Money Talks: Corvallis Economic Development Funding
November 1, 2009 16 Comments
We can safely assume we agree that we should be investing in economic development through the city. The big question is where do we invest and how much? Bill Ford expressed his perspective in a previous post, “The problem seems to be the allocation and struggle over who says who gets what! One person’s feast is another’s famine. It is hard to prioritize the scarce funds.”
Before we can discuss this question we first need to understand the problem. Which organizations are taking responsibility for economic development in Corvallis? How much funding is available and who is receiving funding allocations? What is the process determining those allocations.
The chart below is simply one view to get us started. I was unable to find more detailed information in one place so I compiled report on Corvallis economic development funding allocations to share here. The report is primarily six pages of tables in PDF format.
Some of my own observations and feedback include:
- I would like for the community to have (web) access to the proposals made by the applicants for funding.
- I believe it would be useful for the Economic Development Allocations Committee and the City Council to include notes supporting the decision for the public.
- The numbers suggest a polarization within the Economic Development Allocations Committee. Particularly as it pertains to the BEC and the CBCC. I can’t help but worry that maneuvering may have impeded cooperative decision making.
- Who is responsible for measuring the return on investments and how is this reported?
- Is it enough? Is the funding level adequate to support a successful economic development effort for Corvallis?
- Is it possible to create a situation that does not pit our local economic development partners against each other in a naturally competitive and emotional setting?
There are many other points that can be shared on this topic. Please provide your comments here for others to consider and discuss.
City Leadership, Community, Economy, Loyan Roylance
Everyone is trying to solve the communities problems from their own Ivory Tower. Their should be some type of consolidation or natural selection. Spreading money so thin doesn’t make a huge difference. Their is a lot of overlap.
At present, the City has too many differing goals for economic development against which it allocates too little money spread too thinly across too many organizations for which it has too few measurable objectives. So if we don’t achieve too much success in economic development we shouldn’t be too surprised.
Curtis, as the Vice-Chair of Prosperity That Fits do you or PTF have any ideas for improving this situation?
How can we reduce the number of differing goals and allocate funding to fewer organizations?
I also find myself asking what the objectives of the many organizations are? I would love to compile a table so we can clearly compare them.
I like this post but from my perspective it’s a bit two dimensional. Questions 1 & 2 can be answered from the record though attending the meetings would provided a more complete understanding. Question 3 gets a bit of an airing at the final Council deliberation on the sub committee recommendations. My allocation choices relect both intellectual AND political considerations. I’m not much of a negotiator so I planted my flag and hit the field running. I think Hal Brauner did too. I think some thought the Councilors were entering the process naively but that wasn’t the case. Even so, I think the results were fairly equitable in the end. You can’t make a judgement on the bent of the commitee just by looking at the allocations by organization. You really need to have heard the presentations too. Question 4= A.S.C. keeps tabs on the groups and I’ve made it a point to ask some more challenging questions. I have no plan to rubber stamp the quarterly reports. Question 5- We fund social services to the tune of 410k out of the general fund (property taxes) and we fund economic development off of visitor room taxes??? That’s kind of goofy. The City takes 48% of that tax for operating expenses. Do you think room night visitors have a 600k effect on City operating overhead? I’d like to hear the explanation myself. You could probably kick half that back to E.D. and the payback would be enormous. I’d better be careful!! Question 6- Ask yourself what a Department level City funded, internal E.D. department might look like. Scary, huh. Maybe a few million dollars General Fund support for starters. The City does administration and accountability pretty well. The models exist. Otherwise you’d better considering consolidation of the partners. Alot could be achieved with some overhead efficiency. Now that will really get me in trouble. :) One thing I agree with Curtis on is that there needs to be better identification of expected ROI for City and private E.D. investments. You can’t simply put together a list of actions and say that once we do these we’ll be prosperous. The more I learn, the more preposterous that sounds. I love all of our business development partners. Good, smart, hardworking people each and all.
Loyan: My role as vice chair of the PTF committee is to preside over meetings in the absence of the chair. I wouldn’t presume to speak from that platform on behalf of the committee, absent prior majority approval of what I proposed to say. Any opinions I express here regarding any of the issues you and/or your associates raise are my alone, and should not be taken as representing the views of any of the organizations wherein I volunteer.
Speaking personally, I don’t think the objective should be to allocate funding to fewer organizations, it should be to allocate more (all) of the funding to achieve the highest priority objectives.
What is it that the City wants/expects from its investment in economic development? What is it the citizens expect, and various laws require, that a city government provide for its citizens? How can economic development best support the providing of those expected/required services?
How does all of that square with the Corvallis Vision 2020 Statement? Page 5 of the document is all about the state of our economic vitality 11 years from now. Are we almost halfway there yet? Are we close to getting there yet? How do we know?
