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City to pay group for economic development aid
| Telly Stanger of WREDA speaks to City Council (Carol Broeder/ARN) |
By Carol Broeder/Arizona Range News
The City of Willcox will now pay economic development services provided by the Willcox Regional Economic Development Association (WREDA).
The City Council voted recently to amend the contract with the group to provide payment for its services to the city with a maximum of $16,850 for the current fiscal year.
City Manager Pat McCourt describes WREDA as an organization "that has worked and continues to work with the City of Willcox and the surrounding area to encourage economic development in the region."
The amendment states that WREDA "will continue to provide the current services, some new defined services are added, and the city will pay WREDA to provide the services," he said.
The cost to the city will depend on which services the council wishes to procure from the General Fund during the current fiscal year (2009-10), said McCourt, adding that there is $16,850 appropriated in the Economic Development line item.
The city has two seats on the WREDA Board of Directors, currently held by McCourt and Councilman Woody Johnson.
The other board members are Andrew Terry, Telly Stanger, Jim Graham, Joe Webb, Kathy Smith, and Nancy Edmiston of Sunsites.
In his Nov. 5 letter to the council, McCourt explained there has been a "Memo of Understanding (MOU)" between the city and WREDA for a number of years, empowering that group "to seek out economic activities, respond to proposals, and assist prospective organizations to locate in the region."
That MOU did not have any cost to the city.
"WREDA has been involved directly and indirectly in recent business additions to our city," said McCourt, adding that he has "personal knowledge on ongoing efforts to attract businesses to our community."
Smith told the Range News that WREDA assisted Willcox-based Sim-Flo Pumps with its 2007 expansion, as well as the Wilbur-Ellis Company, which came to Willcox in 2006 when customers in Central Arizona moved their farming operations to Cochise County. Wilbur Ellis, first incorporated in 1921, is an international marketer and distributor of agricultural and industrial products.
"We do things like tell businesses what sites are available," said Smith, who is director of the Willcox Chamber of Commerce and Agriculture.
"We are a knowledge center for them," she added.
"WREDA supplied a lot of good information to us," said Sales Manager Ronnie Calvert with Sim-Flo.
"They would be very helpful to anybody," he told the Range News.
McCourt told the council that one reason cities work closely with private economic development organizations, such as WREDA, is that many businesses "are uncomfortable with the openness that government organizations must function under, and are therefore reluctant to provide information during the initial stages of exploring a community for opening or relocating their operations."
"Of course, if the governmental organization wishes to provide any benefits to the business, that decision must be made by the government in open session," said McCourt, adding, "However, during preliminary discussions, the use of private economic development organizations is frequently very useful."
"When a business works through the city, it is public knowledge, so WREDA is good for the confidentiality of things," said Smith, explaining that she also wouldn't necessarily want an economic development committee at the Chamber because of turnover.
"With Chamber committees, people come and go. I wanted a group with a long-term commitment to economic development," she told the Range News. "There is too much change with the Chamber. I think it's good that we have a separate group."
McCourt told the council that the MOU amendment for the current 2009-10 fiscal year only; and is subject to council approval for any future amendments.
"This is not a planned expenditure in the current fiscal year," said McCourt, adding, "It would seem that this could be funded under the line item, 'Community Development - Economic Development' in the General Fund, if the council agrees. There is currently uncommitted allocation of $16,850 in this line item."
In response to a question by Vice Mayor Larry Schultz, McCourt said that WREDA is requesting a specific amount -- $5,500 - at this time.
"With teamwork, economic development can be done, but money is needed to move forward," said Stanger, who is WREDA's Manager of Economic Development and Agriculture.
As to the amount requested, Stanger said, "We think that $5,500 would be a great start. We have learned a valuable lesson from the past. I do believe WREDA will be very good stewards of this money. It will not be wasted."
Stanger talked about the way in which the MOU and amendment are written, but asked the council to "understand that plans can change."
