Appalachia

Turning Assets Into Opportunities

Ken Murray © 2004
Section 

I:Defining Asset-Based Economic Development

2 Scott Smith/1250 Design © 2004

WV Tourism
Asset:

This economic development strategy is gaining prominence nationally

because of a desire to minimize impact, maximize return and compete globally.

Like other strategies, asset-based economic development focuses on the positive

attributes of an area or business. What makes an asset-based strategy different is

a broad and creative definition of ìpositiveî. Turning liabilities into revenue

generators or developing untapped natural and cultural resources into desired

products and services are two major thrusts of the asset-based economic 

development process.

Asset-based economic development practices have been implemented in

communities throughout Appalachia since the 1960s. Biddle and Biddle 

conducted one of the first studies of community-based capacity and asset 

development in 1965. Since then, individuals have demonstrated the long-term

benefit of asset-based growth. Findings from the July 2004 Evaluation of The

Appalachian Regional Commissionís Community Capacity Building Projects

study, conducted by Westat, demonstrate some of the best practices and 

measurable results of asset-based development in the region. The following

examples will hopefully educate and inspire others on how the development

strategy can work for Appalachia.

Asset-Based Economic Development can be defined as a 

strategy that builds on existing resources ñ natural, cultural 

and structural ñ to create valued products and services that 

can be sustained for local benefit.

3

useful and 

desirable thing 

or quality; a 

single item of

ownership 

having exchange

value 

--Websterís Dictionary

www.kentuckytourism.com

David Fattaleh / WV Tourism

WV Tourism
4

Important Considerations and Benefits

The key to asset-based economic development is focusing on what already

exists, rather than inventing or building something new. The process requires

innovation and leadership, as well as a vision for the future built by people 

with an understanding of their past and present. Taking what is and turning it 

into what can be is the foundation for this strategy.

Optimally, asset-based economic

development results in a high impact 

for users and a low impact on assets. Designed as a holistic approach to growth,

asset-based economic development balances preservation and promotion for

enduring prosperity. To paraphrase, the goal is to keep the goose that lays 

the golden egg healthy and productive. Success in asset-based economic 

development depends on long-term investment and a building-block process

rather than a ìquick fixî approach. 

To develop an economic strategy using local assets, several components 

must be in place. Quality and sustainable asset-based economic development

requires innovation, leadership and financing. It also relies on the appropriate

infrastructure and critical mass to attract and meet market demand. Finally, 

asset-based economic development must produce a local return on investment

resulting in residentsí enhanced quality of life. 

As the nation shifts from manufacturing to a more service-based economy,

communities and businesses must offer value-added benefits for customers while

guarding against overuse of assets and outside ownership. Keeping the tangible

and intangible benefits local is important. Asset-based economic development is

measured in the traditional ways: job creation, job retention, per capita income

and tax revenues. There are also many indirect benefits of asset-based economic

development: increased community pride, spruced up downtowns, traditions 

continued, former residents returning to the region, and new activities or public

services for citizens.

The regionís natural, cultural and structural assets are its unique calling 

cards. No other region has the landscapes, the mountain music, craft traditions

and industrial heritage of Appalachia. The hospitality, work ethic and can-do 

attitude of its residents represent a positive force for the region. These assets 

lure people from around the world to visit, and often stay, in the region. Now

residents can use these distinctive assets to continue building and expanding 

their economic future. Read on to understand more about the rich tapestry of 

natural, cultural and structural assets of Appalachia and how they can become

beacons for economic growth.

Asset-based Economic Development

is about taking what you already

have and maximizing its potential. 

-- Anne B. Pope, Federal Co-Chair, 

Appalachian Regional Commission

Kane Hardwoods © 2004

Steve Shaluta / WV Tourism

Energy Xchange © 2004
Asset-Rich

Appalachia:

Cultivating

Opportunities

Appalachia is home to many 

inventions, traditions and landmarks.

The regionís scenic beauty is rivaled

only by the pride of its people.

Carved by majestic mountains,

Appalachia boasts an abundance of

assets that can be utilized for future

growth. Three categories of assets

provide the greatest opportunity for

Appalachia to enhance its prosperity:

ï Natural 

ï Cultural 

ï Structural 

Natural and cultural resources 

represent what is best ñ and often 

most unique ñ about the region. Its

recreation, old growth forests, music,

history, scenic landscapes, artisans 

and skilled workers provide an 

authentic foundation from which to

build. Structural resources are often

overlooked by communities or perceived as liabilities. Finding new uses

for old structures is a proven path to 

economic success. Throughout the

region, communities and businesses 

are integrating development and 

management practices to leverage 

what they have ñ historic buildings,

abandoned railroads, and old mines ñ

to build or expand economic vitality. 

Three Reasons why Assetbased Economic Development

is Timely and Appropriate.

1. Attract more visitors ñ and their

spending ñ to Appalachia.

Many of Appalachiaís assets are

familiar national treasures that attract

visitors to the region each year. The

Appalachian Trail, Birthplace of

Country Music, Blue Ridge Parkway,

Corning Glass and New River are a 

few of Appalachiaís assets. Yet many

other assets have been overlooked,

untapped or under-developed. Helping

residents understand how to identify,

appropriately develop, market and 

manage these assets can increase 

visitor spending in the region.

Appalachia can also benefit from its

continuing association with quality

films, books and events that showcase

the regionís distinctive cultural, 

heritage and natural resources. 

2. Encourage new people ñ and new

businesses ñ to locate to the region.

To foster growth, Appalachia can

leverage its history of investment in

infrastructure. Over the past 40 years,

ARC and other organizations have

helped pave the roads, build the sewer

systems and install the broadband

cable lines to accommodate new 

business and residential services.

