Economy looks up in '07

The local economy got off to a strong start in 2006 with the opening of several restaurants, Sam's Club and Kohl's.

But things slowed dramatically in midyear.

Through November, 137 fewer houses were under construction than a year earlier. That represents about $11.5 million less spent on new houses so far this year.

And sales of new cars and trucks were down by 177 through October.

"The stock market is mixed," Nick Brake, president of the Greater Owensboro Economic Development Corp., said recently. "The dollar is not in good shape, particularly in Europe. The housing market is not as strong here as it has been. But it's not as bad as a lot of places."

But what about 2007?

"I think things are looking good," Brake said. "There are a lot of reasons for optimism."

Work will begin on the $45-million riverfront development project in 2007.

"The city will spend approximately $13 million on riverfront development next year," City Manager Bob Whitmer says. "We intend to complete the boat ramp and scenic overlook at English Park, design the riverwall and inlet area and get five months of construction of the riverwall project and associated tasks."

And Owensboro Medical Health System plans to break ground on a $500 million hospital that will take five years to build. Hospital President Jeff Barber says site preparation "will be about all we can do next year."

"This is a good time to live in Owensboro-Daviess County," says Nick Cambron, incoming chairman of the Greater Owensboro Chamber of Commerce. "I hear a lot of positive feedback from my friends and business colleagues. Hey, all communities have ups and downs. But we're heading up in '07."

At least three call centers are looking for property to rent locally, he said.

Construction is expected to start in January on Culver's Frozen Custard and ButterBurger, the first tenant in the new Highland Pointe shopping center at Kentucky 54 and the U.S. 60 bypass.

New shopping centers?

Internet sites show that at least three other proposed Owensboro shopping centers are trying to attract tenants. And there are rumors about a fourth shopping center -- larger than the other three.

Three of the four are in the "South Frederica" area.

The companies involved say it's too soon to talk about their proposals.

"I've heard rumblings about something big around the Martin Luther King Jr. Loop," Brake said. "And we've been excited to see the development along the Kentucky 54 corridor."

"I think you'll see further development along the Kentucky 54 corridor," says J. Todd Inman, outgoing chairman of the chamber of commerce. "Hopefully, that will lead other companies to come to Owensboro."

He said: "We'll probably see one or two more big-box stores. Hopefully, there will be a net gain. There are rumors that one big-box store on Frederica may close. But development on Kentucky 54 will more than balance any loss.

"There are already some commitments out there that haven't been announced," Inman said. "Some companies will only come to a community if certain others are already there."

Brake said no new manufacturing plants are on the horizon in Daviess County.

But he said he's optimistic that Companhia Siderurgica Nacional, the Brazilian steel maker, will move forward with plans to build a hot-roll steel processing plant in Hancock County.

The proposed plant would employ 300 people on 800 acres along River Road east of Lewisport.

Construction is expected to take 26 months.

"We may see some industrial announcements in surrounding counties," Inman said. "A couple are on the drawing boards in Hancock County."

The Owensboro Riverport Authority hopes to be putting finishing touches on the first of two docks at its planned 30-acre Whaylon D. Coleman Terminal on U.S. 60 East during 2007.

And the first tenants could be moving into the 350,000-square-foot former Green River Steel plant, which is being converted into an industrial park.

Runway extension completed

The Owensboro-Daviess County Regional Airport expects to complete the 1,500-foot extension of its main runway -- taking it to 8,000 feet -- by next fall.

That would be just in time for a major air show that's planned for October.

Completing the extension "will create good press in the aviation industry," Inman said. "A couple of companies have already expressed an interest in distribution centers near the airport."

"We hope it creates a strong attraction for groups to use the airport more," Brake said.

Bring Back Baseball, a group that's been discussing building a baseball stadium and attracting a Frontier League team for six years, hopes 2007 is the year construction will start.

And the Owensboro-Daviess County Tourist Commission is pushing for a new arena-convention center.

Daviess County Judge-Executive Reid Haire is hoping construction can start on a Western Kentucky University Owensboro campus across U.S. 231 from Owensboro Community & Technical College.

"We'll be making more announcements with Western soon," Brake said.

The first phase of the long-awaited advanced technology center at OCTC should open in 2007.

Three "super-subdivisions" -- Fiddlesticks, Deer Valley and Keeneland Trace, which expect to have more than 1,150 houses between them when they are completed in about 15 years -- should be under construction in 2007.

Daviess Fiscal Court is expected to begin construction on a downtown parking garage near the Executive Inn Rivermont.

And Executive Inn officials are talking about building an indoor-outdoor water park there.

Cambron said he's also hearing talk about new coal mines, new hotels, new bank buildings and expansions of existing businesses.

Brake said EDC is still working with Bill and Scott Jagoe, owners of Owensboro-based Jagoe Homes, on a project that they said earlier would bring 455 white-collar jobs to Owensboro with a payroll of more than $50 million a year within six years.

"The stock market is back on track, and that's when companies begin to invest more heavily," Inman said. "We still have the issue of underemployment. We're graduating the same number of college students as Warren County. But the question is how do we create the jobs to bring them back home."

"We're working on some expansions," Brake said. "But we still have concerns about business development. We have to grow companies as well as recruit them. We have to encourage entrepreneurship."