- (female announcer) Production funding for Behind the Headlines is made possible in part by the WKNO Production Fund, the WKNO Endowment Fund, and by viewers like you, thank you.

- The opportunities and the challenges of economic growth in Memphis, tonight on Behind the Headlines.

[intense orchestral music] I'm Eric Barnes with The Daily Memphian.

Thanks for joining us.

I am joined tonight by the incoming President, CEO of the Greater Memphis Chamber, Ted Townsend.

Thanks for being here.

- Thank you, Eric.

- Again, I should say, thank you for being here again.

- Yes, absolutely.

- Along with Bill Dries, reporter with The Daily Memphian.

You are, as of two weeks from today, when the show airs, you'll be the new President of the Chamber, CEO of the Chamber, taking over for Beverly Robertson.

But you've been Chief Economic Development Officer, or something; I think that's the official title, for some years, and been involved with economic development for decades now, right?

So when you look at the economy right now, you look at the Memphis economy, the Memphis Regional economy, what do you see, given you've got these amazing things potentially, or happening with Ford and other big developments.

But you're also got, you know, what some sort of economic downturn, that we're either in, or is on the horizon.

There are challenges in Memphis, that are historic in nature or, you know, go back many decades in many cases.

So how do you look at all this?

What do you see, and what do you hear from the business community?

- I see a lot of optimism, a lot of momentum, and growth.

And we are busier than we've ever been.

We've got 61 projects under management, right now, in our pipeline, that represent the opportunity to secure another 15,000 jobs, and 15 billion in capital investment.

So we're competing fiercely for those jobs, and obviously setting the value proposition of why Memphis is a destination of choice, for these operations.

What's also interesting in that pipeline, is that 94% of those projects, are in advanced manufacturing, and 70% are business attraction opportunities.

So these are companies from outside of the area, looking to invest here, for the first time.

- And you're, I think I can ask you to name the companies.

You really can't name these companies, right?

You're in competition.

Memphis and the Chamber and the city, and so on, are in competition with other communities.

And you said 61, 94% in advanced manufacturing.

How much of that, first of all, is related to Ford having started their construction here, and building their plant here?

- Yeah, so a lot of these are obviously under project code names, for confidentiality, and we adhere strictly to that.

Some of these, we don't know exactly what they will end up being, but in many cases we do know the the type of industry that they're in.

What we do know, out of that pipeline, ten projects are, from our estimation, affiliated with Blue Oval City, that represent 2,600 of that 15,000 jobs, and 2.8 billion in CapEx.

So, you know, Ford has not announced their supplier list yet.

And we anticipate that whenever that is, we're gonna see a watershed moment, of a lot of these projects moving very quickly.

So we're excited about the momentum.

And this obviously speaks to the fact that we have all of the transportation, and logistics infrastructure here.

We are America's distribution center, but I think it's because of that super structure of logistics, that we know we can make anything, and get it anywhere in the world, overnight.

- Bring in Bill.

- What is the challenge, on the show that the viewer, our last program on this, we had John Threadgill, from the Bartlett Area Chamber of Commerce, talking about the challenge of assembling enough parcels, for something like advanced manufacturing.

That a real challenge, isn't it?

- I wouldn't characterize it as a challenge, Bill.

You know, even before the announcement of Ford last year, we were preparing for the build out of this, and being ready for it.

We were very intentional in our Build Back Better grant application to the EDA, which we were a finalist, we didn't win.

But in that proposal, we focused on infrastructure, we focused on creating a smart grid, basically an environment, that is adopting all of the new technology stack that is related to electric vehicles.

But we also have been very engaged with landowners.

We've had multiple conversations with these landowners, that are now motivated.

Many of them have held these properties for decades, in their families, multiple generations of families.

But they see the excitement of Blue Oval City, and now they want to get in the game.

And we're having substantive conversations with 'em, to talk about, okay, "How do we plan this out?

"How do we do site development?

"How do we map the infrastructure that exists, "and how can we connect into the utilities that are necessary?"

