Md. small towns seek economic development while preserving rural character

Rural towns and counties in Maryland are aggressively pursuing economic development, hoping to draw in larger employers while strengthening the home-grown shops and businesses that have been mainstays of their communities for years.

It’s a balancing act, as residents and officials also want to maintain their unique appeal as small rural communities distinct from their urban and suburban counterparts. 

Throughout Maryland, rural community leaders, local businesses and residents have banded together to find the right mix of economic development. And the state has been pitching in as well.

In December, Gov. Larry Hogan announced the $50 million Rural Maryland Economic Development Fund, which offers grants to 114 economic development projects in rural counties across the state. These projects include workforce training and development, economic development strategy studies, and tourism and retail projects.

Adam Strott, economic development specialist for Allegany County and its 70,000 residents, said that many rural communities in Maryland have long been ignored or kept on the periphery despite their pivotal role in Maryland history. Revitalizing and investing in these communities is important for the state as a whole, he said.

Some said these efforts are beginning to pay off.

Terri McCagh, co-owner of 1812 Brewery in Allegany County, said the economic development the county has undergone in the past few years has brought in tourists and more retail opportunities — all of which have allowed her brewery to expand.

McCagh has lived in Cumberland for over 25 years, but said this is the first time that she’s seen big changes in the area. She said the word is getting out about the opportunities in Alleghany County.

“The changes that have been happening for the last six months or so, with more businesses downtown and more buildings being full, leave me optimistic,” McCagh said. “Even the optimism that people have in the community, we’re taking baby steps but they are steps forward in the right direction, and that optimism spreads and leaves people with more hope.”

Heather Tinelli, economic and tourism development director for Queen Anne’s County, which has roughly 50,000 residents, said rural areas are able to draw in larger companies because of the opportunities for more affordable real estate, a skilled workforce, and a high quality of life for workers.

Queen Anne’s County emphasizes development in terms of smaller manufacturing and sustainable businesses that fit well within the community, she said. While development efforts primarily focus on job creation and attracting manufacturers and technology-based companies, growth also benefits retail and food service businesses, Tinelli noted.

Queen Anne’s County opened a 10,000-square-foot integration facility for modern and secure technology solutions company Sealing Technologies in 2020, creating over a dozen jobs. Through the Rural Economic Development Fund, Queen Anne’s County is also working to update the infrastructure for its 4-H park.

Williamsport, a small town in Washington County in Western Maryland with just around 2,000 residents, underwent a process of deep revitalization and economic development over the past few years, with new businesses and mixed-use developments emerging throughout the area.

Selena Wilkes, who serves as co-founder and chief executive officer of real estate development group Port 44, said she and other businesswomen from Williamsport decided to join together because they knew the value of their town and how investment could boost tourism and businesses.

Wilkes grew up in Williamsport. She said she wants to help revive the town and restore it to the beautiful, charming and vibrant hub she once knew.

Port 44 recognized the need to accommodate local residents and tourists to drive economic development. The company reached out to successful business owners and focused on what the town needed to support retail, Wilkes said. Port 44 also saw a demand for luxury housing that would attract people from higher-income brackets.

Through Port 44’s efforts, new businesses and services have opened in downtown Williamsport, and housing options have expanded,  she said.

Garrett Eagan is COO of real estate development company CG Enterprises in Allegany County. He grew up in Cumberland, and said that despite the decline in population in some rural areas of Maryland, the development of new retail and housing spaces in his hometown proves that economic development strategies can bear fruit.

Debbie Bowden, director of economic development and tourism in Caroline County, which rests on Maryland’s border with Delaware, said the county’s economic development has depended on the legacy industries of agriculture, transportation, manufacturing and construction. Caroline County has seen capital investment in those industry sectors over the past few years, she said.

Because the 33,000-resident county is smaller and more rural, large businesses are offered cheaper land and a quicker and more agile process to allow companies to work efficiently. Caroline County has the capability to provide more support for larger development projects, Bowden said.

In Allegany County, Strott said, economic development is focused on three priorities: expanding and rehabilitating housing for the workforce; providing and stimulating new amenities to grow the workforce; and expanding and retaining businesses. At the same time, officials are embracing environmental science as a key growth industry, one that comes with the jobs of the future.

Like other rural counties, Caroline County is unable to survive only on community businesses. Mergers and acquisitions that have brought larger companies into the region have been key to development Bowden said.

Choptank Transport, a logistics provider and freight broker, was purchased by international logistics company Hub Group, while machinery manufacturer M&M Carnot was acquired by Johnson Controls.

Caroline County has also seen growth through manufacturers entering the market and creating jobs. In 2016, Crystal Steel Fabricators, opened a new manufacturing facility in the county, creating 126 jobs in its new 100,000-square-foot space.

Development has brought headaches as well. Some officials have wanted to take a time out. Harford County Executive Bob Cassilly proposed a six-month moratorium on approvals or permits for warehouse developments. Despite grumbling from commercial real estate executives, the county council approved the moratorium.

And there are other fallouts. Nick Wake, restaurateur and owner of Tenchi Spanish American Kitchen in Caroline County, said economic development often drives an increase in local wage rates, with larger employers forcing smaller ones to offer higher pay.

Wake opened his restaurant in 2017, but has a deep history in the restaurant industry, working for franchises across the region. He decided to open up his own concept, which implements his Baltimore background and his wife’s Guatemalan heritage, creating a Spanish-style menu mixed with Baltimore influence.

Caroline County, which has an average per capita personal income just below $30,000, lags behind more urban counties, such as Montgomery County, where the average personal income sits above $55,000. The relatively low wages and cost of living in rural counties provide a draw for larger companies to come in. But those companies that require a skilled workforce will have to offer salaries commensurate with those skills, too.

Economic development that includes larger businesses coming into the region often may seem like a threat to local and small businesses, but that competition benefits all businesses and brings in customers and clients for all, Eagan contended.

Ultimately, the residents and leaders of Maryland’s small towns said, making their communities economically healthy only strengthens the hometown values that make those communities special places to live.

“I think my business affects economic development more than we ever thought,” said McCagh, the Cumberland brewery owner. “We weren’t thinking of it as being a community place, but it has turned out that way, which is so heartwarming, that the space isn’t just for us, but for the whole community.”