Spring 2006 issue of Horizons

corporate decision makers who want to expand growing firms in new locations. We have a highly compelling story to tell them - our quality of life and our cultural, educational, sports and entertainment attractions - but the challenge becomes how do we get that story in front of them on a consistent basis. Let's look at what the South did when it lost textile jobs to overseas competition and the tobacco trade to changing times. These southern states had to re- invent their economies in a very short amount of time. They had to engage their private business sectors to raise funds so they could market their states to private industry.” The states' economic development teams privatized, Steinhoff said, due to restrictions placed on how public funds are used, particularly for entertainment purposes and out-of- state travel. In Missouri, Steinhoff said the DED is looking to breathe new life into the Hawthorne Foundation. “It was set up by then-Governor Kit Bond in 1981 to pay for gifts for visiting dignitaries. We'd like to ramp up funding to $1 million a year so we can hire four to six people to market Missouri in other states. We want to create a sales culture among these state marketers that ties their pay to performance.” Steinhoff sees the out-of-state Missouri sales force working with regional DED contacts to find the right location for an incoming company based on the firm's needs. The Hawthorn Foundation board is going to receive a for- mal proposal this spring. The plan is being developed with a budget and operating policies by economic development advisers from across the state. The goal is to launch the program at the beginning of the state's 2007 fiscal year in

“Our business climate is ranked 10th in the country based on measurable factors,” Steinhoff said, “but recently CEO magazine rated it 40th. When I called the magazine to ask them what metrics were used to make that low assessment, I learned the poll was not based on objective criteria but subjective reactions to Missouri sent to them via e-mail messages. The reality is top 10, but the perception is 40th. A vigorous, privately funded marketing effort can change that perception,” Steinhoff added, “and the work already has begun with both the Hawthorne Foundation and the Promote Missouri Fund.“ Steinhoff recommends business owners and their advisers review other state economic incentives that can impact a firm’s bottom line, such as Missouri historic tax credits, Missouri Enterprise Zone status and state Brownfield tax initiatives. To find out about qualifying for these programs and other economic development tools, contact the Missouri Division of Economic Development (573-751-4962) and ask for Business and Community Services.

July. In addition to the Hawthorne Foundation fund, the DED worked with Governor Blunt and legislators to help create and build the “Promote Missouri Fund.” The general assembly approved a 2 percent fee to be applied to several of the department's tax credit programs in order to raise money to help market Missouri as a good place to do business. The funds

are starting to accrue. “Currently, the state budget has only $181,000 earmarked for marketing Missouri to attract new businesses,” Steinhoff said. “This fund will allow us to have a greater presence in cities where decision-makers of major companies live and work.” Steinhoff said that Kansas already has a full-time marketer in Atlanta.

6 • spring 2006 issue