Download Joining Forces. Impacting Montcalm County.

What IS effective
Economic
Development?
Are We Growing our Economic Pie?
Missed opportunities:
• Apple Processing Plant looking to a west Michigan location – Ionia County was
given their needs criteria
• Shoe Manufacturer looking site to expand in Northeast Grand Rapids area.
These are two opportunities that we “heard through the grapevine” within just the
last few months! Montcalm County was not privy to the specific criteria these
businesses are seeking.
Imagine what happens when one town hears about it, and sends information, then
another town hears about it and sends information – while a third City may meet the
criteria better than the first two, but didn’t even know about it…etc. We look
unprofessional and disorganized. Montcalm County loses.
Meanwhile, neighboring counties have compiled data of sites, infrastructure,
workforce information and more at their fingertips. They are prepared to move
quickly.
Our current model is failing to
aggressively grow the tax base;
It should be creating financial wealth.
Are we now operating effectively?
• Our current operating budget is
supported by membership dues.
• 2011-12 membership income:
$81,750.00
• 2012-13 membership income:
$49,000.00
• Our members recognize that we do not
have the correct structure in place
• What is broken? How can we fix it?
It’s time to bring
in the experts
Montcalm
Alliance
What would a partnership with
The Right Place (TRP)
look like?
As with any good partnership, both parties bring
their strengths to the table.
What does The Right Place (TRP) offer?
• A full-time Economic Development Manager (EDM),
dedicated to replenishing and growing base jobs
• Consistent communication with key decision makers
• Relationships with site selection professionals
• Presence at state & regional meetings
• Participation in relevant conferences & trade shows
(manufacturing, food processing, agriculture, etc.)
•
•
•
•
•
A regional perspective/shared best practices
Access to industry specific specialists
Payroll, budgeting, & administrative services
Professionally developed marketing materials
Annual report on activity and return on investment
What do we provide?
• A Montcalm Co representative on TRP board.
• A job description for our Economic Development
Manager.
• Active participation in selecting our EDM.
• A completely equipped office located in
Montcalm County
• Direction for EDM (along with TRP)
• The funds for our Economic Development
Manager and other services
• Identified assessment criteria to be measured
and tracked.
Our EDM will…. •
•
Jen Wangler
Ionia County
•
•
•
•
Don Schurr
Gratiot County
Provide assistance to client businesses
to achieve:
– Business retention
– Business expansion
– Recruitment/site location
Participate in relevant conferences,
trade shows, and meetings.
Maintain thorough list of assets &
business resources available in
Montcalm Co.
Target identified sectors & promote
Montcalm County as a business
location.
Connect businesses with assets and
resources.
Report regularly on activities, focusing
on predetermined measurable data.
Potential data to be
reported:
– # of contacts made
– Potential, current, &
completed projects
– Jobs retained
– New jobs
– Investments made
– Business counseling
referrals made
What can this DO for Montcalm?
In 1976, Gratiot County utilized PA 88, creating
consistent funding for Economic Development
In 2011, Ionia County partnered with
The Right Place.
Let’s take a closer look.
•
•
•
•
580 - jobs retained
90 - jobs created
$1,901,900 - new wages
$28,476,000 - private capital investment
• This is after one year of partnership with The
Right Place. Typically speaking, programs take
several years to develop.
• 70 – Average jobs created per year.
• $48,062,182 – NEW tax revenue
• $3,647,148 – tax dollars invested
That is roughly a ratio of 13:1 for return on
investment.
For over 30 years, Gratiot County has been
consistently retaining jobs, creating new jobs, and
generating a healthy return on tax dollars
invested.
How can
Montcalm
catch up?
• While up to .5 mils are allowable under PA 88,
we propose a .1 millage, generating $163,000.
• The cost per parcel comes to $3.17/year.
We have the opportunity to stop the
“shrinking pie”
• Do you want to keep going to the public to fund a
millage for 911 services?
• To fund improved security measures in the
courthouse?
• When we grow the tax base with base local jobs,
we can provide these services.
• No one wants “new taxes”. The Alliance has been
charged with recommending a more robust
approach to Economic Development support in
our County. We are asking for consistent funding.
• We will report regularly on the metrics we define
& determine our own return on investment.
Income
Expenditures
$38,000
$50,000
$162,000
P.A. 88
Private Support
$150,000
Right Place Services
Local Exec
The Montcalm Alliance asks that the Economic
Development & Resources Committee
recommend to the full commission, the
placement of .1 mils on the tax roll to support
the plan to align with the Right Place as
presented.