Appalachia: Turning Assets Into Opportunities (PDF: 6 MB)a broad and creative definition of fipositivefl. Turning liabilities into revenue ... As the nation shifts from manufacturing

Appalachia

Turning Assets Into Opportunities

Ken Murray © 2004

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efining Asset-B

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2 Scott Smith/1250 Design © 2004

WV Tourism

Asset:This economic development strategy is gaining prominence nationally

because of a desire to minimize impact, maximize return and compete globally.Like other strategies, asset-based economic development focuses on the positiveattributes of an area or business. What makes an asset-based strategy different isa broad and creative definition of �positive�. Turning liabilities into revenuegenerators or developing untapped natural and cultural resources into desiredproducts and services are two major thrusts of the asset-based economic development process.

Asset-based economic development practices have been implemented incommunities throughout Appalachia since the 1960s. Biddle and Biddle conducted one of the first studies of community-based capacity and asset development in 1965. Since then, individuals have demonstrated the long-termbenefit of asset-based growth. Findings from the July 2004 Evaluation of TheAppalachian Regional Commission�s Community Capacity Building Projectsstudy, conducted by Westat, demonstrate some of the best practices and measurable results of asset-based development in the region. The followingexamples will hopefully educate and inspire others on how the developmentstrategy can work for Appalachia.

Asset-Based Economic Development can be defined as a strategy that builds on existing resources � natural, cultural and structural � to create valued products and services that can be sustained for local benefit.

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useful and desirable thing or quality; a single item ofownership having exchangevalue --Webster�s Dictionary

www.kentuckytourism.com

David Fattaleh / WV Tourism

WV Tourism

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Important Considerations and Benefits

The key to asset-based economic development is focusing on what alreadyexists, rather than inventing or building something new. The process requiresinnovation and leadership, as well as a vision for the future built by people with an understanding of their past and present. Taking what is and turning it into what can be is the foundation for this strategy.

Optimally, asset-based economicdevelopment results in a high impact

for users and a low impact on assets. Designed as a holistic approach to growth,asset-based economic development balances preservation and promotion forenduring prosperity. To paraphrase, the goal is to keep the goose that lays the golden egg healthy and productive. Success in asset-based economic development depends on long-term investment and a building-block processrather than a �quick fix� approach.

To develop an economic strategy using local assets, several components must be in place. Quality and sustainable asset-based economic developmentrequires innovation, leadership and financing. It also relies on the appropriateinfrastructure and critical mass to attract and meet market demand. Finally, asset-based economic development must produce a local return on investmentresulting in residents� enhanced quality of life.

As the nation shifts from manufacturing to a more service-based economy,communities and businesses must offer value-added benefits for customers whileguarding against overuse of assets and outside ownership. Keeping the tangibleand intangible benefits local is important. Asset-based economic development ismeasured in the traditional ways: job creation, job retention, per capita incomeand tax revenues. There are also many indirect benefits of asset-based economicdevelopment: increased community pride, spruced up downtowns, traditions continued, former residents returning to the region, and new activities or publicservices for citizens.

The region�s natural, cultural and structural assets are its unique calling cards. No other region has the landscapes, the mountain music, craft traditionsand industrial heritage of Appalachia. The hospitality, work ethic and can-do attitude of its residents represent a positive force for the region. These assets lure people from around the world to visit, and often stay, in the region. Nowresidents can use these distinctive assets to continue building and expanding their economic future. Read on to understand more about the rich tapestry of natural, cultural and structural assets of Appalachia and how they can becomebeacons for economic growth.

Asset-based Economic Developmentis about taking what you alreadyhave and maximizing its potential.

-- Anne B. Pope, Federal Co-Chair, Appalachian Regional Commission

Kane Hardwoods © 2004

Steve Shaluta / WV Tourism

Energy Xchange © 2004

Asset-RichAppalachia:CultivatingOpportunities

Appalachia is home to many inventions, traditions and landmarks.The region�s scenic beauty is rivaledonly by the pride of its people.Carved by majestic mountains,Appalachia boasts an abundance ofassets that can be utilized for futuregrowth. Three categories of assetsprovide the greatest opportunity forAppalachia to enhance its prosperity:

� Natural � Cultural � Structural

Natural and cultural resources represent what is best � and often most unique � about the region. Itsrecreation, old growth forests, music,history, scenic landscapes, artisans and skilled workers provide an authentic foundation from which tobuild. Structural resources are oftenoverlooked by communities or per-ceived as liabilities. Finding new usesfor old structures is a proven path to economic success. Throughout theregion, communities and businesses are integrating development and management practices to leverage what they have � historic buildings,abandoned railroads, and old mines �to build or expand economic vitality.

Three Reasons why Asset-based Economic Developmentis Timely and Appropriate.

1. Attract more visitors � and theirspending � to Appalachia.

Many of Appalachia�s assets arefamiliar national treasures that attract

visitors to the region each year. TheAppalachian Trail, Birthplace ofCountry Music, Blue Ridge Parkway,Corning Glass and New River are a few of Appalachia�s assets. Yet manyother assets have been overlooked,untapped or under-developed. Helpingresidents understand how to identify,appropriately develop, market and manage these assets can increase visitor spending in the region.Appalachia can also benefit from itscontinuing association with qualityfilms, books and events that showcasethe region�s distinctive cultural, heritage and natural resources.

