Saving Eastern Kentucky.....Part 4 "Buy Local"

After looking at some of the government intervention that can help; lets look at what WE can do.

"Buy Local". Its not just a catchy phrase. Its a concept; and it works.

Why does buy local work? One reason it works is because the world is growing smaller; in its own way. In 1990's/2000's there was a socioeconomic-geographical movement called "Californization". Californization was a label given to the incredible amount of urban sprawl that started in California, and moved nationwide. Its where businesses, and consumers, moved from downtowns to the outskirts/suburbs. Big box stores like Walmart, Applebees, etc all exploded in growth. Small, local businesses wilted and died.

Today, the nation is contracting back to downtowns. In fact, in many developers are scrambling to construct urban residential properties. Higher gas prices combined with infuriating drive times play a large role. This movement back towards  is being called "manhattanization" and its clearly taking place all over the country.

What is buy local? The concept is simple: buying local. Stop spending money at "big box" stores, like Walmart and Applebees. Yes, I know Applebees is tricky because its a chain but has several units owned by Perry Countians (who are very successful business people).

Stop driving to Lexington, Huntington, or Johnson City for food, entertainment, and shopping. Remember, we're trying to pull revenue into Eastern Kentucky. This starts by spending money at home. Think of it as a financial circle. An investment in the region.

On the consumer end, its about spending a little more money in return for a MUCH better product. creating and shopping at local farmers markets or organic markets/butchers. Eating at restaurants who use a "farm to table" approach.  Purchasing craft beer from local brewers and moonshine from local distilleries (both these are a little ways out; but not as far as one might think). Buying from local artisans rather than big box stores.

In the end, its about showing entrepreneurs you're willing to spend your money with them; if they will use local vendors.  Many people are hesitant initially, because of the slightly higher costs. However once they experience the far superior quality and see the reinvestment into the community; the concept quickly catches fire.

On the Entrepreneur side, its a little different. Its a leap of faith. If an entrepreneur decides to open a restaurant, his research will show there's a much greater chance of success if they pay a large sum of money and purchase a franchise. In fact, who could blame a business owner for this decision? Especially without research showing the region will "buy local". In fact, I would guess Eastern Kentucky consumers spend very little money with local vendors.

However once opened, and "buy local" starts working FOR your business; make sure your business starts working for "buy local". Don't buy food services from gigantic companies like Sysco. Don't pay exorbitant franchise fees to corporations who's money will never make its way back to Eastern Kentucky. True, it'll cost a little more per unit, but the money will come back to you through the community.

Growth of downtown areas in cities like Louisville, Asheville, Chattanooga, and Cincinnati are all showing incredible growth in restaurant and hospitality; mostly based on buy local. All are cities within about 3 hours away from our region. All have elements of their revitalization that Eastern Kentucky could use to aid in our revitalization. All will be examined in a greater detail later.

Hospitality is just the start. Once buy local becomes a movement, it spreads to other things. Local designers start opening clothing boutiques. Local artists open art galleries. There are tons of talented designers, artists, and musicians in the region. Unfortunately right now, they all ply their trade elsewhere because there simply isn't a market in Eastern Kentucky.

All of this makes Eastern Kentucky a better place to live. An easier place to attract visitors. And ultimately an easier place to attract small/medium size employers. A more attractive place for small/medium sized businesses (which Ill cover later). All necessary for the survival, and resurgence of Eastern Kentucky.

Music Festival Dos and Donts

Not all bellies are made for belly shirts.

Don't do VIP. Part of the experience is being apart of the crowd. Not apart from it.

Unless you're taking pics/video; put down your phone.

If you answer a non emergency phone call, the person on the other end should reach through the phone and throat punch you because there's no way either of you hears any part of the conversation.

If you're wearing ear plugs -why are you here?

Don't pass out. Sadly, this must be stated.

If you're wearing jeans and/or a dress shirt - you're trying WAY too hard.

Just because you can get it on doesn't mean it fits. Know your limits.

On women - the less body hair; the better. I'm told its the opposite on men.

However, apparently, the more facial hair; the better. This does not apply to women.

You're a hipster. We get it. No need to beat us over the head with it. And I don't think there's a prize for the "biggest hipster at the music festival". Although I could easily be wrong.

Wear whatever you want.

Do whatever you want.

Have fun at all costs.

 

Saving Eastern Kentucky.....Part 3B

I planned to discuss all legislative actions that could help save Eastern Kentucky in one post. Then I quickly realized the wet/dry issue would require so much detail and discussion, that anything else would get lost in the mix.

The innovation and creativity of the Appalachian people will be the catalyst behind revitalizing Eastern Kentucky. Government help isn't a requirement; but could definitely make the process MUCH easier.

To fully realize the roughly outlined tourism plan, Eastern Kentucky must attract new entrepreneurs and a work force skilled in hospitality (jobs dealing with recreation, food, tourism, etc).

How can Eastern Kentucky find new entrepreneurs? The best way is for federal, state, and local governments to give financial incentives to prospective entrepreneurs in return for opening hospitality/tourism based businesses in Eastern Kentucky. In other words, "money talks".

