Corvallis Economic Development Allocations and “The Box”
May 10, 2010 27 CommentsThe plot for Cameron Diaz’s new film “The Box” goes like this. Norma (played by Diaz) and Arthur Lewis, a financially strapped couple, are given a proposition. If they push the button on a box, a creepy guy will give them one million dollars. But someone, somewhere will die. Norma pushes the button.
The process in which the city’s funding for economic development is allocated is broken. It pits organizations which are supposed to be partnering for the greater good against one another in a kill or be killed situation. A total of $451,000 in funding was requested by all applicants today. Only $257,321 in total funding is available.
Take a look at the funding requests below and make your own conclusions.
Business Enterprise Center (+15%)
2009: $86,000
2010: $101,000
Corvallis Benton Chamber Coalition (+46%)
2009: $100,000
2010: $146,500
Downtown Corvallis Association (+27%)
2009: $57,775
2010: $73,500
Oregon Natural Step Network (no change)
2009: $10,000
2010: $10,000
Willamette Neighborhood Housing Services (-21%)
2009: $55,000
2010: $33,000
Corvallis Knights Baseball Club
2009: NA
2010: $30,000
Corvallis Fall Festival (no change)
2009: $10,000
2010: $10,000
da Vinci Days (no change)
2009: $20,000
2010: $20,000
DCA – Red, White & Blue Riverfront Festival (+5%)
2009: $16,225
2010: $17,000
View the requests for economic development funding to the city of Corvallis (PDF). From this document: The FY 10-11 Total funds available: $565,446; Dedicated funds to Corvallis Tourism $308,425; Non-Dedicated $195,336; Festivals $41,123, City $20,562.
This post is not a judgment about how much each organization asked for. That is a separate topic. This is a criticism of a process which has tempted our caretakers of economic development in Corvallis to push the button on the box, potentially cause the death of an unidentified ED partner, and take the money from the creepy guy.
I concede that its a harsh comparison. And so I am really hoping that someone can help me conclude that I have it all wrong. Please tell me that our process really isn’t so insane.
City Leadership, Economy, Loyan Roylance
Another way to think of it…
1. The economic crises is upon us.
2. Demand for services are growing at all of the points of service for supporting businesses at all phases.
3. The city needs to restore property taxes, and they know they need business to be a big part of the equation, as residential taxes are capped.
4. The city councilors have upped the ante on what they want accomplished (thankfully- they’re finally realizing that this is important to the city’s future), and
5. the citizens have asked the boards of the different organizations what it will take to accomplish real economic development for each of their “segments” of Econ dev.
Bottom Line, the requests were too small for the real need, and the real work that should be done to create a vital corvallis for the 5, 10 and 20 year future.
What should have been requested by all of the agencies is greater than $750K tp $1 million for a city this size, covering all of the tourism, festivals and economic development activities that are covered.
Having said that, it would be an interesting experiment for the city council to turn the process around, and ask all of the ED organizations that vie for city funds to bring a combined proposal to the council for the best way to spend
a. the combined total budget,
b. an ideal, but effective budget based on benchmarks in other similar cities,
both in line with the Prosperity that fits plan objectives, to deliver on as yet undefined PTF metrics…. yes, an interesting experiment indeed…
I encourage everyone reading this to attend the Corvallis Budget committee TOMORROW 5/11 at the Lasells stewart center at 7pm – and sign up to testify. Let your city councilors know that you think Economic Development should be part of what they (the City Council) pay attention to (many don’t believe that citizens think it is important), and let them know if you have thoughts on how Econ Dev. should be handled and funded. They’re planning the budget for 2011…and they need to hear from you.
So this year’s budget is $257,000, and that’s an issue- not enough to do what needs to be done.
Here’s the city’s 2011 Economic Development budget recommendation, forwarded to the city council budget commission last week. This is part of what will be discussed tomorrow night…NOTE the amount drops to $236,000 including all Econ Dev and fairs and festivals. We’re unfunding our economic future…no matter how you slice (or don’t) slice the pie.
From number 5 on page 2 of the proposal:
“Continue to implement Prosperity That Fits/Economic Vitality Partnership/Economic Development and refine as necessary. The FY 10-11 Proposed Budget includes $308,430 for Corvallis Tourism, $195,340 for grants to organizations doing economic development activities, $41,130 for Fairs and Festivals, $12,000 for administration of the
Prosperity That Fits plan, and $2,000 for enterprise zone administration, all in the General Fund Non-Departmental budget (prior to service reductions). The Public Works Department includes $20,000 in the Airport Fund for marketing
the airport industrial park property. At City Council’s direction, $20,000 is budgeted for Community Development Department staff to work with the City Council on economic development metrics which will set the stage for future focused investments.”
My note: This compares to $300,000 for tourism, $400,000 for homeless programs, and increases for the library budget…all out of a $41,000,000 operating budget (see page 5- property tax funded budget this is what he city council controls) …
another interesting point-
“While revenues are projected to be flat, expenditures usually increase nearly 6% for personal services (wages and benefits) based on labor agreements in place and another 1-2% for materials and services. Even with the budget reductions of $2.4 million, FY
10-11 expenditures are projected to be 8% higher than the FY 08-09 actual expenditures.”