2. Encourage new people � and newbusinesses � to locate to the region.

To foster growth, Appalachia canleverage its history of investment ininfrastructure. Over the past 40 years,ARC and other organizations havehelped pave the roads, build the sewersystems and install the broadbandcable lines to accommodate new business and residential services.Towns have applied proven methodsof asset-based development to revivemain streets and convert old structuresinto new uses, such as affordablehousing. With these foundations inplace, communities can attract newgrowth industries � such as creativeand high technology businesses � that provide new jobs, increase local tax revenues, and cultivate civic entrepreneurship.

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�Awareness is the key.Residents who benefitfrom tourism tend tovalue and conserve whattourists are coming tosee. Visitors reinforce thatline when they supportbusinesses that sustainthe destination.�

-- Jonathan B. Tourtellot, Director of Sustainable Tourism, National Geographic Society

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3. Keep current residents � andemployers � in the region.

Past development practices havetoo often displaced or cannibalizedlocally owned businesses. By shiftingto asset-based economic development,Appalachia can create new localwealth, complement existing jobs and keep revenues in the community.Building on its tradition of infrastructure investment and a strong commitment to developingAppalachia�s entrepreneurial spirit,ARC will continue to support existingbusinesses and foster their growth. One of the organization's priorities is to create, enhance and sustain economic development opportunities� for individuals, companies and communities � in the region.

Several entities are already utilizinglocal assets to grow businesses, compete globally and infuse newmonies into the region. Here are some examples of how asset-basedeconomic development uses natural,cultural and structural assets to netpositive results.

Twigs and Leaves Gallery © 2004

Scott Smith/1250 Design © 2004

The lush landscape, pristine valleys and regal mountains definethis region and make it unique. Foryears, the region has seen these formations as barriers to progress.With asset-based economic develop-ment, these natural features canbecome a source of opportunity �through harvesting, recreation, newagricultural products and other market-driven uses.

The popularity of nature-based activities is growing. In the last 20years, the number of Americans 12and older participating in some form

of outdoor recreation has grown from188 million to 229 million, an 18%increase per year.1 As more visitorsseek out whitewater rafting excur-sions, mountain biking and naturetrails, bird watching sites, leaf peeping routes, scenic drives andcross-country skiing, Appalachia canprovide a range of experiences fromleisurely excursions to hard-coreadventure.

For example, hiking is one of thenation�s most popular recreationalactivities. In 2002, over 73 millionAmericans hiked. The region is fortunate to have the AppalachianTrail winding along its spine and providing an international platformfor nature-based economic develop-ment. According to the AmericanHiking Society, well-managed trails running through communitiescan foster substantial, economicopportunity through business development and tourism:

� Damascus, Virginia has over 30 businesses in operation, andlocal leaders credit the VirginiaCreeper Trail going through thetown with the economic overhaul.

� The Great Allegheny Passage isthe longest multi-purpose trail inthe east with 100 continuous milesof trail open between McKeesportand Meyersdale Pennsylvania and 20 miles scattered throughoutthe Pittsburgh area. The trail'sdirect economic impact exceeds

$14 million a year. One studyrecorded more than 350,000 visi-tor trips on the trail each year withusers spending $12.01 to $15.33per person, per trip.2

Recreation is just one economicdevelopment strategy for naturalassets. Growing niche agriculturalcrops, refining timber production and revitalizing waterways are a few of the ways entrepreneurs and communities are expanding economic opportunities with naturalresources in Appalachia.

�Forests are like natural capital that pay daily dividends in clean water, floodprotection, opportunities for outdoorrecreation and more. The ForestService has a role in promoting thesustainable management of all forestsin the US, both public and private.�

-- Sally Collins, US Forest Service Associate Chief, presentation to Outdoor Writers Association of America, June 2004

Asset-based Opportunity:

NaturalResources

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1. US Forest Service, 20042. American Association of State Highway Transportation Officials, 1998

David Fattaleh / WV Tourism

Tennessee Overhill Heritage Association © 2004

�We provide the local media withgood news about agriculture. Whenpeople read positive articles, it has abig impact. Residents who didn�t even

know these places existed � and were driving two hours toPennsylvania or theFinger Lakes regionfor similar sites �now learn about thesame experiencesoffered in their ownbackyard,� said

Krys Cail, program manager.

�We are looking at job

creation, and working hard at develop-ing accurate ways of counting theimpact. Our economic developmentsuccess, though, doesn�t depend ongetting one 200-job employer. Byallowing and encouraging this level ofmicro enterprise, we are supportingseveral small companies that couldgrow that large,� said Cail.

Components of the AgritourismMarketing & Education Initiativeinclude:

� Six educational workshops covering all aspects of businessand marketing.� Technical assistance to developbusiness plans, make good decisions about land use and provide individual advice relatedto specific needs or ideas.� Hospitality training and signageevaluations.� Increased marketing for new and established businesses. � Regional Agritourism Brochuredesigned to get people off themajor highways (I-81, I-86 and I-88) and onto scenic routes, following different itineraries that include agricultural destinations and wind throughrural farm country. � A series of specific guides focusing on Farmers Markets,Meat Direct Farms, and ForestProducts (in production.)

Getting people excited about thecounty�s crops will hopefully realizethe goal of increased sales, at farmsand other local businesses includingrestaurants, hotels and retail shops.In the past three months, almost20,000 copies of the regionalbrochure have been distributed. Theresponse has been very positive andlocal officials indicate that visitationhas increased, even during the wettestsummer in memory.

