Co-op uses economic development to grow new opportunities
As the number of small farms dwindled in the 1980s and 1990s, Northwest Iowa Power Cooperative and its members' systems fought back by investing in the community—an investment that has paid big dividends.
Electric cooperatives usually stick to the business of generating and distributing power and leave the business of generating new jobs to business. But, as Kay Anderson, NIPCO's director of economic development, put it, "A member-owned co-op can't afford to mind its own business when its members need help. Faced with a slumping economy and a shrinking customer base, we had to find a way to replace the agricultural load our member cooperatives were losing."
Local strategy supplements statewide marketing
Several member-owned and municipal electric cooperatives had come together in 1985 to form the Iowa Area Development Group to address that problem. The statewide organization assists cooperatives in serving businesses interested in expanding or locating within the utilities' service areas.
However, NIPCO's members soon recognized the need for a local focus. "The statewide marketing efforts might attract businesses to our community, but if they didn't see any local support, they wouldn't stick around," explained Anderson. "We had to set our own goals, inventory our area's assets and establish local contacts to provide services to a new type of customer."
Armed with a strategic plan targeting housing, business retention and recruitment and infrastructure support, NIPCO opened its own office of economic development in 1991. Health Development Triad Medical Clinic was one of the first businesses to seek assistance from the new office. With NIPCO's support, the medical clinic received funding from the U.S. Department of Agriculture's Rural Economic Development Loan and Grant Program. The low-interest loan enabled Health Development Triad to build a new facility to provide medical services in the town of Mapleton.
To date, NIPCO and its members have helped commercial and industrial customers and local communities secure more than $2.9 million in REDLG funding to create 149 jobs and leverage more than $23.6 million in capital investments.
Variety of services attract diverse industries
Over the years, businesses ranging from food processing to cold storage, from corporate box stores to small, family-owned companies have benefited from NIPCO's assistance. "We've developed a full menu of services to help businesses and local communities keep pace with the changing economy," said Anderson.
Currently, those services include up-to-date information on sites and facilities, business and community data, labor and infrastructure development. Technical assistance with permitting, manufacturing and, of course, utilities and telecommunication is also available through the office of economic development. In cooperation with its member cooperatives, NIPCO has provided financial assistance through loans and interest buy-downs of about $2.5 million. The USDA recently awarded NIPCO a $500,000 Intermediary Relending Program grant to help with future economic development activity.
Changing customer profile brings new demands
Agricultural customers, such as dairy farms and ethanol plants, still play a significant role in the local economy, added Anderson, but commercial and industrial membership is growing, too. "The exciting thing about economic development is that the program keeps evolving," she said. "Every success creates a new need and another opportunity."
NIPCO recently launched a new program to train customer service representatives at member co-ops to develop commercial and industrial accounts. "Different customers require different kinds of service, and we want to make sure that our members have the tools to give those customers what they need."
Anderson is a great believer in having the right tools. She began her career as a teacher before moving into economic development. "The two fields are very similar," she asserted. "In teaching, I gave kids the tools they would need to get a job. In economic development, I'm giving adults the tools they need to create jobs."
