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Developers Try to Improve Region From the Ground Up
Posted Monday, November 16, 2009 ; 06:00 AM | View Comments | Post Comment
Updated Tuesday, November 17, 2009; 03:48 PM


As counties throughout West Virginia struggle to combat poverty, finding those niches and working together for growth may mean the difference between a future full of pessimism and a future full of prosperity.

By Michael Hupp
Email | Other Stories by Michael Hupp

WELCH -- Job creation takes a lot of hard work, patience, diversification and creativity.

No one knows that more than Rachel Lester, executive director of the McDowell County Economic Development Authority. Lester lives and works in a county that, according to the U.S. Census, is the poorest county in West Virginia. Approximately 33 percent of McDowell County's population lives in poverty.

"We are trying to benefit residents of this county by opening up job opportunities to bring in jobs," Lester said. "In order to do that, we have to evaluate our resources, try to find new industries and see what we have to work with."

As counties throughout West Virginia struggle to combat poverty, finding those niches and working together for growth may mean the difference between a future full of pessimism and a future full of prosperity.

Lester said one industry McDowell County is embracing is corrections.

The county created more than 100 jobs and various spin-off jobs by converting an abandoned hospital outside of downtown Welch into the Stevens Correctional Facility. The project was completed in 2006 and is the only county jail in West Virginia holding state inmates through a contract with the state.

In addition, construction of the $249 million Indian Ridge Federal Corrections Facility is nearing completion in the southern part of the county. Construction is slated to wrap up in early 2010 with an anticipated opening the following spring.

According to Lester, the facility is expected to inject $38 million annually into the county's economy. Even more important, the facility will bring an estimated 360 jobs to the county, Lester said. Of those jobs, 70 percent will go to McDowell County residents.

Lester said the McDowell EDA is looking at options such as recreation, businesses that support arts programs and small business industries to enhance the quality of life in the county.

"We are trying to foster small business industries such as in-home businesses and try to help people identify niches in business that play off already established or soon to be established businesses," Lester said.

Lester said the goal is to open the county up to virtual marketing and a global market to help create jobs.

"We are not handing out food, but we are trying hard to develop job opportunities that will help combat poverty in the county," Lester said.

Mike Whitt, executive director of the Mingo County Economic Development Authority, said his county also is trying to change the economic climate in the southern part of the state.

"We are working hard to work with private sectors to develop land out of the floodplain," Whitt said.

He said floods in 1977 and 1984 crippled economic development in Mingo County, devastating the economic situation in the county.

"Thirty to 40 years ago, our county did not take advantage of developing land out of the floodplain," Whitt said.

Whitt said the end result of not doing that was disastrous. According to Whitt, the 1977 flood washed out dozens of businesses.

"The Small Business Association helped people come back and rebuild, but when a big flood came again in 1984 they just could not recover and have not rebounded since," Whitt said.

As evidence, Whitt pointed to the fact Matewan once had two grocery stores and Williamson had three. Now, neither community has a grocery store.

Whitt said the county is seeing revenue from the Hatfield-McCoy Trails.

"Amenities for the trails are all locally owned. Locals are opening restaurants, hotels, cabins and stores to service riders, and that is generating revenue," Whitt said.

Whitt said the county also is working on developing housing and industrial sites along the almost completed King Coal Highway. That road is expected to benefit both McDowell and Mingo counties.

"Not just Mingo County, but the whole region needs to diversify if we want a better future in southern West Virginia," Whitt said. "We are trying to lay a foundation today that will benefit others tomorrow."

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