Cedar Valley Economic Development Corporation
1999 Annual Report

The Cedar Valley economy continues to grow and all-time records in construction activity as well as employment and other key indicators were set during fiscal 1999. Cedar Valley Economic Development Corporation (CVEDC) has and will continue to play an important role in the area’s success.

Cedar Valley Economic Development Corporation officers: (seated left to right) Jean Trainor, Sam Allen, (standing left to right) Frank Dowie, Dr. Ross Christensen.

Cedar Valley EDC re-energized interest in local investment opportunities by hosting “Seed Investing as a Team Sport.” In partnership with the Iowa Department of Economic Development, area banks, the Iowa Bankers Association, and MidAmerican Energy, this area was the first of several communities in the state to host this highly successful day-long seminar developed by the National Association of State Venture Funds. During the coming year, Cedar Valley EDC will work to establish a framework for seed investment.

Workforce development will continue as an important program for Cedar Valley EDC. Almost two years ago Cedar Valley EDC began meeting with employers to determine how the community could best respond to shortages in certain segments of the labor force. This past year Cedar Valley EDC along with the Cedar Falls and Waterloo Chambers of Commerce formalized a joint initiative to assist local employers on a variety of workforce development issues. Emphasis during the coming year will be on aggressive marketing of the program to former Iowans as well as high school and college students. At the same time, a variety of organizations are focusing on the training needs of local employers. Cedar Valley EDC continues to market the area aggressively to new employers. This year alone, nearly 4,000 companies were contacted, and custom proposals were prepared and presented on nearly 50 different projects. Hunt-Wesson, a 1997 Cedar Valley EDC “home-run,” was recently named “Food Plant of the Year” by Food Engineering magazine. This prestigious award will alert companies throughout the U.S. and abroad that “high-tech” manufacturing is alive and well in Iowa.

Perhaps of primary importance to our continued success is the recognition that economic development is truly a team effort. Were it not for Cedar Valley EDC’s strong partnerships with local governments, the Iowa Department of Economic Development, the University of Northern Iowa, Hawkeye Community College, Black Hawk Economic Development, MidAmerican Energy, Cedar Falls Utilities, and the local chambers of commerce, our success would be far more limited and the community would not be poised for continued growth through the year 2000.

"We contacted the Cedar Valley Economic Development group in early 1995. The role they played was invaluable in assisting us through the entire process. Their staff was extremely helpful as well as professional in their support of our project. Clearly, had it not been for Cedar Valley's capable assistance, there is a good chance we wouldn't be here."

Over the past several years the area has benefited from a prospering national economy. This includes new capital investments from Cedar Valley EDC- assisted projects totaling $77,431,040, and new construction totaling 737,000 square feet by new businesses locating in the Cedar Valley area. Over $1 million in annual property tax will be generated from the new construction by these business locations once they are fully assessed on the tax roll.

This level of success is achieved because of the strong commitment of community leaders, contributors and partners in economic development. Economic development 
is unquestionably everyone’s business.

Cedar Valley EDC utilizes a business-to-business marketing approach. The staffs’ goal is to make each presentation contain 
a highly informative message. This process requires more intense personal involvement, with the understanding that the investment decision is a long-term process and only rarely results in immediate decisions.

Often, communities like Waterloo/Cedar Falls must conduct external marketing efforts to capture the attention of the handful of business expansions that happen annually. Without marketing, communities like Waterloo/Cedar Falls are overlooked or not immediately thought of as a new business location.

This year alone, 3,858 direct mailings were sent, 34 companies visited, and custom proposals prepared for nearly 50 projects. The Cedar Valley EDC staff has created a sophisticated formula to help determine the most fertile market in which to conduct marketing. Targeted geographic markets include: Minneapolis/St. Paul, New York, and Detroit. In fiscal year ’00 Cedar Valley EDC will undertake a new and aggressive national marketing program that will target one select industry group in the forty-eight contiguous states.

For the second consecutive year, Cedar Valley EDC has accompanied the Iowa Department of Economic Development (IDED) to Germany, meeting with businesses planning facility expansions to the United States. The Cedar Valley is one of the few communities in Iowa that participates with IDED in these trips.

CVEDC staff is currently working closely with several companies that have put the area on their short list due to external marketing efforts. Dymacol Inc. from Oceanside, New York, recently made a commitment to locate in Cedar Falls’ Prairie Technology Park as a result of this effort.

"Of the sites available, we chose downtown Waterloo because of our faith in the future of this community and its people."

William A. Hopp
Vice President, Controller,
Waterloo Industries, Inc.

Healthy existing businesses are the foundation of successful economic development. It is the existing businesses who have made the initial investment in facilities, created jobs 
and paid taxes that contribute to the enhancement of a community’s infrastructure. It is the goal of Cedar Valley Economic Development Corporation to add the components of a strong Business Expansion and Retention Program – visitations, appreciation events, and the provision of information to strengthen the local business climate.

Cedar Valley businesses continued to grow in 1998-99 even though the area was significantly impacted by a decline in the farm economy. Expansion projects in which CVEDC assisted in the past year include: Clear Windows, GMAC Mortgage, Northland Products, and Cedar Metal Works. These expansions will result in the creation of over 100 new jobs and $8.7 million in capital investment. While significant, it should be recognized that these projects represent only a portion of the construction activity during the year.