Visions need to be supported by concrete plans for achieving them. Objectives. Strategies. Tactics. Timelines. Benchmarks. Budgets. Funding.
Serving on the Economic Development subcommittee was an educational experience, and I too came away with the conviction that these business development organizations are all placed in a situation where they have to fight over public funding (from hotel room taxes). Yet each organization plays an important role in our economic development despite overlap.
To move away from “just conversing in another form (yes, it is important to get the conversation started)” and to “doing,” here are some concrete steps we can take right away with your help Chris, Loyan and Matt:
First, let’s encourage our ED organizations to find other entrepreneurial ways to bring in more money as private sector businesses do. For example, some of us are working a national plan to market the “THINK BIG” CANDY BAR (as now seen http://www.businessisgoodhere.com). We will target companies who wish to buy them in bulk to reward and sugar-up their entrepreneurial staff (warning: eating this bar will make you more creative). These bars will feature a different “Think Big” quotes quarterly. Proceeds from this bar will be shared between the Business Enterprise Center and Bursts – benefiting a local retail/etail business and a business incubator, while creating a NEW product. What a great combination!
Second, we need to increase the source of funds (room tax revenue) we allocate — I would like to see CIBA get some revenue, too. We should all support campaigns like “Stay and Play One More Day,” encouraging groups, sports fans, and conventions that stay in Corvallis to do just that. (check out http://www.stayincorvallis.com or our cross link on visitcorvallis.com) This campaign provides hotel guests with concrete things to do here that showcase Corvallis as a great place to live while they spend their money in our businesses. That is why I agreed to join the Corvallis Tourism Board and leverage the Digital City Guide to promote Corvallis by sponsoring this Campaign with our company dollars.
In fact, it is almost time for the next Stay and Play Campaign – “The Top Ten Things to Do in Corvallis When it is Raining” Chris and Loyan, can we get a separate section for this so we can put up a few info paragraphs and ask the community to make suggestions, too? Here are some already – spend the day: browsing books at the Book Bin, finding designer treasures at Second Glance, climbing a rock wall at OSU, cocktail/appetizer hopping at our local restaurants, taking in a movie at the Darkside…….let’s start driving revenue!
Hi Chris,
I attended the Corvallis Innovators Night, and visited all of the tables at the CH2MHill Alumni Center. The exhibitors and participants were excited to be showing their products and ideas. I want to thank you and all of those involved in this first annual event for innovators.
I also want to thank you for the We Love Corvallis site to encourage honest communication about Corvallis and the economy. There are so many people who make Corvallis a wonderful city to love. As you know there are hundreds of passionate, knowledgeable, and committed volunteers, along with a dedicated and excellent Corvallis City staff, who are working toward the betterment of Corvallis.
To continue in the mode of honesty I would like to take the opportunity to describe my ideas for economic vitality. In looking at the economy, one must acknowledge that Corvallis is known as a city that cherishes safety and health, education, the environment, good restaurants, and excellent parks. Caring for its children, the elderly, the disadvantaged, and those seeking a good life are characteristics of Corvallis residents. So, for me as a City Councilor representing ward 7, I think it is important to carry on the Vision 2020, the PTF and the CSC goals that we and past Councilors have envisioned for our future.
Specifically, I would like to explain my thoughts on the three goals of sustainability for Corvallis; economic, social, and environmental vitality. Growth in the city, for me, is best defined not just as a balance of these three, but as one that addresses and includes all three. If a new business embraces green technology and energy sustainability, then, it enhances the livability and encourages the residents to consider supporting and using the product or services. If it cares about the above mentioned social concerns, the community will embrace the new business, or economic plan. If, instead, there is an arrogance, or lack of understanding for these principle characteristics, then, people will not as readily support a new business or economic plan. This is of course in addition to all of the assumed and desired business consumer practices, and marketing, found in good financial investments.
Although Corvallis and the Nation are going through a slow growth period, I believe, as you do that we need to have the climate and opportunities for young families, young professionals, and budding entrepreneurs within our city. We already tap into the resources and diversity of OSU, and it would benefit Corvallis, if we could continue to attract those graduates, and professionals from OSU.
Thank you for this opportunity for collaboration, in order to enhance our well-loved City of Corvallis.
Jeanne
Jeanne Raymond
Corvallis City Council
Ward 7
541.766.6497 – city
541.758.7264 – home
ward7@council.ci.corvallis.or.us
raymondj@peak.org
Thanks Jeanne for coming to WIN09. It was a great networking event for our local creatives, geeks and entrepreneurs- not to mention a great display of our community’s talent.
I had a lot of fun being involved. Can’t wait til next year.
