As a site selector, I have seen promising projects fail, not due to any one major factor, but because communities weren’t truly aligned and ready to solve problems that come with large industrial projects. Communities are not just the ZIP codes where we invest capital; they are our workforce, regulators, business development partners, and advocates. In today’s hypercompetitive environment where project timelines are shorter, incentives are more complex, and workforce issues are top of mind, choosing the right site is only half the battle. Choosing the right community partner can mean the difference between a thriving investment and a stalled, costly disappointment. Having a true community partner can help a facility weather storms (literal and physical), solve problems, and continue growth. Comparatively, a community not equipped to handle your project could break your investment. The good news is there are clear red flags and green flags that help you separate the real partners from the pretenders. Here’s how I separate the real community partners from the community pretenders before making my recommendations to my clients.

Pretenders Have Questions, Partners Have Answers

“So where exactly is the water line?” an executive asks matter-of-factly while looking over a site map. Expecting a simple answer, the executive is surprised to hear, “We’ll have to get back to you on that,” from the local economic developer. The development representative continues, “We are pretty sure it is roughly within a given area,” while drawing an imaginary circle around a field. When you hear comments like these, they are telltale signs you are dealing with a pretender. For communities, your site visit is their Super Bowl. This response shows that they did not go through the game plan or perform due diligence to educate themselves. If they don’t value you now, will they when your facility is operational?

Conversely, a real partner community not only knows where the water line runs, but they’ll tell you the pipe size and excess capacity of the water line. This may seem like a trivial detail, but it is very telling. A true partner in development comes prepared to meetings and is equipped with staff to help them answer the hard questions. This demonstrates a commitment to getting your facility what it needs. Pretenders wine and dine but rarely deliver.

Honesty Is the Best Policy

Several years ago, I led a project where a corporate decision-maker walked into the room and the first thing they said was, “Can y’all abandon that road?” The road in question was a former U.S. highway that had been converted to a local thoroughfare serving industry and residents. Community officials were taken aback but eventually piped up with, “That’s a major road, but we will see if that’s possible. If so, we will do our best to find a solution that fits with your project, but it will be expensive.” This was maybe not the answer the corporate decision-maker wanted to hear, but it was honest while being in the spirit of being accommodating and stating a financial gap that would need to be filled.

In other meetings, I have heard communities respond to similarly audacious requests with an offhanded “sure” or “not a problem.” A quick, affirmative response to a major request is a giveaway that you are dealing with a pretender. Presently in the United States, we do not have local monarchies that are able to unilaterally abandon roads, remove regulations, and inject significant capital. Local officials must work with numerous other parties to make major changes. Casual responses to significant requests should be a telltale sign that you are either dealing with an inexperienced actor or working with someone who is not being entirely honest. In other words, a pretender. Real partners are upfront and honest about their challenges. They acknowledge them and will work collaboratively with you to overcome them.

All Singing From the Same Hymnal

At major site visits, a small village may be gathered to represent a site. Many of these individuals represent various organizations with differing interests. You will likely have a worker from the city’s water treatment plant, someone from the power company, another person from the railroad, and so on. In real partner communities, these individuals have collaborated together to execute projects. To prepare for development, community organizations must work together. The fruit of this work can be witnessed firsthand in site visits. Are representatives from the various organizations singing from the same hymnal? Or do they talk over each other, contradict one another, and offer disparate perspectives? If at any point in your site visit the meeting turns out to be an episode straight out of Family Feud, you likely have found yourself in a pretender community.

Real partners take their collaboration seriously, and this can be felt in site visits. This does not mean that everyone gets along, but it does mean the community unifies to meet its goals. A great illustration of this is in a community where I have closed deals. “How are you all so unified?” I asked the community’s economic development executive. He told me, “Well, we aren’t. To get on the same page, we get local officials in a room before we pursue funding, have a site visit, or make a major decision. In that room we argue out our differing perspectives, but when we leave that room, we leave in one accord.” Real partners have tough conversations like these, which lead to a more unified community that is better equipped to support your project.

Put Your Money Where Your Mouth Is

The single most meaningful metric in gauging whether a community is serious is if it invests in itself. If elected leaders, foundations, and economic development boards do not adequately staff their operations, invest in sites, buildings, and infrastructure, and in business development, they are simply not taking development seriously. Why should an outside company invest in your community if you, the people who live, work, and have businesses in that community, don’t do the same? In the corporate world, this concept is similar to stock buybacks. When a company buys back its stock, leadership believes their stock is so undervalued that they will use their limited resources to buy back equity. Communities that bet on themselves clearly expect a return on their investment either through increased tax revenue, more jobs, or more economic activity.

When visiting a community, ask about their investment plans. Do they plan to add a spec building in their industrial park? Will infrastructure be upgraded? Also pay close attention to the resources afforded to economic development professionals. For example, do they have appropriate staff to execute their jobs? Where a community invests or doesn’t invest shows you how they view their community and its future. As Randy Alcorn once said, “What you do with your money shows what you believe about tomorrow.” Communities that do not invest in themselves clearly show that they believe their community is either not focused on growth or has a bleak future. You do not want to hitch your horse to that wagon.

Parting Thoughts

Choosing the right community for your investment has never been more important. From widespread NIMBYism, heightened regulations, workforce challenges, and ever more complicated incentives, it is crucial to have the right partner in development. Pretenders can delay permitting for years, foster community challenges, and cost you millions of dollars in lost incentives. The stakes are high, and the complexities of current development are unprecedented. Choosing the right community will give your company a competitive advantage in the near and long term. The right partner will show up with answers, not excuses — your balance sheet will thank you.