Towns have applied proven methods

of asset-based development to revive

main streets and convert old structures

into new uses, such as affordable

housing. With these foundations in

place, communities can attract new

growth industries ñ such as creative

and high technology businesses ñ 

that provide new jobs, increase 

local tax revenues, and cultivate 

civic entrepreneurship. 

Section

II: 

ìAwareness is the key.

Residents who benefit

from tourism tend to

value and conserve what

tourists are coming to

see. Visitors reinforce that

line when they support

businesses that sustain

the destination.î

-- Jonathan B. Tourtellot, 

Director of Sustainable 

Tourism, National 

Geographic Society

5

3. Keep current residents ñ and

employers ñ in the region.

Past development practices have

too often displaced or cannibalized

locally owned businesses. By shifting

to asset-based economic development,

Appalachia can create new local

wealth, complement existing jobs 

and keep revenues in the community.

Building on its tradition of 

infrastructure investment and a strong 

commitment to developing

Appalachiaís entrepreneurial spirit,

ARC will continue to support existing

businesses and foster their growth. 

One of the organization's priorities 

is to create, enhance and sustain 

economic development opportunities

ñ for individuals, companies and 

communities ñ in the region.

Several entities are already utilizing

local assets to grow businesses, 

compete globally and infuse new

monies into the region. Here are 

some examples of how asset-based

economic development uses natural,

cultural and structural assets to net

positive results.

Twigs and Leaves Gallery © 2004

Scott Smith/1250 Design © 2004
The lush landscape, pristine 

valleys and regal mountains define

this region and make it unique. For

years, the region has seen these 

formations as barriers to progress.

With asset-based economic development, these natural features can

become a source of opportunity ñ

through harvesting, recreation, new

agricultural products and other 

market-driven uses. 

The popularity of nature-based 

activities is growing. In the last 20

years, the number of Americans 12

and older participating in some form 

of outdoor recreation has grown from

188 million to 229 million, an 18%

increase per year.1 As more visitors

seek out whitewater rafting excursions, mountain biking and nature

trails, bird watching sites, leaf 

peeping routes, scenic drives and

cross-country skiing, Appalachia can

provide a range of experiences from

leisurely excursions to hard-core

adventure.

For example, hiking is one of the

nationís most popular recreational

activities. In 2002, over 73 million

Americans hiked. The region is 

fortunate to have the Appalachian

Trail winding along its spine and 

providing an international platform

for nature-based economic development. According to the American

Hiking Society, well-managed 

trails running through communities

can foster substantial, economic

opportunity through business 

development and tourism: 

ï Damascus, Virginia has over 

30 businesses in operation, and

local leaders credit the Virginia

Creeper Trail going through the

town with the economic overhaul.

ï The Great Allegheny Passage is

the longest multi-purpose trail in

the east with 100 continuous miles

of trail open between McKeesport

and Meyersdale Pennsylvania 

and 20 miles scattered throughout

the Pittsburgh area. The trail's

direct economic impact exceeds

$14 million a year. One study

recorded more than 350,000 visitor trips on the trail each year with

users spending $12.01 to $15.33

per person, per trip.2

Recreation is just one economic

development strategy for natural

assets. Growing niche agricultural

crops, refining timber production 

and revitalizing waterways are 

a few of the ways entrepreneurs 

and communities are expanding 

economic opportunities with natural

resources in Appalachia.

ìForests are like natural capital that 

pay daily dividends in clean water, flood

protection, opportunities for outdoor

recreation and more. The Forest

Service has a role in promoting the

sustainable management of all forests

in the US, both public and private.î 

-- Sally Collins, US Forest Service 

Associate Chief, presentation to 

Outdoor Writers Association of 

America, June 2004

Asset-based Opportunity:

Natural

Resources

6

1. US Forest Service, 2004

2. American Association of State Highway Transportation Officials, 1998

David Fattaleh / WV Tourism

Tennessee Overhill Heritage Association © 2004
ìWe provide the local media with

good news about agriculture. When

people read positive articles, it has a

big impact. Residents who didnít even

know these places 

existed ñ and were 

driving two hours to

Pennsylvania or the

Finger Lakes region

for similar sites ñ

now learn about the

same experiences

offered in their own

backyard,î said

Krys Cail, 

program 

manager.

ìWe are 

looking 

at job 

creation, and working hard at developing accurate ways of counting the

impact. Our economic development

success, though, doesnít depend on

getting one 200-job employer. By

allowing and encouraging this level of

micro enterprise, we are supporting

several small companies that could

grow that large,î said Cail. 

Components of the Agritourism

Marketing & Education Initiative

include:

ï Six educational workshops 

covering all aspects of business

and marketing.

ï Technical assistance to develop

business plans, make good 

decisions about land use and 

provide individual advice related

to specific needs or ideas.

ï Hospitality training and signage

evaluations.

ï Increased marketing for new 

and established businesses. 

ï Regional Agritourism Brochure

designed to get people off the

major highways (I-81, I-86 and 

I-88) and onto scenic routes, 

following different itineraries 

that include agricultural 

destinations and wind through

rural farm country. 

ï A series of specific guides 

focusing on Farmers Markets,

Meat Direct Farms, and Forest

Products (in production.)

Getting people excited about the

countyís crops will hopefully realize

the goal of increased sales, at farms

and other local businesses including

restaurants, hotels and retail shops.

In the past three months, almost

20,000 copies of the regional

brochure have been distributed. The

response has been very positive and

local officials indicate that visitation

has increased, even during the wettest

summer in memory.

For additional information about the

Agritourism Initiative call Cornell

Cooperative Extension of Broome

County at 607-772-8953

ìSellingî the Farm

Farmers and bankers donít always

agree. Yet both contribute to the 

livelihood ñ and connectivity ñ of a

community. Local farmers in Broome

County, New York want to keep their

agricultural heritage healthy

and productive. Bankers and

businesses in Binghamton

want cash registers to ring.