For additional information about theAgritourism Initiative call CornellCooperative Extension of BroomeCounty at 607-772-8953

�Selling� the Farm

Farmers and bankers don�t alwaysagree. Yet both contribute to the livelihood � and connectivity � of acommunity. Local farmers in BroomeCounty, New York want to keep theiragricultural heritage healthyand productive. Bankers andbusinesses in Binghamtonwant cash registers to ring.And with its abundance oflivestock and vegetable farmsand orchards, the county isattracting a lot of outside interestin the form of professionals whochose to trade in urban dwellingsand telecommute, change careersentirely or explore the countryside.The area's conundrum is to providea win-win solution for all.

Leaders decided to focus onways to increase farm sales. InFebruary 2004, the county launchedthe Agritourism Marketing andEducation Initiative.

A major objective of the Initiativeis to educate and build a bridge

between the Chamber of Commerceand the agricultural community.Bringing traditional businesses, new landowners and the agricultural community together is often a challenge. Local communication isvital to form alliances and encourage support for farming. New marketingmaterials are one vehicle for fostering communication.

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Meet me at the Junction

By train, by boat, by foot, bybuggy or bike, travelers have journeyed to and throughCumberland, Maryland for more than 200 years. At the hub of several thoroughfares, this town is:

� the western terminus of theChesapeake & Ohio Canal � on the Allegheny HighlandsTrail, a hiking/biking path � midway between Pittsburgh,Pennsylvania and Washington, DC.

As transportation needs changed,however, so did downtown. The canal was no longer used for cargo.Retail moved away. Buildings wereabandoned and decline set in. Thingschanged in the 1990s, though.Interstate 68 was completed and thetown launched a pedestrian and bike-friendly downtown revitalization program. Cumberland relied on itsdiverse transportation past to make it hip again, with hiking and cycling paths in harmony with retail and restaurants.

Downtown development fromApril 1998 to November 2002includes:

� 32 net new businesses created� 12 businesses expanded� $19,170,000 in public and private investment� Increase in occupancy rate ofalmost 50% (prior to Main Streetprogram: 35%; now, 85%)� More employment in downtown now than in 1950s.

The Canal Place Preservation andDevelopment Authority leveragedstrong public-private partnershipsamong national, state and local agencies � including the AppalachianRegional Commission and the C & OCanal National Historic Park � to renovate the Western MarylandRailway Station, built in 1913.

Last year, Phase I of Canal Placeopened adjacent to the depot withnine retail shops. The complex helpedspur preservation of more than 100historic structures and revitalizedowntown Cumberland� whichincludes Canal Place and TownCentre� into a vibrant shopping, din-ing, recreation and entertainment areafor residents and visitors. Futureplans include private redevelopmentof Footer�s Dye Works Building andrewatering of the western terminus ofthe C & O Canal.

For more information onCumberland�s downtown redevelopment, contact the CanalPlace Preservation and DevelopmentAuthority at 301-724-3655 orwww.canalplace.org

Training for AdventureRecreation is big business in

western Maryland and throughoutAppalachia. In McHenry, 60 mileswest of Cumberland, Garrett College isinvesting in adventure sports as a jobgenerator through its Adventure SportsInstitute (ASI). The program, foundedin 1992, �develops professionals in thefield of adventure recreation throughacademics, field studies and practicalexperiences.� ASI educates and credentials highly skilled competentprofessionals. It also enhances opportunities for the general public to engage in adventure recreation.

The region first considered thepotential for growing adventure recreation when it hosted the1989Whitewater World Championships inAllegany and Garrett Counties. Three years later, Garrett Collegeorganized the Olympic Team Trials inWhitewater Canoe and Kayak. Localofficials recognized that the area�s�distinctive four-season climate and a diverse geology� make it a naturalfor adventure recreation.

In addition to its educational offerings, ASI also engages in a number of community projects including trail repair, river clean ups,and improving public access to localrivers. A new International AdventureSports Center is planned in McHenryto accommodate future programs.

For more information about theAdventure Sports Institute contact Garrett College at www.garrettcollege.edu/adventure

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Eco-friendly Kane Hardwood:

A Certified SuccessLook closely at �Tonight Show�

host Jay Leno�s desk and you�ll seesomething special. It�s one of the certified wood products made byPennsylvania-based Kane Hardwoods,

a division of Collins Pine Company. This family-owned business has beenoperating for 150 years with the philosophy that good stewardship pays big dividends. Why? According to Connie Grenz, General Manager,�Taking care of what nature producesallows us to provide quality, renewableproducts for our great, great grandchildren.�

Kane Hardwood manages the126,000-acre Collins PennsylvaniaForest. The land, which receivedForest Stewardship Council (FSC) forest management certification fromScientific Certification Systems in1994, sits in the center of one of thefinest black cherry hardwood forests inthe world, the Allegheny Mountains.

Kane Hardwood currently producesabout 14 million board feet per year,and includes a pre-dryer, dry kiln,solar kiln, planing mill and dimensionplant. The company employs 120 people including nine professionalforesters who believe in sustainablepractices and environmental sensitivity:

� Through careful planning, the harvests actually increase the quantity and quality of future yieldsby concentrating on regeneration. � They balance the business needswith the ecosystem�s health bycarefully locating logging roads toprotect water quality. � Enough wood debris is left toenrich the soil of the forest floor.

They also purchase timber fromother sources � the Allegheny NationalForest, Pennsylvania State GameLands, State Forest Lands and privatelands in the area � to accommodateproduction needs rather than overusetheir own lands.

Approximately 93% of their products are sold in the U.S. and therest is exported. Kane�s customersinclude a wide range of manufacturers,wholesalers and retailers. 30% of theirproduct is purchased by secondarymanufacturers to be made into FSCcertified products, such as the panelsused to build �The Wall� at the SanFrancisco International Airport.