While the plans for the requested amount "are a good way to spend the funds, flexibility is needed if something else comes up," he said.
"I realize we would like more, and maybe we will come back later with another request.
Schultz explained that it's hard for WREDA to request a specific amount, and sometimes they "need to move now," and can't wait for the council to meet and make a decision.
"We're not going to spend all this money tomorrow," said Stanger.
"I think the (WREDA) board will be very careful on what we want to spend it on."
During his presentation to the council, Stanger talked about WREDA's plans to re-do its business survey.
About five years ago, WREDA began collecting data from area businesses to help them in our recruitment and retention efforts. The group produced a survey that was sent to more than 80 area businesses, asking for input as to labor force, services and future planning.
"We should be doing it every three years," Smith told the Range News.
WREDA now hopes to work with Northern Arizona University to produce a survey of community needs within the next year.
"The NAU needs-assessment is a model we have been talking about for several months," said Stanger, adding that WREDA is also working with Benson's group.
Part of the $5,500 WREDA requested at the Nov. 16 meeting is for costs associated with this survey, such as mailing and postage.
Prior to the vote, a brief discussion, lead by Lindsey, ensued on the need for flexibility in the amendment.
City Attorney Hector Figueroa explained "the flexibility has been built in there by the language."
Lindsey replied that he saw no need to change the wording at this time, and Figueroa said that he would leave the MOU as it is.
Both the original and amended agreements call for WREDA to give reports to the council periodically, giving the group another opportunity "to come in and make changes," he said.
The council voted 5-1 to approve the amended agreement, with one abstention from Johnson, who had declared conflict of interest, and Councilman Jimmy Norris who was absent from the Nov. 16 meeting.
Asked later if the city is paying WREDA for services already performed by the Chamber, Lindsey replied, "No, they are two entirely different functions."
"The goals of the Chamber are to promote local businesses and tourism. WREDA is looking for new businesses and trying to assist existing businesses that may need some help, such as with expansions," said Lindsey, adding, "They have separate objectives."
"WREDA is actively looking for any industry that might want to come in, providing jobs and trying to keep the young people here," he said.
The City Council voted recently to amend the contract with the group to provide payment for its services to the city with a maximum of $16,850 for the current fiscal year.
City Manager Pat McCourt describes WREDA as an organization "that has worked and continues to work with the City of Willcox and the surrounding area to encourage economic development in the region."
The amendment states that WREDA "will continue to provide the current services, some new defined services are added, and the city will pay WREDA to provide the services," he said.
The cost to the city will depend on which services the council wishes to procure from the General Fund during the current fiscal year (2009-10), said McCourt, adding that there is $16,850 appropriated in the Economic Development line item.
The city has two seats on the WREDA Board of Directors, currently held by McCourt and Councilman Woody Johnson.
The other board members are Andrew Terry, Telly Stanger, Jim Graham, Joe Webb, Kathy Smith, and Nancy Edmiston of Sunsites.
In his Nov. 5 letter to the council, McCourt explained there has been a "Memo of Understanding (MOU)" between the city and WREDA for a number of years, empowering that group "to seek out economic activities, respond to proposals, and assist prospective organizations to locate in the region."
That MOU did not have any cost to the city.
"WREDA has been involved directly and indirectly in recent business additions to our city," said McCourt, adding that he has "personal knowledge on ongoing efforts to attract businesses to our community."
Smith told the Range News that WREDA assisted Willcox-based Sim-Flo Pumps with its 2007 expansion, as well as the Wilbur-Ellis Company, which came to Willcox in 2006 when customers in Central Arizona moved their farming operations to Cochise County. Wilbur Ellis, first incorporated in 1921, is an international marketer and distributor of agricultural and industrial products.
"We do things like tell businesses what sites are available," said Smith, who is director of the Willcox Chamber of Commerce and Agriculture.
"We are a knowledge center for them," she added.
"WREDA supplied a lot of good information to us," said Sales Manager Ronnie Calvert with Sim-Flo.
