Economic Development: Broadband Grant Application

Broadband Grant Application

27 December 2006

Mr. Todd Christensen
Department of Housing and Community Development
The Jackson Center
501 North Second Street
Richmond, Virginia 23219-1321

Dear Mr. Christensen:

Nelson County is approximately 471 square miles in size, covering very rugged topography. The majority of the population is located in a few areas that have sufficient infrastructure; the population centers that rate broadband are few. Nelson County has approximately15,000 residents; current Internet providers suggest that there may be insufficient return on investment in most areas for installation of broadband to be feasible for a for-profit situation. Therefore, while broadband is likely the best solution for serving wide areas with minimum investment, the topography makes this solution less economical and therefore a less attractive venture for anyone other than the government or a private-public partnership. Studies in our region confirm the perception that there is a great disparity in high-speed access to the Internet between rural and populated areas of the region. Nelson County’s residents face a digital divide on two fronts – high-speed Internet access is available only in population centers, and there, only to residents with the economic means to afford the substantial costs of the service.

The same topography and population base that makes Nelson County an attractive place in which to live makes it challenging for economic development efforts. The lack of broadband is an impediment for existing businesses looking to expand and hinders new business recruitment. Land values are increasing; therefore, efforts to diversify the tax base are critical. The Internet is infrastructure and a vital economic development tool. Location drives decisions – business, travel and residential; infrastructure makes the difference in those decisions for our County now as we compete in a global market. Today’s economy is market-oriented, workforce-focused and knowledge-based. 2000 Census data reveals that of the 7,115 persons in the Nelson County labor force, there are 6,637 commuters with an average commute time of 33 minutes. A labor survey noted that 40 % of those commuters said that if there were jobs with the same wage and skill level, they would rather work in the county.

The County has followed the progress of Dickinson County, Virginia. Dickinson spent $600,000 for 325 square miles of wireless broadband. Nelson County land mass totals 471 square miles; a conservative estimate of costs for a system comparable to Dickinson County is $1,000,000. Leadership is committed to improving broadband access for their citizens and businesses. The Nelson County Board of Supervisors has established broadband as a local objective to improve local government services.

Broadband access offers many benefits for citizens and businesses. Successful governments are participatory; the Internet invites and encourages participation. The Internet is a democratizing force – it allows the same opportunities for all people and businesses that have access. For example, with broadband, citizens can have better access to information from places like community centers and libraries. Broadband access will improve the quality of life for the citizens and businesses in Nelson County.
Robust broadband is as an accelerator of economic development, thereby improving the quality of life for residents and businesses. Nelson County realizes the availability of broadband is as valuable as other utilities like water, electricity, available workforce and developable land. Broadband service is vital to encourage existing business and industry to expand and retain their competitive edge, as well as encourage business recruitment. Direct access to this infrastructure is critical in order for Nelson County to diversify its economic base. Our vision is to provide access to broadband technologies, thus enabling our citizens and business communities to bridge the digital divide.

Thank you for the opportunity to apply for funding from the Virginia Department of Housing and Community Development’s Rural Broadband Planning Initiative. Please let me know if I can provide other information for the grant application process.

Respectfully,

Stephen A. Carter
County Administrator

Pc: Thomas Jefferson Planning District Commission

Appendix B

Project Description and Products
The goal of the Virginia Rural Broadband Planning Initiative is to create strong, competitive communities throughout the Commonwealth by preparing those communities to build, utilize, and capitalize on telecommunications infrastructure. Nelson County wishes to develop a comprehensive telecommunications plan for the County that will allow us to identify and develop all elements necessary to create a successful community technology neutral broadband network. Broadband will enhance the availability and sustainability of adequate healthcare, quality education, reliable emergency services, competitive service-sector businesses and the entrepreneurial sector of the Nelson County economy. Broadband deployment is a vital component in the global marketplace. In addition, the plan will address needs and opportunities for residential users to have universal access at high speed with competitive prices. We expect to work collaboratively with private-sector providers to maximize the provision and affordability of services to the community at large.

The introduction of broadband capabilities will be used to enhance the quality of life of Nelson County residents and businesses. The technology will be utilized for a multitude of commercial and governmental applications to include, but not be limited to: education, economic development, telemedicine, telecommuting, e-government and citizen services, agriculture, distance learning, public safety and tourism. Telemedicine refers not only to making remote diagnosis of patient’s conditions via voice, video and data but of also the ability of doctors to connect to hospitals, patient access to information or purchase drugs and medical supplies online. Telecommuting is not just working from home, but the ability to work from remote locations or while traveling. E-government facilitated by broadband allows more convenient interaction to better serve citizens. Broadband can play an important role in bringing the farmers and their markets together more quickly and efficiently. There are major initiatives at the community college level in the area of distance learning to convert more of the courses to be available in an on-line format. Remote monitoring of critical infrastructure has become increasingly important to public safety since September 11, 2001. Using broadband to allow visitors to get a sense of the region by taking virtual tours enhanced by online videos, web cams and interactive websites can enhance tourism development.

