By : Vikki Broughton Hodges
Source : http://www.the-dispatch.com
category : Small Business Grant
During the Thomasville City Council’s five-hour annual retreat Saturday, everything from city staff raises and how to better communicate with the public to the merits of Bermuda grass at the municipal golf course were discussed. But economic development incentives to create and add jobs in small businesses in the Chair City was the most discussed topic.
No action is taken at the annual retreat but the informal discussions help set the board’s agenda as it works toward adoption of a new fiscal year budget for 2012-13.
City Manager Kelly Craver proposed using anywhere from $50,000 to $100,000 out of the city’s economic development fund, which currently totals $609,923, to establish a revolving loan pool for small businesses with less than 50 new employees and a projected gross revenue under $1 million. The regenerating and perpetuating fund could be at an extremely low or no-interest rate over five years. Craver said the council could define who would be eligible but noted it could be used for building renovations, to purchase real estate, for the purchase of property that would be leased to the business, start-up equipment or working capital.
“The city would not be competing with banks,” Craver said, noting small business loans are still very difficult to obtain in the current economic climate. “Our payback is tax base and jobs.”
Craver said the U.S. Department of Agriculture has a similar revolving loan program but the city can’t apply for funding until the next fiscal year because Thomasville already has a USDA grant application in for the Church Street School redevelopment project and such loans are limited to one per year.
“I’m suggesting we create our own track record — use our funds to form our own loan pool,” he said, and then apply for future funding from USDA to supplement local funds.
Like Community Development Block Grants, the federal grants are awarded to those who have a good track record with them in the past but a record has to be established first, he noted.
The board also heard a proposal from Councilman Joel Pierce, who suggested the city use some economic development funds to give existing small businesses of 10 or fewer employees, grants of $250 to $500 for each full-time job they create for at least a year. He said his proposal is similar to a grant program Denton adopted this past year.
“Everybody from out of town wants incentives,” Pierce said. “I think it sends a signal more important than the money.”
Pierce’s proposal will go to the board’s Personnel/Finance Committee for further study.
Councilman Scott Styers said he liked both proposals because most economic development tax incentives are geared to property owners and businesses with equipment but small business owners who lease property can’t quality for those.
Councilwoman Pat Shelton suggested the establishment of a Thomasville Economic Commission with a paid staffer to encourage small business development also addressed by the employee grant and revolving loan pool proposals. The position would be funded by set-aside funds, she proposed.
Shelton and Styers both noted the Davidson County Economic Development Commission’s mission is geared toward bringing larger manufacturers as opposed to retail, commercial and small manufacturers.
“There’s a piece missing in economic development,” Styers said, noting he and fellow Councilman Raleigh York are serving on the Thomasville Area Chamber of Commerce’s Envision 2020 implementation committee and the subject of how to promote entrepreneurship in the city is an area that needs addressing. “There’s no doubt there’s a need.”
Several council members questioned a paid staff position and Councilman Neal Grimes suggested the city manager discuss with Doug Croft, president of the Thomasville chamber, if a new marketing manager to be hired soon by the chamber might address small business recruitment.
In budget matters, Thomasville Finance Director Tony Jarrett said the city’s finances for fiscal year 2011-12 are much improved compared to the past seven years.
“The general fund has stabilized,” Jarrett said, noting property and sales taxes have been recovering and this is the first year in seven years that the state has not sent a letter to the city about being below the recommended fund balance level. The fund balance for 2011-12 is 17.4 percent, up from 7.9 percent a few years ago, with a goal of reaching 20 percent.
“This is the recovery we promised two years ago,” he said.
In light of a better financial picture, Craver also asked the council to consider a 2 percent cost-of-living raise for city employees since they have not had raises included in the last three budgets adopted. There was discussion about whether the raise would apply to all staffers at all pay levels and the impact of new county property valuations on city revenue. On an approximately $12 million payroll, a 2 percent raise would cost approximately $250,000, which Jarrett said would likely be doable if property valuations don’t change significantly. He said other cities have frozen salaries in recent years as well and some are considering one-time payments, such as $500 to all employees, until budgets stabilize.
