University of Montana business expert, Tony Rudbach pitches ‘hub’ cities idea to commissioners

A University of Montana business expert believes a bridge between Denmark and Sweden can offer economic lessons for the Bitterroot Valley.

Tony Rudbach, assistant vice president in the university’s Office of Research and Economic Development, recently finished a study on the thriving economy created by the Oresund Bridge between Denmark and Sweden, which opened in 2000.

By DANA GREEN Staff Reporter

http://www.ravallinews.com/articles/2004/06/08/news/news03.txt

Last week, Rudbach, who lives in Hamilton, described his study findings to the Ravalli County commissioners.

His conclusion: It is more productive to create "hub" cities – centralized commercial centers -and move workers to jobs, than to try to provide economic stimulus in Montana’s smaller towns.

The concept of hub cities moves away from "having to create economic growth in every town," Rudbach told commissioners.

"We can use Missoula as a hub and create a public transit system that can move our workers back and forth," Rudbach said.

Rudbach said that in eastern Montana, commercial centers do not yet exist, but Missoula already functions as a hub city for the Bitterroot Valley.

"We don’t need to build economic centers in Ravalli County – we can use hub cities we already have," he said.

Montanans might be unfamiliar with public transit, but in Rudbach’s view, a federally subsidized transportation system is central to tapping in to the "new economy" – based on information sharing, service and technology industries.

Local governments in rural states can’t afford to pay for public transportation – that’s the role of the federal government, Rudbach said.

"Even national airlines are marginal," Rudbach said. "It’s going to require a heavy federal subsidy."

Workers in the Oresund region averaged a one-and-a-half hour commute, according to Rudbach’s findings. "People say no one in Montana will do that – (but) you sleep, eat breakfast, read, whatever you want to do on the bus."

Commuting to a central commercial center allows small communities to protect their rural character, according to Rudbach.

"(We’re) living in Montana because of … the environment, (we) don’t want to change it," Rudbach said. "If you brought in an employer that could employ 200 people – it’s going to change the character of the community."

Rudbach cited the Butte mines as an extreme example of the negative impact a large company could bring to a small, rural community. "You drive through Butte…it’s not a place of beauty," Rudbach said. "And, when the industry fell apart, so did the economy."

The loss of economic stimulus in small towns would be offset by higher paychecks: Workers would bring home higher salaries, which they can spend in their own communities, Rudbach said.

The success of the Oresund Bridge economic corridor was also based on training workers to fill jobs – 90 percent of the workers received additional job training in new industries, according to the study.

In the Bitterroot, that would mean working with Montana technical schools, tribal colleges and universities to create vocational training centers and online courses, according to Rudbach.

These educational entities would coordinate "to meet the training needs of the Montana work force in the new economy," Rudbach said.

Although Rudbach’s idea are far in the future – it will be two decades, Rudbach said, before the infrastructure could be put in place – the state of Montana is already moving towardsregional economies, said David Gibson, Gov. Judy Martz’s chief business officer.

Montana must focus on regional economies or "we’re going to work far below our potential," Gibson said.

"If we allow communities to work in isolation, they’re not going to get as much state support," Gibson said.

In the 2003 state legislative session, HB 76 created regional development corporations to encourage regional economies, Gibson said.

"County lines…these things don’t make any sense to businesses," Gibson said.

The governor’s office is also working closely with state colleges and universities to find better ways for higher education to help grow the state’s economy, Gibson said.

HB 564, also passed last year, provides crucial training for existing workers and funding for training grants, according to Gibson.

"We finally have a state training program," Gibson said. "If you don’t have trained workers, you’re not going anywhere."

Although the state is moving towards some of the conclusions reached in Rudbach’s study, mass transit in Montana is still in the distant future, Gibson said.

"There are cultural differences – Europe has forced growth into large urban areas to promote open space – we’re more spread out," Gibson said.

The state’s limited resources and sprawling distances do make long-range economic and infrastructure changes difficult, Rudbach acknowledged. "It’s easy to say what should be done, but how to do it is the challenge."

The first step, in his view, is for communities to create their own visions for their economic futures. "Do you want to maintain quality of life – or do you want to change the character of your community? This is a community decision."

Although it seems like the distant future, escalating oil prices might accelerate a demand for mass transit in Montana, Rudbach argued.

"Gas at $3 per gallon is going to force people to rethink the whole situation….(Public transportation) will help the economy – and our consumption of petro-chemicals."

Reporter Dana Green can be reached at 363-3300 or at [email protected]