Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts

Tuesday, October 12, 2010

Weed Seeks Another Term




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By Bill Mintiens


Sharlene Weed, 45, has been a Sisters City Councilor now for about six years. She's running again this year to retain her council seat.

Raised in Yreka, California, Weed spent much of her early years in that Northern California community of about 5,000 people. She's also proud of the fact that the nearby town of Weed was named after her great-great-grandfather, who founded the community.

"Having lots of family around was really a 'pioneering' feeling, really grounding for me," said Weed.

Sharlene's first move away from Yreka was attending the University of California, Santa Barbara.

"This was really eye-opening for me, it was the first time I became aware of politics," said Weed.

Weed studied communications and political science and served as vice president of the student body one year. During her sophomore year she spent a summer in Washington, D.C. working as a congressional intern for the late Congressman Gene Chappie.

When asked how the experience influenced her perspective on politics, Weed said, "I was responsible for responding to constituent mail. I was discouraged. The issues were big and the packets of information were large and I knew my congressman didn't read them."

Following college Weed traveled for six years, including 14 months in South America.

"It just seemed like the natural thing for me to do at the time," she said.

Weed also spent three years off and on in Japan teaching English. Returning home briefly to California, Sharlene soon moved to Taiwan, again to teach English, but this time with her boyfriend.

"While in Taiwan we had a pleasant surprise; found out I was pregnant! By that time I was tired of traveling and ready to nest," said Weed.

Returning to the states Weed felt that Northern California was no longer the right fit. Her mother was living in Bend and that motivated Sharlene to check out Central Oregon.

"We drove into Sisters one day and I immediately loved it. I said 'OK this is it, let's find a house,'" said Weed.

Weed moved to Sisters in 1995. Later that same year Sharlene's son was born and she started her career with Sisters Habitat for Humanity as a part-time stipend-based volunteer.

"I held that position for two years while I worked on my master's degree in teacher's education through Eastern Oregon University," said Weed.

Weed has worked with Habitat for 15 years and serves now as the Sisters chapter's executive director.

Weed served on city councils with mayors Dave Elliott, Brad Boyd, and now Lon Kellstrom.

"My first council was very reliant on (city) staff and pretty much rubber-stamped things. Things have gotten more transparent as the councils changed," said Sharlene.

However, Weed has found the current council particularly challenging.

"This council has been a huge challenge for me. I see decisions made that are not transparent, not in keeping with the town's vision, and processes that are very sloppy. I hadn't seen that before, even in my first council," said Sharlene.

Weed describes herself as very process-oriented.

"I'm OK with losing the vote as long as the process is done properly," she said.

When asked whether she feels the three councilors elected in 2008 (Lon Kellstrom, Pat Thompson, and Jerry Bogart) have fulfilled their campaign promises about being pro-business, economic development, and job creation, Weed was pointed in her remarks:

"What is pro-business? I'm pro-business; I'm just not pro-giveaway to businesses or being irresponsible with citizens' tax dollars. I want to see businesses thrive and survive. I'm open to spending money to do that but there has to be a plan first. I've seen a lot of spending on this council without a lot of results."

Weed cites as an example of wasteful spending, Sisters' expenditures on economic development over the past two years.

"We were spending $750 on economic development (Economic Development for Central Oregon dues) two years ago. Now we're spending $57,000. That's a huge jump. We increased our dues to EDCO to $7,500 from $750; and we're getting the same support from EDCO that we got when we were spending $750. That huge jump I just couldn't support," said Weed.

Sharlene bristles when discussing the recent hiring process for a part-time economic development manager.

"This is a great example of botched process. From the get-go there were things going on behind the scenes that nobody knew about, actions being taken that should have been approved by council. There weren't transparent discussions about what was best; things seem to have been decided," said Weed.

"It looks like they hired a 'friend' of the council (Mac Hay). And that's what people are saying to me," added Sharlene.

Looking back on the annexation of the McKenzie Meadows Village (MMV) property into the Urban Growth Boundary (UGB) in 2006, Weed indicated that, if she could do it all over, she wouldn't vote for the annexation.

"Hell no, are you kidding? In 2006 we were in boom times, things were a lot different then," she said.

Weed believes there is more than enough land now within the UGB to accommodate MMV's proposed development plans. This includes "affordable" senior living apartments, independent and assisted living for seniors, and a school-based medical facility.

"At the candidates forum back in 2008, all three of them (Kellstrom, Bogart, and Thompson) all said that MMV did not need to be annexed into the UGB. Within a few weeks of being elected they started working on it," said Weed.

"We have a surplus of commercial properties, a surplus of light industrial, a surplus of residential and bank-owned properties. We don't need more land. We have an over-30-year supply of land right now," said Weed.

Concerned about the influence of money in campaigns, Weed has decided not to accept campaign money or to form a political action committee (PAC). Weed has asked supporters to make monetary contributions to the Sisters Food Bank in the name of her campaign.

"So far we've been able to raise about $3,000 for the food bank," said Weed.

Although Weed, Holzman, and Shepardson are not running as a slate or financed by a PAC, Sharlene thinks the council would act very differently if all three were elected.

"We'd be very community-focused; very inclusive, making sure all the stakeholders are at the table when we're making decisions. We'll take the time to get all the facts and hear different perspectives to get to the best decision," said Sharlene.

Weed also indicated that, should the three women be elected, she would like to be Mayor: "Yes, absolutely, I'm ready. I think I'm very fair and honest. There wouldn't be any behind-the-scenes things or hidden agendas."

Wednesday, October 6, 2010

Hay tapped for Economic Development job


This is the Sisters Talk podcast with guest Mac Hay.

(This article was published in the 10/6/2010 Nugget Newspaper)

by Bill Mintiens

Mac Hay will be Sisters' part-time Economic Development Manager.

EDCO (Economic Development for Central Oregon), after culling down the applicants to four, recommended Hay to the council. The recommendation was passed on before the council's regular workshop last Thursday.

Councilors voted 4-1, with Councilor Sharlene Weed dissenting, to accept the recommendation.

Hay was a leading candidate for the job, presently serving as the volunteer chair of the SBART (Sisters Business Attraction & Retention Team), a volunteer group of area business people.

Hay is looking forward to the challenge.

"The energy and creativity of our community is needed to make this effort of economic vitality and stability a success. Together, we have the passion, talent and resources to create an even more vibrant community. I look forward to working with the citizens of Sisters to retain jobs, attract businesses with sustainable jobs and add to an economy that has tremendous potential," said Hay.