"They would be very helpful to anybody," he told the Range News.
McCourt told the council that one reason cities work closely with private economic development organizations, such as WREDA, is that many businesses "are uncomfortable with the openness that government organizations must function under, and are therefore reluctant to provide information during the initial stages of exploring a community for opening or relocating their operations."
"Of course, if the governmental organization wishes to provide any benefits to the business, that decision must be made by the government in open session," said McCourt, adding, "However, during preliminary discussions, the use of private economic development organizations is frequently very useful."
"When a business works through the city, it is public knowledge, so WREDA is good for the confidentiality of things," said Smith, explaining that she also wouldn't necessarily want an economic development committee at the Chamber because of turnover.
"With Chamber committees, people come and go. I wanted a group with a long-term commitment to economic development," she told the Range News. "There is too much change with the Chamber. I think it's good that we have a separate group."
McCourt told the council that the MOU amendment for the current 2009-10 fiscal year only; and is subject to council approval for any future amendments.
"This is not a planned expenditure in the current fiscal year," said McCourt, adding, "It would seem that this could be funded under the line item, 'Community Development - Economic Development' in the General Fund, if the council agrees. There is currently uncommitted allocation of $16,850 in this line item."
In response to a question by Vice Mayor Larry Schultz, McCourt said that WREDA is requesting a specific amount -- $5,500 - at this time.
"With teamwork, economic development can be done, but money is needed to move forward," said Stanger, who is WREDA's Manager of Economic Development and Agriculture.
As to the amount requested, Stanger said, "We think that $5,500 would be a great start. We have learned a valuable lesson from the past. I do believe WREDA will be very good stewards of this money. It will not be wasted."
Stanger talked about the way in which the MOU and amendment are written, but asked the council to "understand that plans can change."
While the plans for the requested amount "are a good way to spend the funds, flexibility is needed if something else comes up," he said.
"I realize we would like more, and maybe we will come back later with another request.
Schultz explained that it's hard for WREDA to request a specific amount, and sometimes they "need to move now," and can't wait for the council to meet and make a decision.
"We're not going to spend all this money tomorrow," said Stanger.
"I think the (WREDA) board will be very careful on what we want to spend it on."
During his presentation to the council, Stanger talked about WREDA's plans to re-do its business survey.
About five years ago, WREDA began collecting data from area businesses to help them in our recruitment and retention efforts. The group produced a survey that was sent to more than 80 area businesses, asking for input as to labor force, services and future planning.
"We should be doing it every three years," Smith told the Range News.
WREDA now hopes to work with Northern Arizona University to produce a survey of community needs within the next year.
"The NAU needs-assessment is a model we have been talking about for several months," said Stanger, adding that WREDA is also working with Benson's group.
Part of the $5,500 WREDA requested at the Nov. 16 meeting is for costs associated with this survey, such as mailing and postage.
Prior to the vote, a brief discussion, lead by Lindsey, ensued on the need for flexibility in the amendment.
City Attorney Hector Figueroa explained "the flexibility has been built in there by the language."
Lindsey replied that he saw no need to change the wording at this time, and Figueroa said that he would leave the MOU as it is.
Both the original and amended agreements call for WREDA to give reports to the council periodically, giving the group another opportunity "to come in and make changes," he said.
The council voted 5-1 to approve the amended agreement, with one abstention from Johnson, who had declared conflict of interest, and Councilman Jimmy Norris who was absent from the Nov. 16 meeting.
Asked later if the city is paying WREDA for services already performed by the Chamber, Lindsey replied, "No, they are two entirely different functions."
"The goals of the Chamber are to promote local businesses and tourism. WREDA is looking for new businesses and trying to assist existing businesses that may need some help, such as with expansions," said Lindsey, adding, "They have separate objectives."
"WREDA is actively looking for any industry that might want to come in, providing jobs and trying to keep the young people here," he said.
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