And with its abundance of

livestock and vegetable farms

and orchards, the county is

attracting a lot of outside interest

in the form of professionals who

chose to trade in urban dwellings

and telecommute, change careers

entirely or explore the countryside.

The area's conundrum is to provide

a win-win solution for all.

Leaders decided to focus on

ways to increase farm sales. In

February 2004, the county launched

the Agritourism Marketing and

Education Initiative.

A major objective of the Initiative

is to educate and build a bridge 

between the Chamber of Commerce

and the agricultural community.

Bringing traditional businesses, 

new landowners and the agricultural 

community together is often a 

challenge. Local communication is

vital to form alliances and encourage 

support for farming. New marketing

materials are one vehicle for 

fostering communication. 

7

Scott Smith/1250 Design © 2004
Meet me at 

the Junction

By train, by boat, by foot, by

buggy or bike, travelers have 

journeyed to and through

Cumberland, Maryland for more 

than 200 years. At the hub of 

several thoroughfares, this town is:

ï the western terminus of the

Chesapeake & Ohio Canal 

ï on the Allegheny Highlands

Trail, a hiking/biking path 

ï midway between Pittsburgh,

Pennsylvania and Washington, DC.

As transportation needs changed,

however, so did downtown. The 

canal was no longer used for cargo.

Retail moved away. Buildings were

abandoned and decline set in. Things

changed in the 1990s, though.

Interstate 68 was completed and the

town launched a pedestrian and 

bike-friendly downtown revitalization 

program. Cumberland relied on its

diverse transportation past to make 

it hip again, with hiking and 

cycling paths in harmony with 

retail and restaurants.

Downtown development from

April 1998 to November 2002

includes:

ï 32 net new businesses created

ï 12 businesses expanded

ï $19,170,000 in public and 

private investment

ï Increase in occupancy rate of

almost 50% (prior to Main Street

program: 35%; now, 85%)

ï More employment in 

downtown now than in 1950s.

The Canal Place Preservation and

Development Authority leveraged

strong public-private partnerships

among national, state and local 

agencies ñ including the Appalachian

Regional Commission and the C & O

Canal National Historic Park ñ to 

renovate the Western Maryland

Railway Station, built in 1913. 

Last year, Phase I of Canal Place

opened adjacent to the depot with

nine retail shops. The complex helped

spur preservation of more than 100

historic structures and revitalize

downtown Cumberlandó which

includes Canal Place and Town

Centreó into a vibrant shopping, dining, recreation and entertainment area

for residents and visitors. Future

plans include private redevelopment

of Footerís Dye Works Building and

rewatering of the western terminus of

the C & O Canal.

For more information on

Cumberlandís downtown 

redevelopment, contact the Canal

Place Preservation and Development

Authority at 301-724-3655 or

www.canalplace.org

Training for Adventure

Recreation is big business in 

western Maryland and throughout

Appalachia. In McHenry, 60 miles

west of Cumberland, Garrett College is

investing in adventure sports as a job

generator through its Adventure Sports

Institute (ASI). The program, founded

in 1992, ìdevelops professionals in the

field of adventure recreation through

academics, field studies and practical

experiences.î ASI educates and 

credentials highly skilled competent

professionals. It also enhances 

opportunities for the general public 

to engage in adventure recreation.

The region first considered the

potential for growing adventure 

recreation when it hosted the1989

Whitewater World Championships in

Allegany and Garrett Counties. 

Three years later, Garrett College

organized the Olympic Team Trials in

Whitewater Canoe and Kayak. Local

officials recognized that the areaís

ìdistinctive four-season climate and 

a diverse geologyî make it a natural

for adventure recreation.

In addition to its educational 

offerings, ASI also engages in a 

number of community projects 

including trail repair, river clean ups,

and improving public access to local

rivers. A new International Adventure

Sports Center is planned in McHenry

to accommodate future programs.

For more information about the

Adventure Sports Institute 

contact Garrett College at 

www.garrettcollege.edu/adventure

8
9

Eco-friendly 

Kane Hardwood: 

A Certified Success

Look closely at ìTonight Showî

host Jay Lenoís desk and youíll see

something special. Itís one of the 

certified wood products made by

Pennsylvania-based Kane Hardwoods, 

a division of Collins Pine Company. 

This family-owned business has been

operating for 150 years with the 

philosophy that good stewardship 

pays big dividends. Why? According 

to Connie Grenz, General Manager,

ìTaking care of what nature produces

allows us to provide quality, renewable

products for our great, great 

grandchildren.î 

Kane Hardwood manages the

126,000-acre Collins Pennsylvania

Forest. The land, which received

Forest Stewardship Council (FSC) 

forest management certification from

Scientific Certification Systems in

1994, sits in the center of one of the

finest black cherry hardwood forests in

the world, the Allegheny Mountains. 

Kane Hardwood currently produces

about 14 million board feet per year,

and includes a pre-dryer, dry kiln,

solar kiln, planing mill and dimension

plant. The company employs 120 

people including nine professional

foresters who believe in sustainable

practices and environmental sensitivity:

ï Through careful planning, the 

harvests actually increase the 

quantity and quality of future yields

by concentrating on regeneration. 

ï They balance the business needs

with the ecosystemís health by

carefully locating logging roads to

protect water quality. 

ï Enough wood debris is left to

enrich the soil of the forest floor.

They also purchase timber from

other sources ñ the Allegheny National

Forest, Pennsylvania State Game

Lands, State Forest Lands and private

lands in the area ñ to accommodate

production needs rather than overuse

their own lands. 

Approximately 93% of their 

products are sold in the U.S. and the

rest is exported. Kaneís customers

include a wide range of manufacturers,

wholesalers and retailers. 30% of their

product is purchased by secondary

manufacturers to be made into FSC

certified products, such as the panels

used to build ìThe Wallî at the San

Francisco International Airport. 