As the largest sawmill employer inMcKean County and second largestprivate landowner in Pennsylvania,

Kane Hardwood has been widely recognized and acclaimed for its civicand environmental practices:

� The company has set aside 100acres of timberland and is workingwith the Fish and GameCommission to enhance habitat forducks and other waterfowl.� They are taking more land out ofproduction to provide undisturbedcorridors for songbirds and have set up no-harvest zones along 43.5 miles of streams.� Kane provides year-round freepublic access for recreational activities.� The company manages ProjectLearning Tree activities with localelementary schools.� Kane also conducts a state of the art conversion facility to maximizeyield from the forest resources.

For more information on KaneHardwood visit www.CollinsWood.com

Kane Hardwoods © 2004

Kane Hardwoods © 2004 Kane Hardwoods © 2004

America is now recognizing someof the cultural talent that Appalachiahas nurtured for centuries. Adding toits list of accolades Asheville wasnamed one of five American �Citiesthat are Special� by USA Weekend inJuly 2004. Ralph Stanley�s musicwas recognized with Grammy Awardsfor the �O Brother Where Art Thou�soundtrack. U.S. News & WorldReport just named Berea College inKentucky the �Best Comprehensive

College for a Bachelor�s Degree inthe South for 2005.� The rich culturalheritage of the region is unparalleledin its music, craft, performing arts,historic sites, time-old traditions, cooltowns and hot entertainment.

Hand-made objects, such as pot-tery, glass, metal work, textiles and jewelry, are a major source of incomeand employment in Appalachia.Artists are part of the creative economy, the rapidly growing sectornow replacing or supplementingextractive industries and manufactur-ing. A national economic impactstudy of 80,000 craftspeople in 2001by the Craft Organizational Directors

Association (CODA) revealed thatnational craft sales are approximately$13 billion per year. The studyshowed that the median householdincome of full-time craftspeople is$50,000, 26% above the nationalmedian of $39,657.

Other studies support the strong economic impact of craft inAppalachia:

� A June 2003 MarshallUniversity study on the CraftIndustry in West Virginiareports that 2,539 craftspeoplein the state generated a directeconomic impact of $54 million, with a total economicimpact (including the wholesale sector) of over $81 million in 2002.

� A University of Kentucky studyestimates total annual sales ofKentucky craft producers in 2000at $252.4 million, with out of statesales of $148.7 million. � HandMade in America�s economic impact study finds thatcraft contributes $122 million to Western North Carolina�s economy on an annual basis.� 170 buildings (47%) in downtown Asheville, NorthCarolina are occupied by membersof the creative economy, according to a May 2004 surveyby HandMade in America. Intotal, the creative economy occupies 1.7 million square feet

of commercial space. Taxablevalue of the space amounts to$39.3 million. Total annual realestate value of creative economiesin downtown Asheville is $61.7 million.

Famous authors and entertainers,from classic to contemporary, contribute to the cultural wealth of the region. The Appalachiansettings of great literature can alsobecome cultural attractions forvisitors.

The wine country of Northern California became

so (valued) because generations discovered what

grew best in the soil and the climate of the

community. The same lessons hold true for the

arts in Appalachia.

-- Dana Gioia, Chairman, National Endowment for the Arts

Asset-based Opportunity:

CulturalResources

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Steve Shaluta / WV Tourism

Forging Ahead on a Crooked Road

In August 2004, Governor Warnerofficially dubbed the winding 200-mile stretch from Galax to Clintwoodas Virginia�s Heritage Music Trail.Encompassing eight counties, threecities and nine towns, �The CrookedRoad� has high hopes for turning itsculture into cash. Planners have twobasic project objectives:1. within three years, to be a nationally recognized heritage tourism destination.2. within four years, to triple the current revenues from tourism.

The road highlights the musical heritage of the region by connectingsix major music venues. Plans areunderway to erect 20 radio �listeningposts� and informative signs along theroute, allowing visitors to learn aboutthe region�s history and significantlandmarks. Already, planners have:

� Established a collaborativeframework and plan for government officials, tourism professionals and music venueowner/ operators to promote the trail.� Opened the Ralph StanleyMuseum and Traditional Mountain Music Center inClintwood in October 2004.� Created a dedicated travel guide, website and CD for trail visitors.� Recorded a new audio CD featuring musicians from the area.

�The Crooked Road� is funded byARC with additional support from theUS Department of Agriculture RuralDevelopment Program, the VirginiaDepartment of Housing andCommunity Development, theVirginia Tobacco Indemnification and Community RevitalizationCommission, the Virginia CoalfieldEconomic Development Authorityand the Virginia Tourism Corporation.

To learn about Virginia�s HeritageMusic Trail call the Heart ofAppalachia Travel Association at 1-866-686-6874 or visit www.thecrookedroad.org

�This project is an excel-lent example of �making dowith what we have.� We�vetaken one of the greatestassets that our region has,our music, and tied it alltogether to offer tourists aunique product that willprovide much needed economic revenue alongthe trail. Visitors will besurrounded by the songs,the stories and the peoplethat created country and bluegrass music.�

-- Geneva O�Quinn, Heart of Appalachia Travel Association

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www.thecrookedroad.org © 2004

www.thecrookedroad.org © 2004

www.thecrookedroad.org © 2004

One Teacher�s Vision

Listening to the radio has paiddividends for a small town inNortheast Tennessee. A high schooljournalism teacher was in his car witha group of students when he heardGrand Ole Opry veteran, JerryClower, share a funny tale about raccoon hunting in Mississippi. Thisexperience inspired Jimmy Neil Smith to start the local storytelling

festival in his hometown of historicJonesborough.Around 60 peopleshowed up the firstyear. It was 1973.