We're assessing the capabilities, and capacity, of utilities, that are in, and around these sites, right now.

We're been talking about workforce, we've been prepping and getting ready for Blue Oval City, ever since then.

And we've been working with MLGW.

We've been talking about the scope and scale of these projects, so that they understand these are high, heavy power users, and we must be ready for that.

- One of the things that Memphis Mayor Jim Strickland has been talking about, even before Blue Oval City, is trying to do something with the Firestone site, in North Memphis, the site of the Firestone Tire Plant, that at one point was making more tires than any other tire plant in the world.

- Right.

- And, since Blue Oval City, he has talked about the city's interest in that being a possible site, for some of the support industries on this.

Is that site ready to go?

Are there barriers to that being on the block, for this, or for other things?

- You know, we have been taking full inventory of every available site.

You know, our goal is to create megasites within Memphis and Shelby County, and in this region.

We also want mini megasites.

So a mini megasite is anything from 200 up to 500 acres, and megasites are anything from 500 acres and up.

And these are contiguous properties that can be developed.

So we have taken inventory of the Firestone site, it's under new management, and ownership now.

And we've been meeting with them, to talk about the site development, that they would envision for that.

We've been informing them of these projects as well, talking about the types of acreage that's needed, so that they're well informed, and they can be selective, in placing the right operation there.

We're also focused on the old International Harvester site, and the Fullen dock site, with the access that it has to the river, the interstate system, the airport that is near.

We see the opportunity to bring advanced manufacturing back to these sites, that had traditional manufacturing, that made Smokey City what it was.

We'd love to see a renaissance of advanced manufacturing in Memphis, and Shelby County.

- Are the Ford folks, the partnership that they have, are they giving you any indication of how much of the support industries they expect to be on the campus, that they're developing in Haywood County?

- They're determining all of that still, Bill, But they also understand that for the scope, and scale, of Blue Oval City, there will be suppliers, that are dotting the 21 counties of West Tennessee, for access.

But I think what we also are focused on, at the Greater Memphis Chamber, being a regional partner to all of these communities, and certainly to Ford, understanding what is necessary, from a site development perspective, whether that's Marshall County, whether that's West Memphis.

You know, each of those areas has a megasite.

And we would love to see all of the megasites programmed for this revolution of electric vehicle manufacturing.

And it could present the opportunity for Memphis to be that capital of this type of technology being introduced to America.

- One criticism, we talk a lot about the 21 counties, you mentioned Marshall County, Haywood County, the Ford plant itself is, you know, what, forty-five minutes from downtown, give or take?

That is the one criticism or concern, I've heard from people is, "Well, yeah, this is just gonna drain people from Memphis.

"It's gonna drain people from the core.

"These jobs, this development, is gonna be, you know, "not even at the fringes of Shelby County, "It's gonna be far outside Shelby County.

"And that's bad for the city of Memphis."

- I disagree with that.

I think Memphis will absolutely benefit from Blue Oval City.

In fact, we know for a fact, with some of the prospects that we're working with now, they're looking only at sites within Memphis and Shelby County.

Of course, I can't talk about those.

I wish I could, and we'd have a breaking headline today on Behind the Headlines.

But, we are working very closely with these.

We want to see infill, most importantly.

And what's great is that Memphis and Shelby County already has the infrastructure.

We have access to the utilities, and the sewer, and what is necessary for these operations to exist.

And we're working with our outlying communities as well.

I mean, we invest in every municipal chamber, because it's important for us to be partners.

- The other thing, the flip side of the criticisms I've heard, I've also hear that, you know, I mean, Memphis has not had a wildly growing population over the last, you know, couple of decades.

And that if, you know, however many tens of thousands of jobs potentially come from Ford and all the suppliers, if 10% of 25,000 people, if 2,500 people moved into the core, that's actually a big growth for Memphis, compared to where we've been.

- It is.

- And the other thing I've heard is, forty-five minutes for people in Memphis, we're kind of spoiled.