Economic development efforts will be greatly enhanced by broadband access. Two specific areas that would be improved include workforce development and encouraging entrepreneurship. Telecommuting allows citizens to work from remote locations or while traveling. It gives people more time to work and spend less time commuting. It can reduce the amount of travel needed to attend face-to-face meetings, allow employees to collaborate on projects, and maximize the efficiency of scarce professional resources as well as increase energy savings and reduce road traffic. With broadband, companies can use the Internet to train and re-train employees. The opportunity for home-based businesses is one important economic development and business recruitment strategy that Nelson County is pursuing.

Distance learning is one of the most heavily promoted applications of broadband. Nelson County was the first community in the Commonwealth to institute virtual school, the Nelson Academy of Virtual Learning (see December 14, 2006 article). Broadband enables students from any geographic location to take advantage of educational institutions. In the area of education, the Commonwealth of Virginia mandates that Standards of Learning tests (SOL) all become computer-based. School systems will have to have the internal and external network capacity to download SOL tests from administration computers and relay information back to them. While the Nelson County schools are completely wired, the issue remains with serving the student population, who may not have access to broadband. Nelson County has five community centers, which currently serve as social centers. With broadband, the community centers could serve as lifelong learning centers. The Nelson Center in Lovingston currently offers a Piedmont Workforce Network/Virginia Employment Commission center with information for job seekers and employers.

Telemedicine is another major area of potential impact. Broadband technology allows doctors to view and send medical images quickly and securely. In Nelson County, it would allow a doctor to review medical information while away from the office and to respond to critical cases. Having patients go to a local medical center, such as Blue Ridge Medical Center, and still receive treatment from specialists located in Lynchburg or Charlottesville, could reduce transportation costs and discomfort. Electronic monitoring of patients may allow medical facilities to work closely with assisted-living facilities. Using remote video, families could even monitor and communicate with their loved ones in assisted living facilities.

E-government facilitated by broadband allows more convenient interaction with government. Phone calls and visits to government offices can be replaced with electronic self-service interfaces. These can also be made accessible on a 24-hour basis helping those that work long hours or night shifts as well as elderly and other people with mobility problems. Examples of such services are filing for financial aid, applying for licenses, permits, and other government programs. Broadband can help Nelson County save money by better managing task flow, automating internal processes, and saving money on mailing, printing and handling costs. Access to government via the Internet is increasingly becoming a priority. Many of the services currently offered online require faster Internet access than dial-up. Most County meeting minutes and background material are available on the County web site. However, to download the material by a dial-up Internet connection may require several hours. Some applications like GIS and access to large documents require constituents to have broadband service to make use of these services.

Broadband can provide several benefits to the agricultural sector. Studies in Canada suggest it can reduce the cost of bringing calves to market from CA$11 a head to CA$4 a head. Services such as AgriImaGIS networks are transmitting satellite imagery by wireless broadband to farmers, soil scientists and conservationists. The images provide weather and soil condition information. The USDA is working to make its programs accessible via the Internet to save farmers time and effort in obtaining and submitting forms and reports.

Broadband technology can serve several public safety roles. With a broadband connection, large data and image files can be quickly transferred, allowing rapid distribution of photographs, building plans, and fingerprints. Video information and reports can make mobile units and first responders more effective. Mobile data with access to mapping can improve response time for public safety responders. Public safety would be improved by timely communications and information sharing in the field in the event of hazardous or disaster situations. It will allow command centers to receive full motion videos from mobile units to help them make more effective decisions and provide remote backup. Teleconferencing and using voice over IP or Radio-over-IP technology with other agencies in times of natural or manmade disasters help relieve interoperability issues between them.

Using broadband by placing tours of key landmarks online while an audio track encourages visitation can enhance tourism. Events can also be web cast or archived for playback. With broadband, tourism web sites can be linked into other related sites like live hotel reservations, a visitor’s center help desk or ticket sales agents. Most visitors travel to the area because of referrals from friends and family. Therefore, it is imperative that friends and family understand the tourism offerings of a region so that they can better encourage travel and visitation from friends and family. Tourism-related businesses, a major contributor to the County's tax base, can utilize the Internet to compete on an even footing with other areas that leverage connectivity for both promotion and providing on-the-road connectivity for businesspeople on vacation.

