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Posted: Mar 19, 2008 - 08:05:12 PDT
Lincoln City looks at becoming 'economic gardener'
By Kendall S. Cable Of the News-Times
The City of Lincoln City is rolling up its sleeves and pulling on its gloves in preparation for its soon-to-be new role as an "economic gardener."
Tilling the land, the city is to offer up to six spaces on the first floor of city hall to the project. The Visitor and Convention Bureau will be transplanted to the fourth floor of the building, and the Visitors' Center to DeLake School to make way for a rotation crop of entrepreneurs.
The city's seeds are to consist of a variety of start-up businesses - the parties who have expressed interest either to city staff or through members of the Lincoln City Chamber of Commerce Business Expansion and Retention Committee.
This project is to be watered with a possible $5,000 to $10,000 in startup monies, and the businesses with reduced rent, immediate non-profit status and liability insurance under the city's umbrella, Mayor Lori Hollingsworth explained.
"Research has shown that growing businesses and nurturing them is the most effective, cost effective way to grow employment, period," City Manager David Hawker told city council last week. "That is why this was proposed, and I hope that it is very successful."
Hawker explained that it was common belief and practice by many governments that an offer of tax incentives and strong recruitment efforts would equate to economic and employment stability within a community. However, studies in the last five to seven years have proven otherwise as many businesses that accept such incentives leave when there is a better offer in sight.
"The drawback is that it would not be independent," Hollingsworth explained about businesses coming under the city's care. "But it could become independent in the future if the direction went that way."
The project is to be modeled after a business incubator located in Corvallis.
"They were able to feed and water those businesses so that they could become self sufficient within two to three years," Hollingsworth said. "If they are not self sufficient in two to three years, they still move out into the world and see if they can become effective."
A newly formed board would create the incubator's bylaws, understand the rental aspects, help with recruiting guidelines and assist with training. It would consist of individuals with experience in business, law, accounting, grant writing and who are enthusiastic, Hollingsworth said. A supervisor would tend to the day-to-day operations of the project.
"It is a way for Lincoln City to support small business. It is a way for us to support youth entrepreneurship," Hollingsworth stressed.
Council expressed support of the concept. Councilman Ed Kuntz said he was once involved with a business incubator, and added, "I think as far as I m concerned, keeping the business in Lincoln City is important. Being able to market it outside the boundaries is equally important."
The city's attorney is to draft documentation on the matter, while Hawker is to develop a budget, make determinations regarding rent collection and draw up a list of services the city will and will not provide. Council is to vote on the matter at an upcoming council meeting.
"We are definitely economic gardeners," local business expert Gary Foust said. "We are trying to grow entrepreneurs here."
Kendall S. Cable is a reporter for the News-Times. She can be reached at 265-8571 ext. 212 or kcable@newportnewstimes.com.
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