Three decades later, the NationalStorytelling Festival attracts morethan 10,000 visitors every Octoberand has been heralded as one of theTop 100 Events in North America bythe American Bus Association. The festival is also credited with ignitingan international revival in storytellingart. In June 2002, the organizationthat plans the annual festival and perpetuates the storytelling movementfound a new home at the InternationalStorytelling Center and Gift Shop,

billed as �the only facility anywherein the world devoted exclusively tothe power of storytelling and its creative applications.� The Centercomplex includes a 200-year-oldcountry inn, a new 14,000 square-footeducation and interpretation building,and a surrounding three-acre park.

For more information contact theInternational Storytelling Center at423-753-2171 or www.storytellingcenter.org

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�Through our work, the InternationalStorytelling Center is advancing the performance, preservation, and practiceof storytelling to enrich our lives andwork�at home, at work, and in ourcommunity. Storytelling can be used toproduce positive change in education,healthcare, business and industry, publicservices, and arts, culture, and media.�

-- Jimmy Neil Smith, Founder

Crafting Experiences

Berea has a long-established reputation as the Folk Arts & CraftsCapital of Kentucky. Its tradition incrafts began in the late 19th centurywhen Berea College started a crafts production program to help students pay for their education. Theskills learned during work-study haveled to generations of quality crafts-people, many staying in the area. AsBerea became known as a haven forcraftspeople, other artists located here

and built a diverse craft community.Today, visitors to Berea find a wealthof craft experiences including studios and galleries where artistsdemonstrate � and sell � their work.Churchill Weavers has producedquality hand-woven items for over 80 years and now welcomes visitorsto its facility. It�s one reason whySouthern Living calls Berea one of its�favorite small towns in America.�

Last year, the Kentucky ArtisanCenter (KAC) opened to encourage visitors to learn more about the

Commonwealth�s crafts. Like Tamarackin West Virginia, the KAC featureslocal artists through retail displays oftheir work. Music, books, specialtyfood products, visual arts and crafts and other hand-made objects byKentucky artists are the foundation of the KAC. Another major objectiveof the center is to provide visitors with information on Berea and areacraft excursions. The Kentucky ArtisanHeritage Trail (www.kaht.com) weavesthrough the town and surroundingareas, reconnecting with I-75 at thesouthern end of Berea. Since openingin July 2003, the KAC has hosted97,000 visitors.

The KAC complements the award-winning �Kentucky Crafted: The Market� program by offering ayear-round in-state location to purchase Commonwealth-made crafts. �Kentucky Crafted: TheMarket� was the nation�s first wholesale/retail handcrafted gift market, and has become the model for Montana and other states interested in showcasing � and selling � their own distinctive craft.

For more information on the Kentucky Artisan Center, visit www.kentuckyartisancenter.ky.gov

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�The Kentucky Artisan Center at Berea provides a stable, high volume sales venue forKentucky-made products.When the craft marketing function is combined with theCenter�s mission to serve as agateway to Kentucky throughtourist information services anda product marketing approachthat links maker/place/object,the KAC becomes a generatorof local, regional and statewideeconomic opportunity.Economic benefits are generatedin at least two sectors: the artisan industry and the tourism industry.�

-- Cheryl Moorhead Stone, Center for Economic Development, Entrepreneurship & Technology, Eastern Kentucky University

Kentucky Tourism © 2004

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Kentucky Tourism © 2004

Turning lemons into lemonade is a favorite phrase from childhood.Now, as raw resources become scarce or abandoned buildingsblight the countryside, community

leaders understand and seek thepower of adaptive reuse. Convertingold buildings, recycling products and conducting massive environmentalcleanups have stimulated new life into tired communities.

Highways initially designed tomove people rapidly through theregion now foster a meandering mentality in motorists as these roadsreceive recognition for their vistas.Many sections of the AppalachianDevelopment Highway System(ADHS) have become attractions intheir own right. For instance, ADHSCorridor L � part of U.S. Highway 19 in West Virginia � helps bring

whitewater raftingenthusiasts to the area.It also lures visitorsalong its route to experience the seasonal

landscapes and New River GorgeBridge, one of the state�s most photographed structures. Twenty highways throughout Appalachia have been designated National Scenic Byways or All-AmericanRoads by the Federal HighwayAdministration.

Flat surfaces, such as landfills, provide a perfect tableau for redevelopment. Old coal mines arenow being converted for new uses. The region can compete globally bydesigning market-driven solutionsfrom perceived problems or liabilities.

Asset-based Opportunity:

Retooling OldStructures intoNew Uses

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�If smart growth in the form of environmental protection and community development is the destination, then economic development is the vehicle for gettingthere�Development of our local brownfields hasoccurred in a variety of ways. Environmental factors alone did not necessarily control thebrownfields redevelopment process�In mostcases economic factors were the prime determinants of each project. Our local brownfields reclamation projects offered the best opportunity to not only recycle land, but also to better utilize existing infrastructure, e.g.roads, sewers and utilities.�

-- James R. Williams, Brownfields Program Manager for the Chattanooga-Hamilton County (Tennessee) Air Pollution Control Bureau, testimony to the U.S. House of Representatives� Transportation and Infrastructure Subcommittee on Water Resources and the Environment, March 2001

Tennessee Overhill Heritage Association © 2004

David Fattaleh / WV Tourism

Gone Fishing�We�ve been totally dependent on

coal,� says Mike Whitt, executivedirector of the Mingo County (WestVirginia) Redevelopment Authority,�and we�ve got to find new jobs and a new tax base if we�re going to continue to live here.�

So, local officials decided to takeanother look at what coal mines produce. The answer was clear: water,lots of it. And in Southern WestVirginia, the water runs abundantlyclear and cold. These two ingredientsare essential to fish farming, especiallyhigh quality breeds such as thesalmon-like Yukon Gold� Artic Char.

