The Garden City Telegram
Email this story | Add Your Comment
| Read (0) Comments
Funding a sticking point for FCEDC
Published 5/27/2009 in Local News
By STEPHANIE FARLEY
As the Finney County Economic Development Corp. Board of Directors and staff continue working to determine how the corporation will be funded in the future, better communicating economic development to the public and the entity's funding partners keeps coming up.
On Tuesday, FCEDC board members met once again to strategize on long-term funding options for the corporation, as well as finding a better way to communicate to the community what FCEDC is and does and determine whether the entity's funding partners — Garden City Community College, the cities of Holcomb and Garden City and Finney County — want the FCEDC to try to recruit more business to the community.
Finding the solutions to a more permanent, long-term funding source are ongoing. More discussion on funding was expected today during FCEDC's regular monthly meeting.
The money the corporation has to work with is conservative, FCEDC officials say, with the county and FCEDC having a tax abatement policy for businesses. FCEDC can and has gone to the state to qualify for programs to help existing and new businesses, and then the corporation turns to its funding partners for help with the bigger incentives when working to either retain or recruit a business. So far, the incentives have focused on infrastructure, education and training.
But when it comes to cash on hand, there is none, FCEDC President Eric Depperschmidt said.
There's no "war chest," FCEDC board member Doug Keller said, that the entity could pull from for additional incentives to help attract business and economic development opportunities.
Part of the solution FCEDC is exploring to build a more permanent funding source is becoming an entity funded by both public and private partnerships — possibly finding 10 partners at about $5,000 apiece who'd be willing to contribute to economic development and incentives.
When bringing in private money, though, Depperschmidt told the board Tuesday, private partners expect returns.
FCEDC Board Chairman Ron Schwartz said that while $5,000 a year is a lot of money, he felt some of the private partners might look at the money as more an investment in the community.
Schwartz used businesses sponsoring the Pro-Am golf tournament as an example, saying while it's nice to see a return on investment, sponsors don't necessarily look for a return. Instead, he said, some of the sponsors simply see the tournament as a worthy investment in the community.
Other funding options being explored include an eventual dedication of a portion of the county's and/or city's mill levy; requesting an increase in funding from the partners; and eventually seeking a sales tax again to fund economic development.
The corporation has twice asked voters to approve a quarter-cent sales tax to fund economic development efforts. Both tries failed, with Keller saying Tuesday he feels the sales tax initiative didn't pass for several reasons, including supporters of the sales tax not communicating well enough the need for economic development and need of an incentive program to compete for economic development opportunities.
Keller said the FCEDC is attempting to provide the members and funding partners with a clearer vision of what's desired and needed with economic development in Finney County and how to achieve that vision.
One of the questions needing answered, he said, is whether the entity and funding partners want the corporation to continue as is. That is as a clearing house in which the entity guides new and existing businesses and prospects to where the help is available, or whether the FCEDC should have the power to allocate incentives.
Among other discussion Tuesday, board members discussed possibly surveying funding partners before the quarterly report meetings to find out what information the partners would like in the reports.
Keller also mentioned creating a case study that would help the partners better understand the process of working with an economic development prospect.
How do you think FCEDC should get its funding? Talk about it at SWKTalk.com.
Found 0 comment(s)!
Twitter Updates
