CEO Note

By Tom Johnson, Elevate Rapid City CEO and President

I still remember the California energy crisis of 2000 and 2001 like it was yesterday.

I was a young economic developer, just a few years into my career. The Governor of Wyoming had us talking to California manufacturers about the benefits of relocating to a state with no corporate and income tax, low property taxes, and most importantly: some of the lowest energy costs in the country—probably the world.

Manufacturers in California at the time were paying electricity costs that seemed outright crazy, almost criminal. Our costs were often 25% or less of what they were paying.

All we had to do was point it out.

There I was, my fact sheet in hand, making pitch after pitch after pitch about the benefits of doing business in a low-cost state with bare bones taxes.

And do you know want to know what happened?

Nothing. Absolutely and completely. Nothing. Not one manufacturer relocated, expanded, or moved to the state, no matter how much the savings, no matter how bad the crisis.

The reason? Infrastructure and workforce. We did not have the infrastructure and workforce. We did not have thousands and thousands of workers required to fill the jobs. And even if we had, we did not have the housing to support them.

It was an important lesson I have never forgotten.

Today, assuming the COVID-19 crisis abates, the Rapid City and Box Elder region continue to face unprecedented growth. Whether it’s the coming of the B-21 or the light-speed growth of the healthcare sector, the need for workforce and infrastructure isn’t stopping.

This issue of Elevate features some of the ways Elevate Rapid City and others are working to address issues around workforce and infrastructure, like housing. There’s the story of Candyland, for example, the childcare center coming to Box Elder. You’ll also read about the recent establishment and growth of the Rapid City Housing Trust Fund, which looks to ensure affordable and available housing for the area’s growing workforce. Finally, there is the story of how Black Hills Energy continues to invest in the community to make sure energy needs of the Rapid City region are met for decades to come.

It won’t be easy. It never is. Investments in people and infrastructure and quality of life don’t often show instant results (or as we in the economic development world refer to as ROI). But long term, the ROI is unmeasurable.

The low costs of doing business? We’ll just add them as gravy.

Stay safe and god-speed.