Go to Atlanta, go to Seattle, go to many of these other places, Austin and 45 minutes is kind of how you get to the grocery store.

- That's right.

- I'm curious how much, how Memphis stacks up to these other cities, when you talk to them.

You know, 'cause you were competing with the Nashvilles, the St. Louises, the Indianapolis, Austin's, you know, for these big developments, Birmingham, you know, South Carolina, all that.

Memphians can be hard on Memphis, sometimes rightly.

- Yeah.

- But sometimes they can be just outright cynical, and negative, about Memphis.

And so I'm curious about all these things, these amenities, how do we stack up against these other cities and communities?

- Well, I think just from the pipeline that I shared with you earlier, it shows that we are incredibly competitive.

We would not have that type of volume.

I mean, it's a historic high for this region, to have that many opportunities right now.

So clearly, and these aren't my words, these are words from site selection consultants.

They are saying that this area is the hottest region right now, for economic development prospects.

And we wanna seize on that, Eric.

We think that we have every amenity, every lifestyle opportunity, a lot of variety.

You can live in the urban core, you can live in the suburbs, or even have a farm.

It really presents a lot of compelling reasons why these operations should be here.

And, I think that's a testament to the fact that we are busier now than ever before.

Bill?

- I wanna change subjects for a second.

This is something you've talked about before.

There is a lot happening in this city, in terms of hip hop artists, who are really going national in a big way.

And some of the comments I've I've seen on social media, from some of those artists is, "Okay, well Memphis had Stax, Memphis had Sun."

And hip hop doesn't really have a physical base like that.

This happens in a number of studios, that this happens in a number of different ways, that maybe hide the impact of what a lot of these artists are doing right here in Memphis every day, that is really big in terms of music.

You've talked about this in your previous roles, that the Chamber has an interest in doing something to change that.

- Absolutely, Bill.

We see music and entertainment as a major industry sector, you know, the same as advanced manufacturing, the same as supply chain and logistics.

We have been very intentional, about making that an emphasis for our growth here.

And I believe, as you democratize the consumption of music, as it's become more digital, we wanna make sure that we're harnessing that, and working with folks like George Monger, who is focused on capturing the revenue for these artists, and making sure that the support system, and the wraparound services are here in Memphis, so that we keep them here, that they don't go to Atlanta, because Memphis is Big Memphis, right?

And they know that they can have a thriving career here, and continue to reinvest all of that talent, and all of those resources back into this community.

- So what does the, to use the term from some of the other pursuits, what does the infrastructure look like for that?

I mean, does the Chamber get involved in recording studios or things like that?

Or what's the Chamber's play in this do you think?

- We absolutely would get involved in recruiting recording studios here, much like Nashville did with publishing houses.

And, they still do.

But we would love to see more of an independent flavor, because I think that speaks to what our culture is here.

We do the grit and the grind.

And we would be involved in marshaling resources, like incentives, to ensuring that the infrastructure is built out here.

We have formed a Music Advisory Council, and we're focused on creating these councils all across our industry sectors.

But the music and the entertainment, provides a great opportunity to understand what's missing now, and let's fill those gaps.

Let's talk about the production management that these artists need on a daily basis.

So we're focused on everything from the human capital piece, to the actual infrastructure.

- And, from what I've heard, the discussions among that advisory board, nobody's really been holding back.

People have been very vocal about what it takes.

- They have, and we appreciate that.

We need the full diagnosis of what has to be right, what must be true, for Memphis to be that destination, recognized nationally, globally, for music and entertainment?

And I believe hip hop provides us a great opportunity for that.

- The Young Rock is being filmed here right now.

It's probably the biggest production going on right now.

It's one of, if not the biggest, that's happened in Memphis.

One of the things people have always said in the past about trying to, you know, we sort of get the movie production thing in fits and starts some high profile ones, and it's quiet indie movies.

And there's a big thing like Young Rock, there's a proposal for the Whitehaven, the big studio.

But a lot of what people talk about is a need for more state incentives, because that's how Georgia and Atlanta became so big.