In 1999, the Mingo CountyRedevelopment Authority built an articchar hatchery using water from anabandoned section of the Mingo LoganCoal Mine. The mining and land companies (Mingo-Logan Coal andPocahontas Land Corporation) donatedapproximately $150,000 of in-kindcontributions, matched by funds fromboth the West Virginia State Legislatorsand USDA-Rural Development, toready the facility. It was stocked with188,000 eggs in 2000, using the mar-ket-proven Artic Char as its inventory.

Grow-out farms take the char whenthey mature at five to seven inches. Places such as West Virginia Aqua, aconsortium of mining companies andlandowners, provide homes for the fishuntil they are market ready. �Ultimately,we�d like to see grow-out farms inneighboring counties, employing 100people,� said Mike Whitt. �Our goal isto diversify the industry base and provide a wealth of career opportunitiesfor local residents.�

West Virginia Aqua shipped approximately 300,000 pounds in 2003and estimate shipment of approximately400,000 pounds in 2004. �There arepresently 10 employees at the hatcheryand grow-out facilities. The new processing facility began operation in

early October, creating another two to three jobs initially, and jobs willincrease with market growth.Presently, there are 600,000 fingerlingsat the hatchery. At the end of October,these are transferred to the grow-outfarm. West Virginia Aqua has another600,000 eggs ordered for the hatcheryin late 2004, and plans are nearly complete to construct another grow-outfarm somewhere in the southern coalfields, utilizing abandoned mine water.

�This is the largest batch of eggsthat's ever been brought to the hatcheryat one time, and the market looks verypromising for West Virginia Aqua toexpand its production into other nearbycounties. We are very optimistic that within the next decade, we can have a

cottage industry developed in thesouthern coal fields region which willaccomplish one of our goals of diversi-fying our economy by taking our natural resource assets and convertingthem into job-creating, tax-producingand prosperous industries,� said Whitt.

The Freshwater Institute helpedMingo County and West Virginia Aquato overcome obstacles associated withfish farming through its research anddevelopment programs. TheShepherdstown-based company hasalso conducted demonstration projectsin other parts of Appalachia, and

provided technical assistance to theFingerlakes Aquaculture�s tilapia farm.The New York fish farm, founded in1996, has the capacity to provide aboutone million pounds a year and employs10 people.

To learn more about this project, contact Mingo County Redevelopment Authority in Williamson, West Virginia at (304) 235-0042 orwww.mcrda.org

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Mingo Co. Redevelopment Authority © 2004

Mingo Co. Redevelopment Authority © 2004

From Gas to Greenhouse

Americans throw away an average of 4.5 pounds of trash per person everyday. What happens to this waste? Mostgoes to landfills, where the decomposi-tion process creates methane gas.Methane gas traps 21 times more heatper molecule than carbon dioxide, so itcan be dangerous at high concentrations.Many landfills �fill up� due to spacelimitations or concern about methanebuild up. What do communities dowhen their landfills close? Increasingly,communities turn to the EPA�s LandfillMethane Outreach Program (LMPO) to find new uses for old dumps.

When the Mitchell-Yancey CountyLandfill in Western North Carolinaclosed in 1994, a non-profit organizationformed to demonstrate the responsibleuse of landfill gas as an energy sourcefor small enterprise in craft and horticulture, and to meet local energyneeds. In 1999, Energy Xchange con-verted a portion of the six-acre 350,000-ton site into four greenhouses, three cold frames, two craft studios (one forclay and one for glass), a public galleryand a visitor center.

At the landfill, Project Branch Outpropagates rare and native flora ofWestern North Carolina and provides a variety of educational opportunities forstudents, growers and plant enthusiasts.Staff are re-introducing native rhodo-dendrons and azaleas to landscaping and horticulture companies.

An incubator program was estab-lished to support entrepreneurs starting,managing and operating new businesses

in blown glass and pottery. Craft resi-dencies are available for artists to workin studios at a nominal cost, and includebusiness training from HandMade inAmerica and Mayland CommunityCollege. The clay kiln and glass furnaces are fired with landfill gas at no additional cost to the artist residents,with a projected savings over the life ofthe project estimated at over $1 million.

Energy Xchange has been a modelfor other regions, and the University of North Carolina-Asheville has justannounced plans to build its new craftschool on the Buncombe CountyLandfill. Neighboring Avery Countyalso plans to convert its landfill to stu-dios, focusing on wood and horticulture.

For more information about EnergyXchange, contact 828-675-5541 or visitwww.energyxchange.org

�This is the first glassshop in history thathasn�t been harmful to the environment.�

-- John Geci, Glassblower

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Energy Xchange © 2004

Energy Xchange © 2004

WV T

ourism

Riding the Rails

In southeast Tennessee a group oflocal citizens, representing economicdevelopment and preservation organiza-tions as well as local governments, collaborated to save an 1890 railroadthat cuts through the Hiwassee RiverGorge between Etowah and Copperhill.

The Old Line Railroad Coalitionformed in 2001 when CSX announcedits plan to abandon the line and salvagethe materials. Glenn Springs Holdingprovided a loan in the amount of $1.6million that made the acquisition possible. The Tennessee OverhillHeritage Association (TOHA), a cultural tourism organization thathelped form the Old Line RailroadCoalition, is the current owner.