Nelson County leadership has expressed support for this grant application. The efforts for this grant application are a combination of public and private partnerships. They include: Nelson County Board of Supervisors, Economic Development Authority and county staff. Business partners include the Central Virginia Electric Cooperative and Nelson Cable – two Internet providers. Three educational partners are Piedmont Virginia Community College, Central Virginia Community College and the Nelson County School System. Political partners include: the Honorable Congressman Virgil Goode, Senator Creigh Deeds, and Representative Watkins Abbitt.

Project Outcomes and Challenges
The primary outcome for a Planning Project is the determination of the most appropriate telecommunications infrastructure will be completed, leading to the subsequent deployment of recommended technologies. Further, Nelson County wishes to compete with larger urban communities for economic development and expanded social opportunities through the availability of affordable high-speed Internet service. Broadband availability will provide an opportunity to encourage potential businesses to startup and grow, as well as retain and expand existing businesses, including entrepreneurs.

One challenge the County faces is a lack of competition for high-speed last mile connectivity for T1, fractional T1’s, leased lines and DSL. Nearly all of the last mile connectivity comes through the local ILEC and the Wire Centers they control. Although backbone connectivity may come from other third parties, most companies still have to go through either Verizon or Sprint to get connected.

Project Location
The project location is Nelson County. There are no incorporated communities in Nelson County; centers of population include Afton, Arrington, Faber, Gladstone, Lovingston, Massies Mill, Montebello, Nellysford, Piney River, Roseland, Schuyler, Shipman and Wingina.

Provide information to support designation of rural status
As Nelson County is eligible for Virginia Community Development Block Grant funds, we are classified as rural.

2002 Census of Agriculture Profile Nelson County, Virginia
Land 456 farms (438 farms in 1997, up 4%)
84,691 acres of land in farms (78,446 acres in 1997, up 8%)
186 acres is average size of farm (179 acres in 1997, up 4%)
Market Value of Production, average per farm $16,590 ($15,691 in 1997, up 6%)
Market Value of Production $7,565,000 ($6,872,000 in 1997, up 10%)
Crop sales accounted for $4,862,000 of the total value
Livestock sales accounted for $2,703,000 of the total value
Government Payments $224,000 ($166,000 in 1997, up 35%)
Government Payments, average per farm receiving payments $2,761 ($3,210 in 1997 down 14%)
953 acres of apples produced yearly
Nelson County ranks fifth in apple production, fifth in grape production in Virginia
Successful Livestock Operations - cow/calf farms, purebred beef breeding, equine training and riding
Other Farm Enterprises:
Landscape Design and Installation
Garden Centers
Farm Markets
Pick Your Own Berries
Herbs and Herb Products
Tree and Lawn Care
Irrigation Services
Tissue Culture and Plant Propagation
Forestry - Two-thirds of the county is forested- 233,613 acres

Provide a Basic Map
Attached

Readiness
We believe that Nelson County is ready to create a comprehensive broadband strategy.

In 2004-2005, the County and the Economic Development Authority worked with 310 Marketing to create a comprehensive broadband strategy (Attachment A). The report cited a summary of Nelson’s competitive weaknesses:
• Lack of total available workforce
• Lack of available housing
• Limited broadband
• Limited existing industry clusters

In 2004, the Directors of Economic Development for Nelson and Amherst Counties authored a grant from the Rural Utilities Service with Amherst County for a broadband study (that grant application is still pending).

Virginia Tech drafted a preliminary report in 2005 (Attachment B) that included:
•    Study of County topography
•    Identification of private sector service providers and document market penetration
•    Identification of the opportunities to coordinate with the school system – existing strategies and resources
•    Identification of the opportunities to coordinate with private sector service providers - we do not want to compete with the private sector - encourage expansion of current levels of service, then, if necessary, offer service so that as many citizens as possible have access to broadband
•    Identification of future technologies that might be applicable
•    Identification of pilot project(s) applicable

The Virginia Tech eCorridors program was created to serve as a catalyst for deployment of affordable access to fiber optic network infrastructure needed to create economic and educational opportunities for citizens and businesses. ECorridors program works with communities, private sector and municipal partners to facilitate the rapid development of advanced fiber optic, wireless and next generation Internet infrastructure. The eCorridors group at Virginia Tech has developed fiber network architecture for Southside and Southwest Virginia. This design includes 3 of the four counties in Region 2000, Appomattox, Campbell, and Bedford. The project to include connection to these 22 counties and 56 industrial parks via an open access broadband network by 2006 does not include Amherst County; note further that Nelson County is not a part of the Region 2000 partnership. A meeting was held with the eCorridors group about their mission and also to discuss having them do a similar design for Amherst County. Mid- Atlantic Broadband Cooperative, Inc. a non-profit entity created to manage the eCorridors program has projected a cost of $1,640,000 for the Appomatox-Lovingston section (44.6 miles-costs include capital and engineering and design). (Attachment C)

In September 2005, the Economic Development Authority hosted a meeting with representatives from Verizon to discuss their broadband plans for Nelson County. (Attachment D).