Although the recommendation of Hay was no surprise to those following the process, the city council has wrangled over the matter for several months. The need for the position, the recruiting process, and the position's scope of work have been controversial since last spring.

The economic development manager's statement of work reads: "Contractor shall develop specific performance measures and deadlines for the period of this agreement (in consultation with the Sisters City Manager and as approved by the Sisters City Council) within the first 30 days following the execution of this agreement."

During last Thursday's regular council meeting, Councilor Weed aggressively challenged the hiring process, the lack of transparency with the public, and the scope of work for the position.

"I've never seen anything like this. I can't imagine, in my job (Sisters Habitat for Humanity Executive Director), hiring someone and then asking them to develop their own performance measures," said Weed.

Weed was referring to her repeated requests for the council to discuss and create measurable "deliverables and benchmarks" to be written into the statement of work. Similar positions in Prineville and Redmond have measurable goals and benchmarks.

Council candidate David Asson, speaking during the visitors communication portion of Thursday's regular council meeting, said: "I'm troubled that it's taken five months to write an agreement. Here it is September 30 and you're voting on an agreement that is supposed to start tomorrow. I personally think the independent contractor designation won't fly. Pushing it through now does not make sense to me. If there's any way to spend a few more days to address this I think you should."

Following the meeting Asson added, "The city is going to spend $30,000 on this program. We need this kind of economic development, but I personally think the program needs a lot more money than that to be successful. If we blow this $30,000 we may not get community support next time around."

Budget committee member Gwen Chapman said, "I am a bit confused as to how the city could have recruited for this contractor before the services to be provided and performance expectations were decided on by the council."

Back in July EDCO was asked by Mayor Kellstrom to "take the reins" regarding the position description, hiring process, and interview panel. Neither city councilors nor city staff were involved in that decision.

"My choice was to keep the council out of it in favor of an arm's-length relationship in the hiring of the economic development director," Mayor Kellstrom said last July. "We need an arm's-length arrangement, through EDCO, to keep the council out of trouble. We don't want to be accused of using public funds to hire a 'friend' of the council."

That "friend" was Mac Hay.

Concerned that the council and taxpaying residents were not included in the process of choosing Hay, Councilor Weed, last Thursday evening, asked Mayor Kellstrom several direct questions.

"Why were councilors excluded from this process, and why do we not know who the candidates were, or who sat on the interviewing panel? Was anyone from Sisters represented on that panel?" asked Weed.

Mayor Kellstrom, shrugging his shoulders, indicated as he had before, that he made the choice to "keep the council at arm's length from the process" and "I don't know who was on the interviewing panel."

Weed asked Hay, sitting in the audience, who was on his interviewing panel.

Hay took a moment and answered, "I don't feel like I'm the one to divulge that information."

Stepping into the conversation, City Attorney Steve Bryant said, "Why not have Eileen (Stein, Sisters city manager) e-mail EDCO and ask them? They may tell you or they may not."

Weed said she would vote no on EDCO's recommendation because of her concerns with the process.

Councilor Pat Thompson defended the statement of work and said he was comfortable with the process.

"We have to expect a general statement of work (versus specific deliverables) because we don't know what to expect going forward," he said. "I think this statement of work does a good job and, frankly, we need a man in the trenches right now."

Commenting on the entire process of recruiting for the position, Thompson said, "At no time did I not understand what was going on. This (hiring for this position) is the logical next step to keep our city on the right path."

Wednesday, September 15, 2010

Shepardson Running for City Council

Published 9/15/2010 in the Nugget Newspaper
Jacki Shepardson is seeking one of three open seats. photo by Bill Mintiens

Photo by Bill Mintiens



By Bill Mintiens

Jacki Shepardson, 50, has lived in Sisters about 14 years and says she "plans to spend the rest of my life here."

Born in Walla Walla, Washington, and raised in Salem, Oregon, Shepardson got an early start on what would become one of her key strengths - public speaking and debating.

"I was a member of our speech and debate team in high school and was awarded the highest honor you can get from the National Forensic League (a non-profit honorary society created to recognize high school students in speech and debate) for my debating skill," said Shepardson.

Shepardson's early training in speech and debate proved valuable when she entered the workplace. She went to work for the DMV (Department of Motor Vehicles) in Salem after high school and worked her way up to clerical specialist.

"At age 21 I became the president of the local union for the Salem DMV, the largest state employee local union at the time. I learned a lot about how government works, got involved with collective bargaining and educating our members," said Shepardson.

She also got involved in state and national politics during this period in her life.

"I testified at senate hearings about workplace safety issues and helped Kulongoski's first campaign run for governor. I also helped campaign for Jimmy Carter's presidential bid," said Jacki.

A firm believer in choice, Shepardson added, "I've always been a registered Democrat because I believe you have more choice. But I have both conservative and liberal tendencies, depending on the issue."

Following her stint with the DMV, Shepardson decided that it was time for higher education. She entered Merit-Davis College in Salem (which no longer exists), earning a certificate in accounting and business management.

At this point in her life, a single mother with two young children, she had to make a choice. Apply for state assistance or find a job to support her family. She chose the latter.

"I was a young woman with two young children and, although I could have gone on unemployment, I self-initiated and went after a job," said Shepardson.

She went to work at the Fairview Training Center in Salem, a state institution for the mentally challenged which no longer exists, as a recreational and music therapy aide.

"I really enjoyed the work because I have a compassionate heart and was directly helping people with the challenges they were facing," she said.

By 1996 Shepardson had remarried and moved to Sisters with her four children, never regretting the move for a moment.

"As a child my father was always taking us over here for adventures, so I knew I liked it here and that it would be a great place to raise my family," she said.

Shepardson has four grown children ages 28, 26, 24, and 22. She also has two children in the Sisters school system, Jessica, 13 and Sam, 10.

Jacki's community involvement includes volunteering in her children's schools, as well as becoming, in 2002, the site coordinator for the Sisters Brown Bag Program. Sponsored by Three Sisters Fellowship, this program provides Sisters families with a bag of groceries each month, one bag per person in each

household.

"I find the Brown Bag Program extremely rewarding. I drive to Trader Joe's each week to pick up their donated items. We also receive food from local retailers like Ray's, Richard's Produce, and Sisters Bakery. The need, over the past two years, has escalated tremendously," said Shepardson.