The Southeast TennesseeDevelopment District immediatelybegan work to assist with developmentof passenger and freight service on theline. They worked very hard with thelocal communities to save this linebecause, as officials say, "We are in thebusiness of building infrastructure, nottearing it out." When the TennesseeValley Authority realized that the mostcost-effective and least troublesomeway to access the AppalachiaPowerhouse was the Old Line RR, thefederal agency rehabilitated 13 miles of the line to gain access to the plant.

Soon after, Tennessee ValleyRailroad became an active partner and,in partnership with the City of Etowah,began to offer travel excursions on thenewly upgraded 13-mile section. LastMay, 5,040 people rode vintage passenger cars alongside the HiwasseeScenic River on the Old Line RR.Seven weekends of excursions are

scheduled this fall carrying a potential8,000 passengers.

In addition to theexcursions on the oldrail line, local leadersare developing industrialuses. Negotiations are currently underway forlarge amounts of calcineto be shipped from a siteat Copperhill to several domestic andinternational markets, including China.

TOHA values the Old Line RR for anumber of reasons. First, it holds greathistoric value and is currently beingsurveyed in preparation for nominationto the National Register of HistoricPlaces. Secondly, TOHA is convincedthat no one can predict today whatchanges in transportation might emergein the coming century.

For more information about the Old Line Railroad, contact the TOHAat www.tennesseeoverhill.org

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Revitalizing Main Streets

Across Appalachia, towns large and small are restoring old commercialdistricts into vibrant and varied uses.The restored Elkin Theatre brings people to Aberdeen, Mississippi formovies on Friday night. When TheWorks Pizza Restaurant opened lastyear in a restored public works buildingbehind City Hall in Loveland, Ohio, it helped revive downtown by attracting new businesses and customers. A Smithsonian �Museumson Main Street� exhibit will soonenhance the cultural offerings inrestored Bridgeport, Alabama.

Several Appalachian communitiesare winners of the coveted �GreatAmerican Main Street Award� designat-ed annually by the National Main StreetCenter (www.mainstreet.org), a divisionof the National Trust for Historic

Preservation. Morgantown, WestVirginia received the accolade in 1998;Greenville, South Carolina shared thehonor with Rome, Georgia in 2003.

Downtown revitalization usuallyoccurs through new design and rehabilitation, beautifying streetscapes,promoting unique retail and diningexperiences, erecting wayfinding systems, and providing a distinctive and safe environment for residents and visitors.

�Just as we could not predict thevast economic and social changesthat the automobile or Internetwould bring to the 20th century, weprobably can't accurately predictwhat kinds of economic and socialchanges might occur in the 21stcentury. Who knows, we just mightneed a fine old mountain railroad.�

-- Linda Caldwell, executive director of Tennessee Overhill Heritage Association

TOHA © 2004

ARC has invested the past 40 yearsin building the region�s foundation forgrowth and prosperity. This infrastruc-ture now provides a platform for residents to link these essential elements with existing natural, culturaland structural assets to build a strongeconomic future. Many communitieshave jumpstarted growth through redevelopment, entrepreneur initiativesand diversified industries. Focusing onlocal natural, cultural and structuralassets makes Appalachia competitiveand poised for advancement.

Nationally, a paradigm shift isoccurring as technology permitsnumerous professions to be accessiblefrom anywhere. Technology hasenabled many opportunities that wereclosed off to rural areas as recently as adecade ago. People don�t have to moveto urban areas to have access to theworld. Conversely, as urban centersbecome less safe and more crowded,migration increases to smaller communities and places offering scenic beauty. Moving to a desirableplace is a major lifestyle decision formany professionals today. Highly rated schools, diverse cultural activities,retail amenities and medical servicesare often important factors for companies and individuals exploring relocation options. �Quality of life�indicators become a key for attractingthe new �wealth� market, creativeeconomy and entrepreneur.

Not a PanaceaAsset-based economic development

is not a quick fix nor is it a panacea for Appalachia. As with any develop-ment strategy, a strong foundation mustexist before focusing on asset enhancements. Some places inAppalachia must first build andstrengthen their physical, human andfinancial infrastructure before developingassets. Others may not have enoughassets to establish a development strate-gy independently, yet can partner withneighbors or other regional interests toprovide the critical mass (of leaders,funding and infrastructure) required tosustain and grow an economic strategy.

External forces can also work againstsuccess or impede growth. Tourism is aprime example of an industry thatdepends on positive external drivers.People must be willing to explore andseek out new experiences for tourism togrow. Visitation is also impacted byweather, economic prosperity and safety concerns.

The departure of traditional industries has left many Appalachian communities struggling to replace jobsand tax revenues. However, focusingon a short-term fix can ultimately endup perpetuating the cycle of declinerather than alleviating it. Asset-basedeconomic development should be considered as a long-term strategy thatprovides incremental growth withappropriate, non-invasive managementpractices. Asset-based economic development is not the complete

answer for all communities, but it canbe a part of the solution for sustainingthe region�s economic vitality.

Getting StartedAs demonstrated by the examples

in this booklet, asset-based economicdevelopment begins with a resourceand an idea. Communities and companies can begin determining their potential for asset-based economicgrowth by conducting an inventory ofhuman, financial and physicalresources. Appalachia has leaderspoised to direct asset-based economicdevelopment � they just need to beidentified and cultivated. Technicalassistance and entrepreneurship development programs, availablethrough ARC, community colleges andother educational institutions across theregion, can help build the human capac-ity and skilled workforce necessary totransition into these new economies.