The Economic Development Authority worked with the regional economic development partnership, James Madison University and the Center for Innovative Technology and funded a Countywide broadband survey. The broadband study is focused on three areas: economic development, education/telemedicine, and public safety. The survey answered the questions: where do we have broadband access and where is it needed/desired to further economic development opportunities, education/telemedicine services, and public safety? (Attachment E)

The spring, 2006 Broadband survey was mailed to 7,940 households in Nelson County, with 509 completed surveys returned. Highlights from the survey findings indicated that:
- More than 60% of organizations have an Internet connection and all employees are accessing the Internet;
- More than 76% of the respondents use dial-up as their primary means of accessing the Internet;
- More than 96% use the Internet for email, followed in high percentages for browsing, research, banking and on-line ordering;
- More than 59% of respondents were not satisfied with their Internet speed/service;
- More than 43% were willing to pay more for higher quality and faster Internet access;
- More than 74% indicated that better Internet access is vital to them and/or their business over the next five years; and
- More than 90% believe they and their business would benefit from affordable broadband access.

Results from the survey indicate that there are not available services sufficient to meet the needs of the business community. This project will deliver a comprehensive telecommunications plan for the County that will allow us to identify and develop all elements necessary to create a successful community technology neutral broadband network.

Once the broadband report was finalized, the Director of Economic Development sent the report to Internet Service Providers (nTelos, Verizon, Sprint/Embarq, MidAtlantic Broadband). A response from nTelos and Verizon are included (Attachment F). James Madison University is following up with the communication providers with a survey (Attachment G).

Capacity
The efforts around the issue of broadband to date have been collaborative and public-private. The County and the Economic Development Authority have jointly funded the studies and surveys that have led to this grant application. The Thomas Jefferson Partnership for Economic Development and James Madison University were partners in the survey project. The County contracted Kennedy Smith (The Clue Group) in 2004-2005 to complete a market analysis; the report mentioned ecommerce as a vital economic development strategy to be pursued. Cost for that analysis was $10,000. The County partnered with the Economic Development Authority to commission the target business study with 310 Marketing in 2004; cost totaled $15,000 for that project. The Economic Development Authority allocated the $5000 for the 2006 broadband study.

The Director of Economic Development and Tourism will oversee the planning project. The position serves as staff liaison to the Economic Development Authority. The Director managed the successful DHCD CDBG planning grant for the Lovingston Revitalization Project, which closed in 2006. The Director designed and manages the County website – www.nelsoncounty.com, which enjoyed more than a million page views in the last 12 months and whose 7 (out of 10) Google page rank –is similar to Amazon.com or Virginia.org. As a former Chamber director and Virginia Main Street manager, the Director has the skills to motivate, encourage and complete projects on time and on budget. A sparkplug from the private sector will work with the Director to ensure that the project is successful.

The County is currently seeking letters from individuals and organizations that will provide direct support in the implementation of the project.

Management Team
The management team will provide oversight and direction throughout the planning process including the procurement of and collaborating with consultants and contractors necessary for successful implementation of the broadband telecommunications network.
Below is the working list of management team members:
Local government – Stephen Carter, County Administrator and Debra McCann, Director of Finance and Human Resources
Information Technology – Susan Rorrer, Director
Economic Development professional – Maureen Corum, Director of Economic Development and Natt Hall, Economic Development Authority Member
Public schools – Joe Dan Johnson, Director of Technology
Higher education institutions – Piedmont VA Community College and Central VA Community College
Workforce development – Todd Palmquist, Director of the Piedmont Workforce Network
Health care – Peggy Whitehead, Executive Director, Blue Ridge Medical Center
Private medical practice – Dr. Steve Schmidt, Afton Medical Group
Industry/Manufacturing – John Gresh, California Sidecar
Retail and commercial business – Ronnie Moyer, Tiger Fuel
Small business/entrepreneurs –Allen Hale, Buteo Books and Tommy Stafford, Nelson County Life magazine
Banking – Alphonso Taylor, BB & T
Insurance – David Parr, Farm Bureau
Legal – Jerry Gresh, Esq.
Engineering –Jim Taggert, Taggert Engineering
Accounting – Mary Ten Hoopen, Ten Hoopen Accounting
Local telephone provider - TBD
Internet service providers – Central Virginia Electric Cooperative and Nelson Cable
Police department and emergency services – Sheriff Gary Brantley and Ray Utarro, Emergency Services Director