Two years ago the program was averaging about 70 "brown bags" for about 20 families. Now the program averages about 165 bags for 40 families each month.

When asked why she wanted to become a city councilor, Shepardson said, "I thought about running two years ago but I didn't really have the time, now I have the time to devote to the office. And friends who wanted me to run two years ago really pushed me to run this year, saying that the city really needed my voice.

"I'm honest, I know my own mind and I'm compassionate, caring, and intelligent. My friends knew I wouldn't be swayed by anybody for any reason - except for the right reasons. And I'm a very good listener, I will listen to people, ask their opinions, I guess it's the debater in me."

Commenting on the performance of the present city council, Shepardson was very direct:

"I don't think there's enough diversity on the council right now. I see a 'block of voting' and it closes down any and all ideas that might come up. When you have a block of people voting a certain way they make their minds up and they close down wanting to listen to other ideas that might be out there.

"You need to have good intelligent debate on a subject, be kind to one another, and come out of it with a cohesive decision. I don't see consensus happening on the council right now. And I don't think the council has been transparent with themselves, much less the public," added Shepardson.

The candidate has very strong opinions on economic development in the city.

"I believe the three gentlemen on the council (Mayor Kellstrom, Councilors Thompson & Bogart) see economic development as 'building more' and adding more land. I don't believe that's the right thing to do. We have a lot of open storefronts, a lot of empty lots that were developed with nothing on them now and a lot of vacant homes. Before you start annexing land into a city that appears distressed, you should use what's already there. I was against the annexing of land for Metolius Meadows. We should wait and turn everything else around first. I see this (Metolius Meadows) becoming just another home subdivision with a lot of empty lots," said Shepardson.

"I believe economic development means adding living-wage jobs that are sustainable. Construction jobs are not sustainable jobs. We need to research other small cities that have turned themselves around, we need to ask them 'what did you do, how did you attract businesses?'" said Jacki.

Regarding major challenges facing Sisters now, Shepardson is also very clear.

"There are not enough living-wage jobs to keep people here. On top of that we also have an awful lot of second homes that rent at high prices. I've seen my children move away from Sisters because of the employment situation and lack of affordable housing. Frankly, I'm worried that Sisters could become a ghost town, especially right now. If the powers in charge aren't careful it could happen," said Shepardson.

She also spoke on the issue of hiring an economic development manager and SBART's (Sisters Business Attraction & Retention Team) volunteer work.

"$30,000 is a lot of money to lay out there and not set up some sort of accountability (in the position description). Everything should have been laid out with the position before you say 'alright now go out and hire someone' (see related story, page 3). Any smart business manager would have done this first. Our city isn't set up where the mayor can just go ahead and make decisions on his own; this is what happened with this position," Shepardson said.

"Regarding SBART, I really don't know what they do, they aren't accountable to anyone and that's a no-win situation. An organization that's working toward attracting businesses needs to be accountable to somebody. The members should be appointed, hired, or at least elected, not be volunteers."

On the influence of PAC's (Political Action Committees) on the Sisters City Council election, Jacki has strong feelings.

"These days elections are bought nationally - and I hate to see that happening in our small town. I've contributed my time to campaigns but I've never contributed money to them. It's taking away from what America's supposed to be, a country where a little guy can step up and become president. I think people in America are starting to wake up and say 'no more,' we're going to take America back to what it's supposed to be," said Shepardson.

On the subject of "block voting," Jacki was quick to say, "Wendy, Sharlene, and I don't agree on every issue; we wouldn't be voting as a block."

The election for Sisters City Councilors takes place on November 2. On October 21 at 7 p.m. at Sisters High School Auditorium, there will be a candidates' forum at which the public can listen to the six candidates' views.

Wednesday, August 25, 2010

Twelve Apply for Sisters Economic Development Manager Job

(This article appears in the 8/24/10 issue of the Nugget Newspaper)

By Bill Mintiens


As of the deadline on Friday, August 6, EDCO (Economic Development for Central Oregon) received 12 applications/résumés from people interested in the position of part-time economic development manager for Sisters, according to Erin Chaiet, EDCO operations manager.

The Sisters City Council budgeted and approved $30,000 for the 2010/2011 fiscal year for the position.

It will likely be at least the middle of September before a person (or firm) will be chosen to fill the position, an independent contractor's role, which runs through June, 2011.

The need for the position, the actual position description, and the reporting structure have been controversial for several months.

EDCO, having been asked by Mayor Kellstrom to "take the reins" regarding the position description, hiring process, and interview panel, began posting ads Thursday, July 22. EDCO directed people to a detailed online position description at www.edcoinfo.com, stating that "the independent contractor will provide staffing of the Sisters Business & Attraction Team (SBART) and coordinate with the City of Sisters and EDCO to provide economic development services for the greater Sisters Country area."

When asked if all the city councilors had reviewed and agreed to EDCO's advertised position description (including reporting structure, goals, office location, etc.), Mayor Lon Kellstrom said, "No, they haven't. My choice was to keep the council out of it in favor of an arm's-length relationship in the hiring of the economic development director. We need an arm's-length arrangement, through EDCO, to keep the council out of trouble. We don't want to be accused of using public funds to hire a 'friend' of the council."

The mayor was referring to Mac Hay, volunteer chair of SBART (Sisters Business Acquisition & Retention Team), one of the 12 candidates for the position.

Councilor Sharlene Weed is not happy with Mayor Kellstrom's actions regarding the hiring process for Sisters' part-time economic development manager.

"I spoke with Lon (Mayor Kellstrom) and he maintains his position that it was fine to move forward because the council would have an opportunity to ask questions and give final approval (to EDCO's recommendation on a candidate)," she said. "I really don't understand why he has chosen this approach. I don't see what he gains. And... the town loses by not having a rich discussion of the possibilities and arriving at a fully fleshed-out plan for the position. Now it appears that a person will be hired prior to council's approval and we will be asked for a rubber stamp. It's disappointing."

When asked about the people comprising the interview panel, Roger Lee, EDCO executive director, said, "Some of people we'd asked to be part of the interview panel have not been all available all on the same day so we've had to change the schedule several times and mix of volunteers. It is a difficult time of year for scheduling."

Mayor Kellstrom said recently, "We (the council) purposely stayed out of the choosing of the panel."

Councilor Weed is not impressed. "I asked Lon who was on the interview committee... he said he didn't know."

