Three Thoughts: Nothing Mundane About Energy Production

Mundane.  An over $4 per gallon price of gasoline aside, stopping to fill your car’s gas tank seems fairly routine.

Learn what goes into making gasoline and producing power, however, and there’s nothing mundane about it.  There’s so much more complexity, and economic impact, than meets the eye. 

Ohio is at the center of it all. 

First Thought: Tour an Oil Refinery. Learn Its Complexity.  Cenovus’ Lima oil refinery is nearly two hours away from Columbus.  Yet, our routine ability to pull up to a gas pump and fill up in Central Ohio is owed to this plant and three others in Ohio. 

I was glad to get a tour recently and learn more.  What an eye opener. 

There’s so much complexity.  Yet, it would be easy to be dismissive about the 140-year-old refinery which is the oldest continually operating refinery in the United States.  Out of sight.  Out of mind. 

It’s not out of mind in Lima.  In fact, facing a possible closure a few years back, the city rallied to find a buyer and keep the jobs and economic impact.  It’s good for all of us they did. 

It takes a lot of STEM-skilled people to keep it operating efficiently and make the jump between refining crude oil into gasoline, diesel, or jet fuel. 

Another Thought: Supply Chains Are Also Complex. It is shocking how much supply chain impact there is.  It’s a list too long to write down.  

Pipelines push out the fuels across the state.  Terminals miles away on the pipelines fill the trucks that keep our gas stations pumping.  Marathon runs a major terminal in Central Ohio. 

Railroad lines bring critical materials in and out.  Every manufacturer and rail user benefits from spreading the costs of keeping the lines running across a wide industry base. 

MPW, MISTRAS Group, Kokosing Industrial, and AMG Vanadium are among the companies that employ people in the middle of Ohio but with strong ties to the refineries and Ohio’s energy industry. 

Third Thought: Other Forms of Energy Also Not Mundane.  Increased electricity use, coupled with lost electricity production, has made the business of power generation something that used to be out of sight and out of mind, but isn’t anymore.  

However, now there is new power generation capacity planned galore.  The PJM multi-state grid operator just accepted 811 applications for interconnection from generators of all types.  Supply is coming. 

The vast number of PJM applications and ones that hit the agenda at the Ohio Power Siting Board show a growing trend.  A good one.  Power generation is finding its way to where the users are.  

It could still be out of sight and out of mind. For example, The Ohio State University’s Combined Heat and Power Plant is hidden in plain sight.   Power can be generated in a building that’s visible right off State Route 315 on campus.  One could drive by it and never know.  OSU has found a way to make power generation feel, well, mundane. 

We all need to embrace the more visible, complex energy production business.  We all benefit.  After all, there’s nothing mundane about energy production.

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This column is a regular column in The Dispatch.

Three Thoughts: I’m A Son Of A. . .Planner

 

I’m a son of a planner.  When I say it out loud, for dramatic effect, I make a slight pause after the second “a” before delivering the word planner as the punchline. 

It’s true.  My dad was a city planner when urban planning was a new thing.  As the son of a planner, I’ve been attending planning meetings longer than I can literally remember. 

Though my dad and I saw eye-to-eye on most things, we differed when it came to planning.  He was proud, for example, to live his entire life and never set foot in a Walmart.  It must be mandatory as an urban planner to (wrongly) blame Walmart for the demise of America’s downtowns.  

On the contrary, I am a huge fan of Walmart.  I am proud to call a major Walmart investment in Ohio among the most impactful job-creating projects on which I’ve ever had the pleasure to work.  

One thing is apparent on what we would agree.  My dad wouldn’t recognize planning today.  

First Thought: It’s Not My Father’s Planning Anymore.

Planning used to be a positive exercise—zoning made to strategically invite complimentary development and land use. 

It’s shifted.  

I recently found myself observing a planning hearing.  For a change, I was not personally involved.  More than 40 people testified against single family homes being built in Heath that, by some crystal balls, may bring two and half times more school-aged kids than would generally be the case for expensive new homes.  Though the meeting was 90% civil, some things were new to me: booing the other side as well as pandering instead of persuading. 