That's how New Mexico did it.

That's how some other communities have done that.

- Yeah, - First, is that true?

Does Memphis need more incentives from the state, to really build the movie, and TV production industry consistently?

And do you think the state's game to do it?

- I think that the state has been involved in developing new tools for incentives, and you saw some legislation, and funding, come out last year, which we're supportive of.

We're always supportive of increasing the number of tools that we can have to entice these types of creations, and operations to come here.

What we love is the constancy of a weekly show.

We saw that with Nashville, the production there, and what it meant to Nashville's economy, and it's notoriety globally.

When you have that show syndicated, and it's on international flights, it really mattered.

And it drew a lot of attention to that city, globally.

And we want the same for Memphis.

I think having an internationally-known star, like the Rock, focus on production here in Memphis, and understanding, and honoring his start in that industry, starting here in Memphis, I think is great.

So let's look at how we scale that, Eric.

I mean, if it's incentives, absolutely we're gonna be aggressive about securing those, and really ideating on new tools and incentives that are necessary.

And I believe that as we bring this to the state, they're gonna be great partners, and receptive to that.

- Switching gears a little bit, you mentioned earlier, power grid and infrastructure.

There is a huge decision right now, that the City of Memphis, MLGW, is looking at leaving or staying with TVA, as the provider of electricity.

This doesn't affect, and correct me if I'm wrong, Blue Oval, which, you know, TVA was very much involved in that, and the megasite.

That's outside the purview of MLGW.

But in the loop, and in the county and so on, this decision is huge.

And it's not just huge from a power supply point of view, that would be enough.

But also TVA does a lot in the incentives business, and like it or not, that's a part of the business that is the 61 projects, will involve tax or financial, or some sort of public or public/private incentives, including often from TVA, correct me if I'm wrong.

- Yeah, absolutely.

- Do you all have an official position on whether MLGW should stay with TVA?

And the second part of that is, are you, are you comfortable with the process, which has been criticized by some, that it is not thorough enough, in terms of assessing what MLGW is going to do?

- Yeah, well first we have not taken a position, officially, on the decision.

And we've been very respectful of the process, and understand the process.

So what I know is that TVA is an incredible economic development partner.

They have been a part of every deal in my career in economic development.

And, so they've been a part of deals, even when there wasn't a PILOT.

They actually helped us with Ookla, who came into the University of Memphis Research Foundation Research Park.

And, we were grateful for that.

So I know that they're a critical partner, and you know, we're excited about Doug McGowan coming in as the new president of MLGW.

We've got a great relationship with Doug, and he's been a great partner for years, and years.

And he understands the importance of economic development, and the fact that you've got an active partner like TVA.

If it wasn't for TVA, Blue Oval City wouldn't have happened, period.

- And again, the process in terms of, you know, we have done the whole shows on this, but you know, the process of bidding, of, you know, going through the MLGW staff, and the board, and then the mayor has a say in it, and the City Council, potentially, has a say in it.

Are you comfortable that the process is being transparent enough, and thorough enough?

- I'm comfortable with that.

I think that there are opportunities for continued dialogue, and assessment, and discernment.

This is a big decision, obviously.

And we wanna make sure that it's a fair process for all parties involved.

So from my estimation, I think that we've seen the process work, and we understand the gravity of this, and the impact that it has.

We wanna make sure we get it right.

- Six minutes left, Bill.

- The Chamber has come out with a position on the search for a new superintendent for Memphis-Shelby County Schools.

And it's not a position that's in favor of this person, or that person.

It's basically that, proceed with the national search.

And, for those who have lived here for a while, there have been changes in recent years, but it's been about a decade since there was actually a search process, actually more than a decade since there was a search process.

Why did the Chamber feel that was important to come out and say that?

- That there's nothing more important than education, and getting our kids prepared for this innovation economy, the Industry 4.0 as we call it, this is one of the largest districts in the country, and it deserves a national search, to find the best and brightest that we can.

We have to have leadership here, that can usher that school system into an age of innovation.

