Bidding on long shots

Should you go after a major economic development project when you don't have a snowball's chance in hell of getting the deal? In general, my advice is yes--but approach the project with clear objectives and with a realistic strategy.

Economic developers and their leadership often struggle with the issue of whether it makes sense to make a bid for a big project, like the current Boeing 7E7 plant, when the deal is a long shot for your area. After 27 years in the ED business, I have seen more than a few of these situations, and I have concluded that there can be a benefit to pursuing the "long shot."

Why go after a long shot deal?

1. Because it shows that your area has an aggressive ED strategy and is trying its best to land a major project. You are more likely to suffer greater criticism for sitting on your thumbs and not pursuing the project. The only catch is that your leadership and those who really need to know should know that you know the project is a long shot and that you have other objectives in pursuing the deal.

2. Even if you don't get the project--and remember only one place will get it--the process could reflect the positive aspects of doing business in your area to the prospect, its site selection consultant, state development officials and other third-party EDO's involved in the contact chain. If you handle the project right, it could help you market your area to intermediaries that do not know much about your area now. The key is doing it right!

3. It could provide a useful "trial-run" to assess how ready your area is to respond to a big project. A fire-drill can be a good thing if your leadership and other community officials are a bit rusty in their skills. View this as capacity-building.

You should keep one major caveat in mind. Set realistic expectations about your chances and don't over-promise anything. It's a bad idea to talk about giving millions of dollars to a project that will probably not come your way. It sends the message to that company and others listening in that "your community is an easy mark." You do not want to be perceived as a pushover for a big incentive handout.

Finally, be ready to learn from the experience. Use your access to decision-makers as a way to strengthen your ED strategy.