EDCO funds and manages economic development director positions in Redmond, Prineville, and Madras. Successful programs in both Prineville (acquisition of the Facebook facility) and Redmond (Altrec, T-Mobile, and several other businesses) give EDCO experience and credibility with hiring and management.

When asked about the delays in this hiring process, Roger Lee, in an e-mail dated August 19, wrote, "There are a number of unanswered questions including when the person/contractor will be available, the council's approval, etc. I don't see the timing as a big issue, other than the fact that we would prefer to be at this stage at the very start of the fiscal year (July 1); the schedule will just have to be revised and with it, potentially, the expenditure. If approved, we are hopeful that a start date would be established later in the month of September."

Apparently no one's in a big hurry to help Sisters recover from our state-designated "severely distressed community" status.

Acknowledging the delay, Mayor Kellstrom said, "It just took a lot longer to formulate the position on EDCO's part and to cover all the legal aspects. The good thing about it, though, is that Mac (Hay) is still doing his SBART stuff."

The city council has been on recess this month. Their next scheduled workshop and regular council meeting is scheduled for Thursday, September 9.

"We are planning on taking this up on September 9 in terms of accepting the agreement (independent contractor agreement) and discussing EDCO's suggested candidate for the position. EDCO will likely make an offer to a candidate on September 10," said Mayor Kellstrom.

So the 12 candidates will be interviewed over the next few weeks, a top candidate (or firm) will be chosen, and that person (or firm) will be presented to the council on September.

In an e-mail dated August 17 to Mayor Kellstrom, Councilor Weed asked, "Can you please explain to me why EDCO is proceeding with this when the position has never been approved by the city council? I have never seen a plan for this position. I would like to look at different options - including a discussion with the fellow who contacted me a couple weeks ago who said his consulting firm could provide concrete deliverables for our town for less than $30,000. Please stop this process until the council has had a chance to weigh in."

Other city councilors had the opportunity to comment on these issues but declined to do so.

Friday, July 30, 2010

Can Sisters learn from Maupin's economic development efforts?

(This article was published in the 7/27/10 issue of the Nugget Newspaper)

By Bill Mintiens


Economic development-wise, Sisters might learn something from Maupin.

With a year-round population of about 490 residents (5,000 if you include the entire school district), Maupin is one of six incorporated cities in Wasco County and is situated in the "south county" which also includes the cities of Antelope and Shaniko.

Maupin's economy is based almost entirely on its one major asset: the Deschutes River. Important access points for whitewater rafters, kayakers, anglers and bird watchers abound along the river, and the community truly values its greatest natural resource.

But it wasn't always a recreation-based economy. Until the mid-1980s Maupin enjoyed a wood-products industry base and was known as a mill town like many other Oregon rural communities.

"We're a recreation town that can't get away from the fact that we were a mill town. The mill closed in the mid-'80s and now we're a young recreation town struggling to settle into becoming a recreation-based economy," said Rob Miles, owner of the Imperial River Company, a lodge and recreation provider located right on the Deschutes River.

Although log home construction provided jobs in recent years, the current recession put a damper on the construction industry, leaving seasonal-dependent tourism jobs as residents' only options.

The current recession (and much-publicized jobless recovery) has forced many rural Oregonians to consider other ways of making a living - starting their own businesses or working for themselves - right in their own communities.

But how does someone who's always worked for others start their own business? Who do they turn to for advice, mentoring, and direction?

Typical economic-development models in rural communities do not address the passions and desires of individuals who want to start a business. They concentrate instead on luring companies away from other locales, generally to achieve lower overall operation costs, or they try to help existing companies perform better. Their mission does not include the passionate entrepreneur who may be the sole employee.

Non-profits like Economic Development for Central Oregon (EDCO), based in Bend, have had successes attracting new businesses to the region. The recent development of the Facebook data center in Prineville is a prime example. Up to 35 new jobs will be created as a result of EDCO's hard work. Unfortunately for Prineville, the net loss of jobs is much higher due to Les Schwab's corporate headquarters move to Bend.

And let's not forget Google's data center in The Dalles. As widely reported, many cities campaign for and would love to have a Google facility (with upwards of 200 jobs) in their community.

"The typical economic-development model says we should attract businesses that already exist in other areas. But that's a zero-sum game. One community loses and another one wins. Are we going to play the 'let's screw our neighbor' game?" said Rob Miles, Imperial River Company owner.

Maupin has done its share of trying to attract businesses - often referred to as "chasing smokestacks" - offering living/family-wage jobs, but to date has not been successful with that method.

Denny Ross, Maupin's mayor since 2003, remembers one conversation with a fellow graduate of Maupin High School who was talking about several companies that might like to locate in Maupin.

"He asked me what kind of incentives the city could offer to make a sweeter deal. I told him to tell his company friends that, in Maupin, you can go fishing at 6 a.m., go to work at 10 a.m., work until 6 p.m., and fish until dark. Maupin is the deal. The people we want here want to live in Maupin," said Ross.

So the dilemma remains: how does a small rural community like Maupin or Sisters help residents with new business ideas develop those passions into viable businesses that fuel community economic development?

In Maupin's case, Denny Ross came across a newspaper article about Dr. Ernesto Sirolli's "enterprise facilitation" method of stimulating economic development in rural communities; www.sirolli.com.

Knowing that Maupin was struggling economically, Ross called the Sirolli Institute and inquired about the enterprise facilitation process.

"I was just amazed at the simplicity of the concept. The Sirolli folks told me that, for them, 'economy' was simply communities of people doing beautifully what they have a passion for doing. The better they are at it, the better the economy," said Ross.

"We hadn't been considering a 'bottom up' approach to economic development. Like many other communities we thought we had to use a 'top down" approach, try to attract businesses with jobs to relocate to Maupin. This really changed my outlook on economic development," added Ross.

Ross then read Dr. Sirolli's book, "Ripples from the Zambezi - Passion, Entrepreneurship and the Rebirth of the Local Economy." Based on his work with a small rural community in western Australia, Sirolli developed a community economic development approach based on harnessing the passion, determination, intelligence and resourcefulness of the local people.

Sirolli's principles involve a committed volunteer local resource board, who hires an "enterprise facilitator" who is then trained by the Sirolli Institute. The facilitator does not initiate projects or promote "good ideas." He or she responds to the interests and passions of self-motivated people.

The enterprise facilitator and the resource board, with networking, help people form teams to move their business ideas forward.