As the largest sawmill employer in

McKean County and second largest

private landowner in Pennsylvania, 

Kane Hardwood has been widely 

recognized and acclaimed for its civic

and environmental practices:

ï The company has set aside 100

acres of timberland and is working

with the Fish and Game

Commission to enhance habitat for

ducks and other waterfowl.

ï They are taking more land out of

production to provide undisturbed

corridors for songbirds and have 

set up no-harvest zones along 

43.5 miles of streams.

ï Kane provides year-round free

public access for recreational 

activities.

ï The company manages Project

Learning Tree activities with local

elementary schools.

ï Kane also conducts a state of the 

art conversion facility to maximize

yield from the forest resources.

For more information on Kane

Hardwood visit www.CollinsWood.com

Kane Hardwoods © 2004

Kane Hardwoods © 2004 Kane Hardwoods © 2004
America is now recognizing some

of the cultural talent that Appalachia

has nurtured for centuries. Adding to

its list of accolades Asheville was

named one of five American ìCities

that are Specialî by USA Weekend in

July 2004. Ralph Stanleyís music

was recognized with Grammy Awards

for the ìO Brother Where Art Thouî

soundtrack. U.S. News & World

Report just named Berea College in

Kentucky the ìBest Comprehensive

College for a Bachelorís Degree in

the South for 2005.î The rich cultural

heritage of the region is unparalleled

in its music, craft, performing arts,

historic sites, time-old traditions, cool

towns and hot entertainment.

Hand-made objects, such as pottery, glass, metal work, textiles and 

jewelry, are a major source of income

and employment in Appalachia.

Artists are part of the creative 

economy, the rapidly growing sector

now replacing or supplementing

extractive industries and manufacturing. A national economic impact

study of 80,000 craftspeople in 2001

by the Craft Organizational Directors

Association (CODA) revealed that

national craft sales are approximately

$13 billion per year. The study

showed that the median household

income of full-time craftspeople is

$50,000, 26% above the national

median of $39,657. 

Other studies support the strong 

economic impact of craft in

Appalachia: 

ï A June 2003 Marshall

University study on the Craft

Industry in West Virginia

reports that 2,539 craftspeople

in the state generated a direct

economic impact of $54 

million, with a total economic

impact (including the 

wholesale sector) of over 

$81 million in 2002. 

ï A University of Kentucky study

estimates total annual sales of

Kentucky craft producers in 2000

at $252.4 million, with out of state

sales of $148.7 million. 

ï HandMade in Americaís 

economic impact study finds that

craft contributes $122 million 

to Western North Carolinaís 

economy on an annual basis.

ï 170 buildings (47%) in 

downtown Asheville, North

Carolina are occupied by members

of the creative economy, 

according to a May 2004 survey

by HandMade in America. In

total, the creative economy 

occupies 1.7 million square feet 

of commercial space. Taxable

value of the space amounts to

$39.3 million. Total annual real

estate value of creative economies

in downtown Asheville is 

$61.7 million.

Famous authors and entertainers,

from classic to contemporary, 

contribute to the cultural wealth 

of the region. The Appalachian

settings of great literature can also

become cultural attractions for

visitors.

The wine country of Northern California became

so (valued) because generations discovered what

grew best in the soil and the climate of the 

community. The same lessons hold true for the

arts in Appalachia.

-- Dana Gioia, Chairman, 

National Endowment for the Arts

Asset-based Opportunity:

Cultural

Resources

10

Steve Shaluta / WV Tourism
Forging Ahead on a 

Crooked Road

In August 2004, Governor Warner

officially dubbed the winding 200-

mile stretch from Galax to Clintwood

as Virginiaís Heritage Music Trail.

Encompassing eight counties, three

cities and nine towns, ìThe Crooked

Roadî has high hopes for turning its

culture into cash. Planners have two

basic project objectives:

1. within three years, to be a 

nationally recognized heritage 

tourism destination.

2. within four years, to triple the 

current revenues from tourism. 

The road highlights the musical 

heritage of the region by connecting

six major music venues. Plans are

underway to erect 20 radio ìlistening

postsî and informative signs along the

route, allowing visitors to learn about

the regionís history and significant

landmarks. Already, planners have:

ï Established a collaborative

framework and plan for 

government officials, tourism 

professionals and music venue

owner/ operators to promote 

the trail.

ï Opened the Ralph Stanley

Museum and Traditional 

Mountain Music Center in

Clintwood in October 2004.

ï Created a dedicated travel 

guide, website and CD for 

trail visitors.

ï Recorded a new audio CD 

featuring musicians from the area.

ìThe Crooked Roadî is funded by

ARC with additional support from the

US Department of Agriculture Rural

Development Program, the Virginia

Department of Housing and

Community Development, the

Virginia Tobacco Indemnification 

and Community Revitalization

Commission, the Virginia Coalfield

Economic Development Authority

and the Virginia Tourism Corporation. 

To learn about Virginiaís Heritage

Music Trail call the Heart of

Appalachia Travel Association 

at 1-866-686-6874 or visit 

www.thecrookedroad.org

ìThis project is an excellent example of ëmaking do

with what we have.í Weíve

taken one of the greatest

assets that our region has,

our music, and tied it all

together to offer tourists a

unique product that will

provide much needed 

economic revenue along

the trail. Visitors will be

surrounded by the songs,

the stories and the people

that created country and 

bluegrass music.î

-- Geneva OíQuinn, Heart 

of Appalachia Travel 

Association

11

www.thecrookedroad.org © 2004

www.thecrookedroad.org © 2004

www.thecrookedroad.org © 2004
One Teacherís Vision

Listening to the radio has paid

dividends for a small town in

Northeast Tennessee. A high school

journalism teacher was in his car with

a group of students when he heard

Grand Ole Opry veteran, Jerry

Clower, share a funny tale about 

raccoon hunting in Mississippi. This

experience inspired Jimmy Neil 

Smith to start the local storytelling

festival in his 

hometown of historic

Jonesborough.

