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Officials optimistic about 2010 economy
By Keith Lawrence, Messenger-Inquirer
Published: Monday, January 18, 2010 12:05 AM CST
The Owensboro metropolitan area -- Daviess, Hancock and McLean counties -- lost 1,700 jobs between Nov. 1, 2008, and Nov. 30, 2009, the Kentucky Office of Employment and Training says.
And unemployment here hit a 25-year high last summer.
But the local economy should start growing again in 2010, four people involved in economic development said last week.
Construction is scheduled to begin this spring on Owensboro Medical Health System's new $385 million hospital.
Work is slated to start by fall on a new $20 million hotel downtown.
The Centre for Business and Research is scheduled to open soon at 1016 Allen St. with two private companies and some university-based programs.
And some companies that had layoffs in 2009 are expected to begin calling back workers soon.
"I'm very optimistic about 2010," said Darrell Higginbotham, chairman of the Greater Owensboro Economic Development Corp. and Daviess County president of Independence Bank.
"I don't expect to see a lot of projects started," he said. "But I am very optimistic that we'll at least have several private development projects downtown either announced or being discussed this year -- now that the hotel has been announced."
"I think everybody is ready to get 2009 behind them," said Scott McCain, Owensboro executive for BB&T and a member of the EDC board.
"We're very optimistic about 2010 and beyond," he said. "Hopefully, by the second half of the year, things will be turning around."
"There's a lot of wait-and-see out there right now," Nick Brake, EDC president, said of developers considering projects near both the hospital and in downtown. "But once construction starts, I think we'll see some of those projects moving too."
"I continue to see a mixed bag of opinions related to the economy," said Jody Wassmer, president of the Greater Owensboro Chamber of Commerce.
"I recently talked to two local business owners who told me 2009 was the best year they've ever had," he said. "Of course, we've also seen other businesses close."
Wassmer said: "I believe the unemployment rate will be slow to recover because most businesses will be very cautious about rehiring. Many of them are concerned about how some prominent national issues could eventually affect them."
"From the bank's (Independence Bank's) standpoint, 2009 was the best year we've ever had," Higginbotham said. "Our local economy has performed better than many areas, despite all the jobs that were lost. Our loans were up 16 percent -- $30 million -- and our deposits were up 11 percent, $21 million."
"We're not out of the woods yet," McCain said. "Some of our clients are doing very well and some aren't doing so well. But western Kentucky as a whole is doing very well. Our bank has seen good loan growth. The fourth quarter of 2009 wasn't that great. But we expect 2010 to be a lot better."
"We had 22 leads (on proposed projects) last year," Brake said. "That was up from 2008, but few of them developed into projects because of the lack of capital. I'm hopeful those issues will be better this year.
"Three projects we worked on couldn't find the funding. Hopefully, funding will start flowing this year. I think credit markets will loosen up. Our local banks have continued lending. That's why things haven't come to a screeching halt here."
"Credit is not an issue in our market," Higginbotham said. "We still compete on commercial projects."
"I am very encouraged by the growing interest I see from people outside of Owensboro and expect that to continue in 2010," Wassmer said. "In the past six months, we have had more business owners and salespeople from outside the community join the chamber. They tell us they know about the riverfront and downtown redevelopment and believe Owensboro is poised to grow.
"As downtown starts to take shape in 2010, I would expect to see more business interest."
Gordon Wilkerson, OMHS spokesman, said, "We expect construction to begin (on the new hospital) in early spring and are now working toward finalizing it."
"I don't see how the hospital can't spin off exciting development out there," McCain said. "But it may not be this year."
The start of hospital construction could help development on Kentucky 54.
Philip Purdom, senior vice president for development and mall leasing for David Hocker & Associates Inc., said recently that "a couple of national restaurant chains are very interested in Owensboro right now. They're looking at Highland Pointe, but they want something else to happen out there -- either a big box store or the start of construction on the new hospital."
Higginbotham said U.S. Bank Home Mortgage and Atmos Energy both built new offices on Kentucky 54 in the past two years and a Courtyard by Marriott is being built in Highland Pointe now.
"The construction of the hospital will contribute to the economy and there will be other opportunities around it," he said.
Downtown development should help increase interest in projects several blocks away from the river, Higginbotham said.
"Even our offices on 25th Street (and Frederica) feel like downtown," he said. "We can be in the downtown core in five minutes.
"We're very sensitive to all the people who lost jobs in 2009. There may be more jobs lost in 2010, but significantly fewer than last year.
"Several of the companies that had layoffs last year have started calling workers back or will be soon," he said. "I strongly feel that the worst is behind us. I see a recovery starting this year."
"A lot of people are waiting to see what comes out of Washington," McCain said. "And some folks are trying to make strategic moves, but it depends on some things locally.
"There are several things on the drawing board. Downtown will certainly be a catalyst for economic activity. A lot of good things are going on behind the scenes. It's going to be exciting. We're very optimistic."
Brake said several energy projects are on the drawing board in area counties that could lead to about 4,000 jobs when they finally begin.
"I would expect a couple more projects to be announced downtown this year," he said. "Its possible that we could start on Carnegie Village (a project at Ninth and Allen streets) and there could be some activity in the Frederica Street corridor. I think 2010 looks better."
Keith Lawrence, 691-7301, klawrence@messenger-inquirer.com
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