I thought I saw Jeanne at #win09. It was a super event and I am sure something we can build on in the future. I really like what Marti had to say, not only about driving the revenue but also about the sugar high we are going to generate from the new candy bar! Can’t wait to eat a few and sell ‘em! I also recommended over a year ago that the city look at the % of allocation returned from the “tourist tax” to the economic development champions but didn’t hear anything back or see any change. Basically, I thought it was one more idea or request of mine that lacked merit so I didn’t chase it or follow-up on in once I stepped down as the Executive Director of the BEC. Maybe it is something that Mark and Jeanne or others on the ASC can/will follow up on. I agree with Mark. The city staff does a fantastic job on accountability and oversight. We have a great city staff and manager.
Curtis Wright wrote:
“Visions need to be supported by concrete plans for achieving them. Objectives. Strategies. Tactics. Timelines. Benchmarks. Budgets. Funding.”
I agree wholeheartedly! From what I was reading in the comments, it seems that people are apt to just follow a gut feeling without actually looking at the data. Everything that is done needs to be based on sound data, research, and analysis. It would be great if there were a public repository of all decisions and a database that tracked the outcome of those decisions. However, that does pose a few problems in assessing the correlation between decision and data. It can be done.
Is that type of data management and warehousing being done for the city? The city obviously needs some sort of city wide ERP.
Focus. Planning. Leadership. Commitment. If Corvallis could come together and harness its creative energies for economic development with these four themes as guideposts, we’d be well on our way…
WIN was a great event, and everyone who has commented on how well it went should know that it didn’t happen without great angst and strife. It took a lot to break out of the same ole same ole mold and come up with something new that worked.
It would be fantastic to continue to see that same level of energy and interest year-round, especially when the decisions of who, how, and when ED funds are being created and disbursed occur.
Focus. Planning. Leadership. Commitment.
Bruce Hecht hosted a gathering of those on the Corvallis Sustainability Coalition supporting Economic Vitality under that plan. We had about 20 or in attendance which Bruce thought was great vs the 3 or 4 he had been getting. They were the most likely suspects but the energy was good. It seemed like there were clean goal and focus. It was a planning meeting. There was leadership and it seemed like the commitment was there. Does this mean that we are going to see some progress now? I think it took about 2 years to roll this meeting out. Somehow we simply have to speed up the process and while I agree with Mark, focus, planning, leadership and commitment are required, so is action. Way too much talk and not enough action.
Thanks for the clarification Bill. Commitment, to me, IS action. But, ‘action’ certainly makes it more clear what the expectation is!!
Focus. Planning. Leadership. Action.
[...] Community outreach here at http://www.WeLoveCorvallis.com from two committee members, Curtis Wright and Mark O’Brien. [...]
Good follow up Mark. FLAP! I like it. Of course, I like everything. Ok, well almost everything. Those little WIN09 buttons were NOT my favorite as you well know.#win09 was fantastic though and it took Focus, Planning,Leadership and Action to get people energized. Thanks again….I am still selling those buttons and got another one today. Going price is a buck! Only 300 more to sell to get your money back! smile Anyone want to contribute a buck as in one US greenback to prove a point?
I am sure I am about the only one in town who doesn’t know what is going on with the Electric Vehicle Project right? Well, ok maybe not. I subscribe to the G/T and read it faithfully daily, what there is of it. I go the the Business Enterprise Center, Inc. out at the Corvallis Municipal Airport Industrial Park at least part of 3 days a week and usually more. I associate with the business community and move freely in and out of the circles at OSU, HP, ONAMI, CH2M Hill, LBCC, the Chamber Coalition, and a dozen or more community groups. I know the mayor and work closely with the city manager and city staff. I know the Benton County Commissioners and some staff. I work with the Council of Governments over in Albany and know quite a few of the regional economic development officials. Basically, I am a person who attempts to stay in the loop of what is happening in our community and yet it took an interested entrepreneur to provide me a link to the EV Project that shows Corvallis as a site that will be involved…..Hmmm. Somehow once again inspite of Facebook, Twitter, WIN, BEC, SWOT, Smart UPs, Business Boot Camp, The WAC, and all that is going on I have failed to get the word. Communication in silos still exists. I am sure the mayor knows what is going on in this regard as he drives an electric vehicle but my question is, “HOW DID I MISS THE BOAT?” and “WHAT DO I NEED TO DO IN THE FUTURE SO I DON’T MISS IT AGAIN?” Anyone else feeling left out?
This is a FLAP to me! It should have taken my Focus, Leadership, Planning and the Action but I was clueless as to the importance to some of our possible emerging and existing technology companies and it took an entrepreneur from Philomath to provide me a link to a site so I could start educating myself on the role Corvallis will play. Jim Mitchell on the city staff in the Public Works Department has the city’s staff responsibility.