Clear Lake Mayor Crabb says economic development sometimes feels like an episode of “Let’s Make a Deal”

By Clear Lake Mayor Nelson Crabb –

It was a very cold day back in early January that I sat in City Administrator Scott Flory’s office waiting for a conference call with a site selector for a potential large scale economic development project. This was the day (actually it was in the evening) that we were to be notified, up or down, as to whether 5 months of negotiating back and forth with the site selector would pay dividend.

I don’t think I will ever forget the look on Scott’s face as he glanced over at me while he was on the phone with the site selector and gestured to me a very wide-eyed thumbs up. It was a moment that I knew would have the potential to impact our Community in a positive way for many years to come. This was the evening that Clear Lake had received confirmation that project Windmill Realty, LLC would be located in Clear Lake. A project that would create 164 full-time jobs at $39,000/year; $6.5 million annual payroll; result in nearly $19 million in new tax base; invest over $65 million in capital to build and equip; and ultimately result in the likelihood of a Fortune 100 Company putting down roots in our City.

Many people I visit with about this project indicate to me that the Interstate must have been the deciding factor in the selection decision. That would be an over-simplification. A Project site selection decision such as this would never be made purely because of an Interstate alone. Every candidate community under consideration for Project Windmill Realty, LLC had proximity to an Interstate or major highway. That factor alone did not distinguish Clear Lake from its competition. It is analogous to saying that all straight “A” (4.0) students should be accepted to Harvard University or discounting the rigorous process that a City goes through in an effort to host the Olympics or the Super Bowl. Clear Lake offered proximity to I-35, while our penultimate rival for the Project, Austin, MN, offered proximity to I-90. In fact, I might suggest a slight edge could have been given to Austin based upon the Midwest territory to be served specifically by this proposed regional warehouse & distribution facility.

Additionally, a great deal of thought and innovation went into the formulation of the proposed incentive package. It is noteworthy that Clear Lake’s incentive package was actually slightly less aggressive than Austin. Of course, that fact did not reveal itself until long after the site selection decision had been made.

So why Clear Lake? The City of Clear Lake has one of the lowest city tax rates in the State of Iowa, which translates well into the long- term cost of doing business equation. The City invested heavily in the development of an industrial park, with infrastructure designed and built to be able to accommodate such a project. Additionally, the City demonstrated a commitment and willingness to proceed with the Project on terms that were favorable to the legitimate business interests of the Project. Last, but perhaps most important – it is because of the people of Clear Lake; none of the things this City has accomplished over the past decade to help position itself for this type of an opportunity would have been possible without your unwavering confidence and support. You are the difference and I thank you!