Around 60 people

showed up the first

year. It was 1973. 

Three decades later, the National

Storytelling Festival attracts more

than 10,000 visitors every October

and has been heralded as one of the

Top 100 Events in North America by

the American Bus Association. The 

festival is also credited with igniting

an international revival in storytelling

art. In June 2002, the organization

that plans the annual festival and 

perpetuates the storytelling movement

found a new home at the International

Storytelling Center and Gift Shop,

billed as ìthe only facility anywhere

in the world devoted exclusively to

the power of storytelling and its 

creative applications.î The Center

complex includes a 200-year-old

country inn, a new 14,000 square-foot

education and interpretation building,

and a surrounding three-acre park. 

For more information contact the

International Storytelling Center at

423-753-2171 or 

www.storytellingcenter.org

12

ìThrough our work, the International

Storytelling Center is advancing the 

performance, preservation, and practice

of storytelling to enrich our lives and

workóat home, at work, and in our

community. Storytelling can be used to

produce positive change in education,

healthcare, business and industry, public

services, and arts, culture, and media.î 

-- Jimmy Neil Smith, Founder
Crafting Experiences

Berea has a long-established 

reputation as the Folk Arts & Crafts

Capital of Kentucky. Its tradition in

crafts began in the late 19th century

when Berea College started a 

crafts production program to help 

students pay for their education. The

skills learned during work-study have

led to generations of quality craftspeople, many staying in the area. As

Berea became known as a haven for

craftspeople, other artists located here

and built a diverse craft community.

Today, visitors to Berea find a wealth

of craft experiences including 

studios and galleries where artists

demonstrate ó and sell ó their work.

Churchill Weavers has produced

quality hand-woven items for over 

80 years and now welcomes visitors

to its facility. Itís one reason why

Southern Living calls Berea one of its

ìfavorite small towns in America.î

Last year, the Kentucky Artisan

Center (KAC) opened to encourage 

visitors to learn more about the

Commonwealthís crafts. Like Tamarack

in West Virginia, the KAC features

local artists through retail displays of

their work. Music, books, specialty

food products, visual arts and crafts 

and other hand-made objects by

Kentucky artists are the foundation 

of the KAC. Another major objective

of the center is to provide visitors 

with information on Berea and area

craft excursions. The Kentucky Artisan

Heritage Trail (www.kaht.com) weaves

through the town and surrounding

areas, reconnecting with I-75 at the

southern end of Berea. Since opening

in July 2003, the KAC has hosted

97,000 visitors. 

The KAC complements the 

award-winning ìKentucky Crafted: 

The Marketî program by offering a

year-round in-state location to 

purchase Commonwealth-made 

crafts. ìKentucky Crafted: The

Marketî was the nationís first 

wholesale/retail handcrafted gift 

market, and has become the model 

for Montana and other states 

interested in showcasing ó and 

selling ó their own distinctive craft. 

For more information on the 

Kentucky Artisan Center, visit 

www.kentuckyartisancenter.ky.gov

13

ìThe Kentucky Artisan Center 

at Berea provides a stable, 

high volume sales venue for

Kentucky-made products.

When the craft marketing 

function is combined with the

Centerís mission to serve as a

gateway to Kentucky through

tourist information services and

a product marketing approach

that links maker/place/object,

the KAC becomes a generator

of local, regional and statewide

economic opportunity.

Economic benefits are generated

in at least two sectors: the 

artisan industry and the 

tourism industry.î 

-- Cheryl Moorhead Stone, 

Center for Economic 

Development, Entrepreneurship 

& Technology, Eastern 

Kentucky University

Kentucky Tourism © 2004

Kentucky Tourism © 2004

Kentucky Tourism © 2004
Turning lemons into lemonade is 

a favorite phrase from childhood.

Now, as raw resources become 

scarce or abandoned buildings

blight the countryside, community

leaders understand and seek the

power of adaptive reuse. Converting

old buildings, recycling products and 

conducting massive environmental

cleanups have stimulated new life 

into tired communities. 

Highways initially designed to

move people rapidly through the

region now foster a meandering 

mentality in motorists as these roads

receive recognition for their vistas.

Many sections of the Appalachian

Development Highway System

(ADHS) have become attractions in

their own right. For instance, ADHS

Corridor L ñ part of U.S. Highway 

19 in West Virginia ñ helps bring

whitewater rafting

enthusiasts to the area.

It also lures visitors

along its route to 

experience the seasonal 

landscapes and New River Gorge

Bridge, one of the stateís most 

photographed structures. Twenty 

highways throughout Appalachia 

have been designated National 

Scenic Byways or All-American

Roads by the Federal Highway

Administration. 

Flat surfaces, such as landfills, 

provide a perfect tableau for 

redevelopment. Old coal mines are

now being converted for new uses. 

The region can compete globally by

designing market-driven solutions

from perceived problems or liabilities.

Asset-based Opportunity:

Retooling Old

Structures into

New Uses

14

ìIf smart growth in the form of 

environmental protection and 

community development is the 

destination, then economic 

development is the vehicle for getting

thereÖDevelopment of our local brownfields has

occurred in a variety of ways. Environmental 

factors alone did not necessarily control the

brownfields redevelopment processÖIn most

cases economic factors were the prime 

determinants of each project. Our local 

brownfields reclamation projects offered the 

best opportunity to not only recycle land, but 

also to better utilize existing infrastructure, e.g.

roads, sewers and utilities.î 

-- James R. Williams, Brownfields Program 

Manager for the Chattanooga-Hamilton County 

(Tennessee) Air Pollution Control Bureau, testimony 

to the U.S. House of Representativesí Transportation 

and Infrastructure Subcommittee on Water 

Resources and the Environment, March 2001

Tennessee Overhill Heritage Association © 2004

David Fattaleh / WV Tourism
Gone Fishing

ìWeíve been totally dependent on

coal,î says Mike Whitt, executive

director of the Mingo County (West

Virginia) Redevelopment Authority,

ìand weíve got to find new jobs and 

a new tax base if weíre going to 

continue to live here.î 

So, local officials decided to take

another look at what coal mines 

produce. The answer was clear: water,

lots of it. And in Southern West

Virginia, the water runs abundantly

clear and cold. These two ingredients

are essential to fish farming, especially

high quality breeds such as the

salmon-like Yukon Goldô Artic Char.