“I really believe 2 percent is doable across the board and sustainable,” Jarrett said.
In other business, Councilman Ronald Bratton suggested “more teeth” in guidelines about vacant industrial buildings that pose a public safety risk and more aggressive demolition and condemnation procedures. He proposed that demolition permits issued by the city be sent not only to property owners but lien holders. In a recent case, Randolph Bank, which had foreclosed on former Thomasville Furniture Industries Plant B, owned by Asheboro businessman Jeff Schwarz, initially didn’t know demolition had begun on that plant but was never completed. Bratton suggested the Planning Department look into how other cities are coping with such problems as well.
Craver told the council the city had just been notified TFI Plant L, also owned by Schwarz, had been foreclosed on. Schwarz also owns former TFI Plant A.
Craver said the city has also recently been notified that Ison Enterprises, which owns former TFI Plant D and warehouses furniture in part of the building, has filed for bankruptcy.
“I’m afraid this may be part of a trend,” he said.
The council also discussed several proposals to better communicate with constituents, including town hall meetings, social media and using Channel 13, which videotapes council meetings. Jackie Jackson said the city’s Facebook page could be updated more often but another way to reach out to those who don’t have computers would be to send quarterly newsletters out with waters bills about action taken in recent meetings and dates of upcoming meetings. Bratton said putting meeting agendas on Channel 13 could also be helpful.
The council discussed videotaping committee meetings and briefing meetings, as the official monthly meetings are taped, but the consensus appeared to be that briefings might be videotaped but taping committee meetings might stifle open discussions. Pierce supported taping committee meetings as well but no one else spoke in support of that move.
Styers said he is in favor of transparency in government but added, “on camera, people act differently.
“It’s just human nature. I think you’d change the tenor of the discussion.”
Source : http://www.the-dispatch.com/article/20120128/NEWS/120129967?p=4&tc=pg
Source : http://www.the-dispatch.com
category : Small Business Grant
During the Thomasville City Council’s five-hour annual retreat Saturday, everything from city staff raises and how to better communicate with the public to the merits of Bermuda grass at the municipal golf course were discussed. But economic development incentives to create and add jobs in small businesses in the Chair City was the most discussed topic.
No action is taken at the annual retreat but the informal discussions help set the board’s agenda as it works toward adoption of a new fiscal year budget for 2012-13.
City Manager Kelly Craver proposed using anywhere from $50,000 to $100,000 out of the city’s economic development fund, which currently totals $609,923, to establish a revolving loan pool for small businesses with less than 50 new employees and a projected gross revenue under $1 million. The regenerating and perpetuating fund could be at an extremely low or no-interest rate over five years. Craver said the council could define who would be eligible but noted it could be used for building renovations, to purchase real estate, for the purchase of property that would be leased to the business, start-up equipment or working capital.
“The city would not be competing with banks,” Craver said, noting small business loans are still very difficult to obtain in the current economic climate. “Our payback is tax base and jobs.”
Craver said the U.S. Department of Agriculture has a similar revolving loan program but the city can’t apply for funding until the next fiscal year because Thomasville already has a USDA grant application in for the Church Street School redevelopment project and such loans are limited to one per year.
“I’m suggesting we create our own track record — use our funds to form our own loan pool,” he said, and then apply for future funding from USDA to supplement local funds.
Like Community Development Block Grants, the federal grants are awarded to those who have a good track record with them in the past but a record has to be established first, he noted.
The board also heard a proposal from Councilman Joel Pierce, who suggested the city use some economic development funds to give existing small businesses of 10 or fewer employees, grants of $250 to $500 for each full-time job they create for at least a year. He said his proposal is similar to a grant program Denton adopted this past year.
“Everybody from out of town wants incentives,” Pierce said. “I think it sends a signal more important than the money.”
Pierce’s proposal will go to the board’s Personnel/Finance Committee for further study.
