At the Sept. 19 City Council meeting, the city gave to the Great Bend Chamber of Commerce notice of intent to renegotiate the agreement for economic development services. Monday night, that contract giving the city more oversight for eco devo efforts was approved.

Under the new one-year, renewable agreement that goes into effect today and expires Dec. 31 of next year, the city will pay the chamber $154.500. The current arrangement was drafted in 1999 and has not been changed since.

“For the past couple months, we have been working with the Chamber of Commerce,” City Administrator Kendal Francis said. The revised pact has already been blessed by the chamber’s Executive Committee and Board of Directors.

The primary goals of the deal is for the chamber to develop a strategic plan, and vision mission and value statements, and provide council member training. Since September, city staff has worked with the chamber to develop a mutually beneficial agreement that better outlines the scope of services and articulates the city’s expectations and receive more detail reports and financial information. 

Technically, the Great Bend Chamber of Commerce is the Chamber of Commerce and Economic Development; the latter part is funded through a contract with the City of Great Bend.

Economic development received $153,000 this year through the general fund, with payments being made semi-annually (this is being changed to quarterly). That is up from $135,000 in 2017 and 2018.

Francis said the city needed to “shore up” the details and better clarify the city’s and the council’s expectations. There needs to be more transparency, accountability and financial reporting as well.

There was still some concern from council members who thought the new contract was still too vague. 

Francis outlined some concrete goals that could be set. Among these could be a business incentive program, a plan on how to use economic development funds (recruiting or retaining businesses are possibilities), following through on monthly reports, and documenting and listing empty buildings.

“It goes beyond talking to prospects,” he said, noting there needs to be a greater level of detail. However, there are aspects of business recruitment that have to remain confidential.

If there are parts of the deal that need to be tweaked, this can be done at budget planning time next summer, Francis said. 

The only nay vote came from Councilman Brock McPherson.

Background 

The contract automatically renewed on Jan. 1. So when the council gave Francis the green light in September, this allowed the city to give the chamber the requisite 90-day notice that it wanted changes.

Jan Peters, who serves as president and chief executive officer of both the chamber and economic development, was in agreement.

The arrangement allows the chamber to administer the eco devo efforts on the city’s behalf. This involves business recruitment and retention, and workforce development.

The Chamber makes an annual funding request and it is up to the council to decide what will be budgeted. This year, the chamber also sought $50,000 to fund a consultant (which would have raised the total to $203,000), but that is pending and would require another council vote.

The money for the chamber is funded via a city half-cent sales tax (generating 9 percent of the city’s revenue). The tax is split three ways among economic development, infrastructure improvements and property tax relief.

In all, officials said the eco devo slice of this pie is anticipated to generate $370,000 in 2019, up from $350,000 in the last two years. This also funds a portion of Community Coordinator Christina Hayes’ department with the remaining balance transferred into an economic development fund.

The notable changes include: 

1. The chamber shall: 

• Establish measurable goals

• Develop action plans to achieve those goals

• Periodically review and update said plans and goals and furnish them to the city.

2. Creates a membership package for the City that reflects current member pricing.  

3. Notification of yearly funding shall obligate the city to full-funding for the corresponding year, regardless of termination.  

4. City shall now make equal quarterly payments.  

5. The chamber Shall provide: 

• Goal progress reports monthly

• Prospect contact updates monthly

• General ledger detail report (current month only) monthly

• Profit and loss statement (current month and year-to-date monthly

• Journal entry report (year-to-date) Monthly

6. Clarifies the termination policy. This is a one-year renewable agreement. 

But, the basic mission of the chamber remains unchanged. The agreement reads:

“The Chamber agrees that it will develop a comprehensive economic development program to promote the general welfare of the City, including, but not limited to all facets of quality economic development (industrial, commercial and residential) which shall have a significant impact on the economic growth of the City, and submit said program to the City for its approval. The plan shall include goals and objectives, designation of work tasks, follow up criteria and all other relevant factors to carry out a successful program.” 

It goes on to say: “The Chamber economic development program will market and promote Great Bend, prospect new business, assist expanding companies, assist in retention of existing firms, assist entrepreneurs and provide for all follow-up necessary to successfully implement said program.”