In 1999, the Mingo County

Redevelopment Authority built an artic

char hatchery using water from an

abandoned section of the Mingo Logan

Coal Mine. The mining and land 

companies (Mingo-Logan Coal and

Pocahontas Land Corporation) donated

approximately $150,000 of in-kind

contributions, matched by funds from

both the West Virginia State Legislators

and USDA-Rural Development, to

ready the facility. It was stocked with

188,000 eggs in 2000, using the market-proven Artic Char as its inventory. 

Grow-out farms take the char when

they mature at five to seven inches. 

Places such as West Virginia Aqua, a

consortium of mining companies and

landowners, provide homes for the fish

until they are market ready. ìUltimately,

weíd like to see grow-out farms in

neighboring counties, employing 100

people,î said Mike Whitt. ìOur goal is

to diversify the industry base and 

provide a wealth of career opportunities

for local residents.î 

West Virginia Aqua shipped 

approximately 300,000 pounds in 2003

and estimate shipment of approximately

400,000 pounds in 2004. ìThere are

presently 10 employees at the hatchery

and grow-out facilities. The new 

processing facility began operation in

early October, creating another two 

to three jobs initially, and jobs will

increase with market growth.

Presently, there are 600,000 fingerlings

at the hatchery. At the end of October,

these are transferred to the grow-out

farm. West Virginia Aqua has another

600,000 eggs ordered for the hatchery

in late 2004, and plans are nearly 

complete to construct another grow-out

farm somewhere in the southern coal

fields, utilizing abandoned mine water. 

ìThis is the largest batch of eggs

that's ever been brought to the hatchery

at one time, and the market looks very

promising for West Virginia Aqua to

expand its production into other nearby

counties. We are very optimistic that 

within the next decade, we can have a 

cottage industry developed in the

southern coal fields region which will

accomplish one of our goals of diversifying our economy by taking our 

natural resource assets and converting

them into job-creating, tax-producing

and prosperous industries,î said Whitt.

The Freshwater Institute helped

Mingo County and West Virginia Aqua

to overcome obstacles associated with

fish farming through its research and

development programs. The

Shepherdstown-based company has

also conducted demonstration projects

in other parts of Appalachia, and 

provided technical assistance to the

Fingerlakes Aquacultureís tilapia farm.

The New York fish farm, founded in

1996, has the capacity to provide about

one million pounds a year and employs

10 people.

To learn more about this project, 

contact Mingo County Redevelopment 

Authority in Williamson, 

West Virginia at 

(304) 235-0042 or

www.mcrda.org

15

Mingo Co. Redevelopment Authority © 2004

Mingo Co. Redevelopment Authority © 2004
From Gas to 

Greenhouse

Americans throw away an average 

of 4.5 pounds of trash per person every

day. What happens to this waste? Most

goes to landfills, where the decomposition process creates methane gas.

Methane gas traps 21 times more heat

per molecule than carbon dioxide, so it

can be dangerous at high concentrations.

Many landfills ìfill upî due to space

limitations or concern about methane

build up. What do communities do

when their landfills close? Increasingly,

communities turn to the EPAís Landfill

Methane Outreach Program (LMPO) 

to find new uses for old dumps. 

When the Mitchell-Yancey County

Landfill in Western North Carolina

closed in 1994, a non-profit organization

formed to demonstrate the responsible

use of landfill gas as an energy source

for small enterprise in craft and 

horticulture, and to meet local energy

needs. In 1999, Energy Xchange converted a portion of the six-acre 350,000-

ton site into four greenhouses, three 

cold frames, two craft studios (one for

clay and one for glass), a public gallery

and a visitor center. 

At the landfill, Project Branch Out

propagates rare and native flora of

Western North Carolina and provides 

a variety of educational opportunities for

students, growers and plant enthusiasts.

Staff are re-introducing native rhododendrons and azaleas to landscaping 

and horticulture companies.

An incubator program was established to support entrepreneurs starting,

managing and operating new businesses

in blown glass and pottery. Craft residencies are available for artists to work

in studios at a nominal cost, and include

business training from HandMade in

America and Mayland Community

College. The clay kiln and glass 

furnaces are fired with landfill gas at 

no additional cost to the artist residents,

with a projected savings over the life of

the project estimated at over $1 million.

Energy Xchange has been a model

for other regions, and the University 

of North Carolina-Asheville has just

announced plans to build its new craft

school on the Buncombe County

Landfill. Neighboring Avery County

also plans to convert its landfill to studios, focusing on wood and horticulture.

For more information about Energy

Xchange, contact 828-675-5541 or visit

www.energyxchange.org

ìThis is the first glass

shop in history that

hasnít been harmful 

to the environment.î 

-- John Geci, 

Glassblower

16

Energy Xchange © 2004

Energy Xchange © 2004

WV Tourism
Riding the Rails

In southeast Tennessee a group of

local citizens, representing economic

development and preservation organizations as well as local governments, 

collaborated to save an 1890 railroad

that cuts through the Hiwassee River

Gorge between Etowah and Copperhill.