Full document at the city’s website
http://www.ci.corvallis.or.us/index.php?option=com_content&task=view&id=4032&Itemid=4527
There does seem to be a stroke of hubris in the allocation requests- an interesting post in the making.
If there was ever a time in Corvallis’ history for a mass consolidation of ED organizations, now seems to be an appropriate time to do so.
I’m not sure what that would look like, but it sure seems like it needs to be given serious consideration. Much of the funds discussed above, ultimately satisfy administrative overhead. What is that doing for Corvallis?
It would be interesting to see a list of every Exec’s salary…
Is it commensurate with the results they are producing? I have a feeling some would, and others…
Again, is some consolidation in order? Should the City be writing one check?
I’m not an expert in union affairs, but sure seems to me the City’s economic outlook is at least partially being crippled by the Union and it’s “labor agreements”. Anything we can do about that? (or is that an elephant I see in the living room)
Though the Corvallis City Council controls the money there is nothing preventing the “ED partners” from submitting a single proposal. In fact it would be right in line with the PTF plan. “One kitchen, many hands.”
At yesterday’s meeting, there were comments promoting the collaboration of all the different ED partners in Corvallis. It was difficult to stomach. I’m having a hard time seeing partnership and collaboration beyond the surface in the numbers above. I don’t see mutual investment in each others well being.
Creating such an insane process is something the city did. Each applicant chose if and how to participate in that insanity. What an incredible show of leadership it would have been for any of the applicants to submit an integrated proposal/funding request.
To me it looks like the city, deliberately or not, will be forcing the partners to consolidate via attrition. It may not be our best path to consolidation. Hardly the most painless. But I do see it as viable and most likely.
This situation is putting a finger on the fundamental problem with ED. As you state Loyan in the post, ED “pits organizations” in this battle for funding, organizations that would be better served by supporting one another.
But there is a something worse. It puts the power to pick winners and losers in government hands instead of the citizen holding the dollar to spend. Reward is given not for producing a product people want to buy, but for winning the favor of politicians.
What do you think?
The government is the citizens.
Okay, maybe I’m just grumpy today, but I’m taking a shot at this one.
The government may be the citizens, but the citizens are not in the driver’s seat. And it’s not just relating to economic development. Look at who came out of the woodwork over the sustainability “fees.”
Anyway, back to the topic at hand.
First, I question how festivals are really bundled into Economic Development. They are tourism, and while they may be loosely defined as economic development, they are not 365 day functioning activities that provide a continuing tax base for the community. In fact, they are non-profits and seek community/business support for their programs, too.
As unpopular as this will sound, I have long been a proponent for a “Festivals Commission” that would oversee ALL festivals and similar events in Corvallis. Cut the redundancy, provide greater oversight, and let the city — and all sponsors — write one check.
Also probably unpopular, I think economic development should primarily address business growth and recruitment. Corvallis dabbles in that. “Gardening” is a noble cause, but not the only way to increase private sector jobs, and probably the slowest and least impactful from an economic perspective. Plain and simple, to create significant new jobs of the level of the City’s goals (e.g., salary levels) we can’t sit and wait for start ups to suddenly be able to hire more than 2 or 3 new employees. Is that growth? Sure. Is it significant? No. Hate the idea of a new HP coming in? It sure did increase the tax base and help out non-profits and community organizations, either through company contributions or employee support.
I believe Corvallis needs to put a stake in the ground and admit we need to recruit businesses that will have job growth. Economic development isn’t evil. Business isn’t evil. The private sector is important to the economy, because livability begins with a good job. And the private sector pays a lot of the taxes that support the public sector.
Marci,
if this is you Grumpy, I love it when you’re grumpy.
Nice. Thanks for chiming in Marcy.
Marcy,
Would you also agree that we need a “Business Development” commission, to which the City writes one check?
Also, regarding corporate recruitment- what are we not doing, or not doing enough of, to jumpstart recruitment of growth companies? (In your opinion, as a former key-person at HP)
Would more ED funding help? Sure. But there are some key obstacles that are impeding the effective use of any funding.
Three things I would like to see happen.
1. Economic development leadership is consolidated into a singly funded entity to minimize the overlap of staff and work, maximize coordination and eliminate the conflicts and positioning between ED organizations.
2. Performance reports focused on providing a complete and candid information to constantly support and intelligently drive assessment-adaptation-adjustment rather than cooking reports slanted towards selling value and competing for funding.
3. Any existing issues negatively affecting the working relationship between the single entity and the city government are addressed and solved or eliminated.
What do you think?
Chris,
How would the ED commission differ in composition and mission from the Prosperity that Fits leadership team? What would you do empower this group, and who would need to be added? http://prosperitythatfits.blogspot.com/
Loyan, join the board of an ED organization, any one. Do some heavy lifting on that side of the table for a while. Don’t dispute your intent, and I don’t say it can’t be done, but there are huge obstacles that need to be acknowledge, chief of which is that all volunteer boards have real challenges taking on mega charters…focus and clarity is everything to get anything accomplished.