The federal government could provide incentives through the Small Business Administration (SBA). The SBA doesn't make loans themselves. Banks (hopefully local banks. Remember: "buy local") loan the money. The SBA simply guarantees should the business default, the federal government will cover the default; reducing the bank's risk.

As one might imagine, there are some fairly cumbersome guidelines to qualify. These guidelines should be relaxed and the amount of monies available increased for anyone planning to open a hospitality/tourism business in Eastern Kentucky. Banks could loan more, at a reduced risk. This in turn makes it easier for prospective business owners to bet on themselves and Eastern Kentucky.

The state government could relax state income tax on limited liability organizations for businesses operating in Eastern Kentucky. The federal government, along with nearly all states, allow "flow through" limited liability entities to operate without taxation of the entity itself. This is done to avoid double taxation, because the payments from the entity to the owners are taxed too. Kentucky is one of the few states who have an oppressive and ridiculous state income tax on limited liability organizations. This could be forgiven for the first few years for any business opening/operating in Eastern Kentucky.

Finally several creative local tax strategies/incentives that could be in place to encourage the location/relocation of hospitality/tourism business in Eastern Kentucky versus other parts of the state/country. Property tax, local employment tax, etc. could all be forgiven, delayed, or otherwise reduced.

These would make Eastern Kentucky an attractive location for outside and local entrepreneurs to open new hospitality/tourism business.

In addition to talented business owners, the region needs skilled employees. What would talented businesses be without skilled employees? The best way to hone a workforce for the skills needed in hospitality/tourism is through training and education. Training and education could be obtained at local institutions with a track record of results. Several in state institutions offer associates, bachelors, and masters in business. There are recreation degrees. And there are culinary schools in Louisville turning out incredible chefs.

The problem? Education and training costs money. Sometimes a lot of money. The solution? Student loan or subsidized tuition incentives. Federal student loans could be forgiven or offered forbearance in return for being employed in the Eastern Kentucky region. Furthermore the federal and/or state government could subsidize tuition for any prospective student from Eastern Kentucky that commits to the region for a period of time.

These economic incentives make Eastern Kentucky an attractive location for prospective business owners. Furthermore they ensure these same business owners will have a talented and skilled workforce from which to staff their business.

Saving Eastern Kentucky.....Part 3A

The next two installments discuss legislative moves that will help fuel Eastern Kentucky's revival. While a complete revival doesn't necessarily require help from the government. There are definitely several things local/state/federal government could do to aid the revival. 

Up first is a change that must happen socially, then at the polls - the wet/dry issue. Most counties in Kentucky are dry (click the link for a map). To spark growth in tourism, this MUST change.
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If you have religious/moral convictions about the issue, think about this: Being dry doesn't stop drinking. It stops potential revenue, which stops growth/development opportunities, which stops the revitalization of our region. Its a financial decision.

Since the invention of the modern automobile, anyone in a dry county who wants to drink; will. They just go to a nearby county/city taking their potential revenue with them. It doesn't promote underage drinking. There are restrictions that come with the relevant ABC licenses and heavy fines associated with serving underage. The same cant be said for bootleggers. So if you oppose being wet for moral reasons, its really not making an impact.

It doesn't cause an increase in DUI related accidents. That's an argument unsupported by facts. Logic suggests residents in a dry county drive further to get a drink, therefore putting them on the road longer; increasing the chances of an accident. Furthermore drinking and driving are already illegal. So anyone making the conscious decision to break the law, it really has nothing to do with county/city lines.

Let's talk money. Restaurants are extremely hesitant to open in dry counties, and for good reason. Alcohol has a high profit margin. Probably the highest. If given the choice, why would a new restaurant open in a dry county? They wouldn't. Its why cities like Prestonsburg, Pikeville, and Whitesburg all show some growth in the entertainment/restaurant sector; while dry counties/cities are stagnant.

Whitesburg is an excellent case study in favor of the wet vote, because it voted wet only a few years ago. Whitesburg voted "moist" in 2007 and wet in 2012. The direct financial impact is incredible. Speaking with Eleanor Caudill, who is the city ABC administrator, stated that going wet generates approximately $120,000 for the city. Per Kentucky law, these funds can be used ONLY to pay for administration and law enforcement. However this still clears up funds from the general budget to be used for other matters.

The indirect financial impact has been just as incredible. Whitesburg added two very busy restaurants/music venues. They've added an active farmers market, which I will discuss in a later post. These additions increase revenue, build a sense of community, and promote a "buy local" culture; which Ill also discuss later. All in all, it makes Whitesburg a place that people want to visit.

If going wet for a tiny town the size of Whitesburg makes $120,000 direct impact, think of what it could do for a dry county. Or the region as a whole.

One might ask: if nearby counties are wet, why should MY county be wet? Being wet is absolutely crucial for food/drink tourism that will focus on Appalachian moonshine distilleries, wineries, and craft beer. Ill outline all these later in more detail. For now, just know these businesses will work alongside adventure related excursions to create the "pull" that makes people want to visit. The more options, the greater the pull. Noone will drive to Eastern Kentucky to visit a lone restaurant.

If counties won't vote wet, then cities need to. If cities wont, then communities need to incorporate into new cities and vote wet. The importance of this issue truly cant be overstated. Without it, Eastern Kentucky's future looks extremely bleak.