The economic development of Chattanooga has made it an ideal environment for foreign companies looking to relocate or expand. Mayor Bob Corker is keen to tell the world. Karen E Thuermer reports.

Bob Corker, mayor of Chattanooga in the US state of Tennessee, is certain to burst any perceptions of a hillbilly culture his southern state might conjure up. His accent may project the southern drawl so dear to the region, but his speech is quick and he is fast to grasp onto and turn a good idea into reality.

Chattanooga is not a sleepy town in the foothills of the Blue Ridge Mountains and Mr Corker is not a tame mayor. The city rivals Memphis, Nashville, and Knoxville as a growing business centre.

Mr Corker’s pace mirrors the aggressive action that characterises economic development in Chattanooga today. The city is undergoing phase two of a $1.4bn effort to become the next role model for shrewd, sweeping downtown revitalisation. About $129m is earmarked for extensive redevelopment of the riverfront. This comes as many US states and cities are facing severe budget cuts.

“The next budget will show deep cuts that will have an impact for many years,” says Mr Corker. “But we laid the foundation for these improvements early on. This community has never had so much momentum as it has now.”

Man of progress

Mr Corker believes in seizing the moment and pursuing progress. About $110m in public and private donations has already been raised under his leadership for the riverfront project. With a strong private-sector background prior to entering politics, Mr Corker has enjoyed record-breaking success in raising the funding even in the down-turned economy.

“Our efforts might not be directly applicable to overseas companies that might consider expanding or relocating to our area, but it sends a strong message that this is a city that knows how to do things,” says Mr Corker. “Our government knows how to partnership with companies. You might say we are joined at the hip. And today, politics and business are aligned like never before.”

Compared to revitalisation efforts at other important north American cities such as Pittsburgh, Pennsylvania, and Vancouver, British Columbia, that took years to complete, the developers and leadership of Chattanooga have moved with unprecedented speed to raise the funds and complete the work by Spring 2005.

Mr Corker is in the first term of his mayoral position but he is well founded in business. He led Bencor Corporation, a big US commercial contractor, from its founding in 1978 until the construction segment of the company was sold in 1990. In 1999, he acquired Osborne Building Corporation and Stone Fort Land Company, the two largest and most historic real estate companies in Chattanooga.

In 1986, he led the creation of Chattanooga Neighborhood Enterprise (CNE), a non-profit, public/private partnership, and served as its founding chairman. Through the hard work of a diverse group of community participants, CNE has become a national model for neighbourhood revitalisation, having invested more than $200m and helped more than 6000 families in the city find decent, fit and affordable housing.

In 1995, Mr Corker was recruited to serve as commissioner of finance and administration for the State of Tennessee. There, he was widely acclaimed for his ability to bring people together to solve problems. Among his responsibilities were the preparation and implementation of Tennessee’s $13bn state budget and overseeing the general operations of the state.

In March of 2001, Mr Corker was elected mayor of Chattanooga, with 54% of the vote and a first ballot victory in a field of 11 candidates.

High tech strengths

Economic development is one of Mr Corker’s key platforms. In addition to the revitalisation programme, $20m is being spent on infrastructure improvements under his administration.

“We are taking advantage of fibre optics that run in the rail lines of our city and our proximity to Oak Ridge, Tennessee, home of the Oak Ridge National Laboratory,” he says.

The Oak Ridge National Laboratory (ORNL) is especially important. It is a multi-programme science and technology laboratory managed for the US Department of Energy by UT-Battelle, LLC. There, scientists and engineers conduct basic and applied research and development to find solutions for clean, abundant energy. “A direct link at our university to the ORNL super computer has significant implications for economic development,” says Mr Corker.

Already, Mr Corker has succeeded in relocating a SIM Center from Mississippi to Chattanooga. The SIM Center houses a computer simulator used by the Nasa and the US Department of Defense. “We recruited this project like Alabama and South Carolina went after the auto industry,” he says. “After all, the south east has been designated Detroit South since so many auto manufacturers are now locating plants here.”

Work ethic

Mr Corker points to the region’s tremendous work ethic as a major plus for employers locating in the area. “Studies show that the workforce in Chattanooga are underemployed, even with unemployment at 3%. People are not working to their full potential,” he says.

A plus for the city, is its designation as a renewal community. “This gives us tax benefits that make it possible for us to go after market driven industries,” says Mr Corker.

Currently, 15 European-headquartered companies are located in Chattanooga. From the UK are: Alco Chemical, BOC Gases, Cannon Equipment Southeast, and Willis of Tennessee; from Finland come Ahlstrom Paper Group and Ahlstrom Filtration; from France comes Alstrom Power; from Germany, BASF Corporation and Dover Elevator; from Ireland, Smurfit-Stone Container Corporation; from Italy, Signal Mountain Cement Company and TAD USA; from the Netherlands come Bunge Foods and Randstad Staffing Services; and from Switzerland, Steam Generator Company.

Courting the world

Chattanooga’s Chamber of Commerce has been actively pursing FDI for the city via its “Tell the World” programme. “The idea is to get the word out to the world about our awesome city,” says Mr Corker. “Besides our many assets, we have a superb quality of life and are considered one of the top 10 outdoor communities in the United States.”

Nestled in the Blue Ridge Mountains, Chattanooga and its vicinity offers rock climbing, mountain biking, trout fishing and a host of other activities. One area in which it has fallen short is air transportation, although Mr Corker points out that it is only one hour and 20 minutes driving time to Atlanta’s Hartsfield International Airport and equal distance to Nashville. “We have obtained a direct flight to New York’s La Guardia. From there people can catch flights for Europe and other parts of the world. This flight gives us much better connectivity,” he says.

The city benefits from an excellent highway network. Interstates 75 and 24 meet there. The city also hosts dual rail service by Norfolk Southern and CSX.

Mr Corker has this message for overseas firms considering a north America location: “If you are going to make an investment, look at what is happening in the community in which you are considering. Our city displays interest in investing in itself. We will work together to make a relocation and/or expansion happen. Here, government and business have a shared vision and values investment. We understand how important making a profit is.”