Is board membership required to participate in ED decision making in Corvallis? If yes, is that good or bad?
Is community buy-in important? Can community buy-in happen without allowing the community to influence, contribute and invest? I recall the business tax episode.
Focus and clarity makes sense. Trying to achieve focus and clarity through several different volunteer boards makes no sense.
The ED boards do not own these challenges alone. We ALL own the challenges because we all get to own the outcomes. Lets solve them together.
Katherine,
What I am referring to, is a single, united ED body for benton county/Corvallis. PTF is an a board that connects, oversee’s and directs a number of different ED organizations and their activities.
We are far too fragmented.
An “ED Commission” was probably a poor choice of words.
Should the City refrain from distributing funds to multiple groups, and instead insist on funding a united ED org?
That’s one way the City can force change/consolidation/cooperation.
Do you consider discussing on a blog “participating in ED decision making” … that’s like calling blogging about planning to do a triathalon “participating in triathalon training”. It may feel good to get psyched and to build a support team, but it is really just mental preparation for the hard work ahead.
I consider dialog, information sharing and idea exchange critical to any decision making process. Both online and off.
Katherine, please excuse me if I come off as personally combative towards you. I am certain you are serving Corvallis’ best interest. There is a great deal I do not understand and I thank you for sharing your understanding and perspective with me.
Katherine’s got it right guys. Stop talking. Start doing. Quit bitching. Begin fixing.
Curtis,
You and others have spent 4+ years talking about Prosperity that Fits. 4 Years of town halls, committee and board meetings, and thousands and thousands of dollars.
We just started WeLoveCorvallis under a year ago.
There’s value in us talking about what’s worked, and what hasn’t(honestly and candidly), so we know where to put resources when we start “Doing”.
WeLoveCorvallis has not arrived yet. There is still a fair amount of honest questions being answered with press releases and wordsmithed talking points.
As we continue to get past that, people observing the conversations will start to trust, engage and hopefully be ready to “Do”.
Trust comes from candor and transparency. That has to be established before more doing, no?
Chris: There’s an open spot on the PTF committee for a citizen-at-large member. Care to quit talking and start doing? I’d gladly support your joining the effort on the 6+ year plan.
Partnerships and consolidation of organizations are scarey topics. People that are passionate about their organization don’t want to give it up. They have spent years and countless hours volunteering to build their organizations. Who wants to give that up to someone else?
When the Chamber merged with EDP one of the first things I told Mysty she needed to focus on was bridging partnerships with CIBA and DCA. Wheteher she tried to make this happen or not is not the issue here. The issue is, that it hasn’t happened and that is why everyone keeps asking for their own money. I am not just talking about the Chamber, CIBA, and DCA.
Partnerships with non-profits that do the same thing under different names, sports organizations that do the same things, and other civic and cultural oganizations need to start partnering up. The pie is only so big and everyone is getting smaller and smaller pieces of it. This will destroy many organizations and weaken the rest.
I am very hopeful that Pop Warner Football’s partnership with the Boys and Girls Club of Corvallis can be a model of how to partner organizations to make one program bigger and better for less money. I know I will be keeping an eye on this, because if it works like it should I think we will be able to help others understand and see how beneficial partnerships can be.
I truly believe that pride and loyalty to “our” organization is getting in the way of progress. We need to put away these differences and do what is right for our community.
Wow, I should not have had that extra cup of coffee this morning:)
I very much agree with Todd and Curtis. My memory is that the purpose of the EVP was to find things for the business community to work on together.
I am a true believer in dialog and building community both face to face and on-line. But Chris, I think that as soon as any group decides to act, they find they need the structure that you mentioned at City Club. And then you become another organization. The challenge is communicating constructively among organizations.
Barbara; you got it. The problem we face is that no one wants to put their gloves down first because they think it shows failure. My take on it, is the first organization to step up and say, “Let’s stop the madness and work together!” Is actually going to be showing the community who the real leader is. The question is, whose it gonna be? This holds true to all aspects of our community including festivals, theaters, culture, etc. We have got to start working together.
One big obstacle that faces everyone right now is that most of these organizations, not all but most, have a paid E.D. I am sure that all of them look at partnering as a threat to their jobs. I suppose I would feel a little uneasy too. I also believe in my heart that if I truly felt like I was doing a great job I would be the one to lead the partnership and be less fearful of losing my job. Do any or all of the E.D.’s feel they are doing a great job?
Katherine Cleland says:
August 11, 2010 at 3:40 PM
If you are interested in economic development in Corvallis and our area, please email the City Manager’s office (specifically Kathy.Louie@ci.corvallis.or.us) before noon tomorrow, Thursday, August 12, 2010, to express your wish that the City Council act positively on whatever economic development related topic you wish to state and support.
There is a Council work session on Monday, August 16th, 2010, and the Councilors need to know that this is important to you.
Thank you for taking the time and effort to keep economic development on the agenda and moving forward!