been positive changes of attitudes and institutions in the community since the application dace of the EDA project. The area's overall planning for its physical development has become much more extensive while both the OEDP group and the local development organization have shown some- what more activity. The area's participation in the district program has increased significantly. The attitude of the local government is now somewhat more favorable toward the community's economic develop- ment, and local leaders are showing an increased concern for the poor and minority groups in the area. The citizens of Sumter are lending greater support of community development efforts through their com- munity groups and by showing a greater willingness to finance local improvements. Local lending institutions have also become somewhat more active in development financing. Since the date of application for this project, there has been some improvement in the community's public facilities. Other State and Federal programs have moderately increased in the area. A wide range of benefits have been brought to Sumter by the location of the Campbell Soup Company, a major new employer there. As well as providing new jobs for almost 1,800 people, the project has brought new income to low- income families, minority groups and farmers. With an increase in income, these groups have been able to improve their standard of living. They are upgrading their homes, and the city is now in a better position to serve them with water and sewerage facilities through other projects. Many farmers in the surrounding area have been benefitted by supplying chicken and turkeys to the plant. The community leaders questioned felt that the EDA project has been a significant factor in the economic development of Sumter. JOB IMPACT STRUCTURAL IMPACT SERVICE IMPACT The Campbell Soup Company is the sole recipient of the water service that this project provides. It located in Sumter because of the availability of raw materials, the availability of labor, the avail- ability of water and the nearness to markets. The EDA investment cannot be considered as job creating because the company was there before it was made, and because the desire of the company to locate and remain there was strong enough that if the EDA project hadn't helped bring the needed water, Campbell Soup would have done it some other way. The firm currently employs 1,758 people and con- templates no significant change in employment levels. No service to residents. Project Type: Water System Improvements Project Number: 040100095C Applicant: Buena Vista, Georgia Project Financing: Total: $178,000 EDA Grant: $89,000 Date Approved: June, 1966 Date Completed: November, 1967 PROJECT BACKGROUND The population of Buena Vista is approximately 1,570. Buena Vista is situated in western Georgia in Marion County, a small county of about 5,475 people. The 1960 median family income for Marion County was $2,081. The area is designated for EDA assistance on the basis of low income. In 1967, Buena Vista constructed a number of improvements to its water system, including an elevated storage tank and water lines with related equipment and pavement. Constructed with 50 percent EDA financing, the pro- ject was primarily intended to allow continued operation and expansion of the Dent Poultry Company. Additional benefits were to be the provision of water for a new hospital and for a low-income residential area which did not get sufficient water supplies during periods when local industry was operating. It was also speculated that the water system improvements might permit additional expansion of existing industry, provide fire protection to a new cotton warehouse, and attract new industries. The primary benefits of the EDA project to date have been expansion of employment at the Dent Poultry Company, the furnishing of water to the new hospital constructed in 1967, and provision of increased water pressure and rust-free water to residential areas. ECONOMIC DEVELOPMENT PROCESS The economic development process of Buena Vista since 1966 has seen a number of improvements. Institutionally, the OEDP has become much more active and the area's public facilities have seen significant improvements. Local lending institutions have become increasingly willing to make money available for development financing. However, it is questionable whether local citizens' attitudes toward local economic development have shown much improvement, if any. Community leaders of Buena Vista feel that since 1966 there has not been much change in the willingness of local citizens to finance local development, nor in the active support of community development efforts by community groups. The general consensus among community leaders is that the EDA project has been a significant factor in Buena Vista's economic development. This was largely expressed in terms of increased employment and better water provision services both to industry and local residents. The one criticism expressed of the EDA project was concerned with the gap between the time the EDA monev was applied for (in 1963 under ARA) and the time the project was approved. Grade B-^ - limited process change; significant EDA impact JOB IMPACT Number of direct jobs 3_5 EDA investment per direct job $ 2 , 543 Number of direct job equivalents 1_8 Number of possible future jobs 2 5 Number of indirect job equivalents 5 EDA investment per direct and indirect job equivalent $ 3 ,870 Firm where jobs were created: The Dent Poultry Company, Inc ., which produces processed poultry, was enabled by the EDA project to expand its total capital investment in Buena Vista from $500,000 to $700,000. The company originally located in the area due to a very favorable atmosphere for growing and processing poultry, and because their payroll was important to the local economy. The increased water supply provided under the EDA project enabled them to expand their employment by 35 workers to a total work force of 150. Within the next two years the company expects to create about 25 more jobs. STRUCTURAL IMPACT Created jobs: 90% living in county where firm is located 80% heads of household --%> increase in weekly average income 90% previously unemployed The new jobs created at the Dent Poultry Company are relatively stable due to the company's established roots in the area, but do not increase local industrial diversification. Most of the company's produce is consumed outside the Buena Vista area. Grade B SERVICE IMPACT The EDA project has increased the water pressure available to Buena Vista residents, industry, and service establishments. Both the quantity and quality of the water has been improved, upgrading property values. The hospital constructed in 1967 also makes use of the increased water. However, no percentages are presently available concerning distribution of the increased water services. Grade C - some improved services to the community at large -38- Project Type: Water System Improvements Project Number: 01+0100099 Applicant: Alto, Georgia Project Financing: Total: $10U,000 EDA Grant: $52,000 Date Approved: May, 1966 Date Completed: August, 1967 PROJECT BACKGROUND The Town of Alto, population 275? is located in Habersham County in northern Georgia. This area was made eligible for EDA assistance on the basis of an ARA carry-over, but its status is currently terminated. In 1966, Alto applied for and received EDA funds to assist in the construction of extensions to the town's existing water system, including an elevated storage tank, wells, water mains, and related appurtenances. The primary recipient of these services was to be the Riegel Textile Corporation which was induced to locate in Alto by officials of Haber- sham County and neighboring Banks County in order to provide employment for the large number of unemployed in the area. It was speculated that the Riegel Textile Corporation would employ approximately l|O0. The water services provided under the EDA project are currently being utilized by Riegel Textiles, a local prison training institute, and some local residents. ECONOMIC DEVELOPMENT PROCESS According to community leaders familiar with Alto, since 1966 all factors in the economic development process have shown improvement. The local government's attitude toward the community's economic development, particularly toward the problems of unemployed ana low-income residents, has become much more favorable. The local development organization has become more active in the promotion of industrial development. The atmosphere for financing economic development has become more favorable with increased activity by local lending institutions in the field, of development finance and an increased willingness on the part of local citizens to support locally financed economic improvements. The community leaders feel that the EDA project has been a highly significant factor in promoting the Alto area's economic development. This is primarily expressed in terms of the benefits of increased employment at the Riegel Textiles plant, although an increased growth potential of the community since installation of the water system is also stressed as a benefit of the EDA project. Grade A- - overall development process improvement; significant EDA impact JOB IMPACT Number of direct jobs 7i?0 EDA investment per direct job $69 Number of direct job equivalents 56U Number of possible future jobs Number of indirect job equivalents 282 EDA investment per direct and indirect job equivalent $61 Firm where jobs were created: The Riegel Textile Corporation would not have located in Alto if the area had not provided a sufficient water supply for its operations. Other factors in the plant's locating in Alto were the availability of labor and transportation and the area's proximity to other Riegel plants. With a total capital investment of $U, 000, 000 at its Alto location, the company manufactures spun yarns and textile goods. All of the plant's 75>0 jobs are credited to the EDA project, and the company does not anticipate any job increase in the next two years. STRUCTURAL IMPACT 30 $ living in county where firm is located — % heads of household — % increase in weekly average income — % previously unemployed As a subsidiary of a larger company, the Alto Riegel Textile plant represents rather stable employment for the area. While the company resembles the types of industry currently present in the area and does not greatly diversify the area's economy, it does strengthen the area's economic base through the export of most of its products to other areas for consumption. Grade B^ SERVICE IMPACT Of the total quantity of water provided by the EDA project, about half is utilized by the Riegel Textile Corporation. About 35> percent services the Georgia Industrial Institute, a prison training school. The re- mainder goes to local residents, of whom only about one-quarter are from low-income families. The improved water system has been a spur to home building and home improvements, including the construction of private sewage and septic tanks with drain fields installed helping to eliminate air and stream pollution. Grade D+ - marginal service to the community at large and some low-income residents Project Type: Water System and Site Improvements Project Number: 040100144 Applicant: Town of Sardis, Mississippi Project Financing: Total: $491,000 EDA Grant: $344,000 EDA Loan: $147,000 Date Approved: June, 1966 Date Completed: December, 1967 PROJECT BACKGROUND The Town of Sardis, population 2,098 is located in Panola County, an area that is eligible for EDA assistance on the basis of low-income. In 1966, Sardis applied for and received an EDA grant to provide water system improvements, including new wells, lines, meters, appurtenances and an elevated tank, and a small amount of curb, gutter and paving work. This project was primarily designed to allow Sardis Luggage Company to add 150 workers to its present labor force. In addition, the Sardis Industrial Park was to be served by the project, thus making it more attractive for new industrial location. The project is now serving the residents of Sardis as well as numerous business firms. The Sardis Luggage Company carried out its expansion plans, and prospects for the industrial park are being sought. ECONOMIC DEVELOPMENT PROCESS Since 1966, Sardis has experienced an improvement in all of the factors related to its economic development process. The increased efforts of the local development organization and OEDP committee have been aided by the greatly increased number of other State and Federal programs in the community. Local government has become much more supportive of the community's economic development efforts which enhances the more extensive local planning for the area. Especially significant in this area is the greatly increased concern of the local leadership for the poor and minority groups. Citizens are also lending their support to community development by increasing their willingness to finance local improvements and by supporting more actively the community development efforts of community groups. In addition to the improvements seen in the economic development process, there have been several other changes which have contributed to the overall well being of the businesses in the area. Significantly, there has been an increase in the standard of living. Businesses are also benefiting from reduced fire insurance rates. The community leaders differ slightly in their view of the influence the EDA project has had on the economic development of the area, but only with regard to its degree of benefit; two felt it has been a significant factor and two felt it has been the major reason for economic development. Grade A^ - significant improvement, significant EDA impact JOB IMPACT Number of direct jobs 75 EDA investment per job $6,546 Number of direct job equivalents 54 Number of possible future jobs * Number of indirect job equivalents 16 EDA investment per direct and indirect job equivalent $7,014 *"Unable to estimate at this time due to the present economic slow-down which has effected /sic/ the entire country." The Sardis Luggage Company was able to undertake a 100,000 square foot expansion because this project made a sufficient water supply available for injection molding equipment and sprinkler system. The firm was also influenced to expand in this area by the ample labor supply, good transporta- tion outlets, and good community relations. The expansion represents a $500,000 investment of the $2,100,000 total capital investment at this location. The expansion made it possible for the firm to increase its employment by 75. There are currently no plans for further expansion. STRUCTURAL IMPACT Created jobs 807o living in county where firm is located 50% heads of households — 7o increase in weekly average income —% previously unemployed The structural impact of this project is limited because no new industry came into the area. The expansion of the Sardis Luggage Company does of course aid the economy since employment was increased. The firm is the only one of its kind in the area and it exports almost all of its final output outside of the area. Grade C SERVICE IMPACT The residents of Sardis are benefiting greatly from the new service this project brings them. Within this community, 40% of the people are black and 357o of the families have incomes below $3,500, but the extent to which these groups benefit from the project is unknown. The effectiveness of the water system has increased greatly, bringing them more water of a higher quality. The additions to the sanitary sewer system have helped eliminate water pollution in the area. Standby water is available for emergency use, and the city has better fire protection. The project also provides better sewer service and water supply to the adjoining rural water system. There are numerous businesses using the improved system including a lumber company and a branch of the Coca-Cola Bottling Company. Grade B+ - significant improved service to the community as a whole and to a significant number of poor and minority residents. Project Type: Water and Sewer Project Numbers: 040100167 and 040200168 Applicant: Guin Water Works and Sewer Board, Guin, Alabama Project Financing: Total: $832,000 EDA Grant: $344,000 EDA Loans: $416,000 Date Approved: November, 1966 Date Completed: March and June, 1966 PROJECT BACKGROUND The Town of Guin is located in the upper northwestern quadrant of Alabama in Marion County, an area eligible for EDA assistance on the basis of low- income and high out-migration. Guin, with a population of 1,460, is gen- erally supported by an agriculturally oriented economy. In the early 1960's, there was a significant out-migration of young people due to the unavailability of long-term stable employment. In an effort to upgrade the economic status by inducing additional industry to locate in Guin, the city applied for an EDA grant and loans to improve the exist- ing public service facilities which were barely adequate to serve the area. The project was to extend and improve the water system (including a municipal raw water pumping station, filtration plant, water distribution system and an additional water distribution reservoir) and to extend and improve the sewer facilities (including treatment plants, collection lines and related appurtenances). Three firms were expected to expand, and one firm to become operational as a result of the project. The EDA projects have greatly improved the water and sewage facilities which serve industry, business, and residents of Guin as well as public institutions such as schools and hospitals. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been a substantial advancement in the economic devel- opment efforts of Guin. This is due in part to the changes of citizen attitudes toward developing the local economy. Both the willingness of residents to finance improvements and the support of community development activities by community groups have increased considerably. Local leader- ship has become especially more concerned about the welfare of the poor and minority groups. The local government seems more favorable toward economic development. However, as planning bodies and development organi- zations join with other community groups in promoting and developing the area's economy, lending institutions have held on to old policies and have not become more active in development financing. All community leaders were convinced that the EDA projects were significant factors in the economic development of the area. However, they also expres- sed need for additional inputs if future development is to occur: low rent housing units, employment, job training, and an improved central business district. Grade B+_ - considerable improvement, significant EDA impact JOB IMPACT Number of direct jobs 484 EDA investment per direct job $1,719 Number of direct job equivalents — Number of possible future jobs 165 Number of indirect job equivalents — EDA investment per direct and indirect job equivalents — Firms where jobs were saved and created: Monterey Mobile Homes remained in the area because the EDA project provided a sufficient water supply for its facilities, and because the town of Guin backed a supporting bond issue. Thus, all 150 jobs were saved. In addition, this mobile homes producer anticipates 150 more jobs will be created at this site within the next two years. The 3M Company , with a total capital investment of approximately $7,500,000 at its Guin plant, stayed in the vicinity because the EDA project improved the existing water system which had been inadequate for proper plant oper- ations. Other factors responsible for this course of action were the good labor market and excellent community relations. The plant produces reflec- tive and Scotchcal sheeting for use on highway direction signs and general advertising markings. The firm's decision to stay resulted in the protection of the plant's 326 jobs. Alabama Oak Flooring expanded its facilities due to the availability of water and the subsequent lower insurance rates made possible by the project. A plentiful labor supply and good source of raw materials for production of hardwood flooring and lumber and pine lumber also influenced the company's decision. The expansion cost $100,000 and created 8 jobs. Within the next two years the firm expects an additional 15 new jobs at this location. STRUCTURAL IMPACT No statistical information available on saved jobs. Created Jobs: 40% living in county where firm is located 80% heads of household — % increase in weekly average income — % previously unemployed The structural impact of this project is considerable. All the firms mentioned above are of a substantial size and export over 70% of their final output beyond the immediate area. Not only do these firms — one a large national company — insure stability to the local economy, but they also spur on economic growth with their projected activities. No new firm has been located in Guin to date and therefore there has been no diversification of the economy. Grade B SERVICE IMPACT The EDA projects improved service to the entire town of Guin. Water is distributed mainly to the 3M Company (40%), residents (21%), and businesses (10%), although public facilities and other firms benefit from the new water and sewer system. Of the families who use this water supply, 58% earn incomes under $3,500. A quarter of the total serviced population is black. Besides providing water and sewage service, the projects have improved community sanitation and health standards, increased fire protection, lowered insurance rates, and stopped raw waste from polluting a creek. Grade B+ - improved service to the community at large and to a substantial number of low- income residents. Project Type: Water System Project Number: 01+0100177 Applicant: Alligator Point Water District, Alligator Point, Florida Project Financing: Total: $175,000 EDA Grant: $88,000 EDA Loan: $8U,000 Date Approved: June, 1966 Date Completed: October, 1967 PROJECT BACKGROUND Alligator Point is located on a gulf coastal peninsular area with excellent beaches and fishing for recreation and potential for com- mercial seafood operations. Alligator Point is in Franklin County, an area that is eligible for EDA assistance on the basis of persis- tent, high unemployment. The population is 500. The development of commercial and business enterprises in Alligator Point was retarded by the lack of a sufficient supply of fresh, potable water. The only source of water was from undependable and sometimes contaminated shallow wells. In 1966, the Florida State University Marine Laboratory in Alligator Point made plans for moving its operations to another location because of the inadequate supply of fresh water. The Alligator Point Water Resources District applied for and received an EDA grant to construct a complete fresh water supply, storage and distribution system. With the assured water supply, the laboratory was expected to remain and expand its operations, and a private marina was expected to be estab- lished in the area. The project is now being used by the residents of the area and by the Alligator Point Marina. The Florida State University Marine Laboratory moved from Alligator Point and relocated about eight miles away. The facilities they vacated are now being used by the Florida State Univer- sity Department of Archeology. ECONOMIC DEVELOPMENT PROCESS Since 1966, when this project was applied for, there have been positive changes in the attitudes and institutions in Alligator Point. Local government has become much more favorable in its attitude toward the community's economic development. The local development organization has become much more active. Citizens are showing a greater willingness to finance local improvements and lend increased support through their community groups, while local planning for the physical development of the area has become more extensive. This project came to Alligator Point at a very crucial time helping to halt and reverse the process of deterioration that was taking place in the area. With the new fresh water supply, the development of land otherwise not usable for residences was made possible. Land values increased as new construction came into the area. The largest project was the construction of a large marina complex -which includes modern boat facilities, a small grocery store, a lounge, a filling station, and a beverage store. The opinions of the community leaders diverged considerably on the degree of influence they saw the EDA project having on the economic development of the area. While one leader felt that the project has had little influence, several others felt it had been the major reason for economic development. Other responses fell between these extremes and probably reflect a more valid analysis of the EDA impact. Grade B - some improvement, moderate EDA impact JOB IMPACT Number of direct jobs 1$ EDA investment per direct job $11,1+67 Number of direct job equivalents 12 Number of possible future jobs unknown Number of indirect job equivalents! II EDA investment per direct and indirect job equivalent $11,026 Firm where jobs were created: The Alligator Point Marina was able to reopen because of the good water system that this project brought to it. The marina provides boat storage and maintenance services as well as a place for people to fish and relax. The owner is still upgrading the facilities and may add more boat handlers to his staff of fifteen. STRUCTURAL IMPACT Created Jobs: 100$ living in county where firm is located 30% heads of households — % increase in weekly average income — % previously unemployed The reopening of the Alligator Point Marina has had little effect on the structure of the economy of Alligator Point. The employment level is not high, and of those employed, 30 percent are only part-time employees. As a recreational facility serving residents of the area, the Marina does not export a product nor does it bring people into the community. The laboratory which was vacated by the Florida State University Marine Laboratory and is now used by the Department of Archeology, employs only one full-time staff member. Other students, faculty and staff members work out of the area at various times which may bring additional revenue into the community. Grade D SERVICE IMPACT This project provided significant water service to 160 residences in the area, which represents about 6J4. percent of the total service. The other 36 percent of the service is going to the Marina, the University Laboratory, and commercial users. Grade A - significant new service to the community at large Project Type: Water System Improvements Project Number: 040100193 Applicant: City of Dayton, Tennessee Project Financing: Total: $155,000 EDA Grant: $93,000 EDA Loan: $62,000 Date Approved: June, 1966 Date Completed: June, 1967 PROJECT BACKGROUND The City of Dayton, with a population of 3,500, is the county seat of Rhea County, population 16,000, located in the east central section of Tennessee. The economy of this area has been substantially tied to agricul- ture and industry. The average yearly unemployment rate increased steadily from 1950 to 1958 when it reached a peak of almost 20%. In 1960 the rate decreased to almost 16% and in 1968 the rate was 8.5%. The area is designated for EDA assistance on the basis of high unemployment. In 1965, Dayton received funding for a water project from ARA under the Accelerated Public Works program. This provided for a $613,000 grant for basic water facilities. The EDA grant and loan were made in 1966 for a 500,000 gallon water tank and lines to insure adequate water pressure in the city's industrial park. The existing water facility was not adequate to provide the necessary fire protection for the two industries located in the park. While providing a solution to the problem, the project was also expected to create 80 new jobs and increase the chance of other industries locating in Dayton. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been noticable changes in the attitudes and institutions related to the economic development process in Dayton. For quite some time the local government has shown greater interest and involvement in the community's economic development. It was this keen interest which brought about the application for the EDA project. Since that time the attitude of government has become even more favorable. The local government is also showing a greatly increased concern for the poor and minority groups in Dayton. Local planning for the physical development of the area has become much more extensive. The Rhea County leadership is fully supporting the newly forming economic development district. Dayton demonstrated its increased willingness to finance local improvements by floating a $100,000 bond issue for water lines to induce a new plant to locate in the area. Public facilities have also improved greatly over the past few years. To the extent that attitudes and institutions were changed in Dayton, the EDA project cannot be singled out as the cause but must be viewed as part of the wider ARA-EDA development activity. The projects represent two parts of the same effort which together affected the community as a whole. The projects also do not represent the beginning of community development activity but rather a part of an ongoing process which preceeded the projects, making them possible, and continued with new enthusiasm once the projects were completed. Companies expanded their labor forces or located in the town as a result of the economic development activities fostered by these projects. The John Oster Company, a manufacturer of small appliances, located in Dayton because the community was able to show them their overall economic development plan and the measurable progress achieved. They now employ 600 workers . Directly attributable to the EDA project are the effects of the improve- ments made to the industrial park. Because of the project, one firm has been able to increase its employment and two new firms have located there. Currently construction is underway for the expansion of one of the firms, and a small plant is being built for a fourth firm to locate in the park. The community leaders see the EDA project as a significant factor in the economic development of their community. The combined ARA-EDA effort is credited as the major reason for the economic development which has taken place in Dayton. Grade A- - significant improvement, significant EDA impact. Number of direct jobs 241 EDA investment per direct job $ 643 Number of direct job equivalents 183 Number of possible future jobs not determinable at this time Number of indirect job equivalents _5_5 EDA investment per direct and indirect equivalents $ 651 Firms where jobs were created : The Chevron Chemical Plant located in the Dayton Industrial park as a result of the EDA project. It occupies a 35,000 square foot building built on a 40 acre tract in the park. It produces polymer plastics, a petroleum by- product, and exports a major portion of its product out of the area. The firm employs a total of 44 people, mostly men, who receive about the highest wages of all the employees in Dayton. All jobs are considered as created by the EDA project. Dayton Products was already located on the Dayton Industrial Park at the time the EDA project was completed, but the project made it possible for the firm to expand production, employing an additional hi people, bringing its total employment up to 87. The firm located in the park because it was aware of the plans for the EDA project which would make the site totally acceptable to it, and because of the inexpensive and good quality labor supply in Dayton. The firm makes stainless steel sinks and exports the bulk of them outside of the area. Dayton Manufacturing located in a city-built plant in the park which it first leased and later purchased from the city. This firm is a part of the garment producing industry, exporting most of its product out of the area. The initial cost of the plant was $40,000 and an addition is now under construc- tion. The firm now employs 150 people, mostly women, whose wages are below the National Manufacturing Average. All 150 jobs are considered to be EDA created. STRU CTURAL IMPACT Created jobs : 93% living in county where firm is located 36% heads of households — % increase in weekly average income 63% previously unemployed With these three new employers in Dayton, new stability has been added to the economy of the area. Dayton Products and the Chevron Chemical Plant are of special value to Dayton, because they represent a new type of industry in this area, which has previously been dominated by the garment industry. Grade B SERVICE IMPACT The service impact of this project is very limited as the main thrust of the service is to the industrial area . An adequate water supply was provided for the Rhea County Hospital, and a small number of homes were served. Grade D - improved service to a small number of residences. Project Type: Sanitary Sewer Improvements Project Number: 040100346 Applicant: Greeneville Water and Light Commission, Greeneville, Tennessee Project Financing: Total: $141,000 EDA Grant: $85,000 Date Approved: August, 1967 Date Completed: December, 1968 PROJECT BACKGROUND Greeneville, population 11,760, is the county seat of Greene County, an area which is eligible for EDA assistance on the basis of persistent unemployment. A typical mountain county in eastern Tennessee, Greene County suffers from high unemployment and a low standard of living. In Greeneville public sanitary sewers have been direly needed for both domestic and industrial users. In 1967, the Greeneville Water and Light Commission received an EDA grant to be used to install sewer lines in a low-income, residential area. The project also is to provide service to various commercial and industrial establishments. The facilities are to enhance both the livability in the community and its attractiveness to industry. The project is also to enable the expansion of the Malone Brothers Construction Company, Holston Methodist Home, the Modern Tractor Company and W&W Implement Sales Company, creating approximately 160 new jobs. ECONOMIC DEVELOPMENT PROCESS Since 1967, continuing changes can be seen in the economic development process in the Greeneville area. The OEDP group has become more active, and the area's participation in the district program has increased. The local government and development organization have persisted in their efforts to encourage economic development. The public facilities have improved greatly. On the other hand, the willingness of local citizens to finance improve- ments has not improved, although support of community development efforts by community groups has increased somewhat. There has been no substantial change in the number of other State and Federal programs in the area. However, there have been several other EDA projects in Greeneville, which shows the community's continuing success in obtaining EDA funds. The community leaders polled responded that the EDA project had been a significant influence on the economic development of the area. Grade 13 - favorable improvements, some EDA influence. JOB IMPACT None The firms mentioned in the original application, with one exception, are being serviced by the project facilities but have not expanded. The exception is the W&W Implement Sales Company, which is still trying to be hooked up to the sewer lines. STRUCTURAL IMPACT Not applicable SERVICE IMPACT Twelve percent of the total quantity of the sewer service goes to commercial users. The remainder of the project provides service to 68 private residences, 15 public housing units, and to a residential area which is being developed. Of the residents served, 85% are Negro and 18% white, and approximately 507 o are families with incomes below $3,500. The project has eliminated septic tank overflow and the use of privies. It has raised the sanitary standards of the community and stimulated an awareness of the need for improving the environment. Grade Af - significant new service to a substantial number of low- income residents and the community at large. Project Type: Water Well Project Number: 06010010U Applicant: Village of Crosby, Minnesota Project Financing: Total: $20,000 EDA Grant: $10,000 Date Approved: May, 1966 Date Completed: July, 1967 PROJECT BACKGROUND The Village of Crosby is located in the heart of the Cuyuna Iron Range, an area that has experienced a decline in the iron mining industry. Crosby, population 2,620, is in Crow Wing County, an area that is eligible for EDA assistance on the basis of persistent unemployment. In order to attract new industry to the local economy and provide fire protection to the village, Crosby received an EDA grant for $10,000. This grant was to help construct a deep well to increase the water supply. It was anticipated that the project would encourage the expansion of at least two firms. ECONOMIC DEVELOPMENT PROCESS Although changes have occurred in the attitudes and institutions in Crosby since 1966, it is difficult to determine their scope and in- tensity because of the differing views of the community leaders. The only point upon which there was agreement was that local planning for the physical development of the area has become somewhat more extensive. Any change in the attitude of the local government toward the com- munity's development cannot be determined because of the diversity of responses; one community leader felt there had been no change and another felt the government's attitude had become much more favorable. A similar split occurred in the analysis of the degree of activity of lending institutions in development financing. There were only two other areas in which there was meaningful response. Both the 0EDP group and the local development organization have become more active. The community leaders did not differ greatly in their views of the degree to which the EDA project influenced the economic development of the area. While one saw the project as a factor, the rest viewed it as being a significant factor in the economic development. Grade B - some improvement, some EDA impact Number of direct jobs 375 EDA investment per direct job $27 Number of direct job equivalents 276 Number of possible future jobs 50 Number of indirect job equivalents 83 EDA investment per direct and indirect job equivalent $28. Firm where jobs were created: Scorpion, Inc. began operation in Crosby in 1959 as a fairly limited operation. In 1967 the EDA project made possible a significant ex- pansion of the firm by insuring an adequate water supply for immediate and future use. There was also an adequate labor force in the area which made expansion there favorable. The firm manufactures snow- mobiles, chrome plated products and molded rubber products. Most of the employment at the plant is seasonal with about 150 people employed during the slow months. The average employee works full time for h - 5 months. In the past, employment has been as high as h50 but will probably reach a maximum of 375 this year. The reason for this is because the slack period is becoming shorter due to increased production which allows for a longer period of full operation. In the past this was a k - 5 month period; this year the company will be operating at full capacity for 7-8 months; eventually the firm hopes to become a year-round employer. This cycle of employment fits in well with the other existing forms of employment in the area: construction and mining. In the winter months when this employment is at a low ebb, Scorpion, Inc. is at its peak production. STRUCTURAL IMPACT Created Jobs: 100 $ living in county 60 $ heads of households llk% increase in average weekly income 50% previously unemployed -x- the figures in this section were indicated by the employer as being approximations . Although this firm is not a year-round employer, it is contributing significantly to the structure of the economy. As indicated by current levels of demand for its product, it seems to represent a rather stable source of employment. The company is also hoping to diversify its production which will result in a greater volume. Currently the firm exports out of the area at least 70$ of its final output. With its expansion, Scorpion has contributed greater diversity to the local economy as it represents the only firm of its type in the area. Grade B SERVICE IMPACT Water service has been improved throughout Crosby by this project which now supplies a sufficient quantity to meet the community's needs. About 75$ of the total service goes to residents in the area, with the other 25$ serving local industry. Fire protection has been improved throughout the area. The system is currently operating at about one-half of its total capacity, allowing for future expansion. The Housing and Redevelopment Authority of Crosby is about to begin construction of 60 housing units which will make use of the new system. Of the residents now being served, approximately 2/3 fall within the low- income category. Grade B+ - improved service to the community at large, including a substantial number of low- income residents. Project Type: Water and Sewer System Project Number: 060100105P Applicant: Greenbush, Minnesota Project Financing: Total: $508,000 EDA Grant: $254,000 Date Approved: April, 1966 Date Completed: July, 19 PROJECT BACKGROUND The Village of Greenbush, population 700, is located in northwestern Minnesota on the Canadian border and is one of four trade centers in a predominately agricultural county. Greenbush is in Roseau County, an area that was made and remains eligible for EDA assistance on the basis of an abrupt rise in unemployment . Due to the modernization of farming methods, the area has suffered from a decline in employment and population. In 1966, the Village applied for and received an EDA grant to construct a sewage collection and disposal system and to improve and expand the existing water system. The project was to permit the re-opening of a turkey processing plant and enhance the village's position as a trade center. It was anticipated that additional food pro- cessing plants would be attracted by adequate facilities. The project also was to permit the expansion of an existing hospital and the continuing operations of an established creamery. The expected increase in the activity of the food processing industry in Greenbush has not occurred, although the project has aided other commercial expansion. The major effect of the project has been the provision of greatly needed public services for the whole village. