Maj. Gen. James Myles. AMCOM (Click photo to enlarge.)

Anne Burkett, Director of Planning and Economic Development, Madison County Commission (Click photo to enlarge.)

“This plan provides a comprehensive impact analysis related to the growth at Redstone Arsenal and its effect on local governments,” said Mike Gillespie, TVRGCP chair and chairman of the Madison County Commission. “Outcomes can be utilized by local and regional entities to guide decision making and to develop regional coordination structures to facilitate communication, potential funding, and implementation of the Tennessee Valley Regional Growth Coordination Plan.”

The 2005 decisions of the BRAC Commission will result in significant economic growth in the 13 counties of the Tennessee Valley (TV) region over the next five years. However, the new missions at Redstone Arsenal and new contractor jobs will also require housing, create a need to educate more K-12 students, increase the need for a skilled workforce and create more demand on local government and transportation services. Estimates were prepared by Taimerica Management Company, as part of the consultant team, in 2008 using the most current data available.

• Other organizations have estimated that population from non-BRAC growth will total more than 34,000 in the region between 2007 and 2012. New projects announced by chambers in Limestone, Madison and Morgan Counties (the Primary Study Area, or PSA) demonstrate that economic growth is indeed accelerating and diversifying. When combined with projected BRAC growth of 19,700 jobs and an increase in population of 37,000, the region should grow by a combined total of 33,000 jobs and 70,000 people, mostly in the PSA, between 2008 and 2011.
  
  
• The BRAC process will generate about $2 billion in new construction in the region over the next four years. That spending will generate about 12,000 jobs at the peak of construction in 2011. The job impacts from construction will end as construction work ends in 2012.
  
  
• The 13 counties will witness a permanent increase of 19,700 jobs as a result of new BRAC missions at the Arsenal and the corresponding contractor tail. About half these jobs are spinoff jobs outside of the contractor, military and civil service workforce. About 22 percent of these jobs had already landed in the region as of January 2008 when this project began; the balance of 15,400 permanent jobs is expected between 2008 and 2011.
  
  
• The new households will bring additional K-12 students into public school systems in the 13-county region. Between 5,000 and 6,200 new students are estimated to attend regional schools, or a 4,000 to 4,800 increase over 2007-08 enrollment levels. Most of the new students will attend schools in Madison County.
  
  
• The addition of more than $1.1 billion of new payroll (BRAC, contractor tail and spin-off jobs) in the region will generate additional retail sales and sales taxes of various kinds. State sales tax revenues will grow permanently by about $18 million per year in the region. Local sales taxes in the PSA will grow permanently by about $17.6 million per year.
  
  
• State income tax revenues in Alabama from BRAC are estimated at $43.4 million per year by 2011.
  
  
• Property taxes will also grow with new population and commercial activity. State property tax is estimated to grow by $3.4 million per year in the PSA, while county property taxes in the three county area will grow by $10.9 million per year during the same time period.
  
  
• School taxes will also grow by about $8 million per year in the PSA between 2005 and 2011. Note that these estimates do not include commercial, personal property or vehicles. They only estimate the increased value in real property assessments. State tax collections should exceed $69 million annually from the permanent impact of BRAC—about twice the tax collections by counties, cities and school districts combined.

“Key stakeholders from the 13 counties have come together to develop a vision for the region’s future. This vision articulates the importance of education, a skilled workforce, an efficient transportation system, high quality health care, and regional collaboration,” said Anne Burkett, director of Planning & Economic Development for the Madison County Commission. “The TVRGCP provides an action plan to realize this vision.”

Proposed Action Plans

Education

• The area should expand its public education funding base so there is less dependence on retail sales taxes.
  
  
• The quality of the public school systems throughout the area should meet the standards of the best schools within the top tier of the nation’s most distinguished technology centers, as measured by standardized tests and other qualifiers.
  
  
• The area should increase the number of graduates and students in vocational/technical programs. More high school programs are recommended, and special emphasis should be made to get more students interested in machine trades and other manufacturing disciplines.

Transportation

Secure funding for the top six regional transportation projects:

• Martin Road
• Memorial Parkway
• Highway 53
• Winchester Road
• Zeirdt Road
• US 72 East and West

Health and Human Services

• Develop additional healthcare beds (nursing home, assisted living, psychiatric) in the region to meet documented needs. State health planners need revised data to reflect population gains already occurring in the PSA. The state’s moratorium on new nursing home beds should be lifted for Madison County, given the documented need for additional beds in this region.
  
  
• Retain local medical residency program and nursing school graduates through ongoing outreach efforts. Increase hospital-physician recruitment campaigns.

Economic Development

• Continue the efforts underway by area stakeholders to encourage as many current BRAC and contractor employees as possible to move to the area.
  
  
• Continue the efforts being conducted by the Chamber of Commerce of Huntsville/Madison County to recruit labor to the area from across the country. These efforts should be expanded to include more of the area’s economic development and university/college-related stakeholders to ensure a coordinated area-wide effort.
  
  
• It is recommended that the area’s economic development community make a concerted effort to attract more residents in their 20s and 30s in order to strengthen the area’s demographic depth.

The TVRGCP was made possible by a grant from the Department of Defense’s Office of Economic Adjustment (OEA) awarded to the Madison County Commission in 2007. In a competitive bid process, the Commission selected the Chamber of Commerce of Huntsville/Madison County and their team of leading consultants from across the country to research and make recommendations about the impact of the growth. Team members include Bill Frederick of Wadley-Donovan GrowthTech; Mark Waterhouse of Garnet Consulting Services; and Ed Bee and David Kolzow of Taimerica Management.

“Our consultant team members are widely recognized as national leaders in their respective fields,” said Brian Hilson, president/CEO of the Chamber of Commerce of Huntsville/Madison County.

The Tennessee Valley Study Area includes 13 counties within an 80-mile-radius of Redstone Arsenal. The Primary Study Area (PSA) includes the three Alabama counties of Limestone, Madison and Morgan. The Broader Impact Region (BIR) includes the additional six counties in Alabama (Colbert, Cullman, Jackson, Lauderdale, Lawrence and Marshall) and four counties in Tennessee (Franklin, Giles, Lawrence and Lincoln).

Since that award, the Chamber-led team has made detailed studies of the impact of the expected growth on the region’s housing; education; public utilities and infrastructure; transportation; public safety and emergency services; health and social services; cultural and recreational opportunities. The report also outlines strategies for continuing economic development and workforce recruitment.

Funding provided by the U.S. Department of Defense, Office of Economic Adjustment, grant number RA06141-07-01. However, any opinions, findings, conclusions, or recommendations expressed herein are those of the author and do not reflect the views of the DoD, OEA.