Wednesday, January 16, 2008
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City Discusses Present and Future Development
Economic Development Partnership Support Weighed
Council puts in weighty night
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[January 16, 2008]  City of Lincoln aldermen were ready as they’d been charged to do at the close of the December 3 council meeting to discuss the matter of continued financial support of the Lincoln/Logan County Economic Development Partnership (EDP). Mayor Beth Davis-Kavelman raised the issue looking ahead to the planning process for the city’s next fiscal year budget. The city’s fiscal year begins on May 1.

She had suggested that the council consider whether to continue $25,000 support of the EDP, expand the mayor’s position to full-time or possibly hire a city manager or administrator.

It was near the end of a long evening that the council took 20 minutes to discuss the matter. The mayor supplied copies of the city council meeting minutes from January 5, 2004, which had many aspects that were referenced in the discussion that followed.

She pointed out that the EDP had solicited the city for start-up funds with the intent to become self-sustaining. She said that there are also other groups like EDP that the city should be looking at their continued financial support as well.

In 2004 Ron Schilling addressed the council with plans for the EDP to change its structure to a freestanding entity, no longer under the Lincoln-Logan County Chamber of Commerce.


The change included creating places on the board for five representatives from each of the three major supporting entities, the city of Lincoln, Logan County and chamber of commerce.

In the notes Schillings point # 3 said, “…sufficient funding for a minimum of three years would be necessary to create and sustain any economic development activities.” Private gifts and donations would also be sought.

Also in the minutes from 2004 Schilling's point # 8 said, “… the development partners and director would be responsible to build relationships to solicit financial support and develop opportunities.”

At the time of the reorganization, a search was also on for a full-time executive director. A director was hired one month later. That director left at the end of Oct. 2007.

As of this week a potential new candidate has been asked to fill the position and the EDP is waiting for his answer.

Mayor Davis-Kavelman said that the city has been handling most of the recent business development without EDP involvement. She cited a number of the businesses that have come directly to her and have even said that they didn’t want to go through economic development, Goody’s, Dollar Tree, Super Wal-Mart and a number of others that have built or are building on the west side. She pointed out that many of the recent businesses have been coming into the city and the work is running through her office, the council, city attorney, Les Last in building and codes; Mark Mathon, city engineer, Melanie Riggs in the clerks office, and consultation with the heads of the sewer, fire and streets department. This has streamlined the process of annexation, and building has been moving straight through.

There are about five projects going right now. She identified that past mayor Guzzardo did a lot of this type work, and “We are doing economic development,” she said.

The EDP is moving into their fourth year now, she said. She questioned whether EDP should be more self-supporting at this time, and if the council wished to continue its $25,000 a year support?

The county contributes $30,000 a year and the chamber $25,000 a year.

Current city representative and voting members of the Logan County Economic Development Partnership are Mayor Davis-Kavelman; Kathy Horn, alderwoman; Les Plotner, city treasurer; Rick Hamm and Derrick Crane.

Responses
Alderman Buzz Busby – They have a candidate right now, and maybe a very good one. They’re short a bunch of money. And we’re thinking of maybe pulling out?

If you do, there’s only three ways you can go:
- Raise taxes
- Cut services
- Or grow
And the only way you’re going to grow is through economic development. And you’re not going to do it like the old days, like when the city tried it alone, the county tried it alone and the chamber tried it alone. You get nothing done doing it that way.

It’s working, it’s proved that it’s worked and as far as I’m concerned, they’re looking for another $12,000 for this candidate they’ve got. And I would suggest the city come up with $5,000 bucks and add it to the already $25(000).

The discussion took a sidetrack when alderwoman Marty Neitzel, Jeff Hoinacki and other aldermen raised an issue of frustration. They said that they are often the last to know when a business is coming to town.

Hoinacki asked if there couldn’t be some sort of monthly report on EDP activity, number of contacts, interest in properties?