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been some attitudinal and institutional changes in Greenbush. The public facilities have greatly improved, the support of development efforts by Community groups has risen, and the local government's attitude toward the community's development has become somewhat more favorable. On the other hand, the willingness of local citizens to finance improvements and the level of activity of lending institutions in development financing have remained the same. Neither the area's participation in the district pro- gram nor the number of other State and Federal programs have increased. There were differing responses from community leaders in regard to the influence of the EDA project on the economic development in the area. The general opinion was that the project had been at least a minor factor in the economic development process. One leader attributed the project with creating a feeling of advancement in the area from new enterprises being added to the village. The mayor of Greenbush claims that the grant received from EDA for sewer and water improvements was the best thing that ever happened to his town, and that the project could not have been undertaken without help from the government. Several signs of economic development in Greenbush are related to the EDA project. The Locker Plant, a self-service laundromat, was able to expand because of the new water and sewer facilities. A more significant development has been the expansion of the Greenbush Public School. The school had planned to consolidate and knew the new sewer system would be able to serve the increased enrollment. The expansion raised the capital investment in the school from $830,000 to $1,200,000. Currently, building plans in the area include a new 12-unit motel and an addition to a nursing home. Grade C - some change, little direct EDA impact JOB IMPACT Number of direct jobs 24 EDA investment per direct job $10,583 Number od direct job equivalents -- Number of possible future jobs ^Z Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- Firms where jobs were saved or created: Farmers Cooperative Creamery Association is a butter and skim milk processing operation in Greenbush. The total capital investment in the firm is $90,000. Before the EDA project the sewer line from the creamery emptied into the South Branch River. The Health Department had plans to stop this practice, which would have forced the creamery to make a prohibitive investment in a sewage disposal system or to relocate. The EDA project enabled the creamery to save its 10 jobs. The Greenbush Community Hospital was able to expand without waste disposal problems because of the EDA project. Its previous sewer system had reached its full capacity. The capital investment in the hospital increased from $450,000 to $600,000 with the new expansion. Approximately 14 new jobs were created, bringing the number of people employed at the hospital up to 50. STRUCTURAL IMPACT Employee information unavailable. The project has assured the stability of a number of jobs in Greenbush. However, there has been no change in the economic structure of the area. SERVICE IMPACT Although the project has not resulted in many directly measurable economic benefits, the service to the community has been immeasurable. The project has provided water and sewerage service to nearly all the residents, the school, the hospital, and the businesses of Greenbush. The north and west sections of Greenbush have especially benefited from the project. They lie on the low side of a ridge and previously used 8-foot sand-point wells and cess pools with the water level reaching the top of the ground. Now most of the cess pools have been abandoned, the water trouble has lessened, and sanitation is 100% improved. The village now has been able to grade the streets in this section. Of the total quantity of service to residents, 507 o is used by those with incomes under $3,500. Ten percent of the new service is used by Indians and 90% by whites. The project has had a favorable effect on water pollution by abolishing approximately 807 o of the town's cess pools and diverting commercial sewage into the lagoon instead of dumping it into the river. Grade A+ - significant new service to the community at large, including a substantial number of low-income residents. Project Type: Sewage Treatment Facility- Project Number: 060100115 Applicant: Village of Grand Rapids, Minnesota Project Financing: Total: $1,160,000 EDA Grant: $928,000 Date Approved: May, 1966 Date Completed: February, 1966 PROJECT BACKGROUND The Village of Grand Rapids is located in Itasca County, in north central Minnesota. It is a community of nearly 10,000 population in an area designated for EDA assistance on the basis of high unemployment. The Blandin Paper Company is extremely vital to the community's economy as it is the only substantial employer. At the time of application, the firm employed 715 people from the Village and had a payroll of about $6 million per year. In addition, through its raw material purchases, the firm provides employment for a substantial number of loggers and other workers in related occupations. Waste water from the company was discharged untreated into the Mississippi River. The Minnesota Water Pollution Control Commission had stated that an order for abatement of pollution could be issued if reasonable grounds were found that existing practices were detrimental to the public interest. Because the facilities of the Village of Grand Rapids were unable to cope with the mill's waste, this project was proposed to safeguard against any possible curtailment of mill operations. The project provided for the construction of an industrial waste treatment plant which is now treating all the wood wastes from the Blandin Paper Company that normally went into the Mississippi River. ECONOMIC DEVELOPMENT PROCESS Along with the new job security that this project has brought to the Village, there have been changes in attitudes and institutions. Since the applica- tion date, the local government has shown a relatively more favorable attitude toward the community's economic development. Local planning for the physical development of the area has become somewhat more extensive, as has participation in the district program. The local development organization has become somewhat more active, while the OEDP group has become much more active. Greater financial support for local improvements has been demonstrated by the citizens but not by the banks. Community groups have greatly increased their support of community development efforts. Public facilities have been significantly improved, and the number of Federal and State programs in the community has increased substantially. With the elimination of a major source of pollution, the Mississippi River is now being used by the residents of Grand Rapids. There has also been an improvement in both tourism and fishing. The community leaders polled were evenly divided in their opinion of the influence the EDA project has had on the economic development of the area. Half felt it has been merely a factor in the economic development, while the other half felt it has been a significant factor. Grade B^. ~ significant improvement, some EDA influence JOB IMPACT Number of direct jobs 30 EDA investment per direct job $30,933 Number of direct job equivalents 38 Number of possible future jobs - uncertain Number of indirect job equivalents 15 EDA investment per direct and indirect job equivalents $17,185 Firm where jobs were created: Bland in Paper Company was allowed by this project to pursue a program of orderly expansion by releasing it from restrictions imposed by the Water Pollution Control Commission and allowing funds generated by the business to be allocated to its expansion program rather than to a non-productive water treatment control program. The total capital investment of Blandin Paper at this location was fifty million dollars. The capital investment has increased by twelve million dollars since 1966. The company produces coated printing paper with a total employment of eight hundred. STRUCTURAL IMPACT Created jobs: 90% living in county where firm is located 807o heads of households --% increase in weekly average income — 7o previously unemployed At the present this firm can be viewed as quite stable because of the strong demand for its product on the market. It exports over 707 o of its goods out of the area. By remaining in the area, it continues to be a significant contributor to the local economy. Grade A- SERVICE IMPACT No service to residents. Project Type: Water Storage Tank Project Number: 0601001U0P Applicant: Lexington, Nebraska Project Financing: Total: $166,000 EDA Grant: $83,000 Date Approved: May, 1966 Date Completed: August 1967 PROJECT BACKGROUND The city of Lexington is located in Dawson County in south-central Nebraska. The population of the county is approximately 20,000 with 60% of the people living in urban areas. Lexington, population 6,18?, is the county seat and the largest city in the county. The area was made eligible for EDA assistance on the basis of an ARA carry-over. That status has since been terminated. Lexington is supplied with water by a municipal water system consisting of nine wells. The storage capacity of the system was 92,000 gallons which was not sufficient to give proper fire protection to the many schools, churches and industries that existed in Lexington. The people of Dawson County were aware of their need for attracting industry and were willing to take positive steps toward accomplishing that goal. The construction of a 7^0,000 gallon elevated storage tank in Lexington was seen as important for the county. The application to EDA sought funding for half of the cost of this facility. This project was to provide the Cornland Dressed Beef Company, which regularly employed $0 people, an opportunity for expansion. The Greater Lexington Corporation, with 180 members, saw the project as facilitating the development of an industrial park outside the city. It was thought that the increased storage capacity resulting from the project would enhance the community' s ability to attract new industry and to allow for the expansion of existing industry. The project is now functioning and providing the city with water for fire protection, and better water pressure for residential and industrial use. ECONOMIC DEVELOPMENT PROCESS Since 1966, when this project was applied for, there have been no changes in the attitudes or institutions in Lexington. Of the community leaders polled, all agreed that the points they were questioned on had remained the same . The community leaders agreed that the EDA project has had little influence on the economic development of their community. Grade F - remained the same, little EDA influence JOB IMPACT Number of direct jobs - EDA investment per direct job -- Number of possible job equivalents — Number of possible future jobs - 20 Number of indirect job equivalents - EDA investment per direct and indirect job equivalents - The Cornland Dressed Beef Company expects to expand operation during the next two years, creating 20 new jobs at its plant in Lexington. STRUCTURAL IMPACT Not applicable SERVICE IMPACT Of the beneficiaries of this project, approximately 80$ are residents of Lexington. The new water storage tank is assuring them of better fire protection and supplying them with increased water pressure. Grade B - significant improved service to the community at large . Project Type: Collection System and Sewage Treatment Plant Project Numbers: 060100144P and 060200187 Applicant: Peever , South Dakota Project Financing: Total: $84,000 EDA Grants: $56,000 Date Approved: June, 1967 Date Completed: July, 1968 PROJECT BACKGROUND Roberts County, in which the Town of Peever (population 200) is located, is in northeast South Dakota, and is part of the S isseton-Wahpeton Indian Reservation. The county's economy is dependent on agriculture, tourism, and a small amount of light manufacturing. The average value of farm products is about one half that of the State average. Educa- tion levels in the area are also below the State average. Fifty-one percent of the county population have family incomes below $3,000 and population dropped 11 percent from 1950 to 1960. The county is eligible for EDA assistance because part of it is an Indian reservation. In 1966, the Town of Peever applied for and received EDA grants to fund the construction of a sorely needed sewage treatment plant and collection system. The town had been selected as a site for a new 300-pupil elementary school to be built by the Bureau of Indian Affairs in cooperation with the local school district. This public school was expected to serve both Indian and non-Indian families from a considerable area surrounding Peever. It was anticipated that ten teachers would be employed in the new school. The con- struction of a modern waste water collection and disposal system was a practical necessity to the school project. Eight housing units for faculty were built. The town claimed it would not consider locating industrial or com- mercial projects until waste disposal was provided. However, these projects, which consist of a complete sanitary sewerage system including collector lines, outfall lines and treatment plant, are of prime importance for the economic development of the town and the area. The immediate benefits were to be service to long term unemployed and members of low- income families. ECONOMIC DEVELOPMENT PROCESS The Town of Peever has experienced a change of attitudes and institu- tions in the last four years. The local government is more favorable toward economic development, and lending institutions are more active in financing development activities. Community groups are lending increased support for community development efforts, while local leadership's concern for poor and minority groups has grown. Yet, certain segments of the town have remained the same during this period. The OEDP group has not accelerated its activities. The area's participation in the district program has seen no upward trend. Despite great improvement in public facilities and an in- crease in the number of State and Federal programs, local citizens are not more willing to finance development projects. Community leaders questioned indicated that the EDA project has been a significant factor in the economic development of the area. Grade B- - some improvement; considerable EDA impact JOB IMPACT None to date. The elementary school is completed and will open this fall. STRUCTURAL IMPACT SERVICE IMPACT The service provided by the new sewage collection and disposal system is being used by the entire town. In the fall of 1970, it will service the new BIA funded school. In addition to its immediate sanitation function, the project has improved health conditions and cleaned up local waters. Grade A+ - significant new service to the community at large, a substantial number being low-income residents. Project Type: Water System Project Number: 060100284P Applicant: Village of North City, Illinois Project Financing: Total: $173,000 EDA Grant: $104,000 EDA Loan: $ 69,000 Date Approved: June, 1968 Date Completed: November, 1968 PROJECT BACKGROUND The Village of North City is located in an area of Southern Illinois which has been plagued with constant and substantial high unemployment since the decline of coal mining. North City is in Franklin County, an area that is eligible for EDA assistance on the basis of persistent unemployment. In 1965, the Corps of Engineers developed the Red Lake Project to attract tourists to the area. This project and the renewed feasibility of coal mining in the area through modern methods makes the area attractive for further economic growth. In order to assure the vitality of the community, an EDA grant and loan provided a complete municipal water system with all appurtenances. It was anticipated that the project would play a supporting role in the economic restoration of the area, permit the village to take advantage of anticipated growth and allow participation in the planning by Franklin County. The project now furnishes the people of the community with an ample supply of purified water, greatly increasing the health standard of the people. ECONOMIC DEVELOPMENT PROCESS Some changes have occurred in the attitudes and institutions in the Village of North City since 1966. Among these changes is a very positive change in the attitude of the local government toward the economic development of the area. Both citizens 1 groups and the local development organization have become somewhat more active in their local development efforts. There have been major improvements in the public facilities in the community, but there has been no increase in the number of other State and Federal programs. More financial support for local improvements is coming from both local lending institutions and local citizens. The project has resulted in an increase in the value of property, and has changed the downward trend in population to an increase. The community leaders surveyed agreed that the EDA project has been a factor in the economic development of the area. Grade C+ - some improvement, some EDA impact JOB IMPACT None STRUCTURAL IMPACT SERVICE IMPACT This project was designed as a service project so consequently all of the new water service goes to the residents of the community. Prior to the construction of the new system, 60% of all water sources showed pollution and 857o went dry during the summer. The ample amount of water has enabled the people to buy automatic washers, convert to indoor plumbing and improve their general health standards. Of the residents receiving service, 457o have yearly incomes below $3,500. Grade A+ - significant new service to the community at large including a substantial number of low income residents. Project Type: Water System Project Number: 060100287 Applicant: Village of Elizabethtown, Illinois Project Financing: Total: $76,000 EDA Grant: $38,000 EDA Loan: $19,000 Date Approved: April, 1966 Date Completed: September, 1967 PROJECT BACKGROUND The Village of Elizabethtown is located on the Ohio River in southern Illinois. Elizabethtown, population 520, is in Hardin County, an area that is eligible for EDA assistance on the basis of persistent unemploy- ment. Elizabethtown has one industry, a small plastics processing plant. A regional office of the Forest Service of the Department of Agriculture is also located there. In 1965, the city's water was supplied from Rosiclose, a town three miles to the south, by an old 6" line. Elizabethtown had had several protracted periods of water shortage due to breaks in this transmission line. These shortages caused the plastics plant to temporarily shut down, and created a fire hazard to the town and the Department of Agriculture installation. In 1966, an EDA grant and loan provided the funds to add and extend the municipal water system, including a 125,000-gallon elevated storage tank, new water mains, and a booster pumping station. The project was to provide adequate water pressure and fire protection for the village and industry. It was anticipated that the plastics plant would increase employment from 15 to 30 people as a result of the project. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been a considerable change in the economic development process in Elizabethtown. The local government's attitude toward the community's development has become more favorable. Planning for and support of community development efforts have increased. The public facilities have improved, and more use is being made of other State and Federal programs. The applicant describes concrete signs of the economic development process at work in Elizabethtown. Since 1966, several small businesses have built new stores, houses have been both built and renovated, additions have been made to the buildings of the U. S. Forest Service and the First State Park in Elizabethtown, and there are plans to double the size of a public housing project. The community leaders questioned had varying opinions concerning the degree to which the EDA project has influenced the economic development of the area. Those who responded that the project had been a significant factor seemed to be thinking in terms of the improved service to businesses in Elizabethtown. Those who answered that the project has had little influence appear to have distinguished between improved service and economic development. Grade B_^ " significant improvement, questionable EDA impact JOB IMPACT Number of direct jobs 6_ EDA investment per direct job $9,500 Number of direct job equivalents _3 Number of possible future jobs Unknown Number of indirect job equivalents 1_ EDA investment per direct and indirect job equivalent $14,250 Firm where jobs were saved and created: The Mattson and Williams Corporation , is a small plastics manufacturing company. The EDA project provided an adequate water supply to assure continued operation of the plant and to permit its expansion. The expansion increased the total capital investment of the firm from approximately $14,000 to $20,000. Two jobs were created by the expansion, bringing the total employment up to six. The projected employment of 30 people has turned out to be unfounded. The creation of more jobs is contingent upon an increase in the company's business. STRUCTURAL IMPACT Jobs saved and created: 100%, living in county where firm is located 667o heads of households --%. increase in weekly average income --% previously unemployed The project has improved the stability of a few jobs. However, four of the six employees at Mattson and Williams are part-time. There has been no diversification of employment opportunities and therefore the structural impact is negligible. Grade D SERVICE IMPACT The project has provided the whole community with an adequate and stable water supply for domestic and commercial consumption and for fire protection. Prior to the installation of the new facilities, 1/3 of the village residents were without fire protection and 1/4 of the residents had insufficient water pressure for household facilities during certain periods of the day. A housing project, which was built before the EDA project, had insufficient water for most of its units, and the Forest Service Station had no fire protection. The new facilities have remedied these situations. The total quantity of service from the project is 35,000 gallons per day. Of the service to residents, 257o goes to low-income families. Grade B+ - significant improved service to other community at large, including a substantial number of low-income residents. Project Type: Water and Sewer Extension Project Number: 060100307 Applicant: Salem, Indiana Project Financing: Total: $214,000 EDA Grant: $107,000 Date Approved: June, 1966 Date Completed: August, 19 PROJECT BACKGROUND Salem, Indiana, population 4,540, is situated in Washington County, which was previously eligible for EDA assistance as a carry over from ARA, but is now dedesignated. The city of Salem applied for and received an EDA grant to extend sewer lines to an industrial area and to install a lift station. The facilities were to serve existing industries and to enable them to expand. The benefits accrued by the EDA project, however, were not of an industrial nature. Instead, the addition to the sewer and water supply enabled more homes to have sewer facilities and more rural families to have running water. The improved water and sewer system is critical in attracting industrial growth to this area. It also enhances the quality of life in the Salem ECONOMIC DEVELOPMENT PROCESS Attitudes toward the economic development of Salem have changed somewhat since the city's application for EDA assistance in 1966. Local government, planning groups, and lending institutions have become more interested in developing the local economy. There has been increasing support from local citizens for community economic development efforts. However, the willingness of local citizens to finance improvements has remained the same. The EDA project was considered to be a minor factor in the economic develop- ment of the area. Primarily this project improved conditions for residents and had no direct impact on the economic sector of the community. Grade C - some improvement, limited EDA impact JOB IMPACT None STRUCTURAL IMPACT None SERVICE IMPACT The EDA project serves the Williams Convalescent Center (507o) and residents of the Salem area, 20% of whom have family incomes under $3,500 per annum. The water and sewer improvements provided by this project were sorely needed by those whom it presently serves. Letter Grade B_ - significant improved service to the community. Project Type: Sewerage System Construction Project Numbers: 060100309P and 060200311 Applicant: Auburn, Michigan Project Financing: Total: $718,000 EDA Grant: $308,000 Date Approved: June, 1966 Date Completed: July, 1967 PROJECT BACKGROUND Auburn is a small community of approximately 1,500 people in Bay County in east central Michigan. It is essentially a residential community whose residents are employed by the Dow Chemical Corporation in nearby Midland, Michigan, about eight miles from Auburn. Several manufacturing, service, and commercial firms were attracted to the Auburn area by its proximity to the Dow Chemical complex. In light of the emerging economic situation, the City of Auburn felt a need for a complete sewerage system, and applied for and received EDA funds to assist in the construction of such a system. The Bay County area was made and remains eligible for EDA assistance on the basis of excessive unemployment. The EDA-assisted projects consisted of the construction of a sewage treatment facility, which was to supplement construction of a sanitary sewer system, including sewage collection lines, sewage lagoons, pumping stations, and a force main. The entire sewerage system was intended to facilitate industrial and commercial growth in the Auburn area. It was expected that the projects would allow two firms connected with Dow Chemical to expand their operations and possibly increase employment. Also the Pure Oil Company planned to erect a combination service station and restaurant employing 18 people. Work on the EDA projects was completed in mid-1967, providing total sanitary service to the City of Auburn. The Pure Oil complex was built and by early 1970 was fully in operation. ECONOMIC DEVELOPMENT PROCESS Local planning for the physical development of the Auburn area and the quality of the city's public facilities are two aspects of the economic development process which have seen the most significant improvements since EDA funds were acquired. There has also been an increased willingness of local citizens to finance local improvements through revenue raising measures such as bond issues and taxes. Local community leaders questioned concerning the EDA project's influence upon local economic development generally considered EDA to have had an impact, although of varying significance. The one community leader who felt that the EDA project has had little influence on the economic development of the Auburn area felt that it was still too early to analyze EDA's impact. Those community leaders who felt that the EDA influence had been significant, attributed a variety of institutional changes indirectly to the new sanitation system in Auburn. These included planned construction of a high school starting in the summer of 1970, increased fire and police protection, future implementation of house-to-house mail delivery, and increased applications for building permits for private homes and multiple housing units. Grade IB - some development changes; limited EDA impact. JOB IMPACT Number of direct jobs 3£ EDA investment per direct job $10,267 Number od direct job equivalents 16 Number of possible future jobs 10 Number of indirect job equivalents _5 EDA investment per direct and indirect job equivalents $14,667 Firms where jobs were created: The Auburn Service Plaza , a combination service station and restaurant employing 35 people, was enabled to create 30 of these jobs by the EDA- funded sewerage system project. The major impact of the EDA project was to facilitate the addition of the restaurant to the Pure Oil Company's original plans. The company's total capital investment in Auburn is $275,000, and future plans call for the possible addition of 10 employees. STRUCTURAL IMPACT Created Jobs: 100%, living in county where firm is located 10% heads of household --% increase in weekly average income --%, previously unemployed The primary impact of the only firm that had employment directly affected by the EDA project was the increase in job opportunities. As a service industry, the Auburn Pure Plaza did not represent any industrial diversi- fication, but its affiliation with its parent, the Pure Oil Company, increases its stability. Grade D SERVICE IMPACT All homes and businesses have been connected to the new sewerage system in Auburn, but figures were not kept in the city offices on what percentage of total service is going to lower income groups. Prior to the EDA project, many homes were draining their laundry water into the storm drain, creating an odor in parts of the city. This has been eliminated by the present use of the sanitary sewer system. Grade A - significant new service to the community at large. Project Type: Sewer System Project Number: O6OIOO3I4IP Applicant: City of Marble Hill, Missouri Project Financing: Total: $19h,000 EM Grant: $97,000 Date Approved: April, 1966 Date Complete: June, 1967 PROJECT BACKGROUND The City of Marble Hill is located in southeastern Missouri about 50 miles south of St. Louis. The principal industries have been agriculture and timber. Marble Hill, population Ij90, is in Bollinger County, an area that was made eligible for EDA assistance on the basis of excess unemploy- ment but is now dedesignated. In 1963, an industrial development corporation was formed to make the area more attractive to industry. As part of the development program, Marble Hill installed a water system and a public park. However, the city still needed a sewer system to attract industry and tourists. In 1966, Marble Hill received an EDA grant to construct a complete sewer system to serve industrial and residential users and provide for future growth. The project was to generate 25 new jobs in two health facilities and eliminate a sanitary health hazard which concerned the area's employers. By providing sewer facilities, the project has been a great benefit to the residents of Marble Hill. The anticipated gener- ation of jobs, as a result of the new service, has not occurred. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been changes in the community's attitudes and institutions. The support of community development efforts by com- munity groups has increased, as has the willingness of local citizens to finance improvements. The local government's attitude toward the community's development has become more favorable, and the public facil- ities have been improved greatly. Local planning for physical improve- ments and the activities of the 0EDP groups have increased somewhat. The number of other State and Federal programs in the area has remained the same. The community leaders polled responded that the EDA project has been a significant factor in the economic development of Marble Hill. It would be more accurate to say that the project has had an impact on the general improvement of the city, rather than the economic development specifically. The applicant believes that "the addition of a public sewer system has increased the growth of the city, in the building of new homes, and possibly businesses." Grade C+ - some improvement, some EDA impact JOB IMPACT STRUCTURAL IMPA CT Not applicable SERVICE IMPACT The provision of a sewer system has greatly improved the sanitation in Marble Hill and enhanced the quality of living. Before the system was installed, there was extensive run-off from surface water and from septic tanks, and wastes ran directly into a live stream. The new system has provided means for disposing of waste water and has removed undesirable odors from the city. All waste is treated by a lagoon with primary and secondary cells before entering into the stream. Ninety percent of the service is for residential use, and 10 percent for commercial. Of the residents serviced by the project, 75 percent are families with incomes below $3,5>00. Grade A+ - significant new service to a substantial number of low- income residents and the community at large. Project Type: Water System Improvements and Extensions Project Number: 060100347P Applicant: West Plains, Missouri Project Financing: Total: $640,000 EDA Grant: $320,000 Date Approved: April, 1966 Date Completed: April, 1968 PROJECT BACKGROUND West Plains, Missouri, population 5,830, is located in the heart of the Missouri Ozarks in Howell County, an area that was previously eligible for EDA assistance as a carry-over from ARA , but has since been dedesignated. In 1966, the City of West Plains applied for and received an EDA grant to improve and extend the water system to provide water for industrial use and fire protection for industrial and residential areas. Lack of adequate water facilities had made West Plains unattractive as a location for new industries and had hampered the expansion of existing firms. At the time of the application, construction for two firms was underway in West Plains and an adequate water supply was required for their operation. Amyx Industries expected to employ 100, and a Holiday Inn was to employ 40. In addition, the construction of two new shopping centers awaited an adequate water supply. The EDA project has provided needed improvements to the city's water system, benefiting both industrial and residential areas. Fire insurance rates are now lower in some areas of the city. Moreover, with adequate water in West Plains, McQuay-Norr is decided to locate a new plant there. The plant will begin operations by May, 1970, employing approximately 300. Other firms are served by the project, several of which have expanded since its completion. Both shopping centers have been completed. ECONOMIC DEVELOPMENT PROCESS Since 1966, West Plains has moved ahead in the area of economic development. The local government's attitude toward community economic development, including local development planning, has become more favorable.. The lending institutions have become more active in development financing and public facilities have improved. Although the local citizens are not more willing to finance local improvements, the community groups are more willing to support development efforts. With an increase in the number of State and Federal programs in the city, the local development groups have become more active. The community leaders participating in the EDA survey agreed that the EDA project has been a factor in the economic development of West Plains, with two indicating that it has been the major reason for economic development Grade B- - favorable improvement, some EDA impact JOB IMPACT Number of direct jobs: 905 (not including employment at the Wal-Mart shopping center) EDA investment per direct job $354 Number of direct job equivalents — Number of possible future jobs 140 Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- Firms where jobs were saved or created: A myx Industries, Incorporated , listed the availability of tax free bonds and assistance from local development organizations as reasons for locating in West Plains. However, information from the applicant confirms that the EDA project was necessary for the operation of the plant. The total capital investment of Amyx at this location is $598,501, with current employment of 100. The firm produces finished furniture parts and finished wood chairs. Future plans call for an additional 50-75 jobs within the next two years. West Plains Cheese Company has been in business in West Plains for 40 years. However, the firm specifically noted that the adequate water supply, resulting from the EDA project, encouraged them to stay in business. The total capital investment of 5-10 new jobs by 1972. International Shoe Company listed both the adequate water supply provided by the EDA project and an adequate labor supply as factors which led to expansion of the firm in West Plains. Total capital investment is over $1 million. Addition of a new 25,000 square foot building, representing an investment of over $800,000, can be attributed to the EDA project. The firm manufactures shoes. Since the new building represents 80 percent of the total capital invest- ment, it seems reasonable to estimate that about 80 percent, or 400, of the total 500 present employees were employed as a result of the EDA project. The firm expects to create about 50 new jobs within the next two years. Holiday Inn required adequate city water in order to build in West Plains. The motel has a total capital investment of $552,000 at this location, and employs hi. By 1972, 25 new jobs will be created. McQuay-Norris is to begin operations in its new West Plains plant by May, 1970, employing about 300. The applicant explicitly states that the EDA project "had a direct influence on the officials of McQuay-Norris in their selection of a location for their new plant." West Main Plaza shopping center Lequired adequate water for fire protection. There is a $300,000 capital investment, about 80 percent of which represents an expansion made possible by the EDA project. Located at the Plaza are a retail clothing store, a Chamber of Commerce office, a State office, an insurance agency, an optical retail store, and an optometrist. Seventeen individuals are presently employed with 10-20 new jobs expected within the next two years. STRUCTURAL IMPACT Statistical information not available The economy of the area has been diversified by the new industries and has been stabilized by the expansion and retention of existing firms. Three of the firms export over seventy percent of their goods outside of the area. The new jobs have had a significant impact on the employment in the area. Grade B SERVICE IMPACT The EDA project serves both residential and industrial areas of West Plains. Low income families use 60 percent of the total quantity of the service provided , In addition, a nursing home and the West Plains Hospital are served by the project. Grade B+ - significant improved service to substantial number of low- income residents and to the community at large. Project Type: Sanitary Sewers Project Number: 060100353 Applicant: Lexington, Missouri Project Financing: Total: $200,000 EDA Grant: $100,000 Date Approved: 5/31/66 Date Completed: 10/2/67 PROJECT BACKGROUN D Lexington is located in Lafayette County , about 55 miles east of Kansas City, adjacent to the Missouri River and to U.S. 2h. The population of Lexington is U,8U0 and the median family income in the county is $U,066. The community has experienced severe out-migration of young people, sub- sequently causing a decline in economic potential. The area was made eligible for EDA assistance on the basis of excess unemployment but is no longer designated. This basically agricultural area is undergoing rapid economic and social change . Proximity to Kansas City and the changing character of agriculture are factors contributing to the area's problems of steady population growth, a high unemployment rate, an increase in workers commuting to industrial and commercial centers outside the county, and an evident inadequacy of some local community facilities and services. The City applied for this project because it became apparent that several commercial and industrial firms had bypassed Lexington as a possible location primarily because of the lack of adequate waste disposal facili- ties . In addition, the State Board of Water Pollution indicated that there was a serious problem and steps had to be taken to correct the situation as soon as possible. The project provided for the construction of a complete waste disposal system which provided sewer facilities to an approximately one square mile area which is newly developed. At the time of application, it was stated by eleven firms that they had the capacity to expand, at the completion of the project creating 75 additional jobs. No expansions have taken place to date. ECONOMIC DEVELOPMENT PROCESS Since 1966 there has been a slight improvement in attitudes and institutions in Lexington. The local government, the planning and development groups, and the citizens have shown a somewhat improved support for local development activities . The leadership is showing a greater concern for the poor and the local lending institutions claim to be much more active in development financing. The public facilities in the area have become somewhat improved, and there has been an increase in the number of Federal and State programs in the area. The project has brought the inadequacy of the sewerage system into focus, making people see the problem and consequently want to improve the system so that it meets the required standards. The EDA project has been credited by the community leaders polled as being a factor in the economic develop- ment of the area. Grade C- - little improvement, some EDA impact JOB IMPACT STRUCTURAL IMPACT None SERVICE IMPACT Both residential and commercial users are experiencing new or improved service from this project. The service does not reach the entire town but rather two particular residential areas and adjacent small businesses. Project Type: Water System Project Number: 060100354 Applicant: Higginsville, Missouri Project Financing: Total: $213,000 EDA Grant : $96,000 EDA Loan: $117,000 Date Approved: May, 1966 Date Completed: March, 1967 PROJECT BACKGROUND The City of Higginsville is located approximately 55 miles east of Kansas City. Higginsville, population 4,000, is in Lafayette County, an area that was previously made eligible on the basis of excess unemployment, but that is not now designated for EDA assistance. Although it has an ideal industrial location in relation to urban centers, railroads, and interstate highways, Higginsville has for many years been plagued by high unemployment. The water shortage in the city was believed to be one cause of this lack of commercial and industrial activity. In 1966, the city annexed some land adjacent to Interstate Highway 70 to provide a commercial trade center for the area. EDA provided a grant and a loan to supply water for this development. It was anticipated that eight commercial firms would expand operations and provide year-round and diversified employment for 179 additional people. ECONOMIC DEVELOPMENT PROCESS There have been some changes in the attitudes and institutions in Higginsville since 1966. The local government has become somewhat more interested in the community's economic development. The local leadership has become much more concerned about the problems of the poor and is working very hard on a county-wide effort to improve their condition. Local planning for the physical development of the area has become somewhat more extensive, and the local development organization has become more active. Citizen support, however, seems to be lacking even though they have benefited from greatly improved public facilities. In bringing water to an area that was previously without service, the project has opened up a new area for development. Property values have increased, and the community has been provided potential for growth. The community leaders were favorably disposed to the EDA. project and considered it as having been a factor in the economic development of the area. Grade C_ - some improvement, some EDA impact JOB IMPACT Number of direct jobs 1_6_ EDA investment per direct job $ 13 ,313 Number of direct job equivalents 13 Number of possible future jobs 10-15 Number of direct job equivalents 4 EDA investment per direct and indirect job equivalents $ 12 , 529 Firms where jobs were created: Higginsville Junction, Inc. , owns and operates a service station and restaurant which were able to expand because of the EDA project. Of the total capital investment of $134,000, the expansion resulting from the EDA project repre- sents $99,000. The firm chose to expand here because the expanded water supply made it possible for it to meet sanitary requirements of the Missouri Health Department making it possible to renovate and practically double the size of their facility. There are 38 employees at Higginsville Junction of which 11 were EDA created. There is presently no further expansion planned. West Central Electric was able to expand in Higginsville because of the increased availability of water, and because the company felt it is an ideal location with the necessary manpower. The company distributes electricity, and the Higginsville office is the main headquarters out of which customers are serviced. The total capital investment is $590,000, of which $150,000 resulted from the expansion. Between 40 and 70 percent of the company's output serves people outside of a 15-mile radius. There are 35 employees at West Central Electric; five of the jobs were EDA created. The company expects to create 10-15 new jobs within the next two years. STRUCTURAL IMPACT Created jobs : 94% living in county 38% heads of households 60*% increase in weekly average income 40*7 o previously unemployed * For West Central Electric only - information not available from Higginsville Junction, Inc. The structural impact of the expansion of these two firms is limited because their expansion does not represent a diversification of the economy. Employment at West Central Electric is stable, full time, and pays well. The jobs created by Higginsville Junction, however, are low paying and basically of the service type. Grade C- SERVICE IMPACT Sixty percent of the water service provided by this project goes to the residents of the community. Quality water is now provided to an area that was formerly dependent on a ground water supply that was highly mineralized, necessitating water haulage for most requirements. Besides the two firms that were able to expand because of the project, other commercial enterprises are using the new service. The improved service also guarantees increased fire protection to all in the area. Grade B - significant new service to a part of the community Project Type: Water System Improvements Project Number: 060100399 Applicant: City of Linton, Indiana Project Financing: Total: $277,000 EDA Grant: $166,000 Date Approved: May, 1967 Date Completed: September, 1968 PROJECT BACKGROUND The City of Linton (population 5,730) is located in the western section of Green County (population 26,327), in the south central part of Indiana. The area is rural, and the economy is depressed because of marginal farm- ing and a declining coal mining industry. The area is designated as an EDA Redevelopment Area on the basis of high unemployment. In 1966, when Linton applied for this project, it was forced to rely on an entirely undependable water supply. It was expected that with the assurance of a good, dependable water supply, a number of substantial industries would increase their employment, and that it would increase the city's chances of attracting new industries. Three other communities planned to buy water from this new system, developing their own com- mercial and industrial potential. Any such development was completely dependent on a water supply. By providing a new £00,000 gallon elevated water tank and new water lines, the project has improved the water system, guaranteeing a dependable water supply. The three surrounding communities are also benefiting from the project. ECONOMIC DEVELOPMENT PROCESS Since 1966 there have been some areas where attitudes and institutions have changed favorably as they are related to the economic development of the community. The local government's attitude toward the community's development has become notably more favorable. Planning for the physical development of the area has become somewhat more extensive at the local level. The community enjoys greatly improved public facilities and is lending greater support to the development efforts. Their greatly in- creased willingness to finance local improvements has been demonstrated by the approval of a $600,000 bond issue to fund further expansion of the water distribution system. The local lending institutions, on the other hand, have not changed their level of activity in development financing. The community leaders polled differed greatly in their perception of the degree to which the EDA project has influenced the economic develop- ment of the area. The representative of the local development corporation, Industries For Linton, felt that the EDA project has had no influence. He based his opinion primarily on the lack of any new industry locating in the area. The representative of the local government responded that the EDA project has been a major reason for economic development. Based on the responses to other questions, it seems that