CLEVELAND, Tenn. (Sept. 26, 2008)—Much like the parable of the blind men and the elephant, just because we cannot yet see what the impact of Volkswagen’s decision to locate in Hamilton County will be on Cleveland and Bradley County doesn’t mean there’s no discussion or activity.

In fact, quite the opposite is true.

The Cleveland/Bradley Chamber of Commerce Board of Directors took the initiative at its Aug. 14 meeting to approve the formation of a Volkswagen Impact Task Force and has already begun meetings with a broad cross section of public and private sector leaders.

“I have great confidence in the abilities of Carl Hite and Gary Farlow,” Cameron Fisher, chairman of the Chamber’s Board of Directors, said. “They both have a keen sense of what needs to be on the front burner in situations like this, and this is definitely front-burner. No one can predict the domino effect of what is to come, but we can at least have the people in place to anticipate it.”

Carl Hite, chairman-elect of the Chamber’s Board of Directors, chairs the VW Impact Task Force.

“The Chamber is already seeing activity relative to Chattanooga’s Volkswagen announcement several weeks ago,” Hite said. “We realized the need to take a proactive stance to prepare for the impact of the new Volkswagen production facility to be located in Hamilton County’s Enterprise South Industrial Park.”

Hite explained that Volkswagen’s new manufacturing operation will affect Cleveland and Bradley County significantly because of its proximity to the Bradley County borders and the ease of commuting from the north.

Gary Farlow, the Chamber’s economic development vice president, confirmed Hite’s observations. “We’re already experiencing activity, but as a community we need to think about where we want to be in the next five to 10 years. The issues are multifaceted.”

The task force will look at the potential ramifications of the 2,000-plus employee influx into the area. 

“With the predicted 2,000 VW employees and an additional 14,000 supplier employees, not to mention the ripple effect of that much new development in our region, the face of our community will certainly change,” Farlow pointed out. “We have an unprecedented opportunity to make that change a very positive thing for our community.”

In a task force meeting this week, representatives from city and county government, city and county school systems, Cleveland Utilities, Southeast Tennessee Development District and the Chamber focused on the need for a strategic plan for land use, infrastructure, public facilities and services, and housing.

“We need to have a better grasp on what the impact will be and how to deal with it,” Farlow said about the need to intentionally invest in public facilities and services that meet the needs of a more rapidly growing population and economy. “We need to develop a vision of what this community should and could look like 10, 15 or 20 years from now.”

Members of the task force concluded that the current “window of opportunity” demands planning, both short-term (five years) and intermediate-term (10 years), to address “the expected dramatic growth” caused by a strong upsurge in anticipated industrial employment based on, but not limited to, the announced Volkswagen assembly plant.

“In every situation where automakers have moved into a community, the resulting growth has been beyond what was projected or envisioned,” Hite said, citing the impact of German automaker BMW on the Greenville-Spartanburg, S.C., region. Population alone is up more than 20 percent in that region since 1990.

“We must think collectively,” Hite said about regional efforts to prepare for the economic impact, “but we’ve got to protect Bradley County as well.”

Farlow added, “People that have good information make good decisions. We need to evaluate existing plans for addressing growth and develop plans for the inevitable demands on our schools, healthcare, infrastructure, housing and workforce training. No one entity in our community can do this. That’s why we need a consulting firm that can work with local leaders to synthesize all the data and develop with community leaders a strategic plan to meet the needs of Cleveland and Bradley County.”

The task force has voted to approach city and county governments, along with other entities with a stake in the new economic development opportunities, about funding such a plan.

To represent the interests of Bradley County, Farlow will join the delegation that will travel to Germany Oct. 22-28 with Gov. Phil Bredesen. The governor’s trade mission hopes to sell Volkswagen suppliers on the idea of locating factories in Southeast Tennessee to service the assembly plant in Enterprise South.

“Bradley County falls within the 60-mile radius of the Volkswagen assembly plant where preferred suppliers will locate,” Farlow explained. “We are a prime location for additional investment, which makes it all the more important to develop a strategic plan for our community that will complement the action plan for the region.”

Farlow will also join public officials and economic developers in Chattanooga when they visit Greenville-Spartanburg in a few weeks to research how BMW changed the economic opportunities in that area and how they responded to the growth.

According to a Sept. 21, 2008, article in the Chattanooga Times Free Press, “A University of South Carolina study estimates BMW has pumped $8.8 billion into South Carolina’s economy through its own investments and more than 40 automotive suppliers that have clustered within 50 miles of the plant.”

Said Farlow, “Some economists already project that the economic payoff for Southeast Tennessee could be even greater if Volkswagen continues to expand as BMW has done over the past 15 years. We must prepare not just for possibilities but probabilities.”

Chamber Board Chairman Fisher echoed the need to address the issues. “There are many groups across our region who have expressed an interest in being involved in this process and that says to me that we have progressive and proactive community leaders. The small representative group that has met these few times will expand as vital subcommittees are formed to address critical aspects of this impact.”

As the comprehensive plan is formulated, the VW Impact Task Force will expand its membership to include representatives from Charleston, Cleveland and Bradley County governments and departments; city and county school systems and facility planning departments; area utility providers; healthcare; the River Counties Association of Realtors and Ocoee Region Builders Association; Lee University and Cleveland State Community College; the State of Tennessee Career Center;  the Economic Development Council, Bradley/Cleveland Industrial Development Board; and local legislators.

The Chamber of Commerce will continue to serve as the organizing entity for this group.

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