It takes services, infrastructure and financial planning to grow. “We’re the one’s suppose to be the one’s governing the city, and we don’t know anything,” Neitzel said.

The mayor and city attorney Bill Bates explained that this was not something that could be done differently. They are often asked to keep confidences, “and we honor that request,” Mayor Davis-Kavelman said. Word gets out from others, perhaps construction or contractors that know about the plans, “It’s not us. I’m sorry, we tell you as soon as we can,” she said.

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Bate’s confirmed, that whether it is the mayor office, building and codes office or the EDP, that’s not going to change. If the person coming to town wants to have some groundwork done before it becomes public, “You have to try to cooperate,” he said.

Aldermen said they understood the need for confidentiality, but they would appreciate it if there were some means of communicating interest without names to them when there is movement, that they need to plan for financially.

“I do, when I can,” the mayor said.

Alderman Anderson – Agreed that the aldermen need to be getting information from the mayor and from the EDP, “even without names, any information would be nice to know.”

She could not say if the $25,000 is being used properly or not. “I’m a little reluctant about the statement that it makes, saying we’re just pulling out.”

Attorney Bates reminded the council that they have five members representing them and responsible for communications.

Anderson said, “But we’re not hearing from them.”

The mayor said that at the last three EDP meetings the discussion and presentation has been about web development. “Is that economic development? It is in some ways getting it out there in the communities. We might see something from the web presence in six, eight, ten months from now.”

Kathy Horn – “I’m new on EDP for the city… I will bring back a report after every meeting.”

“They have an excellent candidate. He knows economic development. My one fear is that if they think the city is going to pull the money out, they are going to be doing a lot of fundraising. Will he be doing what he should be doing for economic development or will he be out there fundraising so that he can keep his job?”

Later, she said that during his interview the candidate had a lot of good ideas and he said, “If you don’t hire me, think about giving this idea to whoever you do hire.”

City treasurer, Les Plotner -- Plotner said that he has been serving on the EDP since May 2006, but hadn’t heard an interest in a meeting report expressed from the council before.

He further explained how confidentially is needed at times. If it were said that someone was interested in the old Wal-Mart building that might kick up the price on the building for the developer. “There are just some things we can’t get into,” he said, but if you want reports, we can do that.

“I think it would be a tragic mistake to pull your money out of the development partnership. If you’re going to have some development that is organized, you have to have someone leading the team.”

He approves of the guy they are looking at. “You need someone that knows what they’re doing.

He also agreed with Busby, that instead of cutting back on money, it might take a little more money, and the city might think about adding to the pot.

The EDP does do some fundraising, Plotner said. But to hire someone like they are looking at to just to go out and fundraise would be a complete waste of time, talent and money, he said.

Alderman Wanda Lee Rohlfs said that she hoped that the next EDP director would show more interest than the last one did in the nice buildings that are available downtown.

Mayor Davis-Kavelman closed saying, “When I brought this up, it was just to put it out there.” “I just don’t want this city council to sell itself short. You’ve done a very, very good job; Goody’s and other things that we’ve been bringing in,” she said.

We’ll be getting ready for Fifth Street Road and there will be a lot of detailed information, she said. “You’ve done a great job.”

The county remains in full support of the EDP. County Board Chairman Dick Logan briefed the board at a simultaneous meeting last night, that there was an excellent candidate, “…we are very hopeful to get.” Because of other commitments the candidate has said it could take him 2 – 4 weeks to give his answer, Logan told the board.

Last evening began early at city hall. Nearly the entire council was present at 6:15 p.m. to hear continued committee discussion on the development of a truancy ordinance. That matter came to a near resolution by all parties, the ordinance committee, concerned citizens and with Jean Anderson from the Regional Superintendents Office of Education. Details will be available soon in LDN.

Following the close of the main meeting, the council went into executive session for the discussion of hiring personnel.

[By JAN YOUNGQUIST]

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