Brown bothered by city’s industrial board funding
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Mark Brown said IDB members were disappointed to learn the city would fund the same amount as last year, which was almost $50,000, even though they were asking for $100,000 more in cash this year. In all, the city is credited with funding the IDB almost $90,000, with roughly half of that amount cash, and half from rent on buildings the city donated to the IDB several years ago.
City officials made note of that contribution during Monday’s meeting of the Finance Committee and said they would be openly willing to fund more to the IDB if industrial recruiting efforts were being realized more immediately in the city limits. They explained their position after Brown noted the county’s industrial plight.
“With Carrier leaving, we are in dire need in this county to do something to create some jobs to bring money into the area,” Brown said. “I understand the city is very focused on retail development downtown at this time and retail development is an important thing for cities to focus upon, since a lot of your revenues come from sales taxes, but retail only works if we have money in the county to spend.”
“And that money, primarily in this county, comes from two places – it comes from industrial jobs and government money that comes in the form of welfare and retirement checks and a number of other sources,” Brown added.
Brown said while he understood the city has already voted preliminarily on the amount in committee, he hoped for more city support in the future. He said the $100,000 request was designed to be a recurring one.
From the city’s perspective, Vice Mayor Patti Nunley said she didn’t disagree with Brown or the IDB in theory, but noted the city has made several efforts to aid industrial recruitment.
Those efforts included: turning over the properties to the IDB for rental income, helping fund the recent economic study, and attempting to annex land for the purpose of industrial development. Officials agreed the city has less than five acres of land that could be utilized for industrial development.
But as chair of the Finance Committee, Nunley also said the city simply cannot afford their request this year without a tax increase.
“As long as Main Street goes on, there is no way we can give you $100,000 without a tax increase, and a fairly substantial one,” she said, also indicating she believes an arbitrary increase would not be popular.
“If you had a bird in your hand right now ready to go, we’d raise taxes and hand the money to you, but you don’t sell the people in this town the prospect that, ‘If we give them $100,000, maybe one day they’ll get one,'” she added.
Alderman Michael Chrisawn, who has been involved in industrial recruitment for Warren County previously, noted the need to facilitate deals quickly but indicated he wasn’t willing to vote for a tax increase preemptively and would prefer efforts to improve expediting whatever governmental involvement is necessary.
Mayor Royce Davenport also made note of the city having no property for industrial development.
“There is no city property left. We have to annex it first,” he said.
But Brown didn’t back down, noting the city’s budget is for a year.
“We’re looking at losing 738 local jobs in the next few months and we don’t need to wait another year,” he said.
Davenport said the city could act quickly should a prospect arise.
“I think this group would vote for bonds or whatever it takes. We’ll be there,” he said.
Davenport also took time to clarify Brown’s characterization of the downtown project as retail only. He said the project is designed as an economic development project of $5 million. In short, it is also designed to make McMinnville more appealing should industry scout the area.
“If it sells this community, it will be worthwhile,” Nunley added.