The Old Line Railroad Coalition

formed in 2001 when CSX announced

its plan to abandon the line and salvage

the materials. Glenn Springs Holding

provided a loan in the amount of $1.6

million that made the acquisition 

possible. The Tennessee Overhill

Heritage Association (TOHA), a 

cultural tourism organization that

helped form the Old Line Railroad

Coalition, is the current owner.

The Southeast Tennessee

Development District immediately

began work to assist with development

of passenger and freight service on the

line. They worked very hard with the

local communities to save this line

because, as officials say, "We are in the

business of building infrastructure, not

tearing it out." When the Tennessee

Valley Authority realized that the most

cost-effective and least troublesome

way to access the Appalachia

Powerhouse was the Old Line RR, the

federal agency rehabilitated 13 miles 

of the line to gain access to the plant. 

Soon after, Tennessee Valley

Railroad became an active partner and,

in partnership with the City of Etowah,

began to offer travel excursions on the

newly upgraded 13-mile section. Last

May, 5,040 people rode vintage 

passenger cars alongside the Hiwassee

Scenic River on the Old Line RR.

Seven weekends of excursions are

scheduled this fall 

carrying a potential

8,000 passengers.

In addition to the

excursions on the old

rail line, local leaders

are developing industrial

uses. Negotiations are 

currently underway for

large amounts of calcine

to be shipped from a site

at Copperhill to 

several domestic and

international markets, 

including China. 

TOHA values the Old Line RR for a

number of reasons. First, it holds great

historic value and is currently being

surveyed in preparation for nomination

to the National Register of Historic

Places. Secondly, TOHA is convinced

that no one can predict today what

changes in transportation might emerge

in the coming century. 

For more information about the 

Old Line Railroad, contact the TOHA

at www.tennesseeoverhill.org

17

Revitalizing 

Main Streets

Across Appalachia, towns large 

and small are restoring old commercial

districts into vibrant and varied uses.

The restored Elkin Theatre brings 

people to Aberdeen, Mississippi for

movies on Friday night. When The

Works Pizza Restaurant opened last

year in a restored public works building

behind City Hall in Loveland, Ohio, 

it helped revive downtown by 

attracting new businesses and 

customers. A Smithsonian ìMuseums

on Main Streetî exhibit will soon

enhance the cultural offerings in

restored Bridgeport, Alabama.

Several Appalachian communities

are winners of the coveted ìGreat

American Main Street Awardî designated annually by the National Main Street

Center (www.mainstreet.org), a division

of the National Trust for Historic

Preservation. Morgantown, West

Virginia received the accolade in 1998;

Greenville, South Carolina shared the

honor with Rome, Georgia in 2003.

Downtown revitalization usually

occurs through new design and 

rehabilitation, beautifying streetscapes,

promoting unique retail and dining

experiences, erecting wayfinding 

systems, and providing a distinctive 

and safe environment for residents 

and visitors.

ìJust as we could not predict the

vast economic and social changes

that the automobile or Internet

would bring to the 20th century, we

probably can't accurately predict

what kinds of economic and social

changes might occur in the 21st

century. Who knows, we just might

need a fine old mountain railroad.î 

-- Linda Caldwell, executive 

director of Tennessee Overhill 

Heritage Association

TOHA © 2004
ARC has invested the past 40 years

in building the regionís foundation for

growth and prosperity. This infrastructure now provides a platform for 

residents to link these essential 

elements with existing natural, cultural

and structural assets to build a strong

economic future. Many communities

have jumpstarted growth through 

redevelopment, entrepreneur initiatives

and diversified industries. Focusing on

local natural, cultural and structural

assets makes Appalachia competitive

and poised for advancement. 

Nationally, a paradigm shift is

occurring as technology permits

numerous professions to be accessible

from anywhere. Technology has

enabled many opportunities that were

closed off to rural areas as recently as a

decade ago. People donít have to move

to urban areas to have access to the

world. Conversely, as urban centers

become less safe and more crowded,

migration increases to smaller 

communities and places offering 

scenic beauty. Moving to a desirable

place is a major lifestyle decision for

many professionals today. Highly 

rated schools, diverse cultural activities,

retail amenities and medical services

are often important factors for 

companies and individuals exploring 

relocation options. ìQuality of lifeî

indicators become a key for attracting

the new ìwealthî market, creative

economy and entrepreneur. 

Not a Panacea

Asset-based economic development

is not a quick fix nor is it a panacea 

for Appalachia. As with any development strategy, a strong foundation must

exist before focusing on asset 

enhancements. Some places in

Appalachia must first build and

strengthen their physical, human and

financial infrastructure before developing

assets. Others may not have enough

assets to establish a development strategy independently, yet can partner with

neighbors or other regional interests to

provide the critical mass (of leaders,

funding and infrastructure) required to

sustain and grow an economic strategy. 

External forces can also work against

success or impede growth. Tourism is a

prime example of an industry that

depends on positive external drivers.

People must be willing to explore and

seek out new experiences for tourism to

grow. Visitation is also impacted by

weather, economic prosperity and 

safety concerns.

The departure of traditional 

industries has left many Appalachian 

communities struggling to replace jobs

and tax revenues. However, focusing

on a short-term fix can ultimately end

up perpetuating the cycle of decline

rather than alleviating it. Asset-based

economic development should be 

considered as a long-term strategy that

provides incremental growth with

appropriate, non-invasive management

practices. Asset-based economic 

development is not the complete

answer for all communities, but it can

be a part of the solution for sustaining

the regionís economic vitality.

Getting Started

As demonstrated by the examples 

in this booklet, asset-based economic

development begins with a resource

and an idea. Communities and 

companies can begin determining their 

potential for asset-based economic

growth by conducting an inventory of

human, financial and physical

resources. Appalachia has leaders

poised to direct asset-based economic

development ñ they just need to be

identified and cultivated. Technical

assistance and entrepreneurship 

development programs, available

through ARC, community colleges and

other educational institutions across the

region, can help build the human capacity and skilled workforce necessary to

transition into these new economies.