Ross was convinced that enterprise facilitation, using the Sirolli method, would be the key to Maupin's economic development future. As 2006 rolled around, Ross' enthusiasm for the Sirolli method of enterprise facilitation was spreading. With the assistance of the Wy'East RC&D (Resource Conservation & Development) Council, a volunteer resource board comprised of approximately 10 professional and civic members was assembled.

Their first task, following the Sirolli method, was to hire an "enterprise facilitator" who would be available, free of charge, as the first point of contact for passionate people with business ideas.

"We needed someone who could be logical, impartial, a good listener, a 'prober' to find out people's real motivations. The person needed to be comfortable in both the board room and in the local pub, because that's where business happens in rural Oregon," said Rob Miles, resource board member.

Enter Greg Hohensee, the board's clear choice.

A master cabinetmaker from East Aurora, N.Y., Hohensee operated his own cabinet shop for a number of years - and realized that helping people in his community was his real passion.

"My role (as enterprise facilitator) was pretty simple. I was just the "connector," the person who connects passionate people with the information and resources they need to succeed," said Hohensee.

The program proved successful fairly quickly. In the two years (February 2008 - March 2010) that Hohensee held the position he worked with 114 clients spread over a service area that included six counties in Central and North Central Oregon. A total of nine new businesses were started. One in Madras, one in Moro, one in Wamic, two in Sisters, one in The Dalles, one in Prineville, and two in Maupin.

Maupin, due to Denny Ross' initial enthusiasm, became a hotbed for new enterprise ideas. Eighteen new microenterprise projects were started during the initial two-year period.

"Word spreads pretty quickly when your town has a year-round population of around 500, everyone knows everyone here," said Mayor Ross.

More information about Wy'East's enterprise facilitation project is available at
http://www.centraloregonmicroenterprise.com. Dr. Ernesto Sirolli's enterprise facilitation principles can also be found at http://www.sirolli.com.

Sunday, July 25, 2010

Enterprising in Maupin




(This article appears in the 7/25/10 edition of The Dalles Chronicle)

South county city grows economy from the roots

By Bill Mintiens
for The Chronicle

Maupin’s economy is based almost entirely on its one major asset – the Deschutes River. Important access points for whitewater rafters, kayakers, anglers, and bird watchers abound along the river.


But it wasn’t always a recreation-based economy. Until the mid-1980’s Maupin enjoyed a wood products industry base and was known as a “mill town” like many other Oregon rural communities.


“We’re a recreation town that can’t get away from the fact that we were a mill town,” said Rob Miles, owner of the Imperial River Company, a lodge and recreation provider located right on the Deschutes River.


“The mill closed in the mid-80s and Maupin would be dead now if the river wasn’t here; it’s our greatest resource. We’re a young recreation town struggling to settle into becoming a recreation-based economy. Our problems revolve around jobs and affordable housing.”


Although log home construction has provided jobs in recent years, the recession put a damper on the construction industry, leaving seasonal tourism jobs as residents’ only options. Some residents commute the 39 miles to The Dalles for work but, again, the recession has made jobs harder to find.


Lynn Harris, a longtime resident of Wapinitia, 15 miles west of Maupin, understood the challenge well.


“I had been working for Oregon Log Homes as a bookkeeper and, when the economy slowed down, I thought to myself — now what? I knew there were no jobs in south county. I figured it was time to get creative and follow my passions.”


The current recession (and much-publicized jobless recovery) has forced many rural Oregonians to consider other ways of making a living — namely starting their own businesses or working for themselves — right in their own communities.


But how does someone who’s always worked for others start their own business? Who do they turn to for advice, mentoring, and direction?


Typical economic development models in rural communities do not address the passions and desires of individuals who want to start a business. They concentrate instead on luring companies away from other locales, generally to achieve lower overall operation costs. Or they try to help existing companies perform better.


Nonprofits like Economic Development for Central Oregon (EDCO), based in Bend, have had successes attracting new businesses to the region. The recent acquisition of the Facebook data center to Prineville is a prime example. Up to 35 new jobs will be created as a result of EDCO’s hard work. Unfortunately for Prineville, the net loss of jobs is much higher due to Les Schwab’s corporate headquarters move to Bend.


And let’s not forget Google’s data center in The Dalles. As widely reported, many cities campaign for and would love to have a Google facility (with about 200 jobs) in their community.


“The typical economic development model says we should attract businesses that already exist in other areas. But that’s a zero-sum game,” Miles said. “One community loses and another one wins.”


Typically referred to as “chasing smokestacks,” Maupin has done its share of trying to attract businesses offering living wage jobs but to date has seen little success.


Denny Ross, Maupin’s charismatic mayor since 2003, remembers one conversation with a fellow graduate of Maupin High School who was talking about several companies that would perhaps like to locate in Maupin.


“He asked me what kind of incentives the city could offer to make a sweeter deal,” Ross said. “I told him to tell his company friends that, in Maupin, you can go fishing at 6 a.m., go to work at 10, work until 6 p.m., and fish until dark. Maupin is the deal. The people we want here want to live in Maupin before they get here.”


Many community colleges around the state offer “So you want to start a business” classes for aspiring business owners. Such classes are generally well-attended in urban areas but rural residents find it difficult to attend classes that can be many miles away. And then there’s the issue of cost, both travel and education costs, not your first priority in a rural community when you are trying to pay basic living expenses in a down economy.


Mary Merrill, director of the Small Business Development Center at Columbia Gorge Community College, has even experienced challenges offering classroom instruction right in rural communities so that students wouldn’t have to travel over 40 miles to The Dalles or Hood River.


“We offered a class right in Maupin and I believe we only had three prospective students. It clearly wasn’t attractive to the community,” said Merrill.


So the dilemma remains: How does a small rural community like Maupin help residents with new business ideas develop those passions into viable businesses that fuel community economic development?


In Maupin’s case, turn the clock back to before Ross became mayor. He visited Joseph, Ore., in 2000 on another matter and happened to read a newspaper article about Dr. Ernesto Sirolli’s “enterprise facilitation” method of stimulating economic development in rural communities. (
www.sirolli.com)


Knowing that Maupin was struggling economically, Ross called The Sirolli Institute and inquired about the enterprise facilitation process.


“I was just amazed at the simplicity of the concept,” Ross said. “The Sirolli folks told me that, for them, ‘economy’ was simply communities of people doing beautifully what they have a passion for doing. The better they are at it, the better the economy.”


