We know the importance of taking care of our communities as the “product” that we promote both to ourselves and to others as a great place to live, work, invest and play.  This IS Community Development.  While there are many facets of community development, in this article we will discuss the community’s physical infrastructure, what constitutes infrastructure and why it is critical for successful community economic development.  Maintaining our physical infrastructure will have a profound impact on how successful our communities are in retaining and attracting residents and employers alike.   

What is “Physical Infrastructure”? 

Physical infrastructure refers to the physical support system needed for goods and services to be developed and effectively delivered.  It includes water and sewer pipes, roads, bridges, cables, telecommunications (including WiFi) equipment, water and sewage treatment facilities, and power plants and distribution lines.  Infrastructure capacity refers to the measure of what the infrastructure is capable of supporting, both now and in the future.   

Both government and private businesses provide infrastructure.  Public infrastructure usually includes water, wastewater, and stormwater systems; streets and road improvements; as well as schools, hospitals and other public services.  Private infrastructure includes natural gas and electric distribution, and telephone and telecommunications systems, although these systems may also be provided by the public sector or cooperative associations. 

Planning for economic development, including all infrastructure systems for industrial, commercial (business) and residential development, occurs within the context of ongoing capital improvement planning and implementation that jurisdictions are required to provide.  The construction of such infrastructure usually requires significant capital outlays and the use of a capital improvement budget and debt financing.  Debt is usually repaid from user rates and charges, although tax revenues may be used as well.

Why is Infrastructure Investment so Important?

 From an economic development standpoint, infrastructure investment provides services and facilities necessary to retain and expand existing business and incubate or attract new business.  Many industries have special infrastructure requirements based upon the type of processes they use in their particular businesses.  Not surprisingly, infrastructure quality and capacity is identified as one of the top factors of business location and community progress.  As such, the benefits of infrastructure investment are many and include:  

• Providing necessary planned services (roads, water, sewer, telecommunications, etc.) to support and promote retention and expansion of existing industry and business through increased productivity and efficiencies;

  and 

• Improving our quality of place, making a community more appealing to existing and potentially new residents and businesses, whether in transportation, safe drinking water, internet service, and other facets.

Conclusion

In conclusion, communities find themselves in a balancing act, recognizing that infrastructure development, maintenance and improvement is expensive and is not a guarantee to immediate, measurable success.  Yet at the same time, poor infrastructure will render a community non-competitive.  This suggests the critical importance of pursuing infrastructure planning – supported strategic actions in a community’s master plan.