this person did not really understand what was meant by "influencing economic development." The rest of the community leaders took a middle road, stating that the EDA project has been a factor in the economic development. The information available supports the greater plausibility of this response. Grade C+ - some improvement, some EDA influence JOB IMPACT Number of direct jobs 27 EDA investment per direct job $6,11+8 Number of direct job equivalents 2_3 Number of possible future jobs Unknown Number of indirect job equivalents £ EDA investment per direct and indirect job equivalent $5,188 Firm where jobs were created: The General Electric Company decided to expand its Linton plant and thereby add 27 jobs as a result of the EDA project. Another factor contributing to this decision was the available labor supply. The expansion included an increase in capital investment amounting to $300,000. This firm currently employs 5>15> people. STRUCTURAL IMPACT 100$ living in county where firm is located approxTo"^ heads of household - % increase in weekly average income - % previously unemployed The EDA project led to the creation of jobs in a division of a large national industry already located in Linton. Since the firm expanded, no diversification of the economy took place. The firm exports over 70$ of its products outside the area. Grade C- SERVICE IMPACT Almost 80$ of the service that this project is providing is going to residents of Linton and the surrounding communities. The dependability of the water supply has increased greatly. Other benefits accrued by the citizens of Linton from this project include increased fire protection and lower water pumping costs. Grade B - significant improved service to the community at large Project Type: Water System Project Number: 060100471P Applicant: City of Emma, Missouri Project Financing: Total: $182,000 EDA Grant: $91,000 EDA Loan: $89,000 Date Approved: June, 1967 Date Completed: April 1, 1968 PROJECT BACKGROUND The City of Emma is located in northwestern Missouri. Emma, population 202, is located in Lafayette County, an area that was made eligible for EDA assistance on the basis of excess unemployment but is now dedesignated. In 1966, Emma was without a public water system. The EDA grant and loan provided the funds to construct a water supply storage and distribution system. It was anticipated that several firms in the area would be able to expand and create more jobs as a result of the project. The EDA project serves approved water to residents, nine businesses, one school, two churches, and one country club. This new water system has facilitated industrial and commercial growth in the community. ECONOMIC DEVELOPMENT PROCESS Since 1966, the City of Emma has undergone significant changes. Lending institutions have become much more active in development financing. The local government has shown more interest in the area's economic development. The OEDP group and the development organization have become particularly active. Public facilities have improved greatly along with community willingness to support such efforts. The county has worked very hard for the poor and minority groups while the number of Federal and State programs have increased somewhat. In none of the institutions questioned have the attitudes or activities related to economic development remained the same - all saw improvement. According to one community leader, there is no doubt that the EDA project is the foundation on which future expansion can take place. However, for future development to be achieved a sewer system, industry, and housing are needed. Grade A^ - significant improvement, considerable EDA impact Number of direct jobs 5_ EDA investment per direct job $ 36,000 Number of direct job equivalents 4 Number of possible future jobs unknown Number of indirect job equivalents 1 EDA investment per direct and indirect job equivalent $ 36 ,000 Firm where jobs were saved and created: The Emma Co-Op Elevator Company was able to remain and expand because of the EDA project. The firm felt that expansion was needed to provide better facilities and service to the surrounding rural areas. This expansion resulted in the creation of two jobs, the saving of three jobs and an increase in capital investment of $126,000. STRUCTURAL IMPACT Saved jobs : 100% living in county where firm located 100% heads of household Created jobs : 100% living in county where firm located 100% heads of household 3 5% increase in weekly average income --% previously unemployed Although only one small firm in Emma actually produced jobs as a result of the EDA project, the whole economy has felt its impact. The principal source of employment for residents, Emma Creamery, has cut some of its plant operations costs by as much as 50% due to the new water system. A spokesman for the company stated that "the EDA project has definitely been an asset to our operation in more ways than can be specifically reported with this questionnaire." The strengthening of this business will certainly mean a strengthened local economy. Small firms such as Bredehoft Grocery have shown an increase in business because more people have moved into town (this influx has been connected to the completion of the water system) . No new major industry has located in Emma so that diversification has not occurred. SERVICE IMPACT The water system services residents, industry, and business of the Emma citizens now receiving pure water, 457» have annual family incomes below $3,500. Emma Creamery Company receives 39% of the total quantity of water with the remainder going to residents (37%), Nikerson Farms (16%), Standard Oil Company (47o) , Emma Co-Op Elevator Company (2%), and Cepco Oil Company (27»). The project also provides needed fire protection. Grade B+ - significant improved service to community at large and some low-income residents. Project Type: Sewage Treatment Facility Project Number: 060200126P Applicant: Walthill, Nebraska Project Financing: Total: $90,000 EDA Grant: $45,000 Date Approved: May, 1966 Date Completed: May, 1967 PROJECT BACKGROUND The city of Walthill, population 840, is one of four small communities on the Omaha and Winnebago Indian Reservations . Of the four communities, Walthill has the most potential for development. In 1965, untreated waste was discharged into the Omaha Creek causing extreme pollution. The Nebraska State Board of Health would not permit any additional sewer connections, either business or residential, until a water treatment and disposal system was constructed. In 1966, Walthill applied for and received EDA assistance for a sewage disposal system to accommodate new businesses, allow for local manufacturing expansion and permit opportunities for new housing and further growth. ECONOMIC DEVELOPMENT PROCESS Since 1966, the Walthill community has become somewhat more optimistic about its development potential. While the local government's attitude toward the community's economic development has become much more favorable, the local lending institutions, community groups, and citizens have become only somewhat more active in supporting and financing development efforts. The local leadershipfe concern for the problems of the poor and the unemployed has increased greatly. There has been some increase in the number of other State and Federal programs. According to the community leaders questioned, the EDA project has been a significant factor in the economic development taking place in Walthill. Grade B+_ - favorable improvement, significant EDA impact JOB IMPACT Number of direct jobs - 94 EDA investment per direct job - $479 Number of direct job equivalents - 81 Number of possible future jobs - 12 Number of indirect job equivalents - 24 EDA investment per direct and indirect job equivalent - $413 Firms where jobs were saved or created: The Omahaline Hydraulics Corporation was established in Walthill after the EDA project was in operation. The firm located in Walthill because of the availability of the good building site, the sewage treatment facilities, and the police and fire protection. The total capital investment in the plant is approximately $300,000. The plant produces hydraulic cylinders, and there are presently 69 employees. The Campbell Manufacturing Company's farm wagon gear factory was previously located in another building in the area until it was destroyed by a fire. The firm decided to remain in Walthill when the present site was opened up as an industrial area with the completion of the EDA project. An additional reason for the firm's remaining in the area was to be close to another of its plants. A new 80' x 100' steel building was erected on the site with an increase in the plant's total capital investment from $137,000 to $187,000. Presently the plant employs 25 people. Because of the water supply and the disposal facilities for the water used, the firm is considering the installa- tion of a polyethylene rotational moulding tank machine. If this plan is carried out, it would create at least 12 additional jobs. STRUCTURAL IMPACT Saved jobs : 100 % living in county where firm is located 80% heads of households Created jobs: 7 5% living in county where firm is located 90% heads of households — % increase in weekly average income 3 57 o previously unemployed Both industries export over 70% of their products out of the area. Omahaline Hydraulics has brought a new type industry to the area. By providing full- time, year-round jobs, the companies have contributed to the stability of employment in Walthill. SERVICE IMPACT The EDA project treats approximately 185,000 gallons of sewage per day. The total quantity of service can be broken down into the following percentages according to users: Omahaline Hydraulics Corporation - 29% Campbell Manufacturing Corporation - 6% Commercial Users - 15% Residential - 50% Of the residential users of the new sewage disposal system, 20% are in the low-income bracket, and 15% are Indians. The new facilities have enabled Walthill to stop polluting the Omaha Creek which has consequently reduced the pollution of the Missouri River. There is no way of evaluating the exact amount of organic waste which was being deposited into the Omaha Creek before the plant was in operation. However, judging by the amount of digested wastes in the plant now, it was a con- siderable quantity. Twice since the plant has been in operation, toxic materials accidently dumped into the system by Omahaline Hydraulic were able to be neutralized. This operation would have been impossible without the plant. Grade A - significant new services to the community at large Project Type: Water, Sewer, and Street Improvements Project Number: 070100107 Applicant: Auburn, Washington Project Financing: Total: $1,984,000 EDA Grant: $993,000 Date Approved: June, 1966 Date Completed: April, 1968 PROJECT BACKGROUND Auburn, Washington, population 11,930, is located in King County, previously designated by EDA on the basis of high unemployment. The area has now been dedes ignated . Auburn, along with several other small cities, will eventually be part of a large metropolitan complex connecting the cities of Tacoma and Seattle. A freeway system has reduced travel time, making Seattle and Tacoma within commuting distance. In 1966, the City of Auburn applied for and received EDA assistance to provide water, sewer and streets to serve an industrial area in Auburn. The Boeing Company was constructing, at the time of the application, a new central fabrication plant in Auburn which would be served by the EDA project., The plant was expected to employ 5,000 by the end of 1966, with possibilities for future employment of 12,000. In addition, expansion of the Diamond Ice Company and construction of a school district maintenance center were anticipated. The project was to provide sewer service for the industrial area, adequate water for plant operation and fire protection, and street construction to result in better access to the area. As a result of the EDA project, the main industrial area in southwest Auburn (700 acres) is served by adequate water, sewer, and street facilities. The Boeing Company, GSA, the school district maintenance building, and the Diamond Ice Company are located in the industrial area. Several other firms also benefit from the water services. The applicant states that the street improvement will benefit another 100 acre area being developed to include a regional shopping center, retail sales, and an industrial plant. It was also suggested that the Boeing Company, with its large work force, may not have located a plant in Auburn without the services resulting from EDA's project. ECONOMIC DEVELOPMENT PROCESS The two community leaders who responded to the EDA survey, the Mayor and a representative of a lending institution, disagree as to how much economic development progress has been made in Auburn since 1966. The Mayor holds the more optimistic view. He believes that local planning has become much more extensive, citizens are more willing to finance local improvements, and public facilities have been greatly improved. The bank representative, on the other hand, feels that the situation has not changed much — the local government's attitude toward economic development, the policies of the lending institutions, and the activities of the local develop- ment organization have remained the same as they were prior to 1966. The two do agree, however, that community groups now give greater support to community development efforts, and that the number of State and Federal programs in Auburn has increased somewhat. There is also disagreement regarding the degree to which the EDA project influenced the economic development of Auburn. The bank representative concedes that the project was a factor in the develop- ment, but the Mayor believes it to have been the major reason for development. Grade C+ - some improvement, some EDA impact JOB IMPACT STRUCTURAL IMPACT SERVICE IMPACT The EDA project played a significant role in development of one of Auburn's main industrial areas. The Boeing Company is the largest user of the services. Several other employers, including GSA, the Auburn School District, and the Diamond Ice Company, are served by the project. Residents benefit from the improved access to the industrial area that the project provides and the resulting relief of traffic con- gestion. Grade D - marginal service to the community at large Project Type: Sewage Collection and Treatment Facilities Project Numbers: 070100206, and 070200170 Applicant: Riverside Sewer District, Orofino, Idaho Project Financing: Total: $U17,000 EDA Grant: $126,^00 Date Approved: November, 1966 Date Completed: July, 1968 PROJECT BACKGROUND Orofino, Idaho, population 2,i|70, is located in the northern part of Idaho in Clearwater County, which is designated by EDA on the basis of high unemployment. Riverside is an expanding suburban district near Orofino, the county seat. In 1966, the Riverside Sewer District applied for and received EDA assistance to construct a sewage collection and treatment system. These facilities were needed for development of Riverside as a commercial and residential center. The area had great potential for tourism, benefiting in particular from tourist travel over the scenic, cross-state, Lewis and Clark Highway. Construction of the Dworshak Dam only 7 miles from Riverside would have both immediate and long-term impact on the area. Housing, shopping centers, trailer courts, and services were needed to take care of construction workers. Upon completion, the Dam was expected to attract great numbers of tourists, thus offsetting the loss of construction workers. The Riverside area was the only place in the vicinity of Orofino where expansion of facilities was possible. The project was also expected to eliminate pollution of the Clearwater River. The sewage collection system was financed in part by an EDA direct grant; the sewage treatment facility by an FWPCA grant supplemented by EDA. The project has stimulated development of the area. The sewage facilities are operating at capacity. Businesses have benefited, residential building has expanded, the Clearwater River is no longer being polluted, and trailer parks have been set up to meet the temporary housing needs of workers from the Dworshak Dam. An adequate sewage system was a prerequisite for all these developments. ECONOMIC DEVELOPMENT PROCESS Since 1966, progress has been made in regard to economic development of the community. The local government's attitude toward development has become much more favorable. This is evidenced, for example, by adoption of the practice of zoning. Also, the lending institutions have become more active in development financing. The citizens are more willing to finance local improvements. In keeping with the more active role of local development groups, the number of State and Federal programs in the community has increased. All the community leaders who responded to the EDA survey agreed that the EDA project has been a significant factor in the economic development of the area. One of these leaders, a member of the OEDP committee, felt that it had been the major reason for develop- ment. The applicant stated that the project "put this area in a position to develop. Without it we could not grow." Grade B+ - favorable improvement, significant EDA impact JOB IMPACT Number of direct jobs £3 EDA investment per direct job $15, 813 Number of direct job equivalents ~- Number of possible future jobs 2_ Number of indirect job equivalents •*-. EDA investment per direct and indirect job equivalent — Firm where jobs were saved: Stoddard Electric Inc. , previously located in the city of Orofino, moved to its present location on Rt. 1 as a result of the EDA project. The sewage facilities created a better business climate, and promoted residential and commercial growth. The total capital investment of the firm at this location is $120,000, including a $U5j000 expansion made possible by the EDA project. Stoddard Electric is a contractor and retail merchant. The firm provides year-round employment for 8 persons, with 2 new jobs expected to be created within the next 2 years. STRUCTURAL IMPACT Stoddard Electric does not have much impact on the economy of Orofino, although it does provide year-round employment for 8 local residents. The firm exports over 70% of its output out of the area. The EDA project did make it possible, however, for Orofino to meet the needs of the Dworshak Dam construction workers. SERVICE IMPACT The EDA project was intended to stimulate long-term commercial and residential growth of the Riverside area. According to the applicant, at the present time $0% of the total quantity of the service is used by residential areas, 2%% by commercial establishments, and 2$% by the trailer courts. In addition, the EDA project has had favorable effects on water pollution. Raw sewage is no longer being dumped into the Clearwater River. Grade A - significant new service to the community at large Project Type: Sewer Main Project Number: 070100312 Applicant: City of Sunnyvale, California Project Financing: Total: $167,000 EDA Grant: $8U,000 Date Approved: May, 1966 Date Completed: March, 1968 PROJECT BACKGROUND The City of Sunnyvale is located in an area where the population is growing at a rate of ten percent a year. Because of the high migration rates and the problems of transition from a rural to an urban economy, there has been a gradual increase in unemployment in the area despite rapid industrial growth. Sunnyvale, population 52,890, is in Santa Clara County, an area that was made eligible for EDA assistance on the basis of excess unemployment, but that is not now designated. In 1966, the city applied for and received an EDA grant to extend the sanitary sewer main from the city's sewage treatment plant to the Sunnyvale Division of Lockheed Aircraft Corporation. It was anticipated that the project would assist in the creation of some 5,000 jobs in the major aerospace facility of Lockheed. The facilities are now being used by the Lockheed Missiles and Space Company, the NASA- Ames Research Center and practically all of Moffett Field Naval Air Station. The Lockheed plant has not expanded as was expected. ECONOMIC DEVELOPMENT PROCESS All factors of the economic development process have improved somewhat in the Sunnyvale area since 1966. In a community of this size, change is slow and not easily perceivable. The community leaders indicated that attitudes and institutions all experienced about the same degree of change. Because of the leadership position the local government may take, it is worthwhile to mention that its attitude toward the community's development has become somewhat more favorable. The tangible factor of development which this project has brought to the community is that it has made it easier for Lockheed and Moffett Field, two major employers in the community, to expand. It was the consensus among the community leaders polled that the EDA project has been a factor in the economic development of the area. Grade £ - some change, some EDA impact JOB IMPACT STRUCTURAL IMPACT SERVICE IMPACT This project provides service to an industrial area which includes the Lockheed Missiles and Space Company, the Moffett Air Field and the NASA-Ames Research Center. The three users occupy a 2,680-acre indus- trial area which has had its sewage handling capacity tripled by the project. This project has been a tremendous benefit in fighting the pollution of the San Francisco Bay. No service to residents. Project Type : Water System Expansion Project Number: 070100U09 Applicant: Flathead County Water District No. 1 Location: Evergreen, Montana Project Financing: Total: $912,000 EDA Grant: $1^6,000 Date Approved: June, 1966 Date Completed: September, 1968 PROJECT BACKGROUND The City of Evergreen is a suburban community of about 2,000 population located one mile from Kalispell, the county seat of Flathead County, Montana. The county was designated during the first half of 1966 by virtue of having been designated as a redevelopment area under the Area Redevelopment Act. Application was made for an EDA grant when it became apparent that Evergreen was being hampered in its expansion because of a lack of adequate water facilities . The situation made it impossible to encourage industry to expand or locate in the area. Housing could not be provided for employees of potential plants or expanding operations in Kalispell. The project provided for the construction of supply wells, pumping stations, a one million gallon reservoir, and water distribution system for the City of Evergreen. There is now an adequate water supply to residences, schools and business firms in the community. ECONOMIC DEVELOPMENT PROCESS Since 1966, the attitudes and institutions in fhe area have shown some signs of change. Some improvement has been seen in the public facilities, the activity of the lending institutions and local planning for the physical development of the area. Local government's attitude toward the community' s development and its concern for poor and minority groups has become slightly more favorable. Community groups are also showing slightly increased support for community development efforts. In all other areas considered relevant to the economic development process, the responses of the community leaders indicated that there had been little change. Secondary to the direct improvements the project provided, there has been a reduction in the fire insurance rates in the community due to the improved fire protection which the expanded water system provides . As hoped, there is also new residential development taking place . The VA and FHA are now making funds available for financing construction in the Evergreen area -- funds not available before the new water system was built. An unexpected problem resulting from the project has recently surfaced. The number of residents signing up for water connections is only about half the number who indicated during the formative stages of the project their intention to do so. This has meant high tax costs for people using the facility. The tax burden is expected to be alleviated over the next 2 or 3 years as more hook-ups are added. This project seems to represent the only economic development activity that has taken place in the area. For that reason, the EDA project has been an important factor in contributing to the economic develop- ment process of the area. More than anything else, the EDA project has served to remove some of the blocks to economic development in this area, where good potential for growth exists. Grade C_ - limited improvement, some EDA influence None The C & C Plywood Company expected to be able to expand its operation because of the improved service this project would provide. Although the company had hooked into the system, the president explained that because of current economic conditions and the tight money policy, his firm was not able to expand and employment had actually been decreased. He further indicated that if economic conditions had continued as they were at the time of application, the project would have helped add 35 - UO jobs to his company. STRUCTURAL IMPACT None SERVICE IMPACT This project is currently servicing a variety of users. About 75 percent of the service now goes to residents with the other 25 percent going to the Highway Department, various industries and to a local school. The capacity of the system will allow greater usage by both residents and industry. The new system now guarantees a good water supply where there was once a problem with contaminated water. Grade B - significantly improved service to the community at large Project Type: Water and Sewer Systems Project Numbers: 080100020P and 0802002U5 Applicant: City of Eudora, Arkansas Project Financing: Total: $U95, 000 EDA Grants: $235,000 Date Approved: May, 1966 Date Completed: July, 1968 PROJECT BACK GRO IMP The City of Eudora, population 3*590, is located in the southeast corner of Arkansas; an area that has experienced declining agri- cultural labor conditions. With a median family income of $2,013, Chicot County is eligible for EDA assistance on the basis of low income. The area is part of the Southeast Arkansas Economic Development District and is within the jurisdiction of the Ozarks Regional Commission. Eudora applied for EDA assistance because its existing water and sewer facilities were inadequate to provide the essentials for maintaining sanitary conditions in a part of the city predominantly inhabited by unemployed Negroes. Well over half of the area occupied by these low- income families was without sewer facilities, and approximately 100 families had no form of domestic water supply other than shallow wells subject to surface pollution. In 1966, Eudora received two EDA grants which provided for the im- provement and extension of the existing water and sewerage systems including water mains, treatment plant, elevated storage tank, sewers and lift station. It was thought that projects of this kind would enhance the community's opportunities to attract industry. The projects are now providing water and sewer facilities to approximately lj.00 families. ECONOMIC DEVELOPMENT PROCESS During the past four years, Eudora has experienced some significant changes in its attitudes and institutions. This is an area where there is a fairly high level of development activity and an 0EDP committee that has become much more active. The area's participation in the district program has increased greatly, and the local planning efforts have become much more extensive. Neither the local government nor the citizens have shown such increases in support of development efforts though both have improved somewhat. In this area with significant poor and minority group population, the local leadership's concern for these groups has only increased somewhat. One community leader felt the EDA project has been a factor in the economic development of the area, stimulating community improvement projects and improving the image of the community for industrial prospects. He also pointed out that insurance rates have been reduced as a result of the improved water system. The other community leader who responded to our survey felt the EDA project has been the major reason for economic development in the area and emphasized its service benefits. Grade B - favorable improvement, some EDA impact JOB IMPACT None The Eudora Garment Corporation is a major employer in Eudora. They wanted to expand their plant but couldn't because of an insufficient water supply. The EDA projects were intended to meet this need, but when completed, they proved to be totally insufficient. The firm that owns the Eudora Garment Corporation was extremely upset with the results of the projects. They had never been consulted by either the applicant or EDA as to what their needs were. As far as these expansion plans were concerned, the EDA projects "didn't help at all." The system provided only a "trickle" of what they needed. To carry out their expansion, the firm had to make a $37,000 invest- ment to build their own 1^0,000 gallon storage tank. The firm expressed a great deal of anger and disgust with both the City of Eudora and EDA because of the way in which the projects had been carried out and indicated that an extensive correspondence of protest had resulted. STRUCTURAL IMPACT SERVICE IMPACT This project was essentially designed to provide new service to a portion of the community that had previously been without water and sewer facilities. Of those receiving service, 95 percent are black and 9$ percent are families with incomes under $3,500 per year. The project has also provided these people with fire pro- tection and has made it possible for the city to open a new sub- division for badly needed new housing. The new treatment plant is eliminating the pollution of Bayou Mason. Grade B+ - significant new service to part of the low-income and black portion of the community. Project Type: Water System Project Number: 080100037P Applicant: Trinidad, Colorado Project Financing: Total: $600,000 EDA Grant: $300,000 Date Approved: March, 1966 Date Completed: July, 1968 PROJECT BACKGROUND The city of Trinidad, population 10,690, is located in the large county of Las Animas in the southeastern section of Colorado. The area was made eligible for EDA assistance on the basis of an ARA carry-over, but is no longer designated. The county is one of fifteen that make up the Southern Colorado Economic Development District. The problem that precipitated this application was an inadequacy of water supply and pressure to serve the city's minimal needs. At times, the water was shut off in certain areas of the town in order to supply enough water pressure to the areas that required water at all times. In 1966, an EDA grant of $300,000 helped purchase and erect two one- and-a-half million gallon water storage tanks, and construct two pumping stations and connecting pipe lines for a water distribution system for the city of Trinidad. The project was expected to generate 60 new jobs, and many more jobs in the future. The project is currently providing improved water pressure to the entire community. There has been no generation of new jobs. ECONOMIC DEVELOPMENT PROCESS There have been significant changes in attitudes and institutions in Trinidad since this project was applied for that contribute to the economic development process of the area. The attitude of the local government has become much more favorable toward the community' s economic development. Local planning for the physical development of the area has become much more extensive with the city goverment now negotiating for professional planning, and updating the comprehensive City Plan. Development is further stimulated by an active 0EDP group and by the efforts of the local development organization. Money for development activities is being made available by the lending institutions which have become much more active in development financing, and by citizens who are exhibiting an increased willingness to finance local improvements. The latter may have been influenced by the benefits the citizens have accrued from the greatly improved public facilities . Changes have also benefited the poor and minority groups, mostly Spanish -American in Trinidad, as the concern for them by the local leadership has increased greatly. This project has made vacant land available and suitable for housing development. The new service is expected to assure potential industrial development and the development of recreational facilities and tourism in the area. While the community leaders polled have seen the above outlined changes take place and credit much of it to the EDA project, they do not feel that the project has had more than a little influence on the economic development of their community. Grade _B_ - significant changes in attitudes, significant EDA influence JOB IMPACT STRUCTURAL IMPACT SERVICE IMPACT The main purpose of this project was to provide improved water service to the residents of Trinidad. The entire population of the city now benefits from the higher quality and quantity of water that the project guarantees. Constant water pressure is now supplied to all homes, insuring sanitary conditions as well as providing greater convenience. With UO percent of the population of Trinidad being Spanish -American, and 33 percent of the families earning less than $3,5>00 annually, both significant minority and low income groups are served by this project. Grade B+ - significantly improved service to the entire community including a substantial number of minority and low income residents. Project Type: Water System Project Number: 0801000U7P and 080100^701 Applicant: City of Davis, Oklahoma Project Financing: Total: $lp_8,000 EDA Grant: $21+1,000 Date Approved: November, 1966 Date Completed: July, 1968 PROJECT BACKGROUND The City of Davis, population 2,200, is situated near the Arbuckle Reservoir, in Murray County, an area made eligible for EDA assistance on the basis of excess unemployment but now dedesignated. In 1966, the citizens of Davis passed a bond issue for $177,500 to construct a water system to serve industry, recreation facilities, and residents. Two EDA grants (second due to cost overrun) supple- mented the city funds. This project provided for the construction of a water treatment plant, a water supply line to a distribution system, a 100,000 gallon elevated storage tank, water supply lines to eliminate deadends and undersized lines in distribution, and about 7 miles of supply lines and a booster station to serve a recreational area. The completion of the large Arbuckle Reservoir and this project has already resulted in the creation of 221 full time jobs — 82 more than originally anticipated. In five years another 800 jobs are expected, lr3>0 of these being related to tourism and recreation. ECONOMIC DEVELOPMENT PROCESS Since 1966, changes in attitudes toward community growth have been positive. The local government and lending institutions have become much more favorable to developing the local economy. Local planning efforts are considerably more extensive. Both the 0EDP group and the local development organization have increased their activities. In addition, public facilities have improved greatly. Change in the willingness of local citizens to support and finance improvements is minimal. However, one community leader commented that local civic- minded attitudes have always been good. There is a general agreement among community leaders polled that the EDA project has been a significant factor in the economic development of the area. Community leaders believe that additional sectors of the community must be developed for future growth: industry, education, housing, and recreation facilities. Grade B- - significant improvement; definite EDA impact JOB IMPACT Number of direct jobs 235 EDA investment per direct job $1 ,026 Number of direct job equivalents — Number of possible future jobs -- Number of indirect job equivalents — EDA investment per direct and indirect job equivalents -- Firms where jobs were created : Sequoyah Carpet Mills would not have located the state's largest domestic carpet mill in Davis if the EDA project had not been under- taken. The project provides this firm with the volume of water required for operations. Other factors contributing to the decision to locate in Davis were its sewer system, rail and highway trans- portation, and available labor supply. The Davis mill presently employs 221 persons (196 fill hourly positions, 25> supervisory). The total capital investment amounts to $U>500,000. YMCA Camp Classen receives enough water from the new supply to allow construction of a new unit servicing 80 people. This will result in the creation of li| summer jobs for students and an increase in capital investment of $100,000. STRUCTURAL IMPACT Statistical information was not available . The introduction of a large carpet mill at Davis has contributed much to the development of the local economy. Sequoyah Carpet Mills has four locations in the state and exports over 70% of its goods outside the Davis area. This new industry not only diversifies the local economic structure but also stabilizes it. The camp addition mentioned above enhances the area's tourist business by attracting more campers from throughout the state. The ll± summer jobs it creates, however, will have a negligible impact on the economy of Davis. Grade B+ SERVICE IMPACT The water supplied by this project serves both residents and industry. The City of Davis uses 33% of the total quantity; 1$% of this amount goes to families with annual incomes under $3,500. Sequoyah Carpet Mills receives $0% of the new water service. The remainder is divided among the YMCA camp {10%), Turner Falls Park {2%), and the Assembly of God Youth Camp {%) . Grade B+ - significant, improved service to a substantial number of low-income residents. Project Type: Sewage System Project Numbers: 080100087 and 080200289 Applicant: Roosevelt City Corporation, Roosevelt, Utah Project Finance: Total: $296,000 EDA Grants: $11^,000 Date approved: May, 1966 Dates Completed: July, 1968 and July, 1967 PROJECT BACKGROUND The City of Roosevelt, population 1,810, is located in Duchesne County, an area that is eligible for EDA assistance on the basis of persistent unemployment. In 1965, Roosevelt was emptying its untreated waste into open streams, causing unpleasant odors and health hazards to the local residents as well as the residents of other towns and reservations down stream. In addition, the lack of sewer facilities was a major deterrent to industrial development in the area. In 1966, the Roosevelt City Corporation applied for and received two EDA grants. The grants were to help make major improvements to the sewer collection lines, the interceptor and outfall lines, and the waste stabilization ponds. It was anticipated that the projects would eliminate the pollution of the streams and make the area more attractive for industrial location. ECONOMIC DEVELOPMENT PROCESS Since the time that Roosevelt applied for this project (1966), there have been favorable changes in the attitudes and institutions of the community. The most significant improvement has been in the area of planning for the physical development of the area. At the local level, planning has become much more extensive and has been complemented by a somewhat more active local development organization. The support of development efforts by community groups has also increased. The community is benefiting from improved public facilities and a greater number of other State and Federal programs in the area. Besides the immediate benefit of an improved sewerage system, this project allowed for significant improvements in the community as a whole. With building restrictions removed, the project made possible the construction of a new hospital and new homes in the area. A significant boost has been given to manpower development with the construction of a new vocational school . The EDA project was credited by the community leaders polled as being at least a factor in the economic development of the area, and several considered it to be a significant factor. Grade B - significant improvement, some EDA influence. JOB IMPACT Number of direct jobs - 20 EDA investment per direct job - $5,700 Number of direct job equivalents - ±8 Number of possible future jobs - 1 Number of indirect job equivalent - 5> EDA investment per direct and indirect job equivalents - $U,95>7 Firms where jobs were saved or created: Highland Dairy was having problems moving sewage to the old sewer system which caused the concern of the Health Department. By solving this problem and improving the water supply, the project made it possible for the dairy to remain in the area and continue operating at a normal level without reducing employment. The total capital investment of the Highland Dairy is about $30,000. Their total employment is 20, of which 19 jobs were saved and one was created by the EDA project. The dairy expects to add one new employee during the next two years . STRU CTURAL IMPACT Saved jobs : 75% living in county where firm is located 100 % heads of households Created jobs : One job created - head of household, living in county. Because the job impact was based on saved jobs at a firm already in the area, there was no diversification brought to either the economy as a whole or to employment, thus limiting structural impact. By remaining in the area, however, this firm helped to stabilize (quantitatively) employment. The firm exports over 70% of its products out of the area. SERVICE IMPACT The bulk of the service from this project goes to the residents in the area. The city is now able to provide an improved sewerage system to some parts of the city and new sewer service to previously unserved areas within the city. With the improved system, a major source of pollution and the health hazards which accompany such a problem have been eliminated. Improved service is being provided to the Duchesne County Hospital, the Roosevelt Medical Center and the city's junior and senior high schools . Grade A- - significant new or improved service to the community at large . Project Type: Water Treatment and Distribution Facilities Project Number: 080100108 Applicant: DeQueen, Arkansas Project Financing: Total: $808,000 EDA Grant: $404,000 Date Approved: April, 1966 Date Completed: September, 1968 PROJECT BACKGROUND The City of DeQueen, population 2,850, is located in the southwest portion of the state of Arkansas in Sevier County. The area was designated in 1965 on the basis of a high unemployment rate. In 1968 that status was terminated. The county in which DeQueen is located, however, remains a part of the Southwest Arkansas Economic Development District and is within the boundaries of the Ozarks Regional Commission. DeQueen applied for this project because of the severe water shortage it was experiencing. It meant that the city could not continue its current rate of growth without greatly enlarged water sources. It became apparent that unless an adequate source of water was obtained, both for quantity and quality, within the following 18 months, both the Mountainaire Poultry Plant and the municipality of DeQueen would be in serious trouble. The Mountainaire Poultry Company is a major water user in DeQueen consuming approximately as much water as all of the other users of the water service combined. Because of the poor quality and insufficient amount of water supplied, the company faced a curtailment of production which would result in the loss of some of the 375-400 jobs provided. The city is now able to furnish sufficient pure water to its residential and industrial users. It is working at less than half its capacity therefore allowing further expansion in the area. ECONOMIC DEVELOPMENT PROCESS Community leaders of DeQueen claim that their local government's attitude toward community development has always been favorable. Also, they consider community support for local economic activities to be good. Since the time of the city's application for an EDA public works grant, however, additional elements of the community have become more interested in local economic development. Local planning efforts have become much more extensive. Public facilities have been greatly improved. The consensus of those polled was that the EDA project has been a significant factor in the economic development of the area. Grade B^_ - significant improvement definite EDA impact. JOB IMPACT Number of direct jobs saved * 435 EDA investment per direct job $ 929 Number of direct job equivalents -- Number of possible future jobs _ Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent - - Firm where jobs created or saved: *Mountainaire Poultry, Inc. faced a brief shutdown in production every time the DeQueen water supply became muddy. During some summers, this happened as many as six times. Although the firm had no definite plans for relocation, it had begun to look for a site in Hope, Arkansas. The EDA project has cleared up polluted streams and ever since its completion Mountainaire Poultry, Inc. has not been bothered by this problem. STRUCTURAL IMPACT Not applicable SERVICE IMPACT According to the City of DeQueen, 88 percent of the total quantity of service provided by the water and sewer system is used by the Mountainaire Poultry Co. The remainder is split between the residents: 0.9 percent to blacks in DeQueen and 11.1 percent to whites. Sixty percent (607 o ) of the individuals serviced have family incomes under $3,500 per year. Fire protection is another benefit of the project. Grade C+ - some new service for low income residents. Minor improvement to community at large. Project Type: Sewer System Expansion Project Number: 080100111 Applicant: Sterling, Kansas project Financing: Total: $72,000 EDA Grant : $36,000 Date Approved: March, 1966 Date Completed: November, 1966 PROJECT BACKGROUND The City of Sterling, population 2,300 is located in Rice County, an area that was made eligible for EDA assistance on the basis of an ARA carry- over, but that is not now designated. In 1966, Sterling applied for and received an EDA grant which would provide a new 15" sanitary sub-main to expand the city's existing sewer system. It was anticipated that the increased demand on the overloaded sewage system would be met, and better service would be available to expanding residential, commercial, and industrial areas in the northern part of the city. ECONOMIC DEVELOPMENT PROCESS Any change in the attitudes and institutions in Sterling is difficult to analyze because of the general unresponsiveness of the community leaders. The one community leader who did provide information concerning the economic development process indicated that there has been significant improvement in all relevant factors. This is challenged by the apparent apathy of the other community leaders. However, the one leader to respond was the chairman of the Board of County Commissioners which would at least seem to indicate an interest on the part of the local government in its economic development. It was his opinion that the EDA project has been a significant factor in the economic development of the area. Letter Grade C - questionable because of inadequate information JOB IMPACT None STRUCTURAL IMPACT SERVICE IMPACT A significant part of the new sewerage service which this project provides is going to various businesses and institutions in Sterling. The Community Hospital and high school are benefiting from improved service as well as a rest home and Sterling College. New sewer lines have been extended to a part of the community that was previously without service. Approximately 25% of the total service goes to the residents of the community. Both directly and indirectly, problems of water pollution have been alleviated. Letter Grade B_ - significant new or improved service to part of the community Project Type: Water and Sewer Project Number: 080100182 Applicant: City of Melbourne, Arkansas Project Financing: Total: $60,000 EDA Grant: $30,000 EDA Loan: $20,000 Date Approved: May, 1966 Date Completed: July, 1968 PROJECT BACKGROUND The City of Melbourne is located in Izard County in the north central part of Arkansas. The population of Melbourne is 570 and that of Izard County is 6,766, with a median family income of $2,099. The county is designated as qualified for EDA assistance on the basis of low median family income. The county is part of the North Central Arkansas Economic Development District and is within the jurisdiction of the Ozarks Regional Commission. Douglas Aircraft Company, Inc. had acquired the Arkansas Aircraft Assemblies, Inc., located approximately 8 miles south of Melbourne. This facility lacked proper water, sewer, and fire protection facilities making it unacceptable for future utilization. The Melbourne Industrial Corporation entered into an agreement with Douglas Aircraft Company, Inc., to provide an assembly plant containing 35>>521 square feet in close proximity to the city limits of Melbourne. Douglas agreed, in turn, to lease this facility from the Melbourne Industrial Cor- poration for a period of ten years with an option to buy. The con- struction of new facilities were planned to result in an employment increase from U8 employed by Arkansas Aircraft Assemblies, Inc., to approximately one-hundred employed by Douglas Aircraft. This project provided the water and sewage facilities and access road which were required to serve this industrial site. These facilities were also made available for future industry that might locate in the area. Minor extensions of the sanitary sewer lines into residential areas were also included, providing additional building sites and serving the residents of the city. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been positive changes in the attitudes and institutions in Melbourne . The local government's attitude toward the community's development has become much more favorable. The local development organization has become much more active, but local planning for the physical development of the area has remained the same. Citizens are showing a greater interest in the development of their community by participating in community groups and by demon- strating a greatly increased willingness to finance local improvements. Further financial support comes from the local lending institutions which have become much more active in development financing. The community is also benefiting from somewhat improved public facilities as well as an increased number of other State and Federal programs in the community. The community leaders polled felt that the EDA project has been a positive factor in the economic development of the area. Grade B- - some improvement, moderate EDA impact JO B IMPACT Number of direct jobs 2_ EDA investment per direct job $25,000 Number of direct job equivalents — Number of possible future jobs unknown at present Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent — Firm where jobs were created: At the time Douglas Aircraft, Inc. acquired Arkansas Aircraft Assemblies, Inc., the latter employed 32 people in its Melbourne plant. Douglas made an initial employee increase of about 6^-70 people and reached an employment peak of 101; in July, 1969. Since that time, however, employment has continually declined and is now at 3h full-time employees. About two-thirds of the employees are on lay-off. Because the situation is so flexible, any conclusions stated at this time would be meaningless. STRUCTURAL IMPACT Although the firm is a branch of a large national corporation, now the McDonnell Douglas Corporation, the financial uncertainty of the company seems to have precluded any contribution it might have made to the structure of the economy. The level of employment is not stable, and at this time, any advantages of the expansion might have brought to the local economy have been negated. Grade D SERVICE IMPACT Although the main purpose of this project was to serve industry, about U0$ of the service is going to residents in the area who are now benefiting from new sewerage facilities. Residents that pre- viously depended on wells and cisterns, which provided water of questionable quality, now have available to them a better water supply. The project also made it possible for the city to extend its water lines to the Moss America Company, providing it with adequate fire protection. Grade B - significant new service to part of the community Project Type: Water and Sewer Systems Project Number: 080100237P Applicant: Town of Independence, Louisiana Project Financing: Total: $402,000 EDA Grant: $201,000 Date Approved: August, 1966 Date Completed: August, 1968 PROJECT BACKGROUND The Town of Independence, population 1,91*1, is located in Tangipahoa Parish in the north central part of the "toe" of the "boot" of Louisiana. In 196U, two industries in Independence, a cannery and an oak flooring plant, closed with a loss of 310 jobs and an annual payroll of $U76,000. In 1965, three other plants decreased their employment by 1,121 with a payroll loss of $U, 378,000. The area is eligible for EDA assistance on the basis of persistent unemployment and is part of the Capital Economic Development District. The inadequate sewerage system very probably contributed to the fact that the Dilbert, Bancroft and Ross Company had eliminated from consideration a site near Independence as a possible location for a foundry. The inadequate water system, with its low pressure, is believed to have contributed to the total loss by fire of the Independence High School in 1965 . In 1966, Independence received an EDA grant to improve and extend the existing sewerage system, drill a new water well, add a water pumping unit, construct an elevated storage tank, and extend water distribution lines. It was anticipated that this project would make the town acceptable for industrial location, eliminate a serious health problem due to raw sewage overflowing into the streets and backing up into users' service lines, and by providing adequate fire protection for local residents and industry. The project is now serving the residents of Independence and the sur- rounding rural area. The Lallie Kemp Charity Hospital is also benefiting from the project. ECONOMIC DEVELOPMENT PROCESS There has been only a marginal degree of change in factors relating to the economic development process in Independence since 1966. Both the level of activity in development financing by the local lending institu- tions and the willingness of citizens to finance local improvements has remained unchanged. The factor in which the greatest improvement occurred was in the area's participation in the district program which has increased greatly. Other factors that have shown some improvement are the local government's attitude toward the community's development, local planning, support for development efforts by community groups, and the level of activity by the local development organization. The number of other State and Federal programs in the community has increased greatly with construction of 32 public housing units. Although the community leaders feel their town is still in financial straits and in need of street repairs, a general cleanup and a land- scape project, they do feel that the EDA project has been of some assistance in the economic development of their area. Grade C_ - some improvement, some EDA impact JOB IMPACT STRUCTURAL IMPACT SERVICE IMPACT At least 90 percent of the water and sewer service that this project provides goes to the residents of the community. Most of the people served are in the lower income bracket. The extended portion of the project serves about 75 families who were previously without sanitary sewers. Water pollution has been alleviated in areas where raw sewage was emptying in streams because they were without sewers. Ten percent of the service goes to the Lallie Kemp Charity Hospital. Grade B+ - new or improved service to a predominantly poor portion of the community Project Type: Water Line Extension and Sewage Treatment Facility- Project Numbers: 080100265 and 080200075C Applicant: Monticello, Arkansas Project Financing: Total: $282,000 EDA Grant: $76,000 Dates Approved: June, 1966 (water) Dates Completed: July, 1968 (water) May, 1966 (sewage) July, 1968 (sewage) PROJECT BACKGROUND Monticello, population u,Ul0, is located in an area of decreasing agricultural employment in Drew County in southeast Arkansas. The population of Drew County decreased almost 23 percent between 19l|0 and I960, principally among young people. The area is designated for EDA assistance on the basis of high unemployment and outmigration rates. Prior to 1966, two rug manufacturing divisions of Burlington Industries were located in Monticello. These two plants needed a local source of spun yarns, which led to the construction in 1967-1968 of a third division of Burlington in the Monticello area. The two plants that existed in Monticello prior to 1966 used a dyeing process that required large quantities of water resulting in the discharge of large amounts of waste effluent into open ditches draining into a local creek that flows into Bayou Bartholomew in eastern Drew County. The resultant pollution problem became of such proportion that the Arkansas Pollution Control Commission required that an appropriate industrial waste disposal system be constructed. In early 1966, the City of Monticello applied for and received EDA funds to assist in two projects. One project was for the construction of two miles of 12-inch water line to service the site of the proposed spinning mill, the Monticello municipal airport, and low- income residences in the area. The second project called for construction of an industrial waste disposal system consisting of sewage oxidation ponds to prevent water pollution. In addition to their specific purposes, the two projects were expected to be instrumental in attracting new industry to the Monticello area, which would help to decrease unemployment and alleviate the necessity for local residents to leave the area to find employment. ECONOMIC DEVELOPMENT PROCESS Since 1966, several of the factors relevant to the economic development process have undergone significant changes. Improvements in other areas have been only slightly less meaningful. Monticello' s participation in the Southeast Arkansas Economic Development District has increased greatly since 1966, and the area OEDP group has become much more active. Local planning for Monticello's physical development has become more extensive as local development organizations concerned with economic and industrial development have become more active. Improved attitudes by local residents toward Monticello's public facilities are reflected in plans for a new model school project, a new general hospital, vocational- technical school development, and a satellite state mental hospital, all to be incorporated into a new health, educational, and cultural complex in Monticello. The one area in which the economic development process of Monticello has not shown progress since 1966 is in the development finance activities of local lending institutions. However, this has been offset by increased willingness of local citizens to vote for higher taxes to help finance local improvements. After voting a 10-mill increase for school planning and construction, local residents supported another £-mill increase voted by all of Drew County to build the new general hospital proposed for the new complex. Three of the five Monticello community leaders questioned concerning the impact of the two EDA projects feel that these projects have been the major reason for Monticello's economic development since 1966. The other two community leaders feel that the EDA projects have had a significant impact both upon local industrial employment and upon utility services to local residents. According to one community leader, not only are local officials cognizant of the impact of the EDA projects, but Monticello residents are well aware that EDA funds have made possible the expansion. of the local economy. Grade A- - large-scale process change; major EDA ijnpact. JOE IMPACT Number of direct jobs 180 EDA investment per direct job $1+22 Number of direct job equivalents 108 Number of possible future jobs 100 Number of indirect job equivalents 32 EDA investment per direct and indirect job equivalent $j?U3 Firm where jobs were created: Charm Tred Spinning Mills , which is interconnected with Charm Tred Mills and Monticello Carpet Mills, produces synthetic spun yarns for use by the other two plants in the manufacturing of rugs and carpets. The three plants together employ 1,100 workers, and have a total capital investment of $1^,000,000 in Monticello. The EDA projects which contributed to the construction of the Charm Tred Spinning Mills plant are credited with helping to create 180 new jobs and $U a 000,000 of the total capital investment. STRUCTURAL IMPACT 95% living in county where firm is located T&% heads of household 2%% increase in weekly average income 2%% previously unemployed Wiile the establishment of the Charm Tred Spinning Mills plant in Monticello has not contributed to the industrial diversification of the Monticello area, the plant's affiliation with Burlington Industries and its two established Monticello rug and carpet factories means that the employment created for the Monticello area should have a high degree of stability. The rugs and carpets manufactured from the synthetic spun yarns produced by the Charm Tred spinning mills are exported from Monticello for sale outside the area, strengthening the city's economic base. Grade C+ SERVICE IMPACT Approximately 95 percent of the total water and sewage facilities provided by the EDA projects are currently being used for industrial purposes, with the remaining $ percent being utilized by the municipal airport and local residents. Water is now available to residents who did not have it previously. Residents were also permitted to connect with the city sewer line without cost to them, making it possible to discontinue the use of septic tanks and open toilets, and contributing to the elimination of the offensive odors which had resulted from the disposal of waste prior to completion of the EDA projects. While the percentage of total service utilized by local residents is rather small, a number of those being serviced are Negroes and/or low- income members of the community. Grade C - some new or improved service to the community at large, and marginal service to low- income residents. Project Type: Water and Sewer Systems Project Numbers: 0801005l£P, 080100516P, and 080200£l7 Applicant: Cokeville, Wyoming Project Financing: Total: $260,000 EDA Grants: $111,000 Date Approved: June, 1966 Dates Completed: July & August, 1968 PROJECT BACKGROUND The Town of Cokeville is located in the Bear River Valley in southwest Wyoming. The economy is based upon agriculture, logging, and recreation. Cokeville, population 5I|.0, is in Lincoln County, an area that was made eligible on the basis of an ARA carry-over, but that is not now designated. In 196$, development in Cokeville was impeded by an inadequate water storage and distribution system and by inadequate waste collection and treatment facilities. The town did not have adequate fire pro- tection, and improper water disposal facilities threatened the recreational potential of the Bear River Valley. In 1965, the community approved by a 2 to 1 vote, a bond issue to supply $1U9,000 for the construction of water and sewage facilities. EDA grants provided the additional money that was needed. A sewage treatment plant, a sewage collection system, and a water storage reservoir and transmission lines to the town were constructed. It was anticipated that the project would enable the town to grow and develop as the only urban center of the upper Bear River Valley. ECONOMIC DEVELOPMENT PROCESS The economic development process of Cokeville does not seem to have been very dynamic since 1966. Public facilities in the area have been somewhat improved. The willingness of local citizens to finance local economic improvements has not changed, although it is evident from the bond issue voted to help finance these EDA projects that the local citizens were conscious of the necessity for economic develop- ment even prior to 1966. This attitude has been reinforced by increased support of community development efforts by local community groups. The primary influence that the EDA projects have had on Cokeville' s economic development is seen in terms of health benefits to the community at large from the sewage facilities, plus the provision of facilities enabling construction of a few new homes. Otherwise, the EDA projects appear to have had little influence. Grade C- - limited process change; little EDA impact JOB IMPACT None STRUCTURAL IMPACT SERVICE IMPACT Of all the water and sewage facilities provided under the EDA projects, approximately 113,800 gallons per day are being utilized by residents. Cokeville's population is approximately 90 percent white and 10 percent Spanish- American. Of the total quantity of service provided, about 10 percent is utilized by low- income families earning less than $3,500 annually. It is not known if there is a correlation between the low- income families and the local minority group members. Grade C - some improved service to the community at large and marginal service to low-income residents. Project Type: Water and Sewer Systems Project Number: 080100524 Applicant: Fort Garland Water and Sanitation District, Fort Garland, Colorado Project Financing: Total: $301,000 EDA Grant: $241,000 Date Approved: January, 1968 Date Completed: December, 1968 PROJECT BACKGROUND The Town of Fort Garland, population 423 in 1967, is located in Costilla County in south central Colorado. Costilla County is in what is colloquially called the San Luis Valley, an area which has agriculture as its principal economic activity. Costilla County is an area marked by high rates of out- migration (53%), underemployment (68%), and unemployment (between 13.2% and 11.47o from 1965 to 1968). The area is designated for EDA assistance on the basis of persistent unemployment. In 1967 when the EDA project was applied for, the Costilla County area was experiencing a prolonged drought and a typhoid outbreak brought about in part by the contamination of water and food. The EDA project provided for the construction in Fort Garland of a community water system with a reservoir, and a waste disposal and waste treatment system. The anticipated economic impact of the project was the promotion of expansions in tourism and the provision of water and sewer services which would increase the possibility that a potato processing plant, a motel and restaurant, and an office of the U. S. Forest Service would locate in the area, making more than 100 jobs available to low-income families in the area. While no industries have yet located in Fort Garland, the EDA project has provided a sanitary source of water, and sewage treatment and disposal systems, for an area which has never had such facilities. ECONOMIC DEVELOPMENT PROCESS Fort Garland's economic development process has seen improvement in all its component factors since 1967. The greatest increase has been in the number of State and Federal programs active in the area. Both the local government and community groups have displayed increased interest in the area's economic development, and the area has increased its participation in the 15-county Southern Colorado Economic Development District. Community leaders familiar with the EDA project consider it to have been a factor in the area's economic development. However, they seem to minimize the EDA's impact because it has not yet produced any of the employment projected for the area. Grade B_^ - general development process change; limited EDA impact JOB IMPACT None STRUCTURAL IMPACT None SERVICE IMPACT Fort Garland has a population about 95 percent Spanish-American. Of the total quantity of service provided by the EDA project, all of which is presently being utilized by residents, approximately 80 percent services low-income families. The project has supplied sanitation facilities to an area completely lacking in such, and has practically eliminated the danger of local people using unsafe, polluted water. Grade Af - significant new service to substantial percentage of low-income residents Project Type: Water System Improvements Project Number: 080100526 Applicant: Fountain Green, Utah Project Financing: Total: $96,000 EDA Grant: $58,000 Date Approved: June, 1967 Date Completed: July, 1968 PROJECT BACKGROUND Fountain Green, population 540, is located in a small valley in Sanpete County, an area that is eligible for EDA assistance on the basis of persistent unemployment. Agriculture is the major base of the economy, with the turkey industry accounting for 34.4% of the area's employment. The turkey production industry involves growing, hatching, processing feed, and marketing. Foun« tain Green is in the turkey growing area of the valley. Thirty-five million pounds are produced annually with the growing of over two million birds. Water has been one of the major factors in the expansion of the turkey-growing industry. In 1967, Fountain Green received an EDA grant to improve its water through the construction of spring collection boxes, a new storage reservoir, distribution mains, and larger supply mains. The project was to serve the outlying areas of the city where more than a dozen family-owned turkey pens are located. The turkey producers expected to be able to double their output within 10 years in order to meet the increasing demand for turkeys at the Moroni Processing Plant in Moroni, Utah. ECONOMIC DEVELOPMENT PROCESS Since 1967, there have been significant changes in the economic development process in the area. In Fountain Green the public facilities have been greatly improved, planning for the physical development of the area has increased, and the local government's attitude toward the community's development has become more favorable. However, there have been no changes in the degree of development financing by local lending institutions. More notable developments are taking place beyond the immediate city-level. Plans are underway to organize a County Housing Authority which will use Federal money to provide housing for the migrant laborers in the turkey industry. Sanpete County is now part of the recently organized six-county EDD, and a Council of Governments is being organized. The community leaders responded that the EDA project has been a major factor in the economic development of the area. With the increased supply of water, the turkey growers hae greatly increased their output. The turkey-production industry has been expanding in all of its phases. The plants involved in the industry are owned cooperatively by the growers, and in 1969, they had a payroll of $1,200,000. During 1970, $1,500,000 will be invested in the expansion of the turkey processing plant and feed mill and in construction of a new plant, where further processed items such as turkey rolls, roasts, parts, etc. will be made. Letter Grade B+ - significant improvement and EDA impact. JOB IMPACT The EDA project has played an important part in the expansion of the turkey growing stage in the turkey-production industry. The industry has been expanding at all levels, however j no new jobs can be directly attributed to the EDA project. STRUCTURAL IMPACT Not applicable, except insofar as EDA had a role in the expansion of the irea's major base industry. SERVICE IMPACT The total quantity of service from the project is 324,000 gallons of water per day. Of this quantity, 4% services the turkey growers, with the remainder providing residential and commercial water to Fountain Green. The town now has a good, reliable water supply for all domestic uses and for fire protection. Letter Grade B - significant improved service to the community at large. Project Type: Sewage Collection and Treatment Facilities Project Numbers: 080100536 and 080200408 Applicant: Ladonia, Texas Project Financing: Total: $111,000 EDA Grant: $40,000 Date Approved: May, 1967 Date Completed: July, 1968 PROJECT BACKGROUND Ladonia is a small community of about 890 people located in the depressed area of the southeastern sector of Fannin County. Originally, the economy was largely agriculturally oriented but with the decline of agriculture, there was an outmigration of 27.7 percent between 1950 and 1960 from Fannin County. The median family income for Fannin County is $2,772. The area is designated for EDA assistance on the basis of low-income and high out- migration. In 1967, the City of Ladonia received EDA assistance to provide sewage collection and treatment facilities. These facilities were needed to serve low-income areas where privies were in use, to enable a principal business to continue its operations, and to eliminate pollution of a local stream caused by dumping of raw sewage. The project also was to help improve health conditions and to make Ladonia more attractive as a location for industry. The EDA grant for the sewage treatment facility supplemented an FWPCA grant. The project has provided sewage collection for low-income areas of Ladonia, and sewage treatment for the town as a whole. The health hazard caused by dumping raw sewage into a local stream has been eliminated. Bill's Auto Parts and Garage, the principal employers in the community, has been able to continue in business. ECONOMIC DEVELOPMENT PROCESS Since 1967, there have been limited changes in the economic development process of Ladonia. The local government's attitude toward development has become more favorable, and local development groups have taken a more active role. However, the lending institutions have not changed their policies concerning development financing. The residents of Ladonia, on the other hand, have become more willing to finance local improvements, and community groups support community development efforts to a greater extent. The community leaders who responded agreed that the EDA projects have been factors in the economic development of Ladonia, with one pointing to them as the major reason for development. Grade C+ - some improvement, some EDA impact JOB IMPACT Number of direct jobs 18 EDA investment per direct job $2,233 Number of direct job equivalents -- Number of possible future jobs -- Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent — Firm where jobs were saved: Bill's Auto Parts and Garage , a principal employer, required adequate sewage facilities to remain in business. The firm has a capital investment of $100,000 at this location, and employs 18. The garage rebuilds engines and used farm tractors. STRUCTURAL IMPACT Statistical information not available. Although the jobs saved at Bill's Auto Parts are important to the small community of Ladonia, the structural impact of the project is minimal. SERVICE IMPACT The EDA project provides sewage collection and treatment facilities for low- income areas where such services were not previously available. The President of Ladonia 's Chamber of Commerce noted that "the EDA project has been responsible for the elimination of practically all outdoor toilets in Ladonia." Low-income families use 30 percent of the total quantity of the service. The entire town is served by the treatment plant. In addition to Bill's Auto Parts and Garage, all other firms are served by the project. The project has had favorable effect on water pollution by eliminating dumping of raw sewage into a local stream. Grade A+ - significant new service to substantial number of low-income residents and the community at large. Project Type: Water Line Project Number: 080100563 Applicant: Town of Altus, Arkansas Project Financing: Total: $89,000 EDA Loan: $27,000 EDA Grant: $Uh, 000 Date Approved: June, 1967 Date Completed: October, 1968 PROJECT BACKGROUND The Town of Alt us, population 390, is located in Franklin County, Arkansas. The economy of this area is based on two wineries, agri- culture, health services, and small retail service and sales facilities. The area is eligible for EDA assistance on the basis of persistent unemployment. The survival of Altus depended upon whether adequate water could be supplied to the town. In 1967, the town applied for and received an EDA grant to construct a water transmission line and booster pump between Altus and Ozark, Arkansas. It was anticipated that kh jobs would be saved or created as a result of the project. Further develop- ment would be possible when an adequate supply of water was available for home and small industrial use. The EDA project presently supplies water for the entire Town of Altus. It has enabled a local winery to expand its operations. Also, the steam generating plant, previously supplied by wells which went dry, was able to hook on without any interruption of service. ECONOMIC DEVELOPMENT PROCESS Since 1967 there has been a significant change in the Town's attitudes. The local government has become more favorable toward economic develop- ment activities. The local lending institutions, planning agency, development organization, and the 0EDP group have all increased efforts in this field. Public facilities are greatly improved, and citizen support, financial and otherwise, has grown. Concern for the poor has increased throughout this period. The Town of Altus has participated much more in the districts program, and the number of State and Federal programs in the community has increased somewhat. Community leaders see the EDA project as being a prime factor in the economic development of that area. It has made it possible for the Town to make plans for a housing project which will have 5>0 units. Seventeen new homes have been built since the completion of the project. The project was also instrumental in starting the Ozark Recreation Area with 250 members. However, all expressed the great need for a sewer system, more and better housing, road improvement, and attraction of industry. Grade B+ - significant improvement; substantial EDA impact JOE IMPACT Number of direct jobs 29 EDA investment per direct job $2 ,448 Number of direct job equivalents 18" Number of possible future jobs minimum of 3 Number of indirect job equivalents |> EDA investment per direct and indirect job equivalents $3,870 Firms where jobs were saved or created: As a result of the EDA project, Post Winery, Inc. was able to buy another winery and undertake an increase in production. This expansion amounted to an increase in capital investment of $1±0,000. At Pillstrom Nursing Home ^ 12 jobs were saved because the new water supply made enough water and pressure available to meet the needs of the nursing home's required sprinkler system. Although jobs were saved, employment could be doubled if there was a sewer system in the Town. STRUCTURAL IMPACT Saved jobs 100 $ living in county where firm is located 10% heads of households Created jobs 100$ living in county where firm is located 50$ heads of households - % increase in weekly average income - % previously unemployed Both firms continued the same kinds of activities they were involved in before the EDA project. Thus, there was no diversification of the economy or creation of new opportunities. The project did serve to strengthen the local economy and to make the area more attractive for further development. Grade D SERVICE IMPACT The EDA project furnishes 100% of the water used by citizens of Altus, 80% of whom have yearly family incomes under $3,500. Also serviced by the water facility are small businesses {!$%) , a steam generating plant (5%), Ozark Recreation Area (1%) , and a nursing home (1%) . Grade A+ - significant new service to substantial number of low- income residents. Project Type: Water System Improvement Project Number: 080100582 Applicant: Navasota, Texas Project Financing: Total: $142,000 EDA Grant: $85,000 Date Approved: August, 1967 Date Completed: September, 1968 PROJECT BACKGROUND Navasota, population 4,930, is located in Grimes County, an area that is eligible for EDA assistance on the basis of low income. During the summer of 1966, the city's water supply was just able to meet the demands of the domestic and industrial consumers. However, when one of the city's four wells collapsed, the city feared that it would have to ration water during the summer months, thereby causing industries to curtail their operation and layoff employees. In 1967, Navasota applied for and received an EDA grant to improve the city's water system through the construction of a new water well, an aerator and tower, a 1 ,000,000-gallon storage tank, a chlorinator and appur- tenances. The project was to assure an adequate water supply for Navasota, enable existing industries and businesses to expand, and permit new industries to locate on an industrial park developed by the Navasota Industrial Foundation. ECONOMIC DEVELOPMENT PROCESS Substantial changes have occurred since 1967 in the economic development process of Navasota. Planning and financing for development activities have become much more extensive. The support of citizens and community groups for development efforts has greatly increased, and the local government's attitude toward the community's potential for development has become more favorable. However, there are no other State or Federal programs in the community. In addition to the new industries which have been established since 1967, the applicant describes significant signs of the community's confidence in its continuing development. Three new commercial stores have been established, a supermarket has built a new store, a motel has expanded, and a new 32-room elementary school has been built. Also, a new wing has been added to the Grimes Memorial Hospital, a 60-unit, low-rent housing project has been constructed, and 853 acres of land have been annexed by the city. The community leaders questioned agreed that the EDA project has been a significant factor in the economic development process of Navasota . With the improved water facilities, the city has been developing more rapidly, although high interest rates have recently reduced local invest- ments . Grade B+_ - positive improvement, significant EDA. impact JOB IMPACT Number of direct jobs 109 EDA investment per direct job $ 780 Number of direct job equivalents Number of possible future jobs 55 Number of indirect job equivalents - EDA investments per direct and indirect job equivalents - Firms where jobs were saved or created: The L. B. Foster Company of Pittsburgh, Pa ., established a plant in the new industrial park, which is serviced by the EDA project. The company located in Navasota because of the availability of land and labor. Pre- sently 15 jobs have been filled and the firm expects to create approximately 20 more within the next two years. Pipe couplings are manufactured at the plant, where the firm has a total capital investment of $400,000. The Navasota Sewing Company , a branch of the Perl Pillow Company of Houston, TexaSj located in Navasota on account of the availability of female labor, the plant facilities, and the interest shown by the community in new industries. The plant, which is on the industrial park, was built by the Navasota Industrial Foundation after the completion of the EDA project, and leased to the company. Sixty-five thousand dollars have been invested in the plant which is used to produce pillow covers and outdoor furniture pads. Thirty-five people are presently employed, and this number is expected to double within the next two years. The Jewett and Sherman Company manufactures salad dressing products in Navasota. The EDA project enabled the company to continue operation and to expand by adding new and larger food processing equipment which requires an adequate supply of water. Nineteen people are employed at the plant. The Sweetbriar Nursing Home was established in Navasota after the EDA pro- ject had been in operation. An adequate water supply was necessary for its operating. There are 40 employees. STRUCTURAL IMPACT Information on employees was not available. The three manufacturing firms export over 70% of their goods out of the area. The two new firms are affiliated with larger companies and have brought new types of industry into the area. The nursing home is another new "industry" for the area, and also adds to the diversification of the economic base. Grade C+_ - (based on available information) SERVICE IMPACT The EDA project serves old and new industries, businesses and residences by furnishing an adequate year-round supply of water, preventing rationing of water during the summer months, and improving fire protection. The pro- ject provides 576,000 gallons of water per day. Eighty-five percent of the total quantity of service goes to commercial and industrial users and 15% to residential users. Two percent of the total service is used by low-income residents. Of the total quantity of service to residents, 30% is used by Negroes, 30% by Spanish Americans, and 40% by whites. Grade B - significant improved service to the community at large. Project Type: Water and Sewer Project Number: 080100625 Applicant: Lincoln County Commissioners, Pioche, Nevada Project Financing: Total: $l5h,000 EDA Loan: $62,000 EDA Grant: $92,000 Date Approved: November, 1966 Date Completed: July, 1968 PROJECT BACKGROUND Pioche is in Lincoln County, an area that is located in the expansive, sparsly populated, southeastern part of Nevada. The economy is based on agriculture, mining and tourism. Lincoln County is eligible for EDA assistance on the basis of persistent unemployment. The Town of Pioche is the largest, most productive town in the county. It is the county seat, and the trade and service center for the surrounding small towns and areas. Pioche contains the only bank, newspaper, telephone company, elementary school and fire department in the area. In 1966, Pioche applied for and received an EDA grant and loan to con- struct sewage treatment facilities and to increase the water supply by- connecting two new wells to the existing water system. The project was needed to meet an increasing demand for water and to eliminate the in- adequate sewer system which terminates in two septic tanks. Effluent from the tanks and untreated sewage are discharged onto land adjacent to the town, creating a hazardous and unpleasant situation. The project was expected to improve Pioche' s growth potential as a trade and service center and its attractiveness to industries and tourists. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been some changes in the economic development process in Pioche. The support of community development efforts by community groups has increased greatly, the public facilities have been improved, and local citizens are more willing to finance improve- ments. On the other hand, lending institutions have become less active in development financing. While the activities of the 0EDP group have increased greatly, the number of other State and Federal programs has remained the same . The majority of community leaders responded that the EDA project has been a factor in the economic development of Pioche. One leader stated that the project has had little influence up to the present time but that there are several prospective industries. As a result of the increased facilities, it has been possible to solicit firms to locate in Pioche, and the community leaders are optimistic about further economic development. Grade C - some improvement, little EDA impact at this time JOB IMPACT Number of possible future jobs 70 To date, no new jobs have been created. However, two new mining industries are being developed because of the additional water supply. When the mines are in full production, they will employ approximately 70 people. STRUCTURAL IMPACT None SERVICE IMPACT The project is supplying excellent water and sewage treatment for the town. The adequate and constant water supply has greatly improved the service to both domestic and industrial users. The sewage disposal plant has improved the environmental health of the community and eliminated the un- pleasant odors that had been prevalent with the former system. Thirty percent of the new services are used by industry. The Combined Metal Reduction Company is the major user of the new water service. The two wells have helped the company's operations because there are no longer interruptions from water shortages. Of the residential service (70$ of the total), 30$ is used by families with incomes below $3,5>00. Grade A - significant new service to the community at large Project Type: Sanitary Sewerage System Project Number: 080100729 Applicant: Weslaco, Texas Project Financing: Total: $110,000 EDA Grant: $44,000 Date Approved: May, 1968 Date Completed: January, 1969 PROJECT BACKGROUND The City of Weslaco is located in Hidalgo County in the Rio Grande Valley at the southern tip of Texas. With a population of 15,640, the city is the largest in the county, serving as one of the major shipping centers in this predominantly agricultural area. The county, population 180,404, was designated as an EDA Redevelopment Area in July of 1966 on the basis of high unemployment. That status was terminated in June, of 1969. The county is one of three which makes up the Lower Rio Grande Economic Develop- ment District. The Lower Rio Grande Valley Research and Extension Center, consisting of the U. S. Department of Agriculture Laboratories and the Texas A & M University Experiment station, is located east of Weslaco. The result of research conducted at the center has had a direct impact on agriculture, the economic base, of the Rio Grande Valley. In 1968, when the application for this project was submitted, the center was suffering from a totally inadequate sewage disposal system consisting of septic tanks and drain fields. The system had been over-taxed by growth of the center's facilities and staff. The problem was further intensified by the rains from Hurricane Beulah which raised the area's water tables and flooded the drain fields. Turning to the Federal Government for the first time since 1933, Weslaco, sought assistance from EDA to alleviate this problem. The project provided for the construction of a sanitary sewer line to extend a collection line from the existing sanitary sewerage system of the city. As well as solving the sewage problems of the center, numerous other beneficiaries are making use of the line along its entire route. ECONOMIC DEVELOPMENT PROCESS Since 1968 when this project was applied for, there have been significant changes in attitudes and institutions in Weslaco. The very application iself represented an important change in attitude on the part cf the local government toward Government assistance. Today, the fears and suspicions seem to have disappeared as evidenced by the government's much more favorable attitude toward the community's economic development and the greatly increased number of State and Federal programs in the community. Weslaco has an active OEDP committee and a local development organization which has become somewhat more active. Local planning for the physical development of the area has become much more extensive, aided by the community's continuing activity in the district program. While providing a much needed service to the Lower Rio Grande Valley Research and Extension Center, this project opened up an entire area to new develop- ment. As the homes and businesses along the line have obtained service, development of the adjoining property has been made possible. The city has been able to extend lateral lines from this main line, significantly expanding the area served. Plans for the development of the area are numerous and include a 300 space trailer park which would result in substantial retail spin-off. The center also has an expansion program planned which this project will make possible. The community leaders surveyed were extremely enthusiastic about this project and one stated that "no greater service could have been granted the City of Weslaco." The EDA project was credited with being the major reason for economic development in the area. Grade A - significant improvement, significant EDA impact. JOB IMPACT Information not available STRUCTURAL IMPACT Information not available SERVICE IMPACT This project brought new service to approximately 60 homes which had previously been relying on septic tanks, outhouses and cesspools for sewage disposal. The majority of those served were poor and predominantly Mexican-American . Grade C+ - significant new service to a small number of residents, predominantly poor and Mexican-American,, Project Type: Industrial Park Facilities Project Number: 010100075 Applicant: Calais, Maine Project Financing: $114,000 EDA Grant : $57,000 EDA Loan: $34,000 Date Approved: June, 1966 Date Completed: December, 1967 PROJECT BACKGROUND Calais, population 4,220, is located in eastern Maine near the Canadian border. Calais is situated in Washington County, which has had an economy based on forestry, agriculture, and commercial fishing. In recent years agriculture has declined and commercial fishing has suffered due to the area's distance from available markets and the lack of processing plants. The area is designated for EDA assistance on the basis of persistent unemploy- ment . Recognizing its economic problems and endeavoring to expand economic opportunities by attempting to locate industry in the area and to utilize the natural timber and fish resources to their fullest extent, Calais in 1966 applied for and received EDA funds to assist in the provision of an access road, a sewage line, and a lift station for an 85-acre industrial park site. While there were no immediate prospects for occupancy of the industrial park, Calais officials felt that the EDA project would provide serviced industrial sites to attract industries to utilize local timber and fish resources . While the industrial park has not yet secured any tenants, the access road and sewer line are being used by a Hathaway Shirt plant contiguous to the industrial park site. In the near future a proposed nursing home may also be built along the access road. ECONOMIC DEVELOPMENT PROCESS While most of the factors in the economic development process in Calais have shown only slight improvement since 1966, the willingness of local citizens to finance local economic development has increased greatly. This is signi- ficant in an area in which the activities of lending institutions in the field of development financing has remained virtually constant. Local community leaders also expressed the opinion that State and Federal programs other than EDA had shown markedly increased activity since 1966. Most community leaders questioned concerning the EDA project feel that it has been a factor in the economic development of Calais, but they do not seem to feel that the project was any more important then other factors related to local economic development. Grade C+ - some process changes; some EDA impact JOB IMPACT Number of direct jobs 4_0 EDA investment per direct job $2,275 Number of direct job equivalents 33 Number of possible future jobs 80 Number of indirect job equivalents 1_0 EDA investment per direct and indirect job equivalent $2 ,116 Firm where jobs were created: The Hathaway Shirt plant in Calais feels that the EDA project, through the provision of an access road and sewer lines, was responsible for creating approximately 40 of its present 160 jobs. With a total capital investment of $200,000, the company manufactures shirts which are mostly shipped outside the Calais area. Within the next two years Hathaway Shirt expects to create 80 more jobs at its Calais plant. STRUCTURAL IMPACT Created jobs: 857, living in county where firm is located 15% heads of household -~7o increase in weekly average income --% previously unemployed As a subsidiary of a nationally rated company, the Calais Hathaway Shirt plant should provide relatively stable employment for the area. However, as the company is not the only one in the Calais area connected with the apparel industry, the employment created as a result of the EDA project does not contribute to industrial diversification. Eighty-five percent of the new employment created by the EDA project has gone to residents of Washington County. Many of the jobs have gone to women and only 15 percent of the new jobs went to heads of household. Grade C+ SERVICE IMPACT No service to residents Project Type: Industrial Park Facilities Project Number: 010100209 Applicant: Lyons, New York Project Financing: Total: $110,000 EDA Grant : $55,000 Date Approved: May, 1967 D ate Completed: May, 1968 PROJECT BACKGROUND The Village of Lyons, population 4,670, is located in south central Wayne County, which borders on Lake Ontario. The Wayne County area has numerous historical sites and recreational facilities, which are factors in creating seasonal unemployment. The city of Rochester dominates the employment market and determines the wage level in the Wayne County area. While the unemployment rate in Wayne County dropped from 8.3 percent in 1964 to 6.3 percent in 1966, the Village of Lyons, in 1966, lost 248 manufacturing jobs» The area was made eligible for EDA funds on the basis of persistent unemployment, and the status of the area has been terminated since June, 1968. The EDA project called for the construction of a water main and an access road to open up an industrial park. The Lyons Chamber of Commerce had owned the industrial tract of land since 1960, and ownership was transferred to the Lyons Industrial Development Corporation in 1967 . Prior to the EDA project, promotional efforts had attracted a number of inquiries from prospective tenants for the industrial park, but these companies lost interest when they found the site did not have public facilities „ It was projected that the opening up of the Lyons Industrial Park through construction of a water main and access road would enable the immediate location of the KMP Division of the Parker-Hannif in Corporation, and the attraction of new industries under a comprehensive master plan drawn up by the Village of Lyons to stimulate the local economy., By early 1970, the KMP Division of the Parker-Hannif in Corporation was located on the Lyons Industrial Park and land had been sold to the J. L„ Hammett Company for construction of a new plant, possibly in 1970. A small processing plant was also considering construction on a site in the industrial park. ECONOMIC DEVELOPMENT PROCESS Since 1966, the local government's attitude toward Lyons' economic develop- ment has become much more favorable, and the area's participation in the district economic development program has increased greatly. However, during this same period there have been no changes in the support of community development efforts by community groups, or in the development financing activities of local lending institutions, and only slight improvements in the willingness of local citizens to support revenue-raising measures for financing local economic improvements. The opinions of community leaders in Lyons concerning the influence of the EDA project upon the area's economic development showed some variation, but the general consensus was that the EDA project had been a significant factor. Grade B- - inconsistent process changes; significant EDA impact JOB IMPACT Number of direct jobs 200 EDA investment per direct job $ 275 Number of direct job equivalents 160 Number of possible future jobs 50 Number of indirect job equivalents 48 EDA investment per direct and indirect job equivalent $ 264 Firm where jobs were created: The KMP Division of the Parker-Hannif in Corporation manufactures automo- tive products on a 20-acre site in the 125-acre Lyons Industrial Park. With 200 full-time employees and a total capital investment of $500,000 the firm located in Lyons because of the facilities at the industrial park, and an available supply of labor. Within the next two years expansion plans call for an increase of approximately 50 jobs. STRUCTURAL IMPACT Created jobs: 100% living in county where firm is located 30% heads of household — % increase in weekly average income — % previously unemployed The Parker-Hannif in Corporation plant in Lyons, which exports most of its products outside of the area, represents not only a significant increase in employment for the area, but also industrial diversification. Because of its affiliation with a larger parent company, the local plant should be relatively more stable than a new business venture. However, as only 60 of the plants 200 workers are male employees, and only about 30 percent are heads of households, the structural impact of this plant is mainly upon the female working population of the Lyons area. Grade B SERVICE IMPACT No service to residents Project Type: Industrial Park Facilities Project Numbers: 0201000029P and 020100002901 Applicant: Newell Municipal Authority, Newell, Pennsylvania Project Financing: Total: $1,231,000 EDA Grant: $941,000 Date Approved: June, 1966 Date Completed: October, 1968 PROJECT BACKGROUND Newell is located in Fayette County in southwestern Pennsylvania. Newell, population 740, is approximately 35 miles from Pittsburgh and is bordered by the Monongahela River, which carries the largest tonnage of any river in the world. Fayette County is eligible for EDA assistance on the basis of persistent unemployment. In 1965, the non-profit Fayette County Development Council obtained a long-term option on a 25.5-acre tract which was to be developed as an industrial park. In order to provide water and sewer facilities, the Newell Municipal Authority combined an EDA grant of $676,000 with its own funds to construct a complete water treatment and distribution system. In 1966, an additional EDA grant of $265,000 was requested to complete the project. It was anticipated that 200 jobs would be created by 1970. Also, the water and sewage facilities were to benefit local residential, industrial, and commercial establishments. Although the park is vacant, the Fayette County Development Council now has 50 "live industrial prospects" that might be interested in locating in the area. ECONOMIC DEVELOPMENT PROCESS Since 1966, community leaders feel that there have been positive improvements in those local aspects of economic growth connected with the planning process. However, when it comes to implementing plans for economic growth, favorable changes in the local government's attitude toward Newell 's economic development, increased activity by the OEDP group, and increased activity by the local economic and industrial development organization, may be counterbalanced by the lack of corresponding favorable changes in the activities of local institutions in development financing, in the willingness of local citizens to finance local improvements, and in the number of other State and Federal programs in the Newell area. While community leaders in Newell generally felt that the EM project has had a substantial impact on economic development in the area, the Mayor of Newell felt that the EDA project has had little influence on the community's economic growth, largely because of the project's failure to adequately fulfill its projected service impact. Grade B - some improvement; significant EDA influence. JOB IMPACT No jobs are definitely attributable to the EDA project, although the Allied Chemical Corporation, an existing firm, feels that the available and adequate water system in Newell might allow them to expand their present staff sometime in the future. There is some evidence that the water and sewer facilities constructed as part of the EDA-funded project allowed the Allied Chemical Corporation to stabilize its existing operations, but none of the company's jobs can be credited as saved or created as a result of the EDA project. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT It was generally felt by community representatives in Newell that the EDA project had as one of its primary objectives the provision of water and sewerage services to the community residents, as well as to the industrial park. While most of these representatives felt that the EDA project had been of some benefit to local residents, there have been some complaints about the quality of some of the service. The Mayor of Newell reported that some local residences that should have received an adequate water supply are lacking sufficient water pressure, and also that facilities were not built to reach a tract of land ideal for future home sites. The problem would appear to be largely one of planning, because other community leaders feel that the EDA project has stimulated residents to undertake modernization of existing homes, and has spurred housing development with two new sub-divisions in the planning stage. A supplementary benefit of the EDA project's sewerage facilities has been the elimination of sanitary waste being discharged directly into the Monongahela River. In percentages, most of the water and sewerage facilities constructed as part of the EDA project are being utilized by industry, in particular by the Allied Chemical Corporation, which uses approximately 86 percent of the services , Local residents only benefit from about 4 percent of the total service o Grade D - marginal service to community at large. Project Type: Industrial Park Facilities Project Number: 020100085 Applicant: Beaver Falls Area Industrial Development Council, Inc. Darlington Township, Pennsylvania Project Financing: Total: $112,000 EDA Grant: $54,000 Date Approved: February, 1966 Date Completed: October, 1966 PROJECT BACKGROUND The EDA project is located in Darlington Township near Beaver Falls, approximately 36 miles north of Pittsburgh and 30 miles southeast of Youngstown, Ohio. Darlington Township, population 16,240 is located in Beaver County, which was made eligible for EDA assistance as an ARA carry-over. The area's eligibility has since been terminated. In January 1966, the Beaver Falls Area Industrial Development Council applied for and received EDA funds to assist in the construction in Darlington Township of a complete water system, including a storage tank, pump house, and distribution system, to serve the new 355 -acre Darlington Industrial Park. The project would facilitate the provision of land by the area for planned industrial growth. The first tenant for the industrial park, the Greif Brothers Cooperage Corporation, planned to build a barrel manufacturing plant which would employ approximately 100 people. By early 1970, the Greif Brothers plant was the only actual firm in operation on the industrial park. However, Ward School Bus Manufacturing Inc., was well along on construction of a plant on an 11.5-acre tract, and the D-M-E Corporation, a plastic mold operation, had begun construction of another plant that would occupy 20 acres. These two companies, when completed, expected to employ from 200 to 375 people. ECONOMIC DEVELOPMENT PROCESS Since 1966, the only significant change that has evolved has been increased activity by the Beaver Falls Area Industrial Development Council. There has also been some increase in the funding of economic and industrial activities by lending institutions in the Darlington Township area. Although opinions were mixed, there was a general consensus among area community leaders that the EDA-funded project had been a significant factor in the stimulation of economic development, primarily through the provision of increased employment opportunities. Grade C - limited development process change; significant EDA impact. JOB IMPACT Number of direct jobs 34 EDA investment per direct job $1,588 Number of direct job equivalents 33 Number of possible future jobs 300 Number of indirect job equivalents 2_0 EDA investment per direct and indirect job equivalent $1,019 Firm where jobs were created: The Greif Brothers Cooperage Corporation created 34 of its 36 jobs when it located on the Darlington Industrial Park. Occupying a 10-acre site, with a total capital investment of approximately $1,000,000, Greif Brothers moved to the Darlington Township area primarily because there was a substantial market in the Pennsylvania and Ohio area for the fibre drums it planned to produce. As the only fibre drum manufacturing unit located in the area, Greif Brothers exports most of its products outside of a 15-mile radius of the Darlington Industrial Park. Within the next two years, the company expects to create from 15 to 20 more jobs. STRUCTURAL IMPACT Created jobs: 657o living in county where firm is located 607, heads of household --%> increase in weekly average income --7c previously unemployed Greif Brothers and the two other companies, which should be in full operation by the end of 1970, represent considerable industrial diversification for an area which previously had as its major industry the manufacturing of bricks. As two of the three companies are not yet in operation, the stability of the new employment in the Darlington Township area is presently largely conjectural . Grade B- SERVICE IMPACT No service to residents. Project Type: Sewerage System Improvements and Roads for Industrial Park Project Number: 020100172 Applicant: Board of Supervisors, North Union Township, Pennsylvania Project Financing: Total: $148,000 EDA Grant: $104,000 Date Approved: June, 1966 Date Completed: August, 1967 PROJECT BACKGROUND North Union Township, population 14,420, is located in Fayette County, an area which is eligible for EDA assistance on the basis of persistent un- employment. Fayette County has suffered drastically from the depletion of coking coal reserves on which the area's economy had been dependent for many years. Efforts to diversify the economy through industrial development have met with some success, but have been hampered by the almost total lack of good industrial sites in the area. Cooperative efforts of the Uniontown Chamber of Commerce, the Fayette County Development Council, Western Pennsylvania Power Company and the applicant resulted in the development of the Union- town Industrial Park, on which three plants have been located. An adjacent 80-acre site has been added to the industrial park, which is owned by the Greater Uniontown Industrial Fund. In 1966, North Union Township applied for and received an EDA grant to construct an access road, sewage treatment plant and sewer lines to serve the park addition. The acquisition of new industries depended upon the installation of these facilities. Two "bird-in-hand" industries were the Lockheed-Georgia Company and Industrial Research Laboratories, Inc., which planned to employ 150 and 200 people respectively. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been further favorable advancement in the attitudes and institutions of the Uniontown area. For several years local government and development organizations have shown a propensity toward economic development by their efforts to bring new industry into the area. With the success of these efforts, their favorable attitudes have continued, and their activities have increased. The support of community development efforts by community groups and the willingness of local citizens to finance improvements have risen significantly. The area's participation is the district program has increased, as have the number of other State and Federal programs in the area. All the community leaders who were questioned responded that the EDA project has been a significant factor in the economic development process of the area. One claimed that the project permitted another local industrial fund drive which raised over $300,000. Grade B^. ~ continued improvement, signficant EDA impact. JOB IMPACT Number of direct jobs 229 EDA investment per direct job $454 Number of direct job equivalents 229 Number of possible future jobs -- Number of indirect job equivalents 115 EDA investment per direct and indirect job equivalent $302 .00 Firms where jobs were created: The Steel Scaffolding Company was able to expand at its site in Uniontown because the sewage treatment plant made available the additional sanitary disposal requirements. The firm made a $400,000 capital investment in its expansion with a total capital investment of $1,500,000. Fifty jobs out of a total work force of 150 were created as a result of the expansion. The firm produces steel scaffolding and shoring, safety ladders, adjustable trestles and material hoist towers. At present, the company is unable to forecast any expansion of its work force. The Lockheed-Georgia Company located in the Uniontown industrial park because it gave the plant adequate sewage facilities. The area also offered an available labor market. In its based facility, the company produces assemblies for C-5 military aircraft. All 179 employees working at the plant hold jobs considered EDA-created. No expansion is planned at this time. STRUCTURAL IMPACT Created jobs: 95% living in county where firm is located 99% heads of households 38%* increase in weekly average income 50%* previously unemployed *For the Steel Scaffolding Company only. In an area that was once dominated by one main industry, this expansion and location represent significant diversification. The Lockheed-Georgia Company is a division of the large, national Lockheed Aircraft Corporation. The stability which this might normally imply is questionable, however, because of the financial problems which the corporation is experiencing. The 179 jobs created plus the 50 created at the Steel Scaffolding Company contribute significantly to the structure of the economy. Both firms export 707o of their final products outside of the area. Grade B+ SERVICE IMPACT The service provided by this project goes to three plants located in the Uniontown Industrial Park. Besides Lockheed-Georgia and the Steel Scaffolding Company, the Young Spring and Wire Company benefits from this service. No service to residents. Project Type: Industrial Park Facilities Project Numbers: 0301000077, 0301000093, and 030100288 Applicant: Middlesboro Industrial Foundation, Middlesboro, Kentucky Project Financing: Total: $1,075,000 EDA Grant : $833,000 Date Approved: April, 1966 Date Completed: November, 1968 April, 1967 PROJECT BACKGROUND The City of Middlesboro rests in a 25-square mile basin in the Cumberland Plateau of eastern Kentucky. Middlesboro, population 12,600, is in Bell County, an area which is eligible for EDA assistance because of persistently high unemployment rates. The city acts as a trading center for 150,000 people in eastern Kentucky, Virginia and Tennessee. Most of the land in the Cumberland Plateau is subjected to persistent floodingo In order to attract industry and alleviate long-term unemploy- ment, flood-free and fully developed sites at prices competitive with other areas were needed. In 1966, the Middlesboro Industrial Foundation applied for three EDA grants to build a 19-acre and a 25-acre industrial park. The projects involved drainage, fill, canal dredging, water main installation, grading, and the construction of access roads and a storm sewer system. Estimates were made that the 19-acre park would provide 300 jobs and the 25-acre park would provide 350 jobs. However, although many prospective industries have made inquiries, so far the community has not been successful in inducing one to locate in the park. ECONOMIC DEVELOPMENT PROCESS The lack of progress in locating industry upon the two industrial parks is reflected in the consensus of local community leaders concerning the general lack of attitudinal and institutional changes in the Middlesboro area since 1966. Only in the area of local planning for the physical development of Middlesboro was it felt that significant progress had been made. There was some feeling that the local government's attitude toward the community's economic development had always been good, and that the local development organization, the Middlesboro Industrial Foundation, had been actively promoting area economic and industrial development for several years. While all the community leaders questioned expressed the opinion that the EDA projects have had a substantial influence upon Middlesboro ' s economic development, they seemed to respond in terms of potential rather than actual economic development. Grade C+ - limited development change; questionable EDA impact. JOB IMPACT Not applicable. In the original plans for disposition of the two EDA sponsored industrial parks, the Coppinger Machinery Service, Inc., was listed as being committed to construct a plant on one of the parks, with an anticipated first-year employment of 40, subject to accessibility to the site. Coppinger finally located elsewhere in the Middlesboro area because, according to the plant manager, the Middlesboro Industrial Foundation did not desire to break up the tract to the size plot wanted by the company. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT While no industries have yet located on the Middlesboro industrial parks, the drainage and storm sewer projects have served to relieve flooding in the southern portion of the city. Grade C - some new or improved service to the community at large. Project Type: Water and Sewer/Industrial Park Project Number: 03010009U Applicant: Sparta, North Carolina Project Financing: Total: $21*6,000 EDA Grant: $123,000 Date Approved: May, 1966 Date Completed: October, PROJECT BACKGROUND Sparta, population 1,0^0, is located in Alleghany County in northwest North Carolina near the Virginia state border. The area's economy has been based on agriculture and wood products. The mechanization of agriculture has resulted in many displaced farmers and woodsmen who have been forced to look for new or supplemental jobs, or to leave the area. This area was made eligible for EDA assistance on the basis of an ARA carry-over, and its current status is terminated. In early 1966, Sparta officials applied for and received EDA funds to be used in the expansion of the existing water and sewer systems and waste treatment plant. This project was intended to aid expansion of a local firm, Sparta Pipes, Inc., and to make basic utilities available to a new 21;- acre industrial site for future industrial users. Presently, while the industrial park is not occupied, the services provided under the EDA project are being used by several industrial plants and by the residents of Sparta. ECONOMIC DEVELOPMENT PROCESS Since early 1966, the factors in Sparta's economic development process that have seen the most improvement are those directly beneficial or related to citizens of Sparta. The area's public facilities have been significantly improved as local planning for the physical development of the area has become much more extensive. The support of community development efforts by community groups has been increased greatly, as has the willingness of local citizens to finance such development efforts. There also appears to have been increased concern among local leaders with the problems of poor and minority groups in the area. Sparta community leaders feel that the EDA project has been a very significant factor in the area's economic development, both in terms of services provided to industry and to residents. Grade A^ - significant process change, substantial EDA impact Number of direct jobs 68 EDA investment per direct job $1,809 Number of direct job equivalents U~ Number of possible future jobs 25 Number of indirect job equivalents 13 EDA investment per direct and indirect job equivalent $2,196 Firms where jobs were created: Sparta Pipes, Inc . manufactures briar smoking pipes at a $728,000 plant in Sparta. Prior to the EDA project, improved sales gave the company a desire to expand its operations, but the water supply was inadequate. Improvements made under the EDA project enabled the com- pany to create 33 jobs bringing the total work force to 301. The firm expects to create 25 more jobs within two years. The Troutman Shirt Company located originally in Sparta because of an available labor market and the interest of civic leaders. Company officials feel that the EDA project provides water sufficient enough to enable the company to create 35 of its present total of U65 jobs. The firm, which manufactures mens and boys clothes at its $313^000 plant in Sparta, does not expect to create any more jobs within the next two years. STRUCTURAL IMPACT Created jobs: 90$ living in county where firm is located 90-"- $ heads of household -- % increase in weekly average income — % previously unemployed -x- Troutman Shirt Company only. Both of the firms in which jobs were created market their products outside the Sparta area, strengthening its economic base. As both firms were established in Sparta before the EDA project, the new jobs do not contribute to the area's industrial diversification. The employment at the Troutman Shirt Company is probably relatively more stable than that at Sparta Pipes because the former is affil- iated with a larger parent company. Grade C SERVICE IMPACT The sewer plant existent in Sparta prior to the EDA project was out-dated and not of sufficient size to serve all local residents. The new water and sewer facilities have enabled the Town of Sparta to service a 25 percent increase in local water and sewer demands. Approximately 11. £ percent of the total quantity of service provided under the EDA project is presently utilized by four local industries. Of the total quantity of service going to residents of Sparta, only 20 percent goes to low-income families. Grade C+ - some improved service to the community at large and to low- income residents Project Type: Water and Sewer/Industrial Park Project Number: 03O1OO116P Applicant: Logan, Ohio Project Financing: Total: $77,000 EDA Grant: $38,000 Date Approved: April, 1966 Date Completed: July, 1967 PROJECT BACKGROUND Logan, population 6,410, is located in Hocking County in south central Ohio. Hocking County was made eligible for EDA assistance in 1966 on the basis of persistent unemployment, which was 12.1 percent in 1964 and 10.2 percent in 1965. The status of the area has been terminated since mid-1969. In early 1966 the City of Logan applied for and received an EDA grant for a project that was to be part of a program intended to transform agricultural land into industrial land and to create permanent year-round jobs. The project was to extend water and sewer lines from the city's system to a 40-acre industrial park site which had been recently purchased by a non-profit industrial development corporation for the construction of an aircraft sub- assembly plant for the Lockheed-Georgia Company, a division of the Lockheed Aircraft Corporation. A 70,000 square-foot building was being constructed with the help of an EDA business loan to house the Lockheed plant, which was expected to create 150-200 new jobs for the Logan area. The water and sewer lines constructed under the EDA project now provide service, including fire protection, to the Lockheed-Georgia plant and to approximately 26 acres of adjacent land available for future industrial or commercial development. ECONOMIC DEVELOPMENT PROCESS Since 1966, the only factor of the economic development process which has significantly improved in the Logan area is local planning for the area's physical development. Two areas in which community leaders feel there have been no changes are the activity of local lending institutions in development financing, and the willingness of local citizens to finance local improvements. The general consensus among Logan community leaders is that the EDA project has been a significant factor in the economic development of the area, largely in terms of supplying services to industry in an area of high unemployment. Grade C+ - limited development change; significant EDA impact JOB IMPACT Number of direct jobs 185 EDA investment per direct job $205 Number of direct job equivalents -- Number of possible future jobs -- Number of indirect job equivalents -- EDA investment per direct and indirect job equivalents -- Firms where jobs were created: The Lockheed-Georgia Company Logan Plant is a sub-assembly plant occupying 14 acres of the industrial park. The company built this plant partly as a result of the EDA public works project and a previous EDA business loan, and partly because of an available labor supply. With a total capital investment of $1,000,000, Lockheed presently employs 185 people, but does not expect to create any more jobs within the next two years. STRUCTURAL IMPACT The Lockheed plant has represented significant industrial diversification for the Logan area, and the area's economic base is strengthened by the fact that all the company's products are exported from the Logan area. Based on Lockheed's status as a top-rated company, it should receive a high rating for employment stability, but in light of the company's financial conditions as of early 1970, its employment stability is presently questionable. Grade B - (based on industry factors only) SERVICE IMPACT No service to residents Project Type: Industrial Park Development and Water System Improvements Project Number: 030100120 and 030100311 Applicants: Big Sandy Industrial Foundation and the City of Paintsville, Kentucky Project Financing: Total: $936,000 EDA Grant: $703,000 EDA Loan: $70,000 Dates Approved: June, 1966 Dates Completed: February, 1968 (park) May, 1967 March, 1969(water system) PROJECT BACKGROUND Paintsville, Kentucky, population U,020, is located in the hardcore poverty region of Appalachia. Paintsville is in Johnson County, an area which was made eligible on the basis of persistent unemployment and population loss and remains designated for EDA assistance. In 1966, in an effort to attract industry to the area, two EDA grants were applied for to develop a 119-acre industrial park south of Paintsville. The land is situated on the Big Sandy River, the C&0 Railroad line, and U.S. Highway 23. The Big Sandy Industrial Foundation received an EDA grant to develop the park site through the construction of a water system, 1.7 miles of roadway, septic tanks, and lighting facilities. The City of Paintsville received an EDA grant and loan to build a water main, a booster station, a storage tank and distribution lines to the industrial park. Originally, Kenwood Products was contracted to build a diversified wood products plant, employing 3U0 people, on one-half of the park site. However, the company failed to obtain the needed capital and the plant was not built. American Standard is now constructing a plant on the site and negotiations are underway for other firms to locate there. ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been significant progress in the economic development of the Paintsville area. Planning and support of development programs on both the local and the district levels have increased greatly. The area has become a more active participant in the district program, and the number of other State and Federal programs in the community has grown. There has been a marked improvement in the attitude of the city government toward the community's potential for economic development. This optimism is shared by the community's business leaders and citizens. According to one community leader, residents are now improving their homes and building new ones; there is concrete hope for the future and people are now willing to plan ahead. Four community leaders responded that the EDA projects have been significant factors in the economic development of the area, while one states that they had been a major reason for economic development. The applicant claims that the industrial park project "has probably been of more lasting benefit to Paintsville than any single effort in the city's history." Grade B - favorable improvement, significant EDA impact JOB IMPACT Number of direct jobs - 179 (definite projection for Dec. 1970) EDA investment per direct job - $4,318 Number of direct job equivalents - 174 Number of possible future jobs - 221 Number of indirect job equivalents - 52 EDA investment per direct and indirect job equivalents - $3,420 Firm where jobs were created: American Standard, Inc . occupies 65 acres of the park. Plumbing fittings will be manufactured in the plant. The firm located in the area because of the availability of the developed site. Other factors mentioned by the employer which made it possible for the firm to locate in Paintsville in- clude the highways, the community attitudes, the availability of potential employees, and the vocational school. The total capital investment is several million dollars, the exact amount being confidential = American Standard is a major new employer which is providing greatly needed jobs. According to the company's hiring schedule, 179 persons will be employed by December 1970, with a monthly payroll of $94,000. It is expected that a total of 400 employees will have been hired when the plant is fully operational. STRUCTURAL IMPACT Created Jobs: 45% living in county where firm is located 727o heads of households — % increase in weekly average income 8.5% previously unemployed The above employee characteristics are based on information on 47 of the 75 present employees of American Standard. An additional 49 percent of the employees live in Floyd County, which is also an EDA designated area. The establishment of a plant of American Standard, a major manufacturing firm, has greatly enhanced the stability of local employment. The high out-migration rate from Paintsville and Johnson County has slowed down and some former residents are returning to the area. Grade B SERVICE IMPACT The projects have resulted in the extension of water service to the outlying areas of Paintsville. However, the occupants of the industrial park are to be the primary beneficiaries of the new services. Grade C - some new service to the community residents Project Type: Waterworks/Industrial Park Project Number: O^OIOOO^ P Applicant: Washington, Georgia Project Financing: Total: $56)4,000 EDA Grant: $282,000 Date Approved: May, 1966 Date Completed: November, 1968 PROJECT BACKGROUND Washington is a small city of approximately U,Uh0 people located in Wilkes County in northeast Georgia. Wilkes County, part of the Central Savannah Economic Development District, was made eligible for EDA assistance on the basis of an ARA carry-over, and its current status is terminated. From 1963 to 1966, the City of Washington, in cooperation with Wilkes County, had developed two industrial parks, adjacent to the city, complete with water storage tanks, and water and sewer lines extended to the parks from the municipal systems. This developmental program resulted in ex- tensive expansions of five existing major industries and the locating of one new industry. The water requirements of these plants, and normal water consumption increase by domestic and other municipal users, had made Washington's water supply, water filtration, and water distribution facilities barely adequate to meet existing needs by 1966. In early 1966, the City of Washington applied for and received EDA funds to help in construction of a new raw water intake line, expansion of the water impoundment reservoir and water treatment plant, and construction of improved water distribution facilities. The project was expected to make possible maximum development of the two existing municipally-owned industrial parks and to replenish the city's water supply to meet normal requirements. There are presently three industrial firms using about one-third of the water services provided by the EDA project, while the other two-thirds are being used by residential areas. The three firms were enabled to create or save a substantial number of jobs by the new water storage, treatment, and distribution facilities . ECONOMIC DEVELOPMENT PROCESS Since 1966, there has been improvement of a limited degree in all development process factors as they relate to the Washington area. However, only in certain aspects of the planning process, such as local planning for physical development and the activities of the local industrial develop- ment organization have these improvements been of a significant magnitude. Washington community leaders are of varied opinion concerning the influence of the EDA project upon local economic development. While half of these leaders feel that since its inception the EDA project has been the major reason for the city's economic development, another leader feels that the EDA project has only been one factor among a number of related factors, and another leader feels that the EDA project has had no influence upon Washington's economic development, because those improvements that were made were not sufficient to meet the city's problems. Grade + - general but limited development change; inconclusive EDA impact Number of direct jobs 550 EDA investment per direct job $513 Number of direct job equivalents 3UU Number of possible future jobs 95 Number of indirect job equivalents 103 EDA investment per direct and indirect job equivalent $631. Firms where jobs were saved or created: The Almar Rainwear Corporation started in Washington in 19^6 and gradually grew to its present employment figure of 500. Officials of this firm feel that the actions of local community leaders in ensuring an adequate water supply through the EDA project were instrumental in the company's decision to remain in Washington. Almar produces rain- coats and related rainwear, primarily for sale outside the Washington area, and has a total capital investment of $1,250,000 at its Washington plant. Almar expects to expand its work force by about 30 people within the next two years . The Pet Milk Incorporated-Dairy Division has a total capital investment of $1,578*000 at its Washington plant where it produces a variety of milk and dairy products which are largely shipped outside the Washington area for consumption. Pet Milk located its plant in Washington because of a good city government, an available labor supply, nearby sources of raw milk, and adequate utilities. Company officials feel that Washington', water supply had become inadequate for Pet Milk's needs prior to the EDA project, which enabled the company to retain 20 of its present total of 120 employees, and to create 30 of these jobs. Within the next two years the company expects to create about V~> more jobs for the Washington area. Firms ^^Ihere future jobs will be created: The Royal Manufacturing Company , which produces sportshirts, thermal under- wear, and men's undershorts at its Washington factory, expects to add 50 new jobs to its existent work force of about U00 within the next two years. These expansion plans were dependent upon meeting requirements of 1^0,000 gallons of water daily for cloth bleaching, and the EDA project will help meet these needs . STRUCTURAL IMPACT Saved Jobs: 76% living in county where firm is located TS fo heads of households 'Created Jobs: 93% living in county where firm is located 9Wo heads of household - % increase in weekly average income - % previously unemployed The Almar Rainwear Corporation factory and the Pet Milk plant represent reasonably stable employment for the Washington area; Almar because of its long existence at its present location, and Pet Milk because it is affiliated with a top-rated corporation. The economic base of the Washington area is strengthened by the fact that neither firm produces primarily for local consumption. However, as Almar is only one of a number of clothing manu- facturing firms in the Washington area, and Pet Milk is a food processing industry in a county that has a rural population of about 60 percent, the retention or creation of jobs in either company does not contribute sig- nificantly toward industrial diversification of the Washington area. Grade B SERVICE IMPACT The waterworks facilities constructed under the EDA project are credited with producing 800,000 gallons of water per day. Of this total, 33 percent services the three firms identified as saving jobs or creating present or future jobs, and 67 percent services the homes of local residents. About U2 percent of the total service goes to families earning under $3,5>00 annually, and 25 percent to those earning over this figure. A further break- down of the total service figure shows approximately 38 percent being utilized by Negro residents and 2 9 percent by white residents. In discussing service impact aspects of the EDA project, local community leaders stress the provision of more fire protection resulting in lower rates on fire insurance. Also, the water system improvements of the EBA project have stimulated interest in a similar program for improve- ments in Washington's sewer system, as there are large areas of the city that are not connected with the present municipal system, particularly in low-income housing areas. Grade B+ - significant, improved service to both low-income residents and the community at large . Project Type: Water and Sewage/Industrial Park Project Numbers: 040100162 and 040100109P Applicant: Monticello, Georgia Project Financing: Total: $385,000 EDA Grant: $231,000 Date Approved: November, 1966 Date Completed: February, 1968 (water) July, 1968 (sewage) PROJECT BACKGROUND Monticello is a small city, 1969 population approximately 2,400, located about 30 miles north of Macon in central Georgia. Monticello is in Jasper County, part of the 7-county Oconee Economic Development District. The Jasper County area is eligible for EDA assistance on the basis of low income and high outmigrat ion . The Monticello-Jasper County Development Corporation offered sites on a 31-acre industrial park in Monticello to several industrial prospects. The lack of water and sewage facilities on the park premises prevented these industries from locating in Monticello. City officials in early 1966 applied for and received EDA funds to assist in the construction of water system extensions and improvements, sanitary sewage treatment facilities, and sewage extension lines primarily to service the industrial park. The anticipated economic impact of these projects was largely seen in increased job opportunities at a shrimp processing plant, an A.T. and T. communications facility, and several wholesale establishments. Approximately 50 percent of the expanded water services were expected to go to low income families. Currently one industrial firm not mentioned in the original project proposal is located on the industrial park. The Georgia Pacific Corporation, which has purchased 90 acres adjacent to the industrial park and is constructing a plant that is expected to employ approximately 3 50 when completed, will be serviced by water from the EDA projects. The water and sewage facilities are presently servicing a number of area residences, many of them occupied by low-income families, as well as the Jasper County Memorial Hospital and the local school system. ECONOMIC DEVELOPMENT PROCESS The multiplicity of attitudes and institutions comprising the economic development process have undergone considerable improvement since early 1966. Activities of the Monticello-Jasper County Development Corporation have increased greatly while the Monticello city government's attitude toward the community's economic development has become much more favorable. Increased local planning for the Monticello area's physical development has been paralleled by greatly improved public facilities, increasing the area's attractiveness for the location of industry. There has also been a heightening of concern by local leaders for the problems of the low- income families resident in the Monticello area. All of the community leaders questioned feel that the EDA projects have either been the major reason, or else a very significant reason, for economic development in Monticello, both in terms of services to residents and services to industry. Grade B+ - overall development process change; significant EDA impact. JOB IMPACT Number of direct jobs 6 5 EDA investment per direct job $ 3 ,554 Number of direct job equivalents 47_ Number of possible future jobs 85-100 Number of indirect job equivalents 14 EDA investment per direct and indirect job equivalent $ 3 ,787 Firm where jobs were created: The Dexter Axle Corporation occupies a 9 . 