Tuesday, December 08, 2009

Tap Into Erie looks to trade on region's abundant water

Erie wants to use its most abundant resource to attract companies, create jobs

By JIM MARTIN
jim.martin@timesnews.com

Lake Erie is a giant game changer -- capable of luring tourists to its sunny shores or burying us with lake-effect snow.

Now, some wonder if it might prove to be a magnet that could bring jobs to the region.

The Erie Regional Chamber and Growth Partnership is betting on it with Tap Into Erie, a new initiative that's looking for ways to use the region's abundant water supply to attract companies that depend on water.

The idea grew out of a need for the region to set itself apart, said Jake Rouch, vice president of economic development for the chamber.

Rouch, whose group continues to focus the majority of its budget and time on business retention, said he recognized that the region's budget for business attraction didn't stack up against other communities that would be competing for the same jobs.

Every town in the country, it seems, has a slick brochure and the promise of a good life and able workers. And most of those places stand ready to serve up a cocktail of tax breaks and low-interest loans.

A study by a local consultant confirmed what some might have expected. Erie is close to major population centers and has top-notch health care and abundant higher education opportunities.

But so did a lot of other places.

Water -- enough to satisfy the most demanding user -- was what made Erie unique.

That's not the case in much of the United States. The growing shortage was addressed earlier this year in hearings held by the U.S. House Committee on Science and Technology.

The committee concluded: "Water shortages can negatively affect companies and entire industries and reduce job creation and retention. Increased water demand will come with increased costs to all businesses, industries and municipalities."

In Erie, where water can be drawn from a pair of giant pipes -- one 5 feet in diameter, the other 6 feet -- submerged 25 feet below the surface of Lake Erie -- the reality is different.

Without expanding the current system, Erie Water Works Chief Executive Paul Vojtek said the Erie City Water Authority has an untapped capacity of 36 million gallons a day and is using only about 26 million gallons a day.

That's a message Erie officials have been taking on the road in recent months as sponsors of the Oregon Brewers Festival and the Great American Beer Festival and while attending conferences for site selection and food packaging groups.

None of the events were chosen by accident.

Rouch said craft breweries, ethanol producers, food processors and data centers, which can use water for cooling, were all identified as industries that need water.

"We had to pick our targets," said Matthew Cummings, director of marketing communications for the chamber. "You have to know your target audience and speak to them directly. When you try to be everything to everyone, you end up being nothing to no one."

In addition to abundant water and the normal assortment of tax incentives, Tap Into Erie offers new companies a 40 percent water discount for the first five years.

It's an effort that's drawn the attention of the Wall Street Journal, which mentioned Erie's effort in an article published Monday that highlighted Milwaukee's efforts to accomplish the same goal with water drawn from Lake Michigan.

Tap Into Erie, funded by the chamber, the Pennsylvania Department of Community and Economic Development, Erie Water Works, Erie County, the city of Erie and the Erie Community Foundation, hasn't landed the region any new employers yet, but its efforts are getting some good reviews and a lot of notice.

At the festival in Oregon, Erie's business attraction efforts scored as the lead story on one local television newscast, Cummings said.

"The reaction from the craft brewing industry was very favorable," Rouch said. "They all thought it was a great idea."


Rouch hopes the outreach efforts are planting seeds that might one day grow into something more as companies make decisions about expanding.


Is there a limit to how far an effort such as this one should go?


The Great Lakes represent the largest source of fresh surface water on Earth and 84 percent of North America's freshwater supply, but is there a point where too much consumption has an effect?


Not anytime soon, said Vojtek, who explains that most of the water taken from the lake is returned, either in the form of drainage or as treated water.


He favors an illustration that demonstrates just how much water sits at our back door.

Vojtek said if the rain stopped falling and all the water flowing into Lake Erie suddenly stopped, the 26 million gallons a day used by Erie would eventually lower the lake level.

In 12 years, he said, the water level would fall by 1 inch.

There are limits to the drawing power of abundant water, Rouch said, explaining that it's likely to be one of several factors some companies might consider.

But he is convinced it's an asset worth touting and an important way to set Erie apart. And the simple act of putting Erie on a prospect's radar can prove to be a tall order.

"It can be humbling," Rouch said. "A lot of people have never heard of Erie."

Promoting Erie's abundant water "is a way to differentiate yourself in a very cluttered marketplace," he said.

Vojtek said he believes in the effort and stands ready to provide water to companies that can create jobs.

"I think they have taken a good approach," he said. "Who knows what could come of it."

JIM MARTIN can be reached at 870-1668 or by e-mail.

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