Councilman Scott Styers said he liked both proposals because most economic development tax incentives are geared to property owners and businesses with equipment but small business owners who lease property can’t quality for those.
Councilwoman Pat Shelton suggested the establishment of a Thomasville Economic Commission with a paid staffer to encourage small business development also addressed by the employee grant and revolving loan pool proposals. The position would be funded by set-aside funds, she proposed.
Shelton and Styers both noted the Davidson County Economic Development Commission’s mission is geared toward bringing larger manufacturers as opposed to retail, commercial and small manufacturers.
“There’s a piece missing in economic development,” Styers said, noting he and fellow Councilman Raleigh York are serving on the Thomasville Area Chamber of Commerce’s Envision 2020 implementation committee and the subject of how to promote entrepreneurship in the city is an area that needs addressing. “There’s no doubt there’s a need.”
Several council members questioned a paid staff position and Councilman Neal Grimes suggested the city manager discuss with Doug Croft, president of the Thomasville chamber, if a new marketing manager to be hired soon by the chamber might address small business recruitment.
In budget matters, Thomasville Finance Director Tony Jarrett said the city’s finances for fiscal year 2011-12 are much improved compared to the past seven years.
“The general fund has stabilized,” Jarrett said, noting property and sales taxes have been recovering and this is the first year in seven years that the state has not sent a letter to the city about being below the recommended fund balance level. The fund balance for 2011-12 is 17.4 percent, up from 7.9 percent a few years ago, with a goal of reaching 20 percent.
“This is the recovery we promised two years ago,” he said.
In light of a better financial picture, Craver also asked the council to consider a 2 percent cost-of-living raise for city employees since they have not had raises included in the last three budgets adopted. There was discussion about whether the raise would apply to all staffers at all pay levels and the impact of new county property valuations on city revenue. On an approximately $12 million payroll, a 2 percent raise would cost approximately $250,000, which Jarrett said would likely be doable if property valuations don’t change significantly. He said other cities have frozen salaries in recent years as well and some are considering one-time payments, such as $500 to all employees, until budgets stabilize.
“I really believe 2 percent is doable across the board and sustainable,” Jarrett said.
In other business, Councilman Ronald Bratton suggested “more teeth” in guidelines about vacant industrial buildings that pose a public safety risk and more aggressive demolition and condemnation procedures. He proposed that demolition permits issued by the city be sent not only to property owners but lien holders. In a recent case, Randolph Bank, which had foreclosed on former Thomasville Furniture Industries Plant B, owned by Asheboro businessman Jeff Schwarz, initially didn’t know demolition had begun on that plant but was never completed. Bratton suggested the Planning Department look into how other cities are coping with such problems as well.
Craver told the council the city had just been notified TFI Plant L, also owned by Schwarz, had been foreclosed on. Schwarz also owns former TFI Plant A.
Craver said the city has also recently been notified that Ison Enterprises, which owns former TFI Plant D and warehouses furniture in part of the building, has filed for bankruptcy.
“I’m afraid this may be part of a trend,” he said.
The council also discussed several proposals to better communicate with constituents, including town hall meetings, social media and using Channel 13, which videotapes council meetings. Jackie Jackson said the city’s Facebook page could be updated more often but another way to reach out to those who don’t have computers would be to send quarterly newsletters out with waters bills about action taken in recent meetings and dates of upcoming meetings. Bratton said putting meeting agendas on Channel 13 could also be helpful.
The council discussed videotaping committee meetings and briefing meetings, as the official monthly meetings are taped, but the consensus appeared to be that briefings might be videotaped but taping committee meetings might stifle open discussions. Pierce supported taping committee meetings as well but no one else spoke in support of that move.
Styers said he is in favor of transparency in government but added, “on camera, people act differently.
“It’s just human nature. I think you’d change the tenor of the discussion.”
Source : http://www.the-dispatch.com/article/20120128/NEWS/120129967?p=4&tc=pg
