It should be obvious to anyone that they don't grow local players. Isn't it apparent to everybody, as once they hit a certain age most of them are out and someone from somewhere else is in? If you are taking the "elite" in their mite and squirt years, you should be able to develope most of those kids- except those that lose interest, can't keep affording it, or otherwise drop out- all the way through.
So in other words, by going with out-of-towner, the organization is telling you themselves that they are not going to do what they're telling you they will do.