“We hadn’t been considering a ‘bottom up’ approach to economic development,” he added.
“Like many other communities we thought we had to use a ‘top down’ approach, try to attract businesses with jobs to relocate to Maupin. This really changed my outlook on economic development.”


Ross then read Dr. Sirolli’s book “Ripples from the Zambezi — Passion, Entrepreneurship and the Rebirth of the Local Economy.” Based on his work with a small rural community in Western Australia, Sirolli developed a community economic development approach based on harnessing the passion, determination, intelligence and resourcefulness of the local people.


Sirolli’s principles involve a committed volunteer local resource board, who hires an enterprise facilitator who is then trained by The Sirolli Institute. The facilitator does not initiate projects or promote good ideas. He or she responds to the interests and passions of self-motivated people.


No one has equal passion for production, marketing and financial management, the “three legs of the business stool,” so Sirolli’s method has people concentrating on what they do best. And the secret of success for any business, according to Sirolli, is to find people who love to do what you hate. The enterprise facilitator and the resource board, with networking, help people form teams to move their business ideas forward.


By 2005 Ross was convinced that enterprise facilitation using the Sirolli method was the key to Maupin’s economic development success. That same year Ross was invited to a Sirolli Institute “observation session” in Baker City, a chance to see first-hand how enterprise facilitation had succeeded in that community.


Ross asked Rob Miles, owner of The Imperial River Company, to attend the session in Baker.
“I went over to Baker not really knowing anything about enterprise facilitation or Dr. Sirolli,” Miles said. “I came back with a whole new perspective on my own business (guest lodge and river recreation) and perspective on new businesses in Maupin.”


“You have to realize what your passions are in order to be successful,” Miles added. “Marketing was the piece of the ‘trilogy’ (product, finance, and marketing) that I was least passionate about and capable of doing successfully. I’m good with our product and finance but marketing — I don’t like it and I don’t want to do it. When I came back from the session in Baker I hired a marketing director and it’s been the smartest thing I’ve done. Across the board, in this down economy, our entire business has been flat, which is incredible.


As 2006 rolled around Ross’ enthusiasm for the Sirolli method of enterprise facilitation was getting contagious. With the assistance of the Wy’East Resource Conservation & Development Council, a volunteer resource board comprised of between six and 10 professional and civic members was assembled.


Their first task, following the Sirolli method, was to hire an enterprise facilitator who would be the first point of contact for passionate people with business ideas.


Enter Greg Hohensee, the board’s clear choice to fill this role.


At 16, Hohensee became an apprentice in a cabinet shop in his hometown of East Aurora, N.Y. While honing his skills as a cabinetmaker, Hohensee graduated college with a degree in biology. Wondering what to do with that degree, he realized shortly thereafter that being a cabinetmaker was what he loved, not biology. So Hohensee operated his own cabinet shop for a number of years — and realized that getting involved with the community was helping his business. But his “Aha” moment came when he also recognized that helping people develop their passions was really his passion.


“There was no question that Greg was the right guy for the position of enterprise facilitator;” Ross said. “He experienced both success and failure with his business.”


“My role [as enterprise facilitator] was pretty simple. When a client called me with an idea, that maybe everyone in their family thought was crazy, I sat down with them and let them describe it to me. I’d simply say ‘OK, what do you love to do, what’s your passion?’ My sole goal was to find a way to make that passion, that business, happen for them,” said Hohensee.


The program proved successful fairly quickly. In the two years (February 2008 to March 2010) that Hohensee held the position he worked with 114 clients spread over a service area that included six counties in Central and North Central Oregon. Nine new businesses were started, one in Madras, one in Moro, one in Wamic, two in Sisters, one in The Dalles, one in Prineville, and two in Maupin.


Maupin, due to Denny Ross’ initial enthusiasm, became a hotbed for new enterprise ideas. Eighteen new microenterprise projects were started during the initial two-year period.


“Word spreads pretty quickly,” Ross said. “When your town has a year-round population of around 500, everyone knows everyone here.”

Neighborhood Grocery

The Maupin Market, presently being built at the site of the former Graves’ Market downtown, is the dream of Randy and Allison Bechtol. The Bechtols enjoyed a vacation home in Maupin and often thought it would be great to both live and start a business there. And then, about three years ago, Randy was laid off from his job, providing the “push” they needed to really start thinking about opening a business in Maupin.


“We initially thought about a pizza parlor in Maupin but neither of us had backgrounds in food service, didn’t really know where to begin,” said Randy.


They learned about Hohensee in the mayor’s monthly newsletter.


“We sat with Greg and told him about our dreams, ran the proverbial ‘numbers on a napkin’ and realized that a pizza parlor would be very tough to ‘pencil-out’ in Maupin. So we began to consider, with Greg’s help, a food market that could be built just north of downtown,” Randy said.


Why a food market? Hohensee’s resource board members knew that the Graves Market, a staple in downtown Maupin since the 1920s, might be closing, leaving no local market for residents to purchase groceries. The nearest market would be 39 miles away in The Dalles.


Randy Bechtol realizes the advantages of the enterprise facilitation process.


“Allison and I have extensive backgrounds in operations, finance, and marketing but we had never run our own business,” he said. “Greg made us think about all aspects of the business from talking with accountants, to hooking us up with a local organic farm (Seed to Table) for produce, to the design of the deli counter,” said Randy.


Randy and Allison also received help with one of the most difficult parts of starting a business: writing the business plan.


“And because of Greg’s and Mary’s participation, the bank felt there was an extra measure of credibility present as well,” Randy added.

Pizza and Rafting

By day, Matt Fox is a fisheries biologist working on the Deschutes River studying the Pacific Lamprey. By night, he owns the Deschutes Pizza Company located in downtown Maupin.


Early in 2008, having researched Bureau of Land Management data on the number of river users coming through Maupin, Fox believed there might be an opportunity for a pizza restaurant downtown.


Earlier in his life, he had worked for a number of restaurants and felt confident he understood the business. But he had never owned his own restaurant. He turned to restaurant friends in Bend for help.


“These folks are owners and general managers so they gave me good information on what to consider when starting a restaurant,” Fox said.


By February 2009, moving along with his plans for a restaurant, Fox got an e-mail from Bob Krein, owner of the Sage Canyon River Company in
Maupin. Very well-connected throughout the community, Krein knew Fox was planning a restaurant. He also heard about the enterprise facilitation process and felt Fox might benefit from participating.