5-acre site on the Monticello industrial park where it manufactures axles and roofs for mobile homes. While an available labor market and the fact that the area was a convenient distribution point were factors in the company's decision to establish a plant in Monticello, company officials feel that it would have been impossible for them to locate in Monticello if the local development corporation had not had help from EDA. Therefore, all 65 jobs at the plant are considered created by the EDA project. The Mayor of Monticello seemed to feel that three other firms, the Monticello Manufacturing Company, Shrimp Boat Enterprises, and the Monticello Bobbin Company, might have been enabled to save or create jobs as a result of the EDA projects. However, the former company's general manager felt the projects had no influence on his company, and representatives of the latter two companies felt that they were established businesses in Monticello before the EDA projects and their employment had not been affected by the EDA projects STRUCTURAL IMPACT Created jobs : 100% living in county where firm is located 90% heads of household --% increase in weekly average income --% previously unemployed The Dexter Axle Corporation exports its products outside the Monticello area for mobile home assembly, and is the only company of this type in the Monticello area. However, as a new firm the stability of its employment will be determined by future economic conditions. Grade B SERVICE IMPACT Of about 50 families using water services provided under the EDA project, 35 are considered low-income families. About 40 low-income families are using the EDA project sewage facilities. As much of these services are being furnished to parts of Monticello previously lacking in such services, the local health situation is greatly improved. Outdoor toilets and septic tank systems are on the way out completely. New low-income homes are being built, with 15-20 completed, using the new water and sewer facilities. Prior to the EDA projects most raw sewage was dumped into local streams, but now all domestic and industrial waste is given secondary treatment before dis- charge. Grade B - some new service to the community at large and to a number of low-income residents Project Type: Industrial Park Facilities Project Number: 040100184 Applicant: Gloster, Mississippi Project Financing: Total: $177,000 EDA Grant: $89,000 Date Approved: December, 1966 Date Completed: September, 1967 PROJECT BACKGROUND Gloster, population 1,369, is a town located 50 miles southeast of Natchez, in western Amite County in southwest Mississippi. Amite County has been marked by a steady outmigration of population for a number of years, particu- larly among the greatest productive age groups in the county (20 to 44 years of age) and the non-white population (54.2 percent of the 1960 Amite County population). The county is also plagued by low income, with a 1960 median family income of $2,246, with 63.2 percent of the families earning under $3,000 per year. In a county almost entirely rural, there ha\e been drastic declines in recent years in the total number of operative farms and in overall agricultural employment, with the non-white group hit hardest by these agricultural adjustments. The area was made eligible for EDA assistance on the basis of low income, and its current status is designated. Recognizing the economic decline and rapid out-migration of the Amite County area, government, business, and civic leaders of Amite County and of Gloster launched a comprehensive program to diversify the area's economy through industrial development. The Town of Gloster purchased two industrial park sites of approximately 50 acres and 40 acres, extended the city limits to encompass these parks, and erected an additional 150,000 gallon water storage tank to assure adequate water storage facilities. In 1966 the Town of Gloster applied for and received funds from EDA to assist in making improvements and extensions of the municipal water, sewer, and natural gas systems to serve the two industrial parks. It was anticipated that this project would assure location in one of the parks of a branch of the Georgia Pacific Corporation, and would enhance the area's chances of attracting new industry that would create additional jobs for the unemployed and under- employed men of the Gloster area, especially non-white residents. The results of the EDA project have been largely in terms of increased employment from the Georgia-Pacific plant, and increased activity among wood contractors supplying timber to the Georgia-Pacific plant. ECONOMIC DEVELOPMENT PROCESS From the time of the provision of EDA funds to Gloster, the local g>vern- ment's attitude toward the community's economic development has become much more favorable, as has the local leadership's concern for the poor and minority groups of the area. The water, sewer, and natural gas system improvements have resulted in significantly better public facilities in Gloster, particularly in the field of education, where the high school and elementary school have been expanded. The primary areas in which community leaders feel there has been lack of progress since EDA funds were appro- priated are in the activities of other State and Federal programs, and in the Gloster area's participation in the Southwest Mississippi Development District, which was organized in 1961 by Amite County and eight adjoining counties . All of the community leaders questioned felt that the EDA project has been a significant factor in the economic development of the Gloster area. They felt that the EDA project had benefited the residents of the area by creating jobs and stimulating business, resulting in increased housing, increased sales tax revenues, increased property values, and increased family income. Grade 13 - some development changes; significant EDA impact. JOB IMPACT Number of direct jobs 350 EDA investment per direct job $254 Number of direct job equivalents 215 (estimated) Number of possible future jobs 50 Number of indirect job equivalents 65_ EDA investment per direct and indirect job equivalent $318 Firms where jobs were created: The Georgia-Pacific Corporation plant in Gloster was the only firm in the Gloster area where the creation of direct jobs could be definitely documented. The plant produces plywood, wood chips, and log cores, occupying the entire 50-acre industrial park at a site with a total capital investment of about $9,000,000. Georgia-Pacific, which exports most of its projects outside the immediate Gloster area, located in Gloster because of the availability of utility services and because Amite County was a depressed area with an available labor force and timber supply. STRUCTURAL IMPACT As a subsidiary of a top-rated company, the Gloster Georgia-Pacific plant represents relatively stable employment for the area, as well as considerable industrial diversification. While Georgia-Pacific did not report employee characteristics for its Gloster plant, available evidence indicates that a high percentage of the employees live in Amite County and were previously unemployed or underemployed. Grade A- SERVTCE IMPACT No service to residents. Project Type: Road to Industrial Park and Water System Improvement Project Numbers: 040100209 and 040100214 Applicant: Greeneville, Tennessee Project Financing: Total: $1,469,000 EDA Grants: $882,000 Date Approved: November, 1966 Dates Completed: October, 1968 (road) April, 1969 (water system) PROJECT BACKGROUND Greeneville, population 11,760, is the county seat of Greene County, an area which is eligible for EDA assistance on the basis of persistent unemployment. A typical mountain county in eastern Tennessee, Greene County has suffered from poor economic conditions, lack of job opportunities, and population loss. In a program to improve the area's economy, the Greene County Foundation, Inc., a non-profit organization, has developed an industrial park in Greeneville. A number of industries have located in the park. In 1966, further industrial developments were being deterred by the poor access to the park and by its inadequate water system. The city of Greeneville applied for and received two EDA grants. One was to provide for the construction of an access road into and through the Greeneville Industrial Park to eliminate a dangerous railroad crossing and to avoid a future traffic problem from industrial vehicles. The second project was to improve the municipal water system by expanding the water filtration plant, water storage standpipe, and water supply line to provide adequate water to the industrial park and to municipal users. The project also was to extend water and sewer lines to serve a new low-income housing development. The improvements to the industrial park were to permit the expansion of two of the existing companies, Magnavox Corporation and Sam Moore Chair Company and the establishment of new industries. ECONOMIC DEVELOPMENT PROCESS Since 1966, changes can be seen in the economic development process of the Greeneville area. The OEDP group has become more active and the area's participation in the district program has increased. The local government and development organization have persisted in their efforts to encourage economic development., The public facilities have improved greatly. On the other hand, the willingness of local citizens to finance improvements has not improved, although support of community development efforts by community groups has increased somewhat. There has been no substantial change in the number of other State and Federal programs in the area. Most of the community leaders questioned, stated that the EDA projects have significantly influenced the economic development of Greeneville . One leader claimed that the projects have stimulated an awareness of the need to improve the community, and that the success of these projects has caused others to be undertaken. Grade B - favorable improvement, some EDA impact JOB IMPACT Magnavox Corporation, although it is serviced by the new facilities, does not attribute any of its 3>5>00 jobs to the EDA projects. The projects did enable the Sam Moore Chair Company to expand its physical plant. The company also had added more employees, but poor business since then has forced a reduction in employment. By the end of this year, the company hopes to be able to extend its employment again. STRUCTURAL IMPACT Not applicable SERVICE IMPACT No service to residents. The projects service the industrial park by providing utilities and relieving traffic congestion. Project Type: Industrial Park Facilities Project Number: 040100257 Applicant: Dillon, South Carolina Project Financing: Total $115,000 EDA Grant: $58,000 Date Approved: February, 1967 Date Completed, November, 1967 PROJECT BACKGROUND The City of Dillon, population 6,170, is located in the northeastern portion of South Carolina, on the North Carolina border. The economy was based on agricultural production, but with the advent of mechanized farm equipment, and new technology, the demand for unskilled farm workers declined. In 1960, the per capita income in the county as a whole was $692, but for non-white it was only $474. Dillon, the growth center of Dillon County, is in an area that is eligible for EDA assistance on the basis of persistent unemployment. In order to solve the high unemployment problem, Dillon, in 1967, received an EDA grant to provide extensions of the existing publicly owned and operated water and sewer systems to a 50-acre industrial park and adjacent industrial sites. The project included a 250,000 gallon elevated water tank, transmission/ distribution lines, and a gravity sewer link. Many local businessmen of the city and county stated that potential industries would be more interested in locating in Dillon if the public services were available. By early 1970, one plant, the Beaunit Textile Corporation, was located on the 50-acre industrial park, the Duplan Corporation had constructed a textured yarn plant on one of the adjacent industrial sites, and an existing firm, the Selma Hosiery Company, had been enabled to expand its operations. ECONOMIC DEVELOPMENT PROCESS Since the time when Dillon applied for EDA funding, there have been a number of favorable attitudinal and institutional changes in certain elements of the local economic development process structure. The local government's attitude toward Dillon's economic development has become much more favorable, local planning for the area's physical development has become more extensive, and Dillon's public facilities have been improved. However, development finance attitudes and institutions have not kept pace with the general optimistic outlook, for local banks have not become more receptive to the financial demands of economic development, and the willingness of local citizens to finance local improvements has only slightly increased, if at all. It was generally felt by community leaders questioned concerning EDA's impact upon economic development that the EDA-sponsored project has been the major reason for Dillon's economic development in the last three years. Grade B+ - limited development change; major EDA impact. JOB IMPACT Number of direct jobs 100 EDA investment per direct job $580.00 Number of direct job equivalents 77 Number of possible future jobs — Number of indirect job equivalents _31 EDA investment per direct and indirect job equivalent $539.00 Among the three firms where jobs might have been saved or created as a result of the EDA funded project, the Beaunit Textile Corporation did not consider EDA the reason for its locating in Dillon, and the Duplan Corporation refused to answer questions concerning any of its operations because of a desire to protect trade secrets. Firm where jobs were created: The Selena Hosiery Company , a division of Burlington Industries, which existed in Dillon prior to the start of the EDA project, employs 450 workers, 100 of whom were employed as a result of the EDA project. With a total capital investment in Dillon of $5,000,000, one-fifth of which was expansion as a result of the EDA project, Selma produces ladies' hosiery, over 70 percent of which it exports out of the Dillon area. The company located in Dillon because of a favorable community attitude and an above normal labor supply. STRUCTURAL IMPACT Created jobs: 75%, living in county where firm is located 42% heads of household --%, increase in income — % previously unemployed The Selma Hosiery Company, while it does not represent industrial diversi- fication for the Dillon area, should remain a fairly stable company because of its established roots in the community and its affiliation with Burlington Industries. Grade B SERVICE IMPACT The water and sewer facilities created as part of the EDA project were primarily intended to service the industrial area of Dillon. Of the three companies identified as connected with the industrial area, Beaunit Textiles uses 15,500 gallons of water per day, Duplan uses 3,000, and Selma uses 4,000. The project also provides an additional 250,000 gallons storage for the City of Dillon, and has made water and sewer facilities available to some homes where they were not available previously. Grade C - some new or improved service to the community at large. Project Type: Industrial Park Facilities Project Number: 040100318 Applicant: Clarksdale, Mississippi Project Financing: Total: $98,000 EDA Grant: $49,000 Date Approved: March, 1967 Date Completed: August, 1967 PROJECT BACKGROUND Clarksdale (estimated 1965 population 23,500) is located in Coahoma County in the heart of the rich cotton farm land of the Mississippi Delta, 73 miles south of Memphis, Tennessee. While Coahoma County is situated in the geographical center of a potentially large southern market, it is part of a six-county area of Mississippi which has suffered economic decline during recent years due to agricultural changes. The area is eligible for EDA assistance on the basis of low income. Clarksdale is the largest city within the six-county area and is considered the most desirable location for industrial development. In March 1967, EDA fundings was approved for a project extending the water and sewer lines of the City of Clarksdale to serve the Clarksdale Industrial Park, where the St. Regis Paper Company was constructing a plant which ultimately was expected to employ 200 people. The EDA project was designed to facilitate a major advance in the area's economic recovery. By early 1970 there were two firms located on the industrial park: the St. Regis Paper Company and Vintage Homes. ECONOMIC DEVELOPMENT PROCESS Since 1967, the only favorable attitudinal changes of any significance have occurred in local planning for the area's physical development, and to a lesser extent, the Clarksdale city government's attitude toward economic development of the community. It was debatable as to what extent the EDA project had been responsible for the economic development of the area, although there was a general consensus that the EDA project had been a factor, particularly in the area of employment opportunities. Grade B^_ ~ some attitudinal changes; debatable EDA impact JOB IMPACT Number of direct jobs 8_1 EDA investment per direct job $605.00 Number of direct job equivalents -- Number of possible future jobs 175 Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- Firms where jobs were saved or created: The St. Regis Paper Company , which manufactures corrugated shipping containers, occupies a 16-acre site on the Clarksdale Industrial Park with a total capital investment of $2,000,000. The firm originally moved to the area because it was near the market areas of south Tennessee, eastern Arkansas, and northern Mississippi. Employing 69 people in early 1970, the company projected future expansion adding 25-30 jobs within two years. Vintage Homes , which moved to the Clarksdale Industrial Park both because of the EDA project's provision of water and sewer facilities, and because of the labor supply and market potential of the area, produces mobile homes. Occupying approximately 15 acres of the industrial park, with a total capital investment of $500,000, Vintage Homes currently employs 12 people, but plans a large expansion within the next two years that will create an additional 150 jobs. STRUCTURAL IMPACT The two companies located on the Clarksdale Industrial Park both produce largely for markets outside the immediate area of Clarksdale and represent a diversification of industry for the area. Since neither company would provide statistics concerning employee characteristics, the structural impact letter grade is based solely upon company characteristics. SERVICE IMPACT No service to residents. Project Type: -Water, gas, and sewer facilities/Industrial Park Project Numbers: OU0100336 and Oh0200337 Applicant: Canton, Mississippi Project Financing: Total: $257,000 EDA Grant: $88,000 Date Approved: May, 1967 Date Completed: September, 1968 PROJECT BACKGROUND The City of Canton, population 9 3 700, is located in central Mississippi about 26 miles north of Jackson. Canton is the county seat of Madison County, which traditionally has been an area of small farms and timber- land. Farm mechanization and consolidation have contributed to a long- term decline in agricultural employment. This decline is reflected in figures showing that the I960 median family income for Madison County was $1,862, with approximately 6U percent of the families in the county earning under $3,000. Madison County is designated for EDA assistance on the basis of low income . In 19$h, the Canton Chamber of Commerce and local community leaders began an intense campaign to attract industry as part of a program intended to balance agricultural employment with industry. The effort to attract industry to the Canton area was heightened in I960 by the establishment of a 53 -acre industrial park. At the end of 1966 the City of Canton applied for and received EDA financial assistance for two projects in- tended to facilitate development of a proposed industrial park close to the existing park, and to promote expansion of other industries. The EDA funds were to be used for the construction of sewage treatment facil- ities, water and sewer system extensions, gas line additions, and street replacement. It was anticipated that these projects would create about U85 new jobs immediately and 1,000 within five years. It was expected that most of the jobs would, be filled by low-income, non-white workers, and that a portion of the new utilities would serve low-income residential areas. While the project proposals in regard to street, water, sewer, and gas system improvement have been implemented, the anticipated employment impact has been stymied by a state legal limitation on interest rates . According to the Mayor, this had made it impossible for the City of Canton to sell municipal bonds in order to raise finances for completion of the proposed industrial park. By April of 1970, the State of Mississippi had raised the interest rate limitation and Canton city- officials were preparing to discuss plans for continuing development of the industrial park. ECONOMIC DEVELOPMENT PROCESS The participation of the Canton area in the activities of the 7-county Central Mississippi Economic Development "District has increased greatly since 1966. During this same period the only other significant economic development process improvements that have occurred have been in local planning for the area's physical development and in Canton's public facilities j particularly hospitals, sewers, and police and fire protection. The failure by the City of Canton to finance the proposed new industrial park is reflected in the fact that since 1966 there have been no changes in either the willingness of local citizens to finance local improvements or in the activity of local lending institutions in development financing. The opinion of Canton community leaders that there has been no change since 1966 in the local leadership's concern for the poor and minority groups may be a result of the failure by the City of Canton to provide financing for the completion of the new industrial park, which was expected to provide a significant number of new jobs for low-income members of these minority groups . While the EDA projects have not had their expected employment impact, most community leaders questioned in Canton feel that these projects have been a significant factor in local economic development, largely in providing new and improved utility services for Canton. Grade C+ - limited development change; significant EDA impact JOB IMPACT None STRUCTURAL IMPACT SERVICE IMPACT While the community leaders questioned about the impact of the EDA project felt that it had provided new and improved utility services for Canton, statistics are not presently available showing percentages of these services going to low income or minority groups. Changes currently being made in the City Engineer's Office were primarily responsible for the unavailability of these statistics. The Mayor of Canton, who was familiar with the EDA project application and subsequent actions related to that project, could only say that a small number of residents were utilizing the water and sewer services provided under the project. Grade D - marginal service to the community at large Project Type: Industrial Park Facilities Project Numbers: 040100374 and 040200375 Applicant: Washington County, Greenville, Mississippi Project Financing: Total: $121,000 EDA Grant: $42,000 Date Approved: June, 1967 Date Completed: July, 1968 PROJECT BACKGROUND The City of Greenville, population 41,500, is located on a branch of the Mississippi River in Washington County in west central Mississippi. The Washington County area is eligible for EDA assistance on the basis of persistent unemployment. In January, 1968, construction began in Greenville on two projects, partially financed by EDA, to construct sewage collection and treatment facilities to meet both present and future needs of industries in Greenville,, The projects, an integral part of a master development plan for the Port of Greenville, were to provide sewerage facilities for long range site develop- ment at the Harbor Front Industrial Park. The Mid-States Steel and Wire Company planned to build a $1.2 million plant on the industrial site, initially employing approximately 100 unskilled or semi-skilled people among a work force of 150, with a potential increase of 350 new jobs within 5 years . By early 1970, five firms were located at the Harbor Front Industrial Park and using the sewage collection and treatment facilities. The Mid-States Steel and Wire Company, the Trailco-Greenville Corporation, the Farmers Grain Marketing Terminal, the Brent Marina Supply Company, and the Escambia Chemical Corporation occupied sites on the park, although the latter two companies felt that the EDA projects were not a determining factor in their decision to locate in Greenville. The Southland Oil Company had plans to locate on the Harbor Front Industrial Park sometime in 1971, and the Superior Boat Works, while not located on the industrial site, used a small percentage of the sewerage facilities provided by the EDA-supported projects. ECONOMIC DEVELOPMENT PROCESS The attitudinal and institutional changes that have taken place in the Greenville area since 1967 have been largely in the organizations and programs connected with economic development planning., Greenville's partici- pation in the district economic development program has increased sub- stantially, and there have been concurrent increases in activity of the local organization for economic and industrial development, and in local planning for Greenville's physical development. There has not been a corresponding increase in banking institutions' acti- vities in development financing, or in the willingness of local citizens to finance local developmental improvements. All of the Greenville community leaders questioned concerning the impact of the EDA projects upon Greenville's economic development felt that these projects had been the major reason for the area's economic development since the projects were approved in June 1967. Grade .B - some development change; major EDA impact. JOB IMPACT Number of direct jobs 328 EDA investment per direct job $ 128 Number of direct job equivalents 189 Number of possible future jobs 350 Number of indirect job equivalents 132 EDA investment per direct and indirect job equivalent $ 131 Firms where jobs were created: The Mid-States Steel and Wire Company produces wire products on a 30 - acre site at the 115-acre Harbor Front Industrial Park„ Exporting most of its products outside the Greenville area, Mid-States, with a total capital investment of $2,500,000 at its Greenville site, presently employs 70 full-time employees with plans for 10 more positions in the next two years „ The company located in Greenville because of the availability of land, utilities, and labor, and a potential area market for its products. However, the firm would not have located at Greenville without some provision for treatment of its effluent, so the EDA-supported sewerage system improvements were instrumental in the company's decision to locate in Greenville. The Farmers Grain Marketing Terminal is a grain storage and marketing opera- tion, exporting most of its products, and intended to induce allied industries such as oilseed processors and feed manufacturers to locate in the area. Occupying 10 acres of the Harbor Front Industrial Park, with a total capital investment of $950,000, the Terminal employs 8 full-time employees. The firm located in Greenville because of the site's access to water transportation, roads, rail services, and utilities, and the physical attractiveness of the area, which is attributed to the EDA project. The Trailco-Greenville Corporation manufactures truck trailers, most of which are exported outside the Greenville area. The firm located on a 20-acre site at the Harbor Front Industrial Park, largely because of the completeness of necessary facilities at that site. With a total capital investment of $2,000,000, Trailco presently employs 250 people during an 8-month working year, and has plans to increase its work staff by 350 within the next two years. STRUCTURAL IMPACT Created jobs: 907, living in county where firm is located 887 heads of household 337- increase in weekly average income (Trailco-Greenville Corporation only) 607, previously unemployed (Trailco-Greenville Corporation only) The companies that have located, or plan to in the near future, at the Harbor Front Industrial Park represent considerable industrial diversifica- tion for the Greenville area. All of the firms presently located there are relatively new companies, so the future stability of their operations will be primarily dependent upon economic conditions. However, for the present these companies represent a considerable employment increment for the Greenville area. Grade B SERVICE IMPACT While there was no direct service to residents as a result of the EDA project, it did help eliminate some water pollution in the area by producing treat- ment facilities where otherwise the effluent from the industries would have been discharged directly into the Mississippi River. Grade D - marginal service to community at large. Project Type: Industrial Park Facilities Project Number: 060100138 Applicant: Lower Brule Sioux Tribe, Lower Brule, South Dakota Project Financing: Total: $24,000 EDA Grant : $19,000 Date Approved: November, 1966 Date Completed: August, 1967 PROJECT BACKGROUND The Lower Brule Indian Reservation, together with the Crow Creek Indian Reservation, forms the one-million-acre Big Bend Redevelopment Area with a population of 1,710. The Lower Brule Reservation is located in the central part of South Dakota in Lyman and Stanley counties. Reservation employment is seasonal agricultural work. No timber resources are available and there are no known minerals of economic importance. There are a limited number of retail and service establishments. Unemployment rates on the reservation from 1964 to 1967 ranged between 72 and 82 percent, and welfare assistance had been necessary for approximately 70 percent of the persons of the area. The area is eligible for EDA assistance on the basis of its being an Indian reservation. In 1966 the Lower Brule Sioux Tribe applied for and received EDA funding for a project providing paved streets and a parking area, curbs and gutters, site improvements, and a water line to and on an industrial park located on the Reservation. The Tribe has been engaged in an industrial development program and the project was expected to permit the park to be improved for industrial plant locations, which would create employment in an area with long-term unemployed and low-income families. The EDA project was expected to help an electronic equipment assembly plant located on the industrial park site to expand its employment as its markets increased. This firm is no longer located in Lower Brule, but the industrial site has been taken over by a newly formed company, the Iron Nation Corporation. The project facilities have also provided water and parking services to a number of retail and service establishments in Lower Brule. ECONOMIC DEVELOPMENT PROCESS Since 1966, a general improvement across the span of factors involved in the economic development process has been marked by significant changes in the local government's attitude toward economic development, more specifically toward the necessity for increasing jobs through the attraction of industry. This increased interest of the local government in economic planning has been paralleled by more extensive local planning for the Reservation's physical development. The overall opinion of community leaders who were knowledgeable about the impact of the EDA project upon economic development in the area of the Lower Brule Indian Reservation was that EDA assistance had been instrumental both physically and attitudinally. The project has helped provide new and improved community facilities and services, created some jobs for unemployed and underemployed Indians, and introduced new money into the local community. More importantly, there was a feeling that the EDA project was helping the Indian people to regain some of their identity by instilling pride in their new accomplishments. Further evidence of the value of the EDA project was manifested in the filing by the Lower Brule Sioux Tribe of a new EDA project application for the extension of the street system and water and sewer lines to allow for enlargement of the one-acre industrial park. Grade B - favorable improvement; significant EDA impact JOB IMPACT Number of direct jobs 15 EDA investment per direct job $ 1 ,267 Number of direct job equivalents 8_ Number of possible future jobs 30_ Number of indirect job equivalents 2 EDA investment per direct and indirect job equivalents $ 1 ,900 Firms where jobs were created: The Iron Nation Corporation currently occupies the one-acre industrial park in Lower Brule where it manufactures a number of products sewn from canvas, mostly for export from the local area. The company recently located at Lower Brule partly because of the available facilities furnished by the EDA project and partly because of assistance from the Small Business Administration. Presently employing 15 people, the firm expects to create approximately 30 new jobs within the next two years. STRUCTURAL IMPACT Created jobs : 100% living in county where firm is located 75% heads of household — % increase in weekly average income — % previously unemployed The Iron Nation Corporation is a newly formed company which contributes to the industrial diversification of the Lower Brule area, and it strengthens the area's economic base by exporting most of its products, but the stability of its employment is a questionable matter because the company has only recently been incorporated. All of the company's present employees are full time workers living in the vicinity of Lower Brule. All are male workers, and 11 of the 15 are heads of household. Grade B SERVICE IMPACT In addition to servicing the Iron Nation Corporation on the industrial park site, the water facilities provided under the EDA project are being utilized by a number of local commercial and service establishments in Lower Brule, such as two stores, a bar, a recreation center for teenagers, and a commercial health center. The parking facilities are being used by these establishments and by the U. S. Post Office in Lower Brule. Through these uses of EDA project facilities by commercial and service establishments, the project is benefiting residents of the Lower Brule area. For example, in the words of one of the community leaders of Lower Brule, the paved streets provided under the EDA project have "benefited the residents in that they no longer get stuck in the mud when they drive to the commercial area." Grade C_ - some new or improved service to community at large Project Type: Industrial Park Facilities Project Number: 060100139 Applicant: Crow Creek Tribe, Fort Thompson, South Dakota Project Financing: Total: $73,000 EDA Grant: $58,000 Date Approved: June, 1967 Date Completed: July, 1968 PROJECT BACKGROUND The Crow Creek Indian Reservation, located in central South Dakota, had an extremely high 1968 unemployment rate of approximately 38 percent, with the balance of the population underemployed. Together with the Lower Brule Indian Reservation, the Crow Creek Reservation forms the one million-acre Big Bend Redevelopment Area. The area Is eligible for EDA assistance on the basis of being an Indian reservation, and its current status is designated. In early 1968 work was started on an EDA financed project to construct roads, sewer lines, and water lines for an existing industrial park on the Crow Creek Indian Reservation. The proposed project would permit the park to be improved for plant locations and potential employment in a low-income area marked by long-term unemployment and a high degree of seasonal employment. The project would also enable an existing firm, the Sioux Manufacturing Company, which employed 10 persons producing auto mufflers, to add up to 30 persons as its markets increased. While the Sioux Manufacturing Company is no longer in operation on the Crow Creek Reservation, two firms are located on the industrial park, Kaiser Enterprises, and Sioux Industries, Inc. ECONOMIC DEVELOPMENT PROCESS Attitudes toward economic development in the area of the Crow Creek Indian Reservation have shown no appreciative changes since the application date of the EDA project, although the local government's attitude toward the community's economic development has become somewhat more favorable, and local banks have become more active in development financing. There was a disparity of opinion among local community leaders upon how much the EDA project had influenced economic development. Grade C+_ - limited development change; questionable EDA impact. JOB IMPACT Each of the two firms located on the industrial park employs 15 to 17 workers in its plant, while Sioux Industries, which produces Indian artifacts (i.e. totem poles, tom-toms, tomahawks, dolls) for export outside the area, employs approximately 45 cottage workers. However, neither firm feels that the EDA project was directly responsible for its moving to or expanding on the Crow Creek Reservation industrial park. STRUCTURAL IMPACT Not applicable SERVICE IMPACT No service to residents Project Type: Water System/Industrial Park Project Number: 060100173 Applicant: Little Falls, Minnesota Project Financing: Total: $115,000 EDA Grant: $58,000 Date Approved: September, 1966 Date Completed: October, 1967 PROJECT BACKGROUND Little Falls, population 7,550, is one of the few industrial cities in the central part of Minnesota. It is located in Morrison County, an area that is eligible for EDA assistance on the basis of persistent unemployment. Little Falls has an industrial park, one-third of which isowned by the city and the remaining two-thirds by a non-profit industrial development corpora- tion. In 1966, two firms were located in the park employing a total of 430 people. The water distribution system which served these and other industries was inadequate, resulting in operational problems and high insurance rates. In 1966, Little Falls received an EDA grant to extend the water main on the west side of the town to provide additional pressure in an area which includes the industrial park. It was anticipated that the improvement of the water supply would protect employment in the present plants, permit expansion, and provide sufficient water for new plants. The water services provided under the EDA project are presently servicing a number of industries in the Little Falls area, as well as commercial and residential areas. ECONOMIC DEVELOPMENT PROCESS The economic development process of Little Falls has seen significant improvement in all of its pertinent factors since 1966. There was a general consensus that those institutions in Little Falls connected with economic development, including the local government, local lending institutions, the OEDP group, public facilities, and local community groups, had all increased their activities during the last few years. These increased institutional activities have been paralleled by, and are possibly responsible for, favorable attitudinal changes toward local economic development on the part of the citizens of Little Falls. There was a definite feeling among community leaders that the EDA project has been quite important in influencing economic development since its inception. This importance was expressed in terms of benefits to both firms and residents from adequate water service, additional fire protection, and potential employment. Grade A-. - favorable development process change; major EDA impact JOB IMPACT Number of direct jobs 300 EDA investment per direct job $193 Number of direct job equivalents 299 Number of possible future jobs 160 Number of indirect job equivalents 120 EDA investment per direct and indirect job equivalents $ 138 Firms where jobs were created or saved: The Hennepin Paper Company was in danger of losing its fire insurance before the EDA project, and credits the increased quantity of water and increased water pressure with allowing the firm to remain in Little Falls and saving its 190 jobs for the area. This company manufactures paper at an industrial site with a total capital investment of approximately $4,000,000. Future expansion plans are indefinite. Larson Industries, Inc. manufactures fiberglass boats at an industrial site with a total capital investment of about $1,678,000. The company moved to Little Falls because of a good labor supply and a friendly community attitude toward industry. Company officials feel that the water services provided by the EDA project enlarged the firm's production capacity and allowed it to create 100 jobs out of its present work force of 525. Officials feel that if a favorable market continues to exist, Larson Industries could employ up to 150 additional employees in the next two years . Litte Falls Machine, Inc. produces snow plows, transport trailers, conveyors, and custom built items at its Little Falls plant. Company officials credit the EDA project with allowing the company to create 10 of its 30 jobs and increasing its total capital investment by a third to $300,000. The company feels that within the next two years it might add from 10 to 20 new jobs. STRUCTURAL IMPACT Saved jobs: 987c living in county where firm is located 907, heads of household Created jobs: 90% living in county where firm is located 68% heads of household 6*% increase in weekly average income 7 5*7, previously unemployed * Information available only from Larson Industries The three companies in which jobs were identified as created or saved represent considerable industrial diversification for Little Falls. The firms strengthens the area's economy because they ship most of their products outside the area for consumption. The three companies have been established In the area long enough to make their employment situations rather stable, as long as business conditions remain favorable. Grade B SERVICE IMPACT Of the total water service provided under the EDA project, 500,000 gallons per day, about 80 percent is utilized by industrial, commercial, and service establishments, and 20 percent by residents. About one-quarter of the residents receiving water are members of low-income families. This service to residents comes both in the form of water for everyday use and increased water pressure allowing greater fire protection. Grade ^+_ - some new or improved service to community at large and a number of low-income residents Project Type: Sewage Collection and Treatment Project Number: 060100306 Applicant: Scottsburg, Indiana Project Financing: Total: $970,000 EDA Grant: $l|85,000 Date Approved: May, 1966 Date Completed: July, 1969 PROJECT BACKGROUND Located in Scott County in southeast Indiana, Scottsburg, population 3,800, is situated near Interstate Highway 6$, about 35 miles north ot Louisville, Kentucky. Scott County has been marked