And we have to look at all of the candidates that are potentially available.

So that is why we feel the sense of urgency, the time sensitivity, and the scope of looking at who's possible, is really important for us.

- The current state of the school system.

When you talk to businesses that are relocating here, that are looking to come here, what do they tell you?

Do they have concerns about the state of Memphis-Shelby County Schools?

- We don't hear that concern, Bill.

What they want to know is, if we're gonna commit to these jobs, can they be fulfilled?

And our focus at the Chamber, primarily, is workforce development.

And it's the full ecosystem of this.

It's looking at K through eight, it's looking at high school, it's looking at beyond.

And, that's what they want to know.

They want to know, do you have the people, and do they have the skills necessary to fulfill these positions, and compete, and make us better?

And I think we've determined that we're doing what's necessary to be aggressive in the space.

We're focused on accelerated skills training programs, in our One Stop Shop, that we hope to launch next year.

We've been doing teacher externships to employers.

We had a pilot program of four.

Our goal is to have 50 teachers, and operations, so that they understand what it takes to be in advanced manufacturing.

They can bring that back into the classroom.

So are we producing where we need to be?

Maybe not.

But we can sell what we're doing right now to be ready.

- And, from what I can gather, the concerns that people may have about that, are certainly not unique to Memphis, even though we tend to think that we are kind of out there alone in situations like this, which is kind of a larger question.

- Yeah, you know, we don't live in relativity with other markets.

What we do focus on, is what we're doing, and the fact that our business community are leading from the front in this discussion on education, and workforce, and talent development.

And they have been incredibly active.

Our Chairman Circle Investors went with us to Valencia College in Orlando, and toured their Accelerated Skills Training Centers.

They have eight of them, in and around Orlando.

And they place these in locations, and they meet people where they are.

And that's what we feel is necessary for Memphis.

And it's why we're doing things like creating opportunities for 6,000 8th graders, to meet with, and interact with employers.

We did that recently at the Renasant Convention Center.

- Just a couple minutes left.

And these are big topics that we won't get deep enough on, but one is crime, the challenge of crime, in terms of economic growth in Memphis.

We, like the whole country, saw an increase in violent crime.

Memphis has had a crime problem as long as I've lived here, and beyond.

How much do the overall stats hurt?

And how much do the high profile killings of, I mean, you know, Phil Trenary, four plus years ago, the former President of the Memphis Chamber, the horrible tragedy with, you know, Eliza Fletcher.

How much does that hurt internal businesses, existing businesses, and potential relocating businesses?

- So I can tell you, we've not lost an economic development deal based on crime.

We certainly understand that it's something that is a focus at times.

We don't shy away from it, we lean into it.

And we focus on the data, and the facts.

We know that since 2006, we're at a record low for nonviolent crimes.

So we elevate that.

We do elevate this to the national level, but we also focus on what we're doing here locally, to address this.

And again, our business leaders are at the table.

They are leading from the front.

I've witnessed them sitting at tables, with the new district attorney, and the new juvenile court judge, and the police chief, and the mayors.

And, we're all talking about how we get this right, how we mitigate crime.

And I feel that high quality jobs, economic development, workforce development, are the most potent weapons against crime, and providing those opportunities for our citizenry, so they have better choices.

- We can talk much more.

But I appreciate you being here.

Congratulations on the new gig starting in a couple weeks.

We didn't get to your successor will be Gwen Fisher, which was announced on Thursday morning.

But I'm sure we'll get Gwen on in the future, to talk about economic development growth.

But Ted, thanks for being here.

- Thank you.

- Thank you Bill.

And thank you for joining us.

If you missed any of the show today, you can get the full episode on wkno.org, or you can go to YouTube, and search for Behind the Headlines.

You can also get the full podcast audio of the show, which includes a few more questions with Ted.

You can get that on the Daily Memphian site, iTunes, Spotify, wherever you get your podcasts.

Thanks very much and we'll see you next week.

[dramatic music] [acoustic guitar chords]