Fox began meeting with Greg Hohensee shortly after that.


“I was skeptical, actually a little bull-headed at first because I had my Bend mentors who had their own version of the ‘trinity of management’ (product, finance, and marketing),” Fox said. “But as I continued to meet with Greg I found that the ability to talk with someone, confidentially, about my plans was the most helpful part of the enterprise facilitation process.”


Leasing space in a building downtown, Fox opened his restaurant June 5, 2009. The restaurant shares space with the Sage Canyon River Company.


“Raft lunches on river trips, through Sage, make up a large part of our revenue stream,” Fox said.


An accomplished entrepreneur, Fox is already planning other businesses, extensions of the Deschutes Pizza Company, and plans to use the enterprise facilitation process again.

When is a Failure a Success?

Back to Lynn Harris, the Wapinitia resident who had been working as a bookkeeper for Oregon Log Homes in Maupin. Losing her position when the housing market collapsed, Lynn wondered “Now what? I knew there were no jobs in south county, I figured it was time to get creative and follow my passions.”


Lynn’s passion (which her five sisters share as well) is bicycle touring. Late in 2008, she and her sisters started brainstorming creation of a bed and breakfast centered on cycling. Wapinitia, about 15 miles west of Maupin, has an old grange hall the sisters felt might work as a hostel.
Problem was, Harris had no idea where to begin.


“I didn’t have a clue about how to go forward with the idea,” Harris said.


Rob Miles heard about Harris’ idea and immediately put her in touch with Hohensee. The five sisters met with Hohensee and Merill many times over the course of two months.


“Greg never told me what to do, he drew me through thinking about the idea, we must have talked about 10 times in those two months. It became pretty clear to us what we needed to do,” said Harris.


The sisters realized their business plan would not work.


“They realized that they really weren’t that interested in housing and feeding people, they just wanted to be involved with and support cycling,” Miles said. “That’s the beauty of enterprise facilitation — it fleshes-out entrepreneurial ideas through the filter of experienced local professionals.”


Harris and her sisters, as a result of the enterprise facilitation process, saved themselves a lot of work, money, and frustration.


Enterprise facilitation succeeded in helping them avoid a costly mistake. It also redirected their cycling passion through existing community resources. Rob Miles’ Imperial River Company had the location, the lodging, a restaurant and river access that met the needs of cycle tourists.


“We started planning cycling-rafting-touring events in January 2009 for the summer season with Imperial,” Harris said. “Rob’s marketing director helped tremendously with all the marketing aspects of attracting bicycle tourists. Unfortunately we didn’t get a lot of response that summer because the economy got so bad.”

An Uncertain Future

More rural communities have embraced enterprise facilitation. Wallowa County Business Facilitation in Joseph and Baker City’s Enterprise Growth Initiative (BEGIN) are but two of the many programs successfully operating now in Oregon.


Unfortunately Wy’East Resource Conservation & Development enterprise facilitation program has stalled recently.


Funding is the biggest challenge. Initial funding was provided by USDA’s Rural Development program, Oregon Economic and Community Development, the City of Maupin, the Meyer Memorial Trust, Sherman County, and private donations. This funding primarily covered the expenses associated with the original enterprise facilitator, Greg Hohensee, who left the position in March 2010 to pursue other entrepreneurial challenges.


Dr. Ernesto Sirolli understands the overall challenges involved.


“Enterprise facilitation is still considered a maverick type of economic development by government,” Siroli said; “it’s still done mostly top-down with a ‘if you build it they will come’ mentality. Enterprise facilitation is just the opposite; it comes from the bottom up.”


Another challenge is the sheer size of the territory. With a service area that covered six counties — Hood River, Wasco, Sherman, Jefferson, Deschutes, and Crook — Hohensee’s client interactions had to be spread out.


“The enterprise facilitator covered a huge territory, it really spread him very thin, I believe he had 104 clients at one point which was way too many for one facilitator to handle,” said Maupin Mayor Denny Ross.


And then there’s controversy surrounding the on-site, one-on-one mentoring used by the Sirolli method versus traditional classroom instruction espoused by a potential funding partner.


“The one-on-one worked for us here on our farm; we probably would not have used enterprise facilitation if we had to go somewhere to a classroom,” said Bob Larsell, co-owner of the Seed to Table Farm.


“This is rural Oregon; a lot of business gets done in pubs and at people’s places of business,” Miles added. “There are a lot of people who have great ideas, a lot of passion, but will never make it to a classroom.”

Information about Wy’East’s enterprise facilitation project is available atwww.centraloregonmicroenterprise.com. Dr. Ernesto Sirolli’s enterprise facilitation principles can also be accessed at www.sirolli.com.


Saturday, July 24, 2010

Will Sisters have an Economic Development Director?

(This article originally appeared in the Nugget Newspaper 7/20/2010)

By Bill Mintiens


The Sisters City Council budgeted and approved $30,000 for the 2010/2011 fiscal year for a part-time economic development director. The 2010/2011 fiscal year started on July 1.

The money is there, the director is not.

Back on May 6, Patty Vandiver, chamber of commerce president and SBART (Sisters Business Attraction and Retention Team) project manager, wrote a letter to the Sisters City Council stating, "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."

Having just entered into their yearly budget cycle, the council dutifully discussed the proposal during budget committee meetings and decided to add the part-time position into the city's 2010/2011 budget.

But councilors and budget committee members had reservations.

Vandiver's proposal stated that the economic director should be "under direction of the Sisters Country Chamber of Commerce Executive Board of Directors."

Councilor Sharlene Weed was a vocal opponent.

"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. And I'm not in favor of the person reporting to a committee."

Chris Tosello, a budget committee member, agreed with Weed.

"I think there are too many gray areas about the position right now; we need clarification," said Tosello.

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.

The council, clearly wanting clarification on the duties, responsibilities, and reporting structure of the position turned to Roger Lee of EDCO (Economic Development for Central Oregon) for assistance.

EDCO helps to fund and manage economic development director positions in Redmond, Prineville, and Madras. Successful programs in both Prineville (acquisition of the Facebook facility) and Redmond (Altrec, T-Mobile, and several other businesses) give EDCO experience and credibility with hiring and management.