I fear that the message now part of modern planning and zoning is simply: Keep out. 

Another Thought: Is Civility Lost Forever?

There’s no question that the evolution of planning has brought with it greater negativity. 

According to a recent survey by the Ohio Economic Development Association, almost two out of three economic developers reported negative community sentiment as a challenge over the past year versus that topic not even making the list the year before. 

There’s lots of reasons for the shift.  Filling social media posts and procuring online thumbs up from an audience beyond the room scores points with some.  Unbiased media coverage isn’t even in the room. 

When trends shift one way, it’s easy to assume they will stay that way.  I’ll take the high road and predict civility wins out.  Some day.  

Third Thought: A Positive Plan For Employment.

Chandler, Arizona was 40 years ahead of Central Ohio in winning a semiconductor manufacturing investment from Intel.  Chandler leaders cite the biggest decision their forefathers made that is paying dividends today is planning for future employment. 

They call them employment corridors.  

Chandler didn’t want to be a “company town” dependent on one major employer.  They found a way to plan for future opportunity.  There’s still development land in fast-growing Chandler that brings promises of job creation in the future. 

Chandler is a model for the reasons to return to the strategic and positive side of planning and zoning. 

Local planning and zoning focused on creating employment opportunity is spot on.  That’s the sort of planning on which most people can agree.

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This column is a regular column in The Dispatch.

Three Thoughts: Economic Development Is Everyone’s Job

 

I’ll never forget the question, 25 years ago, when hundreds of jobs in Steubenville, Ohio were on the line:  “What’s the blue light special?”

Walmart executives, wanting to get to know the community better before they moved forward with a decision to locate a massive, multi-state food distribution center project, chose to wander into a K-mart in Steubenville in Spring 2001.  They randomly picked a worker in their competitor’s store to ask the question about impulse sales.

That day’s executive approach is not unique.  It gets repeated thousands of times when big investment and job-creating decisions are made.  The drill?  Drop into a community and seek encounters with anyone on the street to gain a personal feel for the place.

I was the economic development guy on the spot witnessing all this. I remember fearing that worker could have turned the decision in the other direction for the worse.  He could have been perturbed enough to refuse to answer. It immediately occurred to me: What if he was just having a bad day? 

Thankfully, that Steubenville K-mart worker answered the question respectfully and cheerfully.  Little did he know, but he served as the face of a welcoming community and a responsive workforce that fateful day.   

Today, there are over 800 jobs with Walmart, the largest economic base employer in Jefferson County.

There’s no better Ohio example to make the point:  Everyone has a role in economic development.

First Thought:  Whose Job Is It Anyway?

Frankly, I don’t know anyone who doesn’t wish the best for their kids and grandkids.  For most, that means a job close to home. 

But, after all, whose job is it to make sure there are jobs for current and future generations?  The answer, in my book, is everyone.

In the end, economic development people are really merely on the sidelines watching the real work happening.

Another Thought:  Permit Me to Preach A Little.

If I could use this column to preach a little, it would be to preach to readers this:

Assume that next chance encounter with a stranger could be the turning point for your wish for future generations to be fulfilled.

You never know.  Regardless of the national, state, or local news climate of the day, a truthful, specific, and positive response to that next stranger’s question could make a difference. 

Third Thought: Natural Incentives Are the Best Incentives.

In Steubenville, 25 years ago, the tax abatement helped.  The promise to widen the state route helped.  The overall financial incentives package helped Walmart decide to invest.

Often, when large, job creating projects happen, it’s the dollars and cents incentives that grab attention.  Though they certainly help tilt the scales and close the deal, it’s the natural incentives—workforce, community culture, company fit, etc.--that win every time.  Every time.

Walmart decided to open that food distribution center outside Steubenville and will soon mark 25 years providing jobs in Eastern Ohio.  There are kids and grandkids that gained the opportunity to stay in town and work there all these years.

It was the community that won it.  And everyone in it.

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This column is a regular column in The Dispatch.