WATERLOO - The way Tom Dorr sees things, the best paths for economic development in rural areas are in renewable energy, broadband access and location.

Dorr, the under secretary of rural development for the U.S. Department of Agriculture, spoke Thursday at the Business Education Series presented by the Greater Cedar Valley Chambers of Commerce - Waterloo and Cedar Falls.

Location made his list because quality of life is becoming an increasingly large factor in where businesses choose to plant roots. Dorr said by having natural advantages such as lower taxes, affordable housing, good schools and simple peace and quiet, rural areas can more easily compete with urban areas for business.

Going hand-in-hand with location is broadband access. High-speed Internet connection are enabling companies to perform work in remote areas with the same efficiency as working in New York or Los Angeles.

"People are having real choices about where they want to live and where they want to do business," Dorr said.

Dorr told a story of a farmer on the east coast who had created a dot-com business a few years back and sold it to a competator. Part of the reason for selling the business was the difficulty of life when working in a big city, with three-hour commutes and high costs of office space and living.

Dorr asked the man if he would start his business up again if he could cut overhead costs and shorten the commute to 10 minutes. After seeing the man become receptive to the idea, Dorr told him about doing business in places like Fargo, N.D., Eau St. Claire, Wis. and Cedar Falls.

"He replied, 'I never thought about that before,'" Dorr said.

The final piece of the rural development puzzle Dorr offered was the opportunities for growth in renewable fuels, such as biodiesel and ethanol.

Dorr encouraged state and local officials to create ways to bring the wealth of Iowans together to back some of these developing ventures. He told a story of a venture capitalist at a conference who said he had raised a large amount of money for an energy project. Dorr asked the man later where he raised the money and was told nearly all of it came from the Middle East.

Dorr's point is that since such developments will continue, it makes sense for Iowans to be the ones cashing in on successes, especially when the development may occur in Iowa.

"It would be grevious to let finance in biodiesel, ethanol and wind energy come from outside the state," Dorr said.

Contact RC Balaban at (319) 291-1418 or rc.balaban@wcfcourier.com.