When asked about EDCO's role in Sisters' hiring process, Roger Lee, in an e-mail dated June 25, wrote, "We are still trying to work out some of the logistical and legal details. Our board has officially not yet decided to proceed, however I don't see any real roadblocks. I expect that we will have a decision at our July 8 board meeting. Assuming that EDCO is involved as discussed, we would look to advertise, conduct interviews and ideally hire by the first week of August. I would expect that EDCO would coordinate the interviews, but that most of the hiring panel would be comprised of leaders in Sisters."

EDCO's July 8 annual meeting, held at St. Charles Medical Center in Bend, went longer than expected, allowing the EDCO board no time for discussion. Roger Lee briefly mentioned the Sisters issue but tabled the discussion.

Eileen Stein, Sisters city manager, thinks she understands what Lee means by "legal details." In an e-mail dated July 13, Stein wrote, "Last week Mayor Kellstrom asked me to give our legal counsel an agreement to review. It was an agreement between the city and EDCO relative to the position. So this is what the 'legal' issues probably
are."

Three weeks into the 2010/2011 fiscal year, there is no sign that Sisters is close to hiring an economic development director.

Councilor Sharlene Weed, still opposed to the position and frustrated by the process, recently commented: "We have not had a proposal. What is the plan? Job description? Reporting structure? Measurable outcomes? I would rather use the funds to reenergize our Community Action Team... pay for a part-time director. That person could help 'stimulate' a number of community projects (leadership, outside voice, public art, etc.) as well as 'economic
development.'"


Friday, May 28, 2010

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.

Saturday, May 8, 2010

Attracting and Keeping Business is a Tough Job

This article was published in the 5/10/10 issue of the Nugget Newspaper http://www.nuggetnews.com/main.asp?SectionID=7&SubSectionID=88&ArticleID=17176&TM=37147.77

Bringing new businesses to Sisters - and keeping the ones that are here - is proving to be a challenge for the citizen volunteers who have taken on that mission.

The Sisters Business Attraction and Retention Team (SBART) has been working on attracting and retaining businesses for about 16 months.

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 Sisters City Manager Eileen Stein.

A sub-committee of the Sisters Area Chamber of Commerce, the all-volunteer team is a cross-section of the Sisters business, arts, and cultural community.

"Because of the need for confidentiality with potential businesses, we could not be under the city's umbrella, it just made sense to be under the chamber's umbrella," said Vandiver.

SBART receives no funding from the chamber but is working with the Sisters City Council on future funding for marketing programs.

"Right now we don't have our own Web site or marketing materials but, for relocation inquiry purposes, SBART contact information is on the chamber's web site. We need somewhere between $30-50,000 in funding to pay for a marketer to create and execute a marketing plan aimed at potential businesses," said Vandiver.

SBART's outreach and "attraction" efforts have been significant, even without adequate marketing funds.

"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.

Hay added "We're talking with one company that could potentially employ over 100 people here in Sisters. They'd like to build a building, but need investors to make it happen."

Much tighter lending guidelines at banks and lending institutions, combined with reluctance by local investors, have left many potential new start-ups without the capital to get their businesses started.

Deanna Allred, a business development officer with the Bank of the Cascades, sees this every day.

"Credit is still pretty tight for start-ups in Central Oregon. Banks are still lending of course, but good credit quality is very important, as is a very well-thought-out business plan," said Allred.

Adding to the tight credit environment, potential Sisters Country owners/investors have shied away from local investment opportunities. Two recent examples include Crown Point Bank, a start-up which heavily solicited local investment, but ultimately dissolved; and Pinnacle Alliance LLC's attempts to fund a senior assisted-living facility in the newly annexed Metolius Meadows Village property. (See related story, page 1.)

"My goal was and is to finance the development through local investment and ownership. Unfortunately, given the economy, I don't think local ownership will happen, investment is likely to come from out-of-the-area sources," said Mark Adolf, president of Pinnacle.

SBART admits that their efforts over the past 16 months have been more toward "attracting new businesses" than retaining existing ones.

"We have about five potential new businesses that could potentially employ about 30-50 people here in Sisters within the next year, depending on how the economy recovers, of course," said Patty Vandiver.

However, these new companies may not make up for the continued loss of companies and jobs from Sisters.

After 15 years in Sisters, Faceout Studio, formerly DesignWorks, moved their office and nine employees this past January from their South Pine Street building to a space in Bend's Old Mill District.

A graphic design studio specializing in publishing, Faceout's clientele is national and the location of the company could be anywhere. Torrey Sharp, co-owner of Faceout, has lived in Sisters for close to 20 years but says the move was right for the company.

"Here's the brutal reality," said Sharp. "Artists and creative people need a variety of cultural influences to stay 'cutting edge' in commercial design. Our nine employees, for the most part, come from larger metropolitan areas. Sisters' 1800s theme really isn't enough to stimulate them. We realized that, after 15 years in Sisters, the environment was stifling the creativity of our employees, most of who commuted from Bend anyway."

Sharp also emphasized that commercial rents in Bend also made the move attractive to his company.

"The Old Mill District offered us a commercial rent that was very close to what we were paying in Sisters - and they really wanted us to relocate there. But we didn't receive any 'incentives' to move to the Old Mill," said Sharp.

A more recent example of a company leaving Sisters is O'Keefe's Company, manufacturer of O'Keefe's Working Hands Créme. The company employed 20 people in full- and part-time positions. Sold to Gorilla Glue of Cincinnati, Ohio, the company's jobs are moving to Ohio. (See related story, page 1.)

SBART volunteers acknowledge the task of retaining businesses is very difficult because they don't always "get wind" of a potential loss until after the fact.

"We're frustrated when we hear through the grapevine that a company is leaving Sisters. We'd like the opportunity to chat with them before they leave town," said Mac Hay.

Stein empathizes with SBART's challenge.

"I think SBART has been concentrating on 'attraction' but, clearly, they realize they also need to concentrate on the 'retention' part of their mission, too," said Stein.

Stein added "Economic development takes a long time. You have to kiss a lot of frogs."

Although the SBART team works well together, it's clear they would appreciate help from all the residents of Sisters Country.

"Everyone in Sisters needs to be the eyes and ears of SBART," said Patty Vandiver. "We all encounter people who come into town and say 'wouldn't it be great to have our business here and live here as well.' We encourage everyone to make note of these contacts and pass this information on to one of us so we can follow up."

Contact information for SBART can be found on the Sisters Country Web site, http://www.sisterscountry.com