by high unemploy- ment rates ranging between I96I4. and 1968 from 13-1 to 8.8 percent. The area is eligible for EDA assistance on the basis of persistent unemployment. In early 1966, the City of Scottsburg applied for and received EDA funds to be used in the construction of additions and extensions of the community's sewage collection system, and additions and revisions to the city's sewage treatment plant. The construction, which was intended to serve the entire community of Scottsburg, was completed in the summer of 1969 • ECONOMIC DEVELOPMENT PROCESS Except for the availability of funds from local lending institutions for development financing, which has not changed since early 1966, most of the factors in the economic development process have shown some improvement in recent years. The local government has given increased attention to the city's economic development problems while at the same time, the 0EDP group has become more active. The local organizations concerned with economic development have made greater progress in their community development efforts, which is partially reflected in improve- ments made in Scottsburg' s public facilities. "While there is a general consensus among local community leaders that the EDA project has been a factor in local economic development efforts, the chairman of the Scott County 0EDP Committee expressed some concern over EDA methods of implementing this particular project. He felt that the EDA-sponsored sewage treatment plant had replaced one which still had a capacity about 1,200 above Scottsburg' s present population. He expressed the opinion that the new treatment plant should have been located in another part of the city and operated in conjunction with the old treatment plant to give Scottsburg excellent and wide coverage. In this particular case, he felt that local OEDP and public health officials should have been consulted more extensively than were the members of legal and engineering firms > who were not as familiar with Scottsburg' s overall needs and problems. Grade C+ - general development process change; limited EDA impact JOB IMPACT None STRUCTURAL IMPACT Not applicable. SERVICE IMPACT The primary use of the EDA project facilities is the removal of home waste. Approximately 210 old residences and 10 new homes that were built subsequent to the project have been hooked onto the sewage system. The EDA project has permitted the elimination of some septic tanks and stopped seepage of septic tanks into drainage ditches. Grade C - some improved service to the community at large. Project Type: Industrial Park Development Project Number: 060100580 Applicant: Rosebud Sioux Tribe, St. Francis, South Dakota Project Financing: Total: $90,000 EDA Loan: $18,000 EDA Grant: $72,000 Date Approved: August, 1967 Date Completed: October, 1969 PROJECT BACKGROUND The Rosebud Indian Reservation encompasses parts of four counties in south central South Dakota. The industrial park concerned in this project is located in St. Francis, a small town of approximately U20 people located in Todd County. This county contains about 2,700 Rosebud Indians, or approximately 58 percent of the total reservation. The unemployment rates on the Rosebud Indian Reservation ranged between 65 and $3 percent from 196U to 1967, with about 85 percent of the Indians underemployed. The area is designated for EDA assistance on the basis of its being an Indian reservation. In 1967 the Rosebud Sioux Tribe, in an effort to encourage the develop- ment of industry and agricultural diversification through the utilization of raw materials available in the area, applied for and received EDA funding for the development of a 17-acre industrial park site. The project included the construction of streets, curbs, gutters, storm drainage, a water distribution system, a sewage collection system, and water supply and pumping facilities. One firm, a frozen foods processor, had indicated it would locate in the area upon completion of the project. In early 1970, no firms had been located on the industrial park site. First American Foods, Inc., which was expected to occupy a U-acre site and eventually employ approximately 200, was still negotiating with the Rosebud Sioux Tribe. Its subsequent location in St. Francis was reportedly dependent upon approval of an EDA business loan. ECONOMIC DEVELOPMENT PROCESS From 1967 to the present, the economic development process as it pertains to the Todd County section of the Rosebud Indian Reservation has seen little significant improvement. The only two factors upon which there was a general consensus by a majority of community leaders that such improvement had taken place were the local government's attitude toward the community's economic development, and the support of com- munity development efforts by community groups. At the same time, the activity of area lending institutions in the field of develop- ment finance seems to have remained constant, or possibly even decreased. "While one community leader questioned about the impact of the EDA project feels that the EDA project has had no impact because the industrial park is not being used yet, the other community leaders questioned feel that the EDA project has been the major reason for local economic development. Their rationale for this opinion is generally expressed in terms of the project's potential future industrial impact and in its influence upon local attitudes toward economic development. The prospect of getting an industry to locate in St. Francis is viewed as the stimulus leading several Indians to go into business for the first time. St. Francis is now the only town on the Rosebud Indian Reservation where all the businesses are operated by Indians or people of Indian descent. According to one community leader, those Indians who have recently gone into business in St. Francis had lived in the community most of their lives but had not stepped into the business world until they were assured that the town would grow because of the EDA project and subsequent industr- Grade C - little process change, significant EDA impact None STRUCTURAL IMPACT Not applicable SERVICE IMPACT No service to residents. Project Type: Construction of Industrial Park Project Number: 060100640 Applicant: Oneida Tribe of Wisconsin Indians, Inc., Green Bay, Wisconsin Project Financing: Total: $380,000 EDA Grant: $304,000 EDA Loan: $ 48,000 Date Approved: June, 1968 Date Completed: July, 1970 (estimated) PROJECT BACKGROUND The Oneida Indian Reservation is located in Brown and Outagamie Counties near Green Bay in eastern Wisconsin. The Reservation, containing 2,067 acres of tribally-owned land and 433 acres of individually owned land, had a 1965 population of approximately 1,600 of whom about 800 were in an employable age range. The Oneidas are confronted with high underemployment, seasonal unemployment, little land for agricultural development, and low educational attainment. The area is eligible for EDA assistance on the basis of being an Indian reservation. The EDA project prospectus called for construction of a 27-acre industrial park, including site preparation, 3,255 feet of access roads, 2,332 feet of sewer lines, 9,840 feet of storm sewers, and 3,680 feet of water lines. The land for the industrial park was purchased for $60,000 by the Oneida Tribe, and is located adjacent to the Packerland Industrial Park in a planned and zoned industrial area near the city of Green Bay. Before construction was begun on the industrial park facilities, two industries were committed to locate in the park with an initial employment of 125 people. By early 1970 construction work on the Oneida Industrial Park was incomplete, with the target date for completion June or July 1970. There were still two prospective tenants for the approximately 30-acre park, although no leaseholds had been entered into by the Oneida Tribe. ECONOMIC DEVELOPMENT PROCESS Since 1968 the only significant change that has occurred in the economic development process has been increased activity by the OEDP group. All community leaders questioned felt that the EDA project has had little or no influence upon the area's economic development, but as the industrial park was incomplete at the time of evaluation they were indefinite in their assessments. Grade C - increased OEDP activity; indefinite EDA impact JOB IMPACT Not applicable. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT No service to residents. Project Type: Industrial Park Expansion Project Number: 070100057 Applicant: Port of Hood River, Hood River, Oregon Project Financing: Total: $476,000 EDA Grant: $238,000 Date Approved: May, 1966 Date Completed: December, 1967 PROJECT BACKGROUND The City of Hood River, population 3,660, is located in Hood River County on the banks of the Columbia River in northern Oregon. The economy of the city and county is based primarily on forest products, agriculture, and tourism. Fruit production and processing, and the harvesting and processing of timber are the primary sources of income and job opportunities in the area. Although the annual income from these sources is significant, employment is seasonal and the number of jobs is gradually decreasing with the introduction of new methods of operation. The area is eligible for EDA assistance on the basis of persistent unemployment. The Port of Hood River purchased 500 acres of land on the Columbia River to be developed as an industrial park. From 1963 to 1965 thirty acres were diked, filled, and developed by the Port, and three firms located on the site. In 1966, the Port applied for and received an EDA grant to dredge and fill the rest of the land and to construct a dike, a dock, a roadway, and a railroad spur for the industrial park site. It was anticipated that the project would encourage the expansion and location of diversified industry in the The three firms that located in the industrial park before the EDA project are still the only firms in the park. One of these three, the Hood River Distillers, was enabled to remain in Hood River by the EDA project. ECONOMIC DEVELOPMENT PROCESS Only three factors in Hood River's economic development process have shown any appreciable improvement since early 1966. The public facil- ities in the area have been somewhat improved, local planning for the physical development of the area has become more extensive, and the number of State and Federal programs active in the community has increased. All other factors have either remained unchanged or shown only very slight improvement, if any. Community leaders feel that the willingness of local citizens to finance local improvements might have decreased since early 1966. The general consensus of opinion among community leaders is that the EDA project has been a factor in the area's economic development, but only one considers the project to be more significant than other factors contributing to local economic growth. Grade C - limited process change, some EDA impact JOB IMPACT Number of direct jobs 15 EDA investment per direct job $15 ,867 Number of direct job equivalents — Number of possible future jobs unknown Number of indirect job equivalents — EDA investment per direct and indirect job equivalent -- Firm where jobs were saved and created: Hood River Distillers manufactures distilled spirits at a $500,000 site. The firm relocated in the EDA-assisted industrial park development from its previous site in the industrial park because of the suitability of rail and water transportation and level land for easy trucking at its new site. Company officials credit the EDA project with enabling them to save 14 and create one of its present total of 15 jobs. Expansion plans for the next two years are undecided. STRUCTURAL IMPACT Saved Jobs: 100% living in county where firm is located 47% heads of household Created Jobs: 100% living in county where firm is located -- % heads of household — % increase in weekly average income — % previously unemployed Retention of Hood River Distillers in Hood River contributes to the industrial diversification of the area. The firm helps to strengthen the area's economic base by marketing its product outside the area. Because the company is a small, local firm, the stability of the jobs saved and created is questionable. Grade C+ SERVICE IMPACT No service to residents. INDU STR IAL/COMMERC IAL Project Type: Port Warehouse Facility Project Number: 070100090 Applicant: Port of Tacoma, Pierce County, Washington Project Financing: Total $181,000 EDA Grant: $91,000 Date Approved: May, 1966 Date Completed: 1968 PROJECT BACKGROUND Pierce County, Washington, was designated for EDA assistance in March, 1966 on the basis of high unemployment, but was dedesignated on June 30, 1966. The Port of Tacoma, population 152,000, with boundaries coincident to Pierce County, is located at the southern end of Puget Sound, 30 miles south of Seattle. The Port is a municipal corporation, publicly owned, and administered by a Board of three commissioners. It has authority to develop land areas in Pierce County for new industrial purposes in accordance with a 1955 long-range, comprehensive development plan. In 1966 the Port applied for and received EDA assistance to c instruct a cargo terminal building on the Pier 7 industrial site. The project was in connection with general land and industrial development in Pierce County. The Port's industrial area presently consists of about 320 acres of marine terminal facilities, 160 acres of Port Industrial Yard complex, and 4200 acres for industrial sites. Related projects (financed partially by EDA) included construction of additional cargo warehouses; a rail service yard; bulkhead and land fill, dock, and warehouses on Pier 4; access roads; drainage; and an enlarged grain elevator. The Pier 7 terminal building is a 48,000 sq. ft. in-transit cargo warehouse, used in the handling and storage of inbound and outbound general cargo. With this facility available, the Port was able to attract two new shipping lines which did not previously call at Puget Sound ports. ECONOMIC DEVELOPMENT PROCESS Since 1966 there has been improvement in the area's economic development process. The County Commissioners and the City Council of Tacoma have endorsed the development of a county-wide, comprehensive capital improvement program. DESIGN FOR PROGRESS, INC., a non-profit citizens group, has been organized to develop such a plan. This is indicative of a more favorable attitude on the part of local government toward the community's economic development. One of the community leaders, however, stated that the local leadership's concern for the poor and minority groups had decreased. In addition, the lending institutions have become more active in development financing. The local development groups, including the OEDP Committee, assumed a more active role. The community leaders who responded to the EDA survey agreed that the EDA project had been a factor in the economic development of the area. Four of the five believed it to have been a significant factor. Grade B - favorable improvement, significant EDA impact JOB IMPACT Number of direct jobs 50 EDA investment per direct job $1 ,820 Number of direct job equivalents -- Number of possible future jobs -- Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- Facility where jobs were created: Pier 7 Warehouse Facility is an in-transit cargo warehouse. Fifty men are employed in the loading/unloading, handling, and storage of general cargo. Also indirect employment resulted in the railroad and truck lines servicing the facility and in the firms shipping through this facility. STRUCTURAL IMPACT Statistical information not available. The EDA projects were part of the Port's industrial and land development effort to broaden the economic base and level out seasonal employment. In this connection, they have had beneficial impact on employment, economic growth and stability, and industrial diversification. Specifically, the availability of the cargo terminal led to use of the Port by two new shipping lines. The American Association of Public Ports estimates that one ton of cargo transported across a terminal facility generates a local direct economic benefit of $25 per ton. Since the terminal facility handles approximately 50,000 tons of general cargo annually, it is reasonable to estimate an annual local economic benefit of $1,250,000 as result of the project. Grade A SERVICE IMPACT The EDA project primarily serves the Port of Tacoma, and those firms who use the Port's facilities. However, by making possible industrial growth in the area, the project also benefits the community at large. A growing and diversified local economy assures local residents of continued economic opportunity. The EDA projects have not had any adverse effects on local air and/or water pollution. Grade D - no direct service is provided to the community, other than the general services of the Port. Project Type: Sewer Facilities for Industrial Park Project Number: 0701000132 Applicant: St. Helens, Oregon Project Financing: Total: $144,000 EDA Grant: $72,000 Date Approved: April, 1966 Date Completed: September, 1967 PROJECT BACKGROUND The City of St. Helens is located in an area along the Columbia River waterfront which is famous for its recreational facilities and forested countryside. St. Helens, population 5020, is in Columbia County, an area that was previously made eligible for EDA assistance on the basis of an ARA carry-over, but that is now designated. In 1965, the Port of St. Helens cleared and leveled 95 acres located on the outskirts of the city for use as an industrial park. The land was available for industrial occupancy, but several firms rejected the site because of insufficient sewage facilities. In 1966, the City of St. Helens applied for and received a $72,000 EDA grant to install sewer facilities. The original anticipated economic impact was to provide job opportunities for an estimated 750 people, to permit expansion of the Port, and to stimulate economic growth. At this time, the anticipated impact has not been realized. Although the sewer system has assisted in developing an adjoining area that will be for residential and commercial use, only two small firms have located warehouses in the industrial park. However, the Port has a full-time manager who is working with the Chamber of Commerce and the Public Utilities Commission to generate interest in the site. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been favorable changes in the attitudes and institutions of St. Helens. The local government and the local development corporation are actively participating in the planning for the economic development of the city and the district. The leadership's concern for the poor and minority groups has increased greatly. Unfortunately, the bank in the community has not had sufficient capital to increase its activity in development financing. All the community leaders believe that the EDA project has been a factor in the economic development of the area. Grade C+ - limited favorable improvement, some EDA impact JOB IMPACT Number of direct jobs 14_ EDA investment per direct job $ 5 , 142 Number of direct job equivalents 10 Number of possible future jobs _5 Number of indirect job equivalents 4 EDA investment per direct and indirect job equivalents $ 5,138 Firms where jobs were created: St. Helens Ice and Beverage Company occupies one acre of the industrial park. The firm is involved in the wholesale distribution of beer and wine of which 40% is sold to the local area. The firm located in the park to take advantage of the low leasing costs. The total capital investment was $89,000, and they currently employ five full-time employees. The firm anticipates 2 new jobs will be created at this site within 2 years. Value wholesale Company also occupies one acre of the park. The firm wholesales several types of goods to the residents of the area. The total capital investment was $80,000, and the firm currently employs nine full- time individuals. It is expected that within 2 years, 3 additional workers will be needed. STRUCTURAL IMPACT Created jobs: 82% living in county where firm is located 90% heads of households 18% increase in weekly average income 15% previously unemployed The EDA project introduced two new businesses to St. Helens, both of moderate size. These firms created additional jobs for people in the area and increased the local tax base. The beverage firm exports between 40 and 70% of its goods, the wholesaler exports over 70%. The impact of these businesses on the economy has been felt, although only to a limited degree because of the local nature and modest size of the operations. Grade C SERVICE IMPACT Although the sewer system will benefit a proposed residential and commercial area, it only currently serves the two warehouses in the park. When industry does locate in the park, the sewer systems will help prevent pollution in the area. No service to residents. Project Type: Industrial Park Facilities Project Numbers: 070100508 and 070200509 Applicant: Fort Belknap Community Council, Harlem, Montana Project Financing: Total: $638,000 EDA Grant: $480,000 EDA Loan: $128,000 Date Approved: August, 1968 Date Completed: Incomplete as of March, 1970 PROJECT BACKGROUND In August of 1968 EDA approval was given for two projects connected with the Fort Belknap Indian Reservation, population 2,050, located in north central Montana in Blaine and Phillips Counties. The area is eligible for EDA assistance on the basis of its being an Indian reservation. The EDA projects called for the equipping of an industrial park on the Fort Belknap Reservation with sewage collection and treatment facilities, an improved access road, water facilities, and a sod-gravel airstrip, to service prospective manufacturing firms. The geographic area of the reser- vation is extensive, and the traditional settlement pattern has been widely scattered low-income family groups. The applicant, the Fort Belknap Community Council, believed that the air industrial park would be the best first step in providing a community center; creating a necessary industrial and commercial base; offering job opportunities to the unemployed; and pro- viding tribal income for further plans and improvements. When the EDA projects were applied for, the Fort Belknap Community Council had tentative commitments for a company to construct pre-f abricated homes, a corporation to do assembly work on a government contract, and a service station, which would employ 35 to 40 people. By early 1970 only 45 percent of the project had been completed. It was still anticipated that the pre- fabricated housing company and the service station would locate on the industrial park, and negotiations were under way with several other companies including Monsanto and LTV Aerospace. The sewage and water facilities were expected to be used to service low rent, cooperative housing, a hospital, and private housing. ECONOMIC DEVELOPMENT PROCESS The consensus concerning changes in the economic development process since 1968 was that there had been certain improvements in local economic develop- ment, with the only possible significant changes being in the local governing body's attitude toward the reservation's economic development, and in local planning for the area's physical development. The impression given by local leaders' responses to questioning concerning economic development of the area was a hopeful, anticipatory one that had not been dampened by the incom- pleteness of the projects . Due to the incompleteness of the projects, community leaders differed in their opinions about the impact of the EDA projects upon local economic development . Grade B- - limited process changes; indefinite EDA impact. JO B IMPACT Not applicable. STRUCTURAL IMPACT Not applicable. SERVICE IMPACT No service to residents Project Type: Industrial Park Facilities Project Number: 080100145 Applicant: Poteau, Oklahoma Project Financing: Total: $198,000 EDA Grant: $158,000 Date Approved: April, 1966 Date Completed: July, 1968 PROJECT BACKGROUND Poteau, population 4,428, is located in eastern Oklahoma, in Le Flore County, which is adjacent to the Arkansas border. With a 1968 unemployment rate of 7.2 percent, Le Flore County is designated as eligible for EDA assistance on the basis of persistent unemployment. In 1966 Poteau applied for and received an EDA grant to be used in the construction of an access road, water storage facilities, and a water main to serve the Poteau Industrial Park in which the Waldron Furniture Company planned to open a new plant. The project would allow Waldron to create approximately 150 new jobs, and would provide facilities attractive to other industries, further relieving unemployment in the Poteau area. Construction began on these facilities at the end of May, 1967. Before the water lines were completed and a sprinkler system could be installed in the plant built by the Waldron Furniture Company, the buildings housing the company were destroyed by fire. While Waldron officials were demoralized by the fire and would not consider rebuilding, construction on the EDA project was completed and a carpet mill was induced to locate on the Poteau Industrial Park in early 1970. ECONOMIC DEVELOPMENT PROCESS During the duration of the EDA funded project in Poteau, there have been a number of changes in local attitudes and institutions that are favorable to future economic development. Increased activity by the local development organization, the Poteau Industrial Development Authority, has been accompanied by increased local planning for Poteau 's physical development and improvements in the public facilities. Significant increases in the willingness of local citizens to support financing of local economic development make conditions much more favorable for future continuation of Poteau 's economic growth. Most of the community leaders who were questioned concerning the EDA funded project felt that EDA had been a significant factor in that recent economic growth. Grade B - limited development change; significant EDA impact JOB IMPACT Number of direct jobs EDA investment per direct job -- Number of direct job equivalents — Number of possible future jobs 250 Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- Before the Waldron Furniture Plant burned down, it was employing 21 people, with 3 more to be added the day after the fire, and plans to double the size of the plant after work on the EDA funded projects was complete. The new carpet mill was constructed by early 1970, but it is not yet in operation. When the carpet mill is in full operation, it will exmploy approximately 250 people and use 1,000 gallons of water per day. STRUCTURAL IMPACT As the carpet mill is not yet in operation, no structural impact grade can be given. SERVICE IMPACT While the facilities included in the EDA funded project were primarily intended to service the Poteau Industrial Park, there was some peripheral benefit to local residents in the fact that the water line tied in with other water lines in the Poteau City System, resulting in higher water pressure to certain parts of the city. It was also felt that the access road tied in with other city streets to afford a better flow of traffic. Grade D - marginal service to community at large Project Type: Water and Sewage Facilities/Industrial Park Project Numbers: 080100258 and 080200112 Applicant: Waurika, Oklahoma Project Financing: Total: $471,000 EDA Grant: $206,000 Date Approved: September, 1966 Dates Completed: June, 1968 (Water) June and December, 1968 (Sewage) PROJECT BACKGROUND Waurika, population 1,930, lies in Jefferson County in south central Oklahoma. Located at the crossroads of two major U. S. arterial highways, Waurika is in a predominately agricultural area, largely cotton farming, which is plagued by an inadequate water supply. Due to a lack of industrial and commercial job opportunities, and to the mechanization of farming, the Jefferson County area has been characterized by a serious outmigration of both young and experienced laborers. Unemployment rates in Jefferson County fluctuated between 7.5 and 10.1 percent from 1964 to 1967, and the area is designated for EDA assistance on the basis of persistent unemployment. While Waurika is located in a highly favorable position with respect to transportation facilities and urban centers for marketing, the community had not been able to develop a strong enough economic base before 1966 to support construction of adequate community service facilities. In 1966 Waurika applied for and received EDA funds for use in the construction of water storage, treatment, and transmission facilities, and of improvements to the city's sewage collection, treatment, and disposal systems. It was anticipated that the new water and sewage facilities would enable the development of an industrial park located in Waurika in which six companies had expressed an interest. There are presently two companies which have constructed plants on the industrial park. The facilities are also being used by residents of the area for a number of purposes. ECONOMIC DEVELOPMENT PROCESS Waurika government officials have developed a much more favorable attitude toward the community's economic development since early 1966. During this same period the local industrial development organization has become much more active in promoting the area's industrial expansion, and community groups have significantly increased their support of community development efforts. The number of State and Federal programs serving the area has been substantially increased. According to community leaders, all other factors in Waurika 's economic development process have been somewhat improved in the last four years. These same leaders are unanimously of the opinion that the EDA project has been a signficant factor in Waurika's economic growth, both in terms of increased employment and the provision of community service facilities. Grade B - general process change; significant EDA impact JOB IMPACT Number of direct jobs 88^ EDA investment per direct job $2 ,341 Number of direct job equivalents 79 Number of possible future jobs 50 Number of indirect job equivalents 24_ EDA investment per direct and indirect job equivalent $2 , 000 Firms where jobs were created: The Elliott Mobile Homes Manufacturing Company occupies a 20% acre site on the industrial park in Waurika, where its $500,000 plant manufactures mobile homes. Factors responsible for the firm locating in Waurika were a good labor market, a good school system, and an aggressive city government. The firm would not, however, have located in Waurika except for the EDA-funded water facilities, which are credited with enabling the company to create 60 of its 70 present jobs. Within the next two years Elliott Mobile Homes expects to add 50 people to its present work force. The American Rand Expanded Metals Corporation was induced to locate on its 9% acre site on the Waurika industrial park at the urging of community leaders, but would not have located at the industrial park without the EDA-funded water and sewage facilities. With a total capital investment of $650,000 the company produces expanded metal which is marketed outside the local area. All 28 of the firm's jobs are credited as being created as a result of the EDA projects, and company officials do not know if any more jobs will be created within the next year. STRUCTURAL IMPACT Created Jobs: 737, living in county where firm is located 837° heads of household --% increase in weekly average income 177, previously unemployed The employment created in Waurika as a result of the EDA projects represents considerable industrial diversification for the area. The employment created at American Rand is probably more stable than that at Elliott Mobile Homes because of the firms affiliation with a large company, but the stability of employment at both firms is dependent largely upon business conditions in the area. Both firms strengthen the economic base of the Waurika area by shipping their products outside the area for marketing. Grade B SERVICE IMPACT In addition to servicing the industrial park, the water and sewage facilities provided by the EDA projects have benefited the residents of Waurika in a number of ways. They have provided ample water for the citizens of Waurika, have provided water for a swimming pool for the city's young people, and helped to eliminate pollution of two creeks running through Waurika. About 60 percent of the water and sewer services going to the residents of Waurika are being utilized by low-income families. Grade B+ - significant new service to community at large, some new service to a number of low-income residents Project Type: Construction of Industrial Park and Facilities Project Number: 080100279 Applicant: Lone Butte Industrial Development Corporation, Chandler, Arizona Project Financing: Total: $860,000 EDA Grant: $688,000 EDA Loan: $172,000 Date Approved: February, 1967 Date Completed: July, 1969 PROJECT BACKGROUND The project is located adjacent to the Gila River Indian Reservation near Chandler, Arizona. The Gila River Indian Reservation, 1969 population 7*685, lies in the heart of central Arizona adjacent to the Gila River, approximately 35 miles southeast of Phoenix. The area is eligible for EDA assistance on the basis of its being an Indian reservation. The original project request called for construction of the Kyrene Industrial Park, including street improvements, a railroad spur, water-works, and sewage works. The industrial park was expected to be occupied within ten years after its completion by ten indus- trial plants that would employ approximately 1,100 workers. Most of the workers were to be Indians, who have been among the long-term unemployed. The project was also expected to stimulate the construction of about 3*000 one-family dwellings and a number of commercial and service businesses which would employ additional Indians. Presently, there are three major firms locating in the Kyrene Industrial Park, none of which occupies more than 12 acres of the 572 acre park. Of these three companies, Pima Valve, Baron Container, and United Mobile Homes, only Pima Valve is reported as having created jobs as a result of the EDA project. ECONOMIC DEVELOPMENT PROCESS Since early 1967, there have been significant changes in the area of the Gila River Indian Reservation in attitudes toward local planning for the physical development of the area and toward the area's par- ticipation in the district development program. The local development organization for economic and industrial development has become much more active during this same period. Despite these improvements in local attitudes toward development, the translation of these favorable attitudes into concrete action faces financial obstacles. During this same period, the willingness of local citizens to finance local improvements has generally remained constant, while local lending institutions have become less active in development financing. Of the community leaders questioned concerning the influence of the EDA project upon economic development in the area, the majority felt that the project had been the major influence, while the remainder considered it a significant factor. Grade B - inconsistent development change, significant EDA impact. JOB IMPACT Number of direct jobs 9 EDA investment per direct job $95,555 Number of direct job equivalents 5 Number of possible future jobs Unknown Number of indirect job equivalents 2_ EDA investment per direct and indirect job equivalent $98,286 Firms where jobs were created: Pima Valve, Incorporated occupies k-9% acres of the Kyrene Industrial Park and is involved in the manufacturing of bronze and steel valves for shipboard use. The company moved to the area from Los Angeles partly because of cheaper labor and less taxes, and partly because the EDA project promised a subsidy on the training of personnel. The total capital investment is $81,128, and the firm has 13 full-time employees, 9 attributed to the EDA project. Future expansion plans of the company will be determined by the business situation at the time . While it is not reflected in the above figures on possible future jobs, two other firms, Baron Container and United Mobile Homes, were in the process of being located on the industrial park at the time this evaluation was being made. Should their plans come to fruition, the number of direct jobs attributable to the EDA project will be greatly increased. STRUCTURAL IMPACT 100$ living in county where firm is located 78$ heads of household — % increase in weekly average income 88$ previously unemployed The one company in which new jobs were attributed to the EDA project represents industrial diversification for the Gila River Indian Reservation, but as an unaffiliated company, its job stability is open to question. Pima Valve's export of the bulk of its products outside a l^-mile radius strengthens the area's economic base. Seven of the nine jobs created, all of which were filled by Indians from the Reservation, went to male heads of household, and all but one of the new employees was previously unemployed. Grade B SERVICE IMPACT Original plans for the EDA project called for a ten-year expansion program to fill the Kyrene Industrial Park. Currently, only 2$ of the 572 acres in the park are occupied. While the project was primarily concerned with the construction of the industrial park, 25 percent of the sewage facilities are presently being utilized by the City of Chandler. Grade D - marginal service to the community at large • Project Type: Industrial Park Construction and Development Project Number: 080100281 Applicant: Pima - Coolidge Economic Development Corporation, Coolidge, Arizona Project Financing: Total: $554,000 EDA Grant: $443,000 EDA Loan: $111,000 Date Approved: December, 1966 Date Completed: October, 1969 PROJECT BACKGROUND The project is located on the Gila River Indian Reservation, 1969 population 7,685, adjacent to Coolidge, Arizona in Pinal County, approximately 35 miles southwest of Phoenix. The area is eligible for EDA assistance as an Indian reservation. In 1966, the Pima-Coolidge Economic Development Corporation, a non-profit corporation formed and operated by the Gila River Indian Community, received an EDA grant and loan for the development of a new industrial park site, including installation of water and sewer systems and construction of a rail- road siding, a bridge, and maintenance buildings. It was estimated that 411 jobs would be created for low- income, unskilled Indians. The project was to stimulate development of a stable economic base which would encourage companies to locate in the industrial park. The 411 anticipated jobs were broken down among the J. Harlan Metals Corporation - 160; the Ehrsam Foundry 100; the Coolidge Chemical Company - 50; and these firms' small satellite companies - 100. None of the six firms currently located or scheduled to locate on the indus- trial park site are among the four companies expected to locate according to the original proposal for EDA assistance. Currently there are three firms located on the 733 acre Pima-Coolidge Industrial Park, occupying 51 acres: the Nu-Pak Company, Inc., Dela Enter- prises, Inc., and Gila River Indian Enterprises, Inc. Levi Strauss, Inc., and the Pima Manufacturing Company, already located in Coolidge, intend to move onto the industrial park in the future, as does the Solo Cup Corpora- tion. These three companies will occupy about 75 acres. ECONOMIC DEVELOPMENT PROCESS The major obstacles facing the economic development process in the project area are the decrease in activity of local lending institutions in develop- ment financing, and the lack of change in the willingness of local citizens to finance local improvements since early 1967. During this same time period there have been significant improvements in receptivity toward local planning for the area's physical development and toward the area's participa- tion in the district development program. The local development organization has become much more active during this same period. The majority of local community leaders questioned felt that the EDA pro- ject had been the major influence upon local economic development, and no leader considered the EDA project's impact as less than significant. Grade B_ - uneven development change; major EDA impact. JOB IMPACT Number of direct jobs 195 EDA investment per direct job $ 2,841 Number of direct job equivalents 140 Number of possible future jobs 200 Number of indirect job equivalents 56 EDA investment per direct and indirect job equivalent $2 ,826 Firms where jobs have been created: Nu-Pak Company, Inc ., a subsidiary of Sovereign Industries, Inc., in Phoenix, occupies 20 acres of the industrial park where it manufactures aluminum shipping containers. The company located in the industrial park because the area offered an abundant labor supply, attractive land-lease rates, and low utility rates, and because they were informed by the Pima-Coolidge Economic Development Corporation that Nu-Pak would be given preferential treatment in obtaining government contracts because the Gila River Indian Reservation was a labor depressed area. With a total capital investment of $1,357,000 at their location, the Company employs 150 workers and within the next two years expects to add approximately 200 more jobs. Dela Enterprises, Inc ., a subsidiary of Aerospace Techniques, Inc., occupies a 20-acre site in the Pima-Coolidge Industrial Park. The company produces safety signaling devices, and pyrotechnic items, such as flares, smoke signals, and simulated practice bombs, for military and civilian use. Most of these products are exported outside the local area. Dela Enterprises located at its present site after surveying many areas because the Pima- Coolidge Industrial Park was already established and ready for occupancy. Also, the area had a ready labor pool and low taxes, and was remote enough to be suitable for testing of the company's products. The company had been told it would receive preference on Government contracts for locating in a labor depressed area, but a company representative claimed this had not turned out to be the case. With a total capital invest- ment of $350,000, and currently employing 45, the company felt that it could employ approximately 105 more people with its existing facility if future contracts warranted this expansion. STRUCTURAL IMPACT Information was not received from Dela Enterprises, Inc., so the statistics are for Nu-Pak Company, Inc. 98 % living in county where firm is located 60 % heads of household — % increase in weekly average income — % previously unemployed Both firms where jobs were identified as created are subsidiaries of larger companies, and together represent considerable industrial diversification for the Gila River Indian Reservation. The area's economic base is strengthened by the fact that both firms export most of their products outside the immediate area. Grade B SERVICE IMPACT No service to residents Project Type: Construction and Development of Industrial Park and Feed Lot Project Number: 080100282 Applicant: San Tan Economic Development Corporation, Dock, Arizona Project Financing: Total: $525,000 EDA Grant: $420,000 EDA Loan: $105,000 Date Approved: December, 1966 Date Completed: June, 1969 PROJECT BACKGROUND This project is located on the Gila River Indian Reservation, 1969 popu- lation 7,685, at Dock, Arizona, less than 15 miles from Phoenix in central Arizona. The area is eligible for EDA assistance on the basis of its being an Indian reservation, and the area's current status is designated. The project called for construction and development of an industrial park, including water and sewer systems, access roads, a railroad siding, and maintenance buildings. The project also called for construction of a cattle feeding lot adjacent to the industrial park. The whole project was intended to support a cattle feeder operation which would initially feed 15,000-25,000 head of cattle. The first tenant was to have been the Del Rio Feeding Company, which expected to employ about 50 low-income Gila River Reservation Indians when operations began. The project was expected to induce related industries such as meat packing, food processing, and feed companies to locate on the industrial park, filling an employment need and providing a sound basis for a stable economic base for the Gila River Indian Reservation. Original plans for development of the industrial park have not yet met fruition. The 335-acre park area is still empty since the originally scheduled tenant, the Del Rio Feeding Company, decided not to locate. The park facilities have been completed and negotiations are being carried on with several prospective tenants, but there are no actual clients for the industrial park. ECONOMIC DEVELOPMENT PROCESS Since inception of the EDA projects connected with the Gila River Indian Reservation, of which the industrial park and feeding lot concerned in the project at Dock are only one of several, there have been significant attitudinal changes concerning economic development planning among local community leaders. Despite the more favorable atmosphere for economic planning on the Gila River Indian Reservation, the willingness of local citizens and lending institutions to finance economic development has not increased accordingly. However, most of the local community leaders questioned felt that the EDA projects had been the major influence upon economic development on the Gila River Indian Reservation. Grade B - attitudinal changes; major EDA impact JOB IMPACT No jobs created or saved STRUCTURAL IMPACT Not applicable. SERVICE IMPACT No service to residents Project Type: Industrial Park Improvements Project Number: 080100292 Applicant: Baxter Springs, Kansas Project Financing: Total: $27,000 