Businesses such as IBP and Crystal Distribution made significant capital investments with expansion projects of 
$2 million and $4.5 million, respectively. Bertch Manufacturing and Omega Cabinets are companies that also substantially increased employment, in addition to their facility expansions. 

The challenge for CVEDC is to develop effective strategies to communicate to existing businesses not only their value to the community, but to provide them access to business assistance programs. Cedar Valley EDC’s Expansion and Retention Program offers businesses project-specific services ranging from site and/or building information to coordinating and administering local and state financial programs. This year, Cedar Valley EDC assisted local businesses with various applications; i.e., Community Economic Betterment Account (CEBA), Enterprise Zone, Job Training, and Physical Infrastructure. By maintaining an inventory of available real estate, Cedar Valley EDC was also able to assist several businesses with short-term warehousing needs in 1998-99.

Again this year, workforce development continued to be a primary focus for the Expansion and Retention Program in efforts to retain and attract a high-quality labor pool. Fiscal year 1999 proved productive in providing workforce resources to area businesses. With sponsorship from the Waterloo-Cedar Falls Courier, a local employment web site was established – waterloocedarfallsia.com. The site currently hosts information on 100 area employers and lists 490 job opportunities. On-line applications have been received from 
19 states. Cedar Valley EDC also partnered with the Iowa Department of Economic Development as a community sponsor of the state’s employment web site– smartcareermove.com, receiving applications from all 50 states as well as the countries of Egypt, Guam, and the United Kingdom.

1999 Annual Report -- Existing Industry (Cont.)
Page 5

"Our recent  $4.5 million expansion effort is testimony to the vibrancy of the Cedar Valley economy as well as Crystal Distribution's commitment to the community."

Tom Poe
Crystal Distribution Services

The Workforce Development Committee will continue the three-pronged approach for a supply of proficient workers – recruitment, retraining, and retention of our young people. For fiscal year 2000,  a strong emphasis of the Workforce Development Committee will focus on attracting individuals that have previously lived or worked in the area. An advertising campaign, in addition  to job fairs and direct mail, will be utilized to promote the job opportunities in the area.

One objective of Cedar Valley EDC’s Expansion and Retention Program is to provide local, existing businesses with information that can assist them in planning and decision-making. A notable achievement for fiscal year 1999 was the seminar initiative. Workshops on “Creating a Motivational Environment” and “OSHA Requirements for New Employees” were well attended, and survey responses indicate that this type of forum is preferred. While designed to assist small- and medium-size businesses, large employers have also taken advantage of this service.

Cedar Valley EDC continues to support the mission of the Cedar Valley Labor-Management Council which is to promote activities that will assist both labor and management in better understanding the other. Each year the Council sponsors a skill-building workshop to promote that mission. This year, the topic selected was “Managing at the Speed of Change.” The Council has a membership of 25 organizations who are supportive of promoting and maintaining good labor-management relations.

Cedar Valley EDC’s Expansion and Retention Program will continue to work to strengthen the local business climate because the factors that make a community attractive to outside prospects – reasonable operating costs, available infrastructure and sites, cooperative local government and high-quality living conditions – are the same factors that ensure the continued operation and growth of existing businesses.

“Our recent expansion has proven that the economy of the Cedar Valley area is alive and well. There is an extremely bright future ahead.”

Michelle Volkens
Facilities Manager, 
GMAC Mortgage

Dr. Ross Christensen, Chair
Sam Allen, Vice Chair
Jean Trainor, Treasurer
Frank Dowie, Past Chair

Duane Amhof
Firstar Bank

Mark Baldwin
Iowa Laser Technology

Gary Bertch
Bertch Cabinet Manufacturing

Dr. Ross Christensen
Christensen & Bigelow, P.C.

Frank Dowie
PDCM Insurance

Hugh Field
Beecher, Field, Walker, Morris, Hoffman & Johnson, P.C.

Dr. William Hierstein
Hawkeye Community College

Sonia Johannsen
Black Hawk County Board of Supervisors

Dr. Robert Koob
University of Northern Iowa

Jim Lewis
Waterloo-Cedar Falls Courier

Ken Lockard
Lockard Development, Inc.

Mayor John Mardis
City of Evansdale

Donna Nelson
Nelson Insurance Agency

Bill Nowell
MidAmerican Energy

Gary Plummer
Waterloo Chamber of Commerce

John Rathjen
Union Planters Bank

Kristi Ray
Cedar Falls Chamber of Commerce

Don Redfern
Redfern, Mason, Dieter, Larson & Moore

Mayor John Rooff
City of Waterloo

Jerry Shoff
Cedar Falls Utilities

Jim Slife
Pioneer Graphics

Mayor Ed Stachovic
City of Cedar Falls

Lyle Taylor
Black Hawk Economic Development, Inc.

Jean Trainor
John Deere Community Credit Union

Joe Vich
Community National Bank

Rick Young
Young Plumbing & Heating

CVEDC STAFF:

Carl Adrian
President
Linda Laylin
Director of Business Services
Lisa Rivera
Director of Marketing
Julie Perry
Administrative Assistant
John Leavitt
Research Intern