Major universities and nationalorganizations aid in recognizing trendsand audience potential by providing

market research. Venture capital andother private financing are availablethrough regional and national founda-tions. To help individuals and commu-nities move forward and investigateopportunities in asset-based economicdevelopment, a list of resources andrecommended reading follows.

Appalachia:Poised forPotential

�The key to � regeneration,then, is to locate all the available local assets, to beginconnecting them with oneanother in ways that multiplytheir power and effectiveness,and to begin harnessing thoselocal institutions that are not yet available for local development purposes.�

-- Kretzmann and McKnight, quoted in the Westat Study for ARC, 2004.

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Section

III:

ResourcesSeveral regional, national and federalentities provide fiscal resources andtechnical assistance for individuals,communities and companies to launchand manage asset-based economicdevelopment programs.

Government AgenciesNational Endowment for the ArtsNancy Hanks Center, 1100 Pennsylvania Avenue NWWashington, DC 20506Tel: (202) 682-5400Internet: www.nea.gov Goals are artistic creativity andpreservation, learning in the arts,access to the arts and partnership for the arts.

US Forest Service, Department of AgricultureSidney R. Yates Federal Building,1400 Independence Avenue SWWashington, DC 20250-0003Tel: (202) 205-8333Internet: www.fs.fed.us National programs include ecosystemmanagement; forest management; minerals and geology management;recreation, heritage and wildernessresources; watershed and air manage-ment; wildlife, fish and rare plants.

National OrganizationsABCD InstituteIPR, Northwestern University2040 Sheridan RoadEvanston, IL 60208-4100Tel: (847) 491-8711Internet: www.northwestern.edu/ipr/abcd.htmlProvides technical assistance andresources materials including mappingtools, networks, faculty training andpublications.

American Hiking Society1422 Fenwick LaneSilver Spring, MD 20910Tel: (301) 565-6704Internet: www.americanhiking.orgNational voice for America�s hikers provides information on fundingsources for trail managers, nationaltrails directory, listing of volunteervacations and other reference materials.

Americans for the Arts1000 Vermont Avenue NW, Sixth FloorWashington, DC 20005Tel: (202) 371-2830Internet: www.americansforthearts.org Nation�s leading non-profit organizationfor advancing arts in America. Providesresearch and information, conducts visibility campaigns, leadership devel-opment, annual awards and events.

Conservation Fund100 North Kent Street, Suite 1120Arlington, VA 22209-2156Tel: (703) 525-6300Internet: www.conservationfund.org Forges partners to preserve ournation�s outdoors heritage � America�slegacy of wildlife habitat, workinglandscapes and community open space.

National Geographic SocietySustainable Tourism Resource Center1145 17th Street NWWashington, DC 20036Tel: (202) 857-7000Internet: www.nationalgeographic.comIncreases knowledge about sustainabletourism and destination stewardshipthrough World Legacy Awards,resource directory, Geotourism studyand other reference materials.

National Trust for HistoricPreservation1785 Massachusetts Avenue NWWashington, DC 20036Tel: (202) 588-6000Internet: www.nationaltrust.org National non-profit organization withmore than 250,000 members dedicatedto the preservation of America�s historic treasures.

Financial InstitutionsMary Reynolds Babcock Foundation2920 Reynolda RoadWinston-Salem, NC 27106Tel: (336) 746-9222Internet: www.mrbf.org Concentrates on assisting people in the Southeast to build just and caringcommunities. Areas of focus includegrassroots leadership development,community problem solving, enterprise and asset development, and organizational development.

Claude Worthington Benedum Foundation1400 Benedum-Trees Bldg, 223 Fourth AvenuePittsburgh, PA 15222Tel: (412) 288-0360Internet: http://fdncenter.org/grantmaker/benedum A regional foundation serving WestVirginia and SouthwesternPennsylvania.

Suggestions for Further ReadingAppreciative Inquiry: Changing theSpread of Imagination, by JaneMagueder, Watkins, Bernard J. Mohr

Balancing Nature and Commerce inGateway Communities by Howe,McMahon and Propst, Island Press,Washington DC (1997)

Building Communities from the InsideOut: A Path Toward Finding andMobilizing a Community�s Assets, byNorthwestern University for PolicyResearch (1993)

Creating Successful Communities: AGuidebook to Growth ManagementStrategies, by Mantell, Harper, Propst,Island Press, Washington DC (1989)

Evaluation of The AppalachianRegional Commission�s CommunityCapacity Building Projects study, con-ducted by Westat, for ARC (July 2004)

Economic Value of the Natural World,by David Pearce, MIT Press (August1993) Economic rationale for conserving the environment based on results from detailed case studiesand analyses.

Rise of the Creative Class and How it�s Transforming Work, Leisure,Community and Everyday Life, byRichard Florida (2002)

Rural Sustainable Development inAmerica, by Ivonne Audirac, J. Wiley& Sons (1997)

Where We Live: A Citizen�s Guide toConducting a Community EnvironmentalInventory by Harker and Natter, IslandPress, Washington, DC (1995)

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�The greatest thing a man can do in this world is to make the most possible out of the stuff that has beengiven him. This is success, and there is no other.�

Produced by THE HTC GROUP, Asheville, NCfor The Appalachian Regional Commission

1666 Connecticut Avenue NW, Washington, DC 20009(202) 884-7700 � www.arc.gov

O C T O B E R 2 0 0 4

-- Orison Swett Marden (1850-1924)Founder of Success magazine

David Fattaleh / WV Tourism

The Roanoke Valley Alleghany Reg. Com. © 2004