Will Sisters get an Economic Development Director?

(This article was originally published in the 5/18/10 issue of the Nugget Newspaper)

The Sisters City Council at their May 13 budget committee workshop discussed a request from the Sisters Business Attraction and Retention Team (SBART) to fund a part-time economic development director. In a letter to the Council dated May 6, Patty Vandiver, Sisters Area Chamber of Commerce President and SBART Project Manager, stated: "The Sisters Country Chamber of Commerce would like to request the consideration of $30,000 to be budgeted into the 2010/2011 fiscal year for a part-time, paid position for an economic development director." The issue of an economic development director position in Sisters is not new. As far back as 2007, as the local economy was beginning to slide, key business leaders were wondering how to retain and attract businesses that provided living/family-wage jobs. (See "Sisters economic summit turns testy," The Nugget, October 31, 2007.) By October of 2008, with the economy deteriorating quickly, local economic development was a key issue in the city council election. Bill Willitts, developer of the FivePine Lodge & Conference Center, didn't mince words that month. "Very soon Sisters and La Pine will be the only Central Oregon communities without an economic development director," said Willitts. (See "Economic development is key issue in Sisters," The Nugget, October 22, 2008.) Redmond, Prineville, and Madras now all have economic development directors that are funded by Economic Development for Central Oregon (EDCO) and private fundraising. In spring 2009, the Sisters City Council addressed the issue of stimulating the local economy through the retention and attraction of businesses with living/family-wage jobs. The council's answer was SBART, an all-volunteer committee formed by the council. Team members include Mac Hay (Chair), Jerry Bogart (Vice Chair), Patty Vandiver (Project Manager), David Winter, Bill Willitts, Erin Borla, Lisa Clausen and John Tehan - all Sisters residents. "SBART is the 'rapid response team' that was envisioned years ago. They take a huge burden off city staff because they can meet the needs of new business inquiries in a timely way," said Eileen Stein, Sisters city manager, early in 2009. A subcommittee of the Sisters Area Chamber of Commerce, the all-volunteer team was selected using a cross-section of the Sisters business, arts, and cultural community. SBART received no funding from the chamber but knew that, with hard work and some "wins," they might convince the city council that future funding for an economic development director position would be necessary. During SBART's first news conference on March 23, 2009 at the Sisters Chamber office, Mayor Kellstrom said "I think everyone's (the various Sisters groups and committees) going to be involved but I think, for the most part, the heavy hitting is going to be done by EDCO and SBART. We just don't have the resources to pay a Bud Prince-type of economic development manager (Redmond's now-retired economic development manager) here; the returns (on investment) just aren't there to justify it." SBART has put much effort into outreach and "attraction" since the spring of 2009. "We've made contact with more than 40 companies over the past 16 months who are very interested in relocating to Sisters, but the lack of financing is what's holding them up," said Mac Hay. By November of 2009 Mayor Kellstrom had seen SBART's progress. "When we started this (SBART)... we didn't really know what kind of response we would get. I've really been impressed with the fact that there's been more than any of us thought possible. There are some (prospects) that are kind of borderline and some that I think have real potential," said Kellstrom. The May 6, 2010 proposal states that the economic director would be "under direction of the Sisters Country Chamber of Commerce Executive Board of Directors." Councilor Sharlene Weed took issue with that reporting structure and the need for the position. "I'm not in favor of the person reporting to a committee. And I'm not in favor of budgeting $30,000 for this position; it seems like an extravagance during these economic times," she said. "And besides, I have a lot of questions about the position, there are too many unknowns for me." Chris Tosello, a city budget committee member, agreed with Weed. "I think there are too many gray areas about the position right now, we need clarification," said Tosello. Shawna Bell, also a budget committee member, initially agreed with Weed and Tosello but later conceded to leaving it in the proposed budget. "I think this proposal was not well-prepared or presented," said Bell. Council President Bill Merrill saw the proposal differently. "I would not object to leaving the $30,000 in the budget. But I want to be sure we go through a selection process utilizing people like Jason Carr (Prineville's economic development director) and Lee Smith (La Pine's industrial group manager) who are familiar with the process and needs of the position. And I'd like to see the Sisters Chamber add some matching funds for the position. There are a lot of questions that need to be answered between the chamber and the city council," said Merrill. Mayor Kellstrom, clearly agitated by the discussion, expressed his sentiments very clearly: "If we're going to pull that ($30,000 from the budget), it's the shortest thinking I can think of! We've received 18 months of free work from Mac Hay and the SBART team. The $30,000 must stay (in the budget). I'm not saying this is a 'payback,' I'm saying this will allow the community to attract and retain the kinds of businesses we need. Our competition is doing it and we need to as well. I also think that the economic development director should be a 'contract employee' paid either through EDCO or the chamber," said Kellstrom. The city council will continue to review its 2010/2011 budget over the coming weeks. The public is invited to sit in on all budget workshops. Meeting schedules are available on the city's Web site, www.ci.sisters.or.us.