DDA members nixed the Business... HOLLY, Michigan – With neighboring communities offering businesses big incentives to set up shop in their downtown areas, Holly’s Downtown Development Authority hoped to do the same.
In July, members of the DDA Board of Directors approved the Business Finder’s Fee (BFF) program – a program designed to enlist the help of the entire Holly community in the recruitment of new businesses. Under the program guidelines, an person responsible for recruiting a new business to Holly would receive $1,000 for his or her efforts.
While the board initially approved the concept in July by allocating $3,000 in funding for it, board members began expressing concerns over the eligibility factor, forcing the New Business Development committee to go back to the drawing board to tighten up the verbiage, and clarify the particulars of the grant.
Holly Township Trustee Janet Leslie served on the New Business Development committee, the committee responsible for addressing the board’s concerns, and attended the Feb. 13 DDA meeting to voice her support of the program.
“I didn’t have a hand in creating (the BFF program), but I did help in refining it, and I think when you review the wording of it, you’ll find that we did our best to make sure that the board is protected,” Leslie said. “If you move forward with the grant, the language is tight enough now that you won’t have the problem of people coming back to the board saying the grant was administered unfairly.”
Board member Jessica Teague who also served on the New Business Development committee, urged fellow board members to take action.
“If we don’t offer some type of incentive, we run the risk of really being behind the times,” she said. While other communities are subsidizing rental fees or offering start-up costs to new businesses, Teague said budget constraints have caused Holly to take another approach.
“Although (other communities) are focusing on the businesses, we may benefit by incorporating our many community members into the package and allowing them to be recruiters,” Teague said. “We’ve added a different spin to it based on the demographics of Holly and what makes us tick, and what makes us work,” she added. “So, it isn’t an apples-to-apples comparison to other communities, but it’s what we can do to help generate more activity to bringing businesses into Holly – and that’s the purpose of it.”
DDA member and downtown business developer, Bob Hoffman said he was “100 percent against the BFF concept.”
With a limited budget of only $3,000, Hoffman said only three people would benefit from the program. “I as a landlord could fill my vacant building and collect $1,000,” he said. “I don’t agree with that.”
Additionally, Hoffman pointed out that the wording of the grant enables any private or public employee of the village to be eligible for the $1,000 cash reward. “Does that mean our DDA director would be eligible when it’s part of the job description – or the village manager?” he asked. “I’m not opposed to incentives, but I think you need to give them to the business owner or the new business coming in here.”
Hoffman said he believes the program as stipulated in the guidelines is almost certain to cause arguments among business owners and members of the community. “I can see arguments popping up down the road about who gets (the grants),” he said. “I think you’re just opening up a can of worms.”
DDA Director Hope Ponsart said the program would promote awareness within the community. “Some people may not know about Holly actually being competitive and being a great place to live,” she said. “We need people who are going to be proactive in promoting Holly, and we need to develop and incentive for them to do that – that’s what we attempted to do.”
Ponsart further defended the concept by saying that the three individual payouts of $1,000 would have far more impact than just on its three recipients. “If a business comes in, that means more jobs – it means an empty storefront is suddenly vibrant and has a business in it that is contributing to the community,” she said. “And yes, we’d be happy to have Bob Hoffman get the first BFF by putting something in your storefront.”
“But I don’t agree with that,” Hoffman reiterated. “I don’t think it’s right – I don’t think realtors should be included, and I don’t think public employees should be included,” he added. “If you bring somebody in here – would the DDA position be able to collect $1,000?”
“They would be eligible, but ethically, no,” Ponsart said. “No, I wouldn’t do that.”
“But it says that in there,” Hoffman said pointing to the guidelines. “That’s the problem.”
Holly Township Supervisor and DDA board member Jesse Lambert suggested reducing the $3,000 amount to $500, then offering five eligible recruiters $100 each for a the Business Finder’s Fee.
Fellow board member Autumn Anderson said she was in complete agreement with Hoffman, and suggested putting the $3,000 toward the creation of promotional pamphlets about the village of Holly to be distributed at rest stops and other places of business.
Village President Jeff Miller who also serves on the DDA Board of Directors said he too, was against the BFF program. “We shouldn’t have to be paid to be good will ambassadors,” he said. “I’ve promoted Holly for a lot of reasons – the restaurants, the shopping and the fun that we have.”
Teague reminded the board that the Business Finder’s Fee concept and budgeted amount had already been approved by the board in July. “The funding for it – the $3,000 paid to three different people at $1,000 each was approved by the board previously,” she said. “These are just the guidelines to put feet to the program that you already approved and you already budgeted.”
Ponsart told board members if they didn’t like the program, they could simply make a motion to eliminate the concept. “At least we can move on and get it off the table,” she said.
With that, DDA Board Member Yvonne Lewis made the motion to eliminate the proposed BFF program, with Anderson seconding her motion. In a vote of 5-2, the motion passed with Lambert and Teague casting the dissenting votes.
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Comments
The premise of the program was to provide a nominal incentive and reward to recruit business to Holly. It wasn't intended to be a panacea. Instead of 3 $1000 grants, why not 6 $500 grants? If there were conflicts with certain public employees, why not add more restrictions or exclusions?
In other words, why not try to work out those kinks and collaborate on a program that is putting DDA-captured tax dollars toward fostering business in Holly instead of just scrapping the whole program? Don't you think that three viable new businesses are going to have a greater economic impact than $3000 per year, especially if they hire even one employee?
It's one thing to get on a soapbox and talk about business recruitment and economic development. It's another to take responsibility and initiative to follow through and make it happen.
There is a way to make this program work but one of the concerns was whether this was the best use of limited funds. Maybe with a few modifications this program could have been put on a 6 month trial. During that time develop another program be and then a decision could be made regarding which option is best for the community. This way the program is tested for success and the committee can develop new concepts or perfect this one.
My point was simply that applying a derogatory label to someone (or a group of people) simply because they don't share your view isn't going to help anyone.
Ryan, I can tell you from first-hand knowledge that every member of the DDA, the village manager, the DDA director and those present in the audience are all pro-Holly business.We entered the meeting as friends, with one goal in mind; to continue to make Holly a better place. What transpired was democracy at work. Some members thought that the previously budgeted amount of $3,000 for the BFF should be discussed further. In a professional and courteous manner, the issue was debated by the DDA members with input from the audience. A motion was made and supported to eliminate this particular program, and perhaps find a way to use our limited funds to benefit more businesses. More bang for the buck. The motion carried, and we left the meeting as friends knowing that working together we moved closer to accomplishing that goal.
And although I absolutely agree with you that putting each and every unit on its own water meter is going to cause hardship for many, I understand that the reason the village is doing this is to increase water and sewer revenue, which should ultimately reduce rates for all. It's a matter of more fairly distributing the burden. But it's a bitter pill, and I am one of those who will be compelled to swallow it.
All we can do is stay vigilant, and stay positive. And if you happen to live in the village, pay very close attention to your council members and potential candidates, because election time is coming soon.
As for me, I rent retail space on South Saginaw which is not currently on a separate meter, but which I expect soon will be. Do I think having to pay those debt service fees will negatively affect my ability to get my business up and running? Absolutely! But I couldn't expect to be exempt from paying a fee that others must pay in order to have running water. That just wouldn't be fair.
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