EDA Grant: $14,000 EDA Loan: $13,000 Date Approved: March, 1967 Date Completed: July, 1968 PROJECT BACKGROUND Baxter Springs, a city of 4,500, is located in Cherokee County in the most southeastern corner of Kansas. Approximately 20 miles west of Joplin, Missouri and 120 miles directly south of Kansas City, Missouri, Baxter Springs is within a two-county redevelopment area which came into existence because of the severe unemployment situation prevalent in the area. A severe decline in mineral extraction of lead, zinc and coal resulted in a decrease from over 12,000 to about 375 residents of the area gainfully employed in the mining industry. A decrease in the need for rail transpor- tation by industry and the increased mechanization of agriculture further reduced the need for unskilled and semi-skilled labor who were the principal contributors to the area's labor market. The area was made eligible for EDA assistance as an ARA carry-over and its current status is designated. The City of Baxter Springs, in an effort to meet the problem of unemployment, formed the Baxter Springs Industrial Development Corporation, which purchased an 80-acre industrial park site and provided it with the necessary public service facilities to attract industry. As part of its effort to induce the Selas Corporation of America to locate a plant on the Baxter Springs Industrial Park, the city applied for and received EDA funds for excavation, grading, and related site improvements for the physical plant of the Selas Corporation. The jobs resulting from this project were expected to primarily benefit the low-income group in the area, encourage the development of additional job opportunities, and aid in the retardation of out-migration of potential workers. Presently, the Selas Corporation plant is in operation on the industrial park, providing employment and a weekly payroll adding to the economy of the area. The City of Baxter Springs is negotiating with other firms interested in locating on the industrial park. ECONOMIC DEVELOPMENT PROCESS Community leaders of Baxter Springs who were questioned concerning changes in the area's economic development process since 1966 feel that there has been at least slight improvement in all the related factors. The Baxter Springs Industrial Development Corporation has been particularly active in efforts to improve the area's economy, and both local citizens and lending insti- tutions seem to have increased their willingness to provide the funds necessary for economic development. Baxter Springs community leaders feel that the EDA project has been important to the area's economic development, primarily in generating employment opportuni- ties. A feeling was also expressed that the EDA project had helped give the city a psychological uplift by assisting in convincing an internationally known corporation to locate a plant in Baxter Springs. Grade B - general low-level process change; important EDA impact JOB IMPACT Number of direct jobs 43 EDA investment per direct job $628 Number of direct job equivalents 41 Number of possible future jobs 20 Number of indirect job equivalents 12 EDA investment per direct and indirect job equivalent $509 Firm where jobs were created: The Selas Corporation of America occupies a 24-acre site with a total capital investment of $500,000 on the Baxter Springs Industrial Park. The company manufactures heat processing equipment. Officials of the firm feel that the site improvements provided by the EDA project were instrumental in the company's decision to locate in Baxter Springs rather than in one of the other communities being considered. Other factors in this decision were an available labor market, transportation facilities, and proximity to larger communities. The creation of all 43 jobs at the Baxter Springs Selas Corporation plant are credited to the EDA project, and the company expects to create 20 more jobs within the next two years. STRUCTURAL IMPACT Created jobs: 60% living in county where firm is located 857o heads of households --% increase in weekly average income 70% previously unemployed As a new type of industry for the Baxter Springs area, and an affiliate of a top rated company, the Selas Corporation plant should provide stable employment that helps diversify the local economy. The company also strengthens the local economic base by shipping all of its products for sale outside the immediate area. Grade A- SERVICE IMPACT No service to residents Project Type: Industrial Park Facilities Project Numbers: 080100548 and 080200564 Applicant: Pueblo of Zuni , Zuni, New Mexico Project Financing: Total: $270,000 EDA Grant: $192,000 EDA Loan : $ 54,000 Date Approved: August, 1967 Date Completed: June, 1969 PROJECT BACKGROUND The Zuni Indian Reservation is located in west central New Mexico, 40 miles south of Gallup, bordering the Arizona state line. The industrial park being serviced by the EDA projects is located at Black Rock, 3 miles east of Zuni on a high, arid plateau The area is isolated, 40 miles from rail and air transportation, but is serviced by an all-weather highway. In 1966, there were approximately 5,300 Indians living on or adjacent to the Zuni Reservation. Within the area to be developed there were approxi- mately 1,400 unemployed Indians out of a labor force of some 2,000. The principal economic activities on the Zuni Reservation have been livestock ranching, farming, part-time jewelry making, and part-time forest fire fighting. The range land has been developed to the absolute maximum animal units possible, and co-heirship has reduced livestock allotments to an uneconomic level. Only a limited acreage can be irrigated for farming. The area is eligible for EDA assistance on the basis of being an Indian reservation . The two EDA projects were for the extension of water service to the industrial park at Black Rock and the construction of sewer lines and an oxidation pond for the park. The initial user of the Black Rock Industrial Park was to be an electronic communications equipment manufacturing company which was estimated to provide 10 immediate jobs, and expand to 200 in two years. This new firm was expected to trigger the creation of approximately 100 directly related jobs and the development of commercial services then only available 40 miles distant. An additional 150 jobs were expected to be created in jewelry crafts as the result of an 0E0 program, and services for tourism potentially could provide up to another 500 jobs. By 1970 there was one plant located and in operation on the industrial park, the Ami-Zuni Corporation mentioned in the application for EDA assistance „ A second company, Dittmore-Freimuth, was planning to locate in the park, and negotiations were taking place with two other prospective new industries. ECONOMIC DEVELOPMENT PROCESS Since 1967, local community leaders feel that there have been some improve- ments in all the factors constituting the economic development process. Those areas in which these improvements have been particularly pronounced include the activities of the local industrial development organization and of the OEDP group, local planning for the Zuni reservation's physical development, the local leadership's concern for the poor members of the community, and the number of other Federal programs concerned with economic and social problems encountered by the Zuni Indians. The same community leaders felt that the EDA projects have been a significant impetus upon economic development of the area of the Zuni Indian Reservation. Grade B+_ - favorable economic development, significant EDA impact JOB IMPACT Number of direct jobs 100 EDA investment per direct job $ 2,460 Number of direct job equivalents 3 5_ Number of possible future jobs Unknown Number of indirect job equivalents 14 EDA investment per direct and indirect job equivalent $ 5,020 Firms where jobs were created: The Ami-Zuni Corporation located on the Black Rock Industrial Park by leasing a 10,000 square foot building built by the Zuni Tribe. Factors other than the EDA project that influenced the company's decision included the availability of both skilled and unskilled labor, the progressive attitude of the Zuni Tribal Council, and good expansion possibilities. Located on a 4-acre site with a total capital investment of $25,000, Ami-Zuni manufactures electronic communications equipment, which is shipped outside the area. The company employs 100 full-time employees, about two-thirds of them women. The work force is completely Indian, about 90 percent Zuni, and 10 percent Navajo from the Ramah Navajo Reservation adjacent to the Zuni Reservation. According to a company representative, future expansion plans are keyed to GNP growth, with a potential employment of 300 people provided the "outside" market place and its requirements grow accordingly. STRUCTURAL IMPACT Created jobs: 100% living in county where firm is located 100% heads of household 100% increase in income 100% previously unemployed As a new company dependent upon national economic growth for future expansion, the stability of the employment provided by Ami-Zuni is largely independent of company control. Location of Ami-Zuni at Black Rock represents considerable industrial diversification for an area in which no previous large-scale industries existed. Grade B+ SERVICE IMPACT No service to residents Project Type: Industrial Park Facilities Project Numbers: 080100565 and 080200573 Applicant: Colorado River Indian Tribe, Parker, Arizona Project Financing: Total: $405,000 EDA Grant: $303,000 EDA Loan: $ 81,000 Date Approved: August, 1967 Date Completed: February, 1970 PROJECT BACKGROUND The two EDA projects are located on the Colorado River Indian Reservation (1969 population 1,699) at Parker, Arizona (1968 population 1,936). The reservation is located along the Colorado River in western Arizona (Yuma County) and southeastern California (San Bernardino and Riverside Counties). In 1966, of the labor force on the Colorado River Indian Reservation, 48 percent was unemployed and 89.4 percent was underemployed. The area was made eligible for EDA assistance on the basis of being an Indian reservation, and its current status is designated. Of the $405,000 necessary for funding the two proposed projects, all but a $21,000 grant from the Federal Water Pollution Control Administration was provided by EDA grants and loans. The two project proposals provided for first stages of development of an industrial park, including construction of streets and railroad trackage, and of water, sewer, and waste treatment facilities. The projects were intended to provide space for nine interested companies to locate in the industrial park. It was estimated that these nine companies would produce 245 new full time jobs and 395 seasonal jobs (the equivalent of 96 full time jobs), most of which would be filled by Indians from the Colorado River Reservation. By early 1970, the major result of the EDA projects had been effected by the construction of a railroad spur connecting the Prest-Wheel of Arizona plant, located in Parker, with the main Santa Fe Railway line running along the boundary of the uncompleted industrial park. The railroad spur enabled Prest-Wheel to stay in Parker and to enlarge its facilities. ECONOMIC DEVELOPMENT PROCESS Between the application date of the EDA projects and early 1970, attitudes in the area of Parker and the Colorado River Indian Reservation toward economic development have generally improved or remained favorable. This has been particularly pronounced in relation to the local government's attitude toward the community's economic development, the activities of the OEDP group, the area's participation in the district development program, and the willingness of local citizens to finance local improve- ments. While there is general agreement on the improvement of attitudes toward economic development, there is a wide disparity among community leaders concerning the impact of the EDA projects upon economic development in the area. Opinions ranged from the projects having had no influence upon economic development to the projects having been the major influence upon the local economy. Grade B - broad development change; indefinite EDA impact. JOB IMPACT Number of direct jobs 111 EDA investment per direct job $3,459 Number of direct job equivalents 67 Number of possible future jobs unknown Number of indirect job equivalents 20 EDA investment per direct and indirect job equivalent $4,414 Firm where jobs were saved or created: Prest-Wheel of Arizona , a manufacturer of aluminum patio and lawn furniture, with a total capital investment of $1,000,000 at its Parker plant location, occupies 40 acres of what will be a 140 acre industrial park when completed. The company located in the area because of its western market and an available labor supply. A representative of the firm also expressed a desire to work with underprivileged people, primarily Indians. The EDA project enabled the company to remain in Parker and to increase its operations. Prest-Wheel currently employs 111 people at its Parker plant, 60 of the jobs having been created for Indians after the EDA projects were initiated. The company is undecided about future expansion plans. STRUCTURAL IMPACT Saved jobs: 100%, living in county --%, heads of household Created jobs: 100% living in county --% heads of household % increase in income 7o previously unemployed The only company currently located in the industrial park, Prest-Wheel of Arizona, represents a useful tool for economic diversification of the Colorado River Indians. Over 70 percent of the firm's products are exported outside the local area. As an independent company, the stability of its employment is of a questionable nature, largely to be determined by market conditions. Grade B SERVICE IMPACT No service to residents. Project Type: Sewage Treatment Plant /Industrial Park Project Number: 080200072P Applicant: Russellville, Arkansas Project Financing: Total: $200,000 EDA Grant: $40,000 Date Approved: May, 1966 Date Completed: July, 1968 PROJECT BACKGROUND Located in Pope County in northwest central Arkansas, the City of Russellville had an estimated 1969 population of 10,250. Russellville, in the vicinity of the Arkansas River, is situated in an area where chicken raising is of prime importance. Each year some 51,000,000 broilers are produced and processed in five processing plants within a 50-mile radius of Russellville. This is important for the economy of Pope County, which was marked by unemployment rates ranging between 7.9 percent and 6.0 percent from 1964 to 1967. The area is designated for EDA assistance on the basis of persistent unemployment . At the end of 1965 the City of Russellville applied for EDA assistance in the construction of an addition to its sewage treatment plant, primarily to serve the Morton Frozen Foods Plant located at the city 's industrial park. This addition would also permit treatment of animal and vegetable fats for all firms handling poultry and animal products which may locate at the industrial park. The primary anticipated economic impact of the project was increased employment at the Morton Frozen Foods Plant. ECONOMIC DEVELOPMENT PROCESS The OEDP group concerned with Russellville has significantly increased its activity since early 1966, which is partially reflected in more extensive planning for the area's physical development and improved public facilities. In other factors of the economic development process, Russellville 1 s progress has been gradual, except in the area of the local leadership's concern for poor and minority groups. A local representative of these groups felt that only the county judge had shown concern for their problems. Community leaders knowledgeable about Russellville feel that the EDA project has been a very significant factor in, if not the major reason for, the economic development of the area. Somewhat ironically, the community leader who expressed the opinion that practically none of the local leadership was concerned with problems of local poor and minority groups also feels that the sewage facilities have influenced the economic situation of the poor more than any other project in the area. Grade B - limited process change; significant EDA impact JOB IMPACT Number of direct jobs 265 EDA investment per direct job $151 Number of direct job equivalents 176 Number of possible future jobs 235 Number of indirect job equivalents 88_ EDA investment per direct and indirect job equivalent $152 Firms where jobs were created: The Morton Frozen Foods Division of the ITT Continental Baking Company, Inc. originally located in Russellville because of an adequate labor force, potential water navigation on the Arkansas River, and the area's good location for distribution of the company's products. The Russellville plant, with a total capital investment of $11,000,000, produces prepared frozen dinners, pot pies, and dessert items which are marketed outside the area. Morton Frozen Foods credits the EDA project with being the factor enabling the company to create 265 of its present total of just over 1000 jobs. Within the next two years the company expects an increase of about 235 in its work force. STRUCTURAL IMPACT Created Jobs: 70% living in county where firm is located 50% heads of household --% increase in weekly average income 100% previously unemployed As an affiliate of a top rated company, Morton Frozen Foods represents highly stable employment for the Russellville area. The jobs created as a result of the EDA project do not industrially diversify the local economy. By exporting most of its products from the area, Morton Frozen Foods helps strengthen the area's economic base. Grade B- SERVTCE IMPACT No service to residents. EDUCATIONAL FACILITIES Project Type: Educational Facilities Project Number: 060100315 Applicant: Michigan Technological University, Houghton, Michigan Project Financing: Total: $UU6,000 EDA Grant: $223,000 Date Approved: April, 1966 Date Completed: September, 1967 PROJECT BACKGROUND The City of Houghton, population 3*390, is located on the Upper Peninsula of Michigan in Houghton County, population 35,65k) which is eligible for EDA assistance on the basis of persistent unemployment (7.87 D in 1967.) The area is a major producer of raw materials for forest-product industries. Most of the timber harvested, however, is shipped out of the region for further processing into consumer products. This loss of job opportunities contributes heavily to the poor economic condition of Houghton. In 1966, the Institute of Wood Research of the Michigan Technological University, Houghton, Michigan, received an EDA grant to provide for the construction of a laboratory, office and shop facilities. This facility serves as a center for researching the utilization of Michigan's wood resource and the solution of technical problems for the entire northern Lake States timber area. The scope of the program embraces timber harvesting methods, pulping and wood chemical problems, lumber production and use, and technical service to existing industries, as well as feasibility studies for proposed new wood industries. ECONOMIC DEVELOPMENT PROCESS Since 1966, there have been changes in the local attitudes toward economic development. Community support for local development efforts has grown considerably. Concern for the poor has increased. Also, local government, lending institutions, and planning groups have become more interested in developing the local economy. All community leaders agree that the EDA project has been a definite factor in the economic development of the area. Grade B - favorable improvement; some EDA impact Number of direct jobs 11 EDA investment per direct job $20,272 Number of direct job equivalents — Number of possible future jobs — Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- The intent of this project was to build a research facility which in turn would study and attract wood industries into the Houghton area. It is these industries that will create or save jobs and generate indirect employment. However, the immediate effect of the project is the creation of a permanent institute staff of eleven: seven professionals and four non-professionals. STRUCTURAL IMPACT Not applicable at this time. SERVICE IMPACT No service to residents. Project Type: Maine Food Science Lab and Plant Project Number: 070100152 Applicant: Port of Astoria, Oregon Project Finance: Total: $118,000 EDA Grant: $59,000 Date Approved: May, 1966 Date Completed: May, 1968 PROJECT BACKGROUND The City of Astoria is located in an area where the fishing industry is an important source of income « Astoria, population 11,230, is in Clatsop County, an area that was made eligible for EDA assistance on the basis of an ARA carry-over, but that is not now designated. In 1966, research and development in the seafoods industry was lagging far behind other food industries. In order to correct this situation, the Port of Astoria proposed to establish a new Seafoods Research Laboratory which was to be leased and operated by the Agricultural Experiment Station of Oregon State University. A comprehensive program of basic and applied research was to be conducted in new package development, new species development, fish protein concentrates, packaging technology, quality improvement and control, applied engineering, and waste utilization. A breakthrough in any of the fields would lead to greater employment in the fishing and seafood processing industries and contribute to the introduction of supporting industry and commerce „ This would also benefit other fishing areas on the west coast. Twenty people were to be employed in the new Seafoods Laboratory. ECONOMIC DEVELOPMENT PROCESS Because of the unique nature of this project, the standard analysis of the economic development process is not appropriate , The laboratory operates as an integral part of the Department of Food Science and Technology, Oregon State University, and does not influence attitudinal or institutional change in Astoria. Serving as a laboratory for applied and basic reseach in marine food science, the laboratory is working to improve and develop uses for fish. The impact of the findings will be felt by the entire fishing industry, especially in the state of Oregon. Grade - Not applicable. JOB IMPACT Number of direct jobs _5 EDA investment per direct job $ 11,800 Number of direct job equivalents 7_ Number of possible future jobs 4 Number of indirect job equivalents 4 EDA investment per direct and indirect $ 5,728 Institution where jobs were created: The Oregon State University Seafoods Laboratory employs 15 people of which 5 positions can be considered as created by the EDA project. The laboratory located in Astoria because the area is one of the most favorable locations for a laboratory designed to carry out applied research and development for the fishing industry of Oregon. The total capital investment was $284,800. Since the "product" of this "firm" is research and development services, it can be said that more than 70% of the "final output" is exported out of the area. Four new jobs will be created within the next two years. STRUCTURAL IMPACT Created jobs: 100% living in county 80% heads of household — % increase in weekly average income 40% previously unemployed This facility in itself adds little to the structure of the local economy. However, its contributions to the entire fish industry could potentially have a great impact upon the structures of the local and state economies. Grade - Not applicable. SERVICE IMPACT PUBLIC BUILDINGS Project Type: Renovation of Building as Vocational Education Center for Special Mobility Program Project Number: 080100£1|2 Applicant: Rio Grande City School District, Rio Grande City, Texas Project Financing: Total: $12,000 EDA Grant: $10,000 Date Approved: April, 1967 Date Completed: July, 1968 PROJECT BACKGROUND Rio Grande, Texas, population 5,830, is located in Starr County, which is eligible for EDA assistance on the basis of high unemploy- ment and low income . In the early part of 1966, EDA agreed to assist 0E0 in a program to provide vocational training to migrants who had been given basic education. The Department of Labor, 0E0, and EDA decided that the Rio Grande Valley of southwest Texas would be a target area. At that time, Ling-Temco-Vought Aerospace Corporation (LTV), in Grand Prairie, Texas, was expanding and interested in employing trainees from the Valley. The training and mobility program would involve 750 persons. They were to receive three weeks of orientation at their residences and then be relocated in Grand Prairie. The train- ing costs were met with funds operated, at the time, by EDA, Labor, and HEW. The Department of Labor paid for the relocation of trainees and their families. Seven hundred and fifty unemployed Mexican- Americans from three towns — Harlingen, McAllen, and Rio Grande City — took part in this demonstration project. There were no facilities in Rio Grande City in which to conduct the training program. The Rio Grande School District applied for and received EDA assistance to renovate an existing building for this purpose. The renovation was minor and included minor repairs, replacement of fixtures, and installation of adequate lighting. One hundred and seventy five unemployed Mexican- Americans were trained in Rio Grande, relocated to Grand Prairie, and employed as aircraft assemblers by LTV. ECONOMIC DEVELOPMENT PROCESS The impact of this EDA project on the economic development in Rio Grande must be evaluated in light of the uniqueness of the project. Though the project was of great benefit to the 175 residents of Rio Grande, all 175 moved away from Rio Grande at the termination of their short orientation program. Thus, it is important to determine whether this experimental project, in which Rio Grande was only one of the participating towns, served to promote the economic development process in Rio Grande. Of the three community leaders who responded to the EDA survey, all agreed that the local government's attitude toward the community's economic development became more favorable. The president of the local Chamber of Commerce believes the policies of the lending institutions to be unchanged, though his group assumed a more active role. Both the CAP Director and the local tax collector agreed that the local citizens are more willing to finance local improvements, and such development efforts have greater support from community groups. They also noted that the local leadership's concern for the poor and minority groups has increased greatly. The number of other State and Federal programs in the community has increased somewhat. Though it is difficult to assess what influence the EDA project has had on the economic development of the area, the community leaders who responded agreed that it has been a factor. They regarded the training and employment of 175 heads of households, previously unem- ployed, as contributing to economic development. Grade A - favorable improvement, significant EDA impact for the 175 trainees JOB IMPACT Number of direct jobs 104 EDA investment per direct job $96.00 Number of direct job equivalents 118 Number of possible future jobs program terminated Number of indirect job equivalents 47 EDA investment per direct and indirect job equivalent $61.00 Firm where jobs were created: Ling-Temco-Vought Aerospace Corporation , a nationally known company which contracts to a large extent with the Federal Government, is located in Grand Prairie, Texas, employing approximately 20,000 persons. LTV agreed to hire the 750 trainees of this experimental mobility project, including the 175 trained in Rio Grande City, as aircraft assemblers. Of the original 175, 104 were employed at LTV as of April, 1970. Most of those no longer employed were laid off because of government cutback in procurement of military air- craft. All are qualified to work for any aerospace company in the assembly and riveting classification. STRUCTURAL IMPACT Created Jobs: 0% living in county where project is located 100% heads of households 108% increase in weekly average income 100% previously unemployed The structural impact of the EDA project was minimal in Rio Grande City since the 175 trainees moved to Grand Prairie to work for LTV. SERVICE IMPACT The renovated school building is presently being used by the local school district for school purposes. Use of this facility avoided the necessity of constructing a new building with revenues raised from a bond issue. Grade C - some improved service to the community at large Project Type: Public Building Project Number: 060100134 Applicant: Turtle Mountain Chippewa Indian Reservation, Belcourt, North Dakota Project Financing: Total: $425,000 EDA Grant: $340,000 EDA Loan: $85,000 Date Approved: June, 1966 Date Completed: February, 1968 PROJECT BACKGROUND The Turtle Mountain Reservation is located in Rolette County, North Dakota. The county, eligible for EDA assistance on the basis of persistent unemployment, has a median family income of $3,325 and an unemployment rate of 9.3 percent. Approximately 3,500 Indians live in the county adjacent to the reservation. Worse off are the 3,343 residents of the reservation (an area designated for EDA assis- tance because it is a reservation). As of March, 1965, these Indians had a labor force (14 years and over) of 2,239, and a total employ- ment of only 594, with a median family income of $1,500. The Turtle Mountain Band of Chippewa applied for and received EDA assistance to provide for a multi-service community center. This center contains assembly and conference rooms, study rooms, class- rooms, arts and crafts areas, a social center, and storage and office space for neighborhood youth corps, program heads, tribal programs, and CAP staff. It also houses adult education and home economics classes, and the Headstart Program. The community center functions as a place where community concerns can be explored and programs for economic and social development managed. Because the Indians now have their own building, they depend less on other agency facilities. The general feeling is that they have gained some control over their own living situation. ECONOMIC DEVELOPMENT PROCESS The local leaders surveyed agree that since 1966 all segments of the community have become more favorably inclined toward economic develop- ment. Planning and community support for such development activities has increased considerably. The local government has become much more interested in economic efforts. This particular project was seen as a necessary first step toward the reservation's economic development; more programs must follow. The center has become a place for groups to meet and work as a total community to reduce the causes of poverty. One community leader saw employment opportunities as a possible route toward curbing the Indian's social problems. Another stressed that unemployment remains very high on the Indian reservation, even though many of tnose unemployed are skilled laborers. Programs designed to re- locate the Indians to areas where they can find jobs have failed because they do not want to move out of the area. Industry on or near the reservation is badly needed for future social and economic development. Grade B - favorable improvements, significant EDA impact JOB IMPACT Number of direct jobs 62 EDA investment per direct job $6 ,855 Number of direct job equivalents 49 Number of possible future jobs -- Number of indirect job equivalents 1 EDA investment per direct and indirect job equivalents $8 ,500 Although the main purpose of this project was service, the resulting employment opportunities are indeed important for a community with such high unemployment. The jobs recorded above are connected with the multi-service community center and involve maintenance, management, etc. Of these jobs, 49 were saved. STRUCTURAL IMPACT Not applicable SERVICE IMPACT The EDA project not only serves the entire community, but also encourages a growing sense of community identity. The training, educational, social, and recreational sectors of the center's operations all work to increase the group's morale. Grade A+_ - significant new service to the Indian community at large Project Type: Community Building - Development Center Project Number: 080100212 Applicant: Sharp County, Ash Flat, Arkansas Project Financing: Total: $163,1*00 EDA Grant: $98,000 Date Approved: June, 1966 Date Completed: July, 1968 PROJECT BACKGROUND Sharp County is located in the north central part of Arkansas. The population of the county is 6,319 and the median family income is $1,902. This area was made eligible for EDA assistance in 1966 on the basis of low income, and it remains designated. There has been a shift in the economy away from an emphasis on agriculture which has resulted in a general movement of farm people to urban areas seeking jobs and places to live. This shift has created an increase in unemployment and a further reduction in the low income of families living in the rural areas, resulting in a greater burden and hardship upon the long-term underemployed and low income families. Until I960, the county had continually suffered from loss of population, losing workers in the age group between 20 and 5>5> years, leaving a residue in the county of the very young and the more or less retired and elderly. The county, through its redevelopment corporation and community action committee, had undertaken a special program to provide educational, job and craft training and other opportunities to the indigent and low income families through a community service center program. The application for this project resulted from the need for expanded com- munity services and a lack of adequate facilities. The development center subsequently built at Ash Flat was to be the hub for service, training and accommodation activities in the community, giving long- term benefit to the underemployed and low income families of the area. Currently, this facility is being used as a center for much of the development activity in Sharp County. Federal, State and local offices are housed here as well as a library and welfare and health facilities. With a community meeting room in the building, there is now a central place for residents to meet. ECONOMIC DEVELOPMENT PROCESS There have been significant changes in the attitudes and institutions related to the economic development process of Sharp County. The local government has become more favorable in its attitude toward the economic development of the community. This change of attitude has been strength- ened by the local leadership's greatly increased concern for the poor in the area. Local planning for the physical development of the area has become much more extensive and is complimented by a more active OEDP group and local development organization. Participation in the district program has also greatly increased. The support of community development efforts by community groups has increased as has the willingness of citizens to finance local improvements. All other areas of concern have also shown general improvements. This facility was greatly needed to serve the needs of the people of Sharp County and has proved to be of great value to the economic develop- ment of the area. By satisfying a number of basic area needs, it is helping to bring new industry into the area which creates new jobs for the residents. It has fulfilled a unique need in this area by providing a place for developers to meet who are developing an extensive retire- ment industry within a 30-35 mile radius from Ash Flat. Retirement communities are being developed in the surrounding mountain areas; an estimated 70,000 acres is now being developed. The community leaders polled were unanimous in their opinion that the EDA project has been a significant factor in the economic development of the area. One leader stated that "EDA has been one of the major factors that has given our area the economic boost we have enjoyed the past li or 5 years." Grade B+ - significant change, significant EDA impact JOB IMPACT Number of direct jobs 12 EDA investment per direct job $8,167 Number of direct job equivalents ]_ Number of possible future jobs — Number of indirect job equivalents 3 EDA investment per direct and indirect job equivalent $9,800 Building where jobs were created: The Sharp County Community and Development Center was not built as a job creating venture. However, twelve jobs were created as a result of the building. These positions are basically maintenance type and are low paying. A total of 33 people are employed in the building. As this project has contributed to the economic development of the area, it has had an indirect effect on employment. One community leader who attributed the new facility with significantly effecting the retirement industry, indicated that the industry now employs in excess of 1,000 persons. Jobs have opened up in the areas of construction, service and maintenance, and land sales. He further indicated that it was the residents of the area who are being employed. STRUCTURAL IMPACT Does not apply. SERVICE IMPACT This project was designed to meet the service needs of the community. It has brought together under one roof all Federal, State and county offices in a central location allowing easy access to all county resi- dents. County organizations have been able to cooperate and communicate to bring about better relations. It brings people closer together by providing better communications. It houses the Head Start program and provides special assistance to low income residents and those on welfare. Each week the building is used by approximately 500 people. Grade B+ - improved service to the community at large, including a substantial number of low income residents. Project Type: Tourism Project Number: 030100219 Applicant: Muskingum Watershed Conservancy District, New Philadelphia, Monroe Township, Ohio Project Financing: Total: $1*89,000 EDA Grant: $2L£, 000 Date Approved: April, 196? Date Completed: December, 1968 PROJECT BACKGROUND Monroe Township is located in the northeastern part of the State of Ohio. Its economic base consists of a variety of industries which include stone -clay-glass, paper, non-electric machinery, and fabricated metal. The area also has potential for recreational activities. With a population of 11,U00, Monroe Township is located in Carroll County, an area that was made and remains eligible for EDA assistance on the basis of persistent unemployment . In 1965, the Muskingum Watershed Conservancy District constructed, with the help of an Accelerated Public Works grant, the Atwood Lake Lodge. It attracted enough tourists to use the facilities at full capacity which prompted further plans for improvements, consisting of a golf course, water system improvements and a ski slope . In 1966, the District applied for an EDA grant to construct these recreational facilities. The project was to enable the Lodge to expand and also to operate year-round. It was estimated that in three years the project would help create 30 new jobs in the Lodge and 20 - 30 new jobs in adjoining commercial and service establishments. The facilities were first available for the tourist season in the summer of 1969. That summer the Monroe Township area experienced the worst weather conditions encountered since 1933* The situation was aggravated by a mosquito plague. The result of these problems was a greatly cur- tailed first season. The Atwood Lodge did not expand employment as expected, but this coming season is being looked forward to as the new opportunity to fully make use of the new facilities. ECONOMIC DEVELOPMENT PROCESS Changes in the attitudes and institutions have taken place in Monroe Township since 1966. Most significantly, local planning for the physical development of the area has become much more extensive. This change has been facilitated by a local government that has a very favorable attitude toward the community's economic development. Citizens seem to have be- come more involved in their community, increasingly supporting its develop- ment. However, this support has not gone so far as to bring any change in their willingness to finance local improvements. The local lending institutions, on the other hand, have become more active in development financing. Development is further supported by a more active development organization, increased activity by the area in the district program, and improved public facilities. With the increased trade that this project has brought to the area, the community as a whole has experienced an increase in income. Additional employment opportunities have been provided and new business has been brought to the stores and services in the area. The residents of the area are quite enthusiastic about the project. The community leaders felt that this EDA project has been a significant factor in the economic development of Monroe Township. Grade B- - some improvement, significant EDA impact JOB IMPACT Number of possible future jobs U$ Federal Catering of Ohio, Inc. , which manages the Atwood Lake Lodge, currently employs 110 people. This is the winter season employment level — in the summer they expect to employ up to 160. With a reason- able golf and winter sports season, which will increase room occupancy and restaurant trade, the company may add up to h$ more jobs. STRUCTURAL IMPACT Not determinable at this time. SERVICE IMPACT The focus of this project was on increasing the area's potential for tourism. The local residents have benefited from the new facilities by being provided with better recreational facilities. The Lodge also fills a community need by providing meeting facilities for the use of various groups. Grade D - marginal service to the community at large Project Type: Tourism - Convention Center Project Number: OU010O126 Applicant: Myrtle Beach, South Carolina Project Financing: Total: $1,088,000 EDA Grant: $5UU,000 Date Approved: May, 1966 Date Completed: August, 1967 PROJECT BACKGROUND Myrtle Beach, population 7,830, is located in Horry County, an area that was eligible for EDA assistance on the basis of excess unemployment, but was dedesignated in 1967. Myrtle Beach is a resort town on the Atlantic. In 1966, the city applied for and received an EDA grant to build a convention center. The project was to construct a multi-purpose center, suitable for conventions, trade shows, indoor recreational activities, and other events for which the city had inadequate facilities. The center was expected to create approx- imately 35>2 directly related jobs. The Myrtle Beach area suffers from high unemployment at the end of each tourist season. By having a conven- tion center which would be used throughout the year, it was hoped that existing seasonal employment opportunities in the service sector of the area would be extended to more nearly year-round jobs. ECONOMIC DEVELOPMENT PROCESS Since 1966 there has been an improvement in the economic development process of Myrtle Beach. Both the local development organization and the 0EDP group have become much more active. The public facilities in Myrtle Beach have been improved, and planning for the physical develop- ment of the area has continued. The willingness of local citizens to finance improvements has increased, but the lending institutions have become less active in development financing. The number of other State and Federal programs has increased somewhat. The community leaders questioned stated that the EDA project has been a factor in the economic development of Myrtle Beach. The usual tourist season in Myrtle Beach runs from the first of June until Labor Day, but an increasing number of tourists have been taking advantage of "off season" rates. The convention center has dramatically increased the "off season" business through conventions, trade shows, meetings, and various recreational and cultural activities. For 1970, the center already has been scheduled to be used for 172 days by 85 activities with an expected attendance of 11U,UUU, and major bookings have been made up to 1975 • By providing a location for events throughout the year, and particularly by strengthening a longer tourist season from April to November, the center has benefited the accommodations and support businesses in the area. As a result of the EDA project it is estimated that an additional 500 to 1,000 tourists visit Myrtle Beach during an average week, raising the weekly tourist expenditure by approximately $30,000. The applicant claims that the center has been responsible for at least one million dollars increased business revenue over the past three years, and should produce as much as three to five million in the next two to three years. Grade B - some improvement; significant EDA impact JOB IMPACT Number of direct jobs 7 EDA investment per direct job $77,714* Number of direct job equivalents -- Number of possible future jobs -- Number of indirect job equivalents -- EDA investment per direct and indirect job equivalent -- *This figure is misleading since all the accommodations-industry businesses in the area that remain open year-round, numbering in the hundreds, directly benefit from the center and must increase and/or retain employees as a result of the center's activities. The Myrtle Beach Convention Center has a full-time staff of five. Several part-time jobs are created when the center is in use. STRUCTURAL IMPACT Employer information not available. By increasing off-season business for the accommodations industry, the project has substantially broadened the economic base of this resort community. Grade C SERVICE IMPACT The center serves local residents by providing a meeting place for local civic and cultural activities with a seating capacity unavailable at any other location. Grade D - marginal service to the community at large PE T.?. T . A .Tii/. NIVERS,TYLIBRA R'Es Ulllllllllilllll