Major universities and national

organizations aid in recognizing trends

and audience potential by providing

market research. Venture capital and

other private financing are available

through regional and national foundations. To help individuals and communities move forward and investigate

opportunities in asset-based economic

development, a list of resources and

recommended reading follows. 

Appalachia:

Poised for

Potential

ìThe key to Ö regeneration,

then, is to locate all the 

available local assets, to begin

connecting them with one

another in ways that multiply

their power and effectiveness,

and to begin harnessing those

local institutions that are 

not yet available for local 

development purposes.î

-- Kretzmann and McKnight, 

quoted in the Westat 

Study for ARC, 2004.

18

Section

III:
Resources

Several regional, national and federal

entities provide fiscal resources and

technical assistance for individuals,

communities and companies to launch

and manage asset-based economic

development programs. 

Government Agencies

National Endowment for the Arts

Nancy Hanks Center, 

1100 Pennsylvania Avenue NW

Washington, DC 20506

Tel: (202) 682-5400

Internet: www.nea.gov 

Goals are artistic creativity and

preservation, learning in the arts,

access to the arts and partnership 

for the arts. 

US Forest Service, 

Department of Agriculture

Sidney R. Yates Federal Building,

1400 Independence Avenue SW

Washington, DC 20250-0003

Tel: (202) 205-8333

Internet: www.fs.fed.us 

National programs include ecosystem

management; forest management; 

minerals and geology management;

recreation, heritage and wilderness

resources; watershed and air management; wildlife, fish and rare plants.

National Organizations

ABCD Institute

IPR, Northwestern University

2040 Sheridan Road

Evanston, IL 60208-4100

Tel: (847) 491-8711

Internet: www.northwestern.

edu/ipr/abcd.html

Provides technical assistance and

resources materials including mapping

tools, networks, faculty training and

publications.

American Hiking Society

1422 Fenwick Lane

Silver Spring, MD 20910

Tel: (301) 565-6704

Internet: www.americanhiking.org

National voice for Americaís hikers 

provides information on funding

sources for trail managers, national

trails directory, listing of volunteer

vacations and other reference materials.

Americans for the Arts

1000 Vermont Avenue NW, Sixth Floor

Washington, DC 20005

Tel: (202) 371-2830

Internet: www.americansforthearts.org 

Nationís leading non-profit organization

for advancing arts in America. Provides

research and information, conducts 

visibility campaigns, leadership development, annual awards and events. 

Conservation Fund

100 North Kent Street, Suite 1120

Arlington, VA 22209-2156

Tel: (703) 525-6300

Internet: www.conservationfund.org 

Forges partners to preserve our

nationís outdoors heritage ñ Americaís

legacy of wildlife habitat, working

landscapes and community open space.

National Geographic Society

Sustainable Tourism Resource Center

1145 17th Street NW

Washington, DC 20036

Tel: (202) 857-7000

Internet: www.nationalgeographic.com

Increases knowledge about sustainable

tourism and destination stewardship

through World Legacy Awards,

resource directory, Geotourism study

and other reference materials.

National Trust for Historic

Preservation

1785 Massachusetts Avenue NW

Washington, DC 20036

Tel: (202) 588-6000

Internet: www.nationaltrust.org 

National non-profit organization with

more than 250,000 members dedicated

to the preservation of Americaís 

historic treasures.

Financial Institutions

Mary Reynolds Babcock Foundation

2920 Reynolda Road

Winston-Salem, NC 27106

Tel: (336) 746-9222

Internet: www.mrbf.org 

Concentrates on assisting people in 

the Southeast to build just and caring

communities. Areas of focus include

grassroots leadership development,

community problem solving, 

enterprise and asset development, 

and organizational development.

Claude Worthington 

Benedum Foundation

1400 Benedum-Trees Bldg, 

223 Fourth Avenue

Pittsburgh, PA 15222

Tel: (412) 288-0360

Internet: http://fdncenter.org/grantmaker/benedum

A regional foundation serving West

Virginia and Southwestern

Pennsylvania.

Suggestions for Further Reading

Appreciative Inquiry: Changing the

Spread of Imagination, by Jane

Magueder, Watkins, Bernard J. Mohr

Balancing Nature and Commerce in

Gateway Communities by Howe,

McMahon and Propst, Island Press,

Washington DC (1997)

Building Communities from the Inside

Out: A Path Toward Finding and

Mobilizing a Communityís Assets, by

Northwestern University for Policy

Research (1993) 

Creating Successful Communities: A

Guidebook to Growth Management

Strategies, by Mantell, Harper, Propst,

Island Press, Washington DC (1989)

Evaluation of The Appalachian

Regional Commissionís Community

Capacity Building Projects study, conducted by Westat, for ARC (July 2004)

Economic Value of the Natural World,

by David Pearce, MIT Press (August

1993) Economic rationale for 

conserving the environment based 

on results from detailed case studies

and analyses.

Rise of the Creative Class and How 

itís Transforming Work, Leisure,

Community and Everyday Life, by

Richard Florida (2002)

Rural Sustainable Development in

America, by Ivonne Audirac, J. Wiley

& Sons (1997)

Where We Live: A Citizenís Guide to

Conducting a Community Environmental

Inventory by Harker and Natter, Island

Press, Washington, DC (1995)

19
ìThe greatest thing a man can do in this world is to 

make the most possible out of the stuff that has been

given him. This is success, and there is no other.î

Produced by THE HTC GROUP, Asheville, NC

for The Appalachian Regional Commission

1666 Connecticut Avenue NW, Washington, DC 20009

(202) 884-7700 ï www.arc.gov 

OCTOBER 2004

-- Orison Swett Marden (1850-1924)

Founder of Success magazine

David Fattaleh / WV Tourism

The Roanoke Valley Alleghany Reg. Com. © 2004