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HomeMy WebLinkAbout042015_ra01JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners r FROM: Philip Morley, County Administrator DATE: April 20, 2015 SUBJECT: Update by EDC Team Jefferson STATEMENT OF ISSUE: EDC Team Jefferson (the Economic Development Council of Jefferson County) is the designated Associate Development Organization (ADO) for Jefferson County. EDC Team Jefferson Executive Director Peter Quinn will provide an annual report on 2014 activities, as well as Team Jefferson's focus for 2015 and beyond. This presentation is a preface to requesting the Board of County Commissioners to again designate to the Washington State Department of Commerce that EDC Team Jefferson will continue as Jefferson County's Associate Development Organization (ADO) for the next State biennium. ANALYSIS: A copy of the planned presentation materials is enclosed. EDC Team Jefferson is registered in Washington State under the name "Economic Development Council of Jefferson County," and is registered as a 501(c)6 with the United States IRS. EDC Team Jefferson's work as the Associate Development Organization is defined by RCW 43.330.080, by its Strategic Plan, and by its contracts with the Port of Port Townsend and the County. FINANCIAL ANALYSIS: To perform its core ADO duties, EDC Team Jefferson presently receives $25,000 per year of support from Jefferson County, appropriated annually in the county's adopted budget. Other funding is provided by the Port of Port Townsend, the Washington State Department of Commerce, in kind office support from the City of Port Townsend, grants and class fees. After a number of years of flat County funding, EDC Team Jefferson is requesting that the County consider increasing its commitment for annual support to the designated Associate Development Organization to a level of $35,000- $50,000 per year for a period of five years. RECOMMENDATION: Hear the EDC Team Jefferson presentation and dialogue with Mr. Quinn and county staff regarding re- designation and future funding options. HfjY%WED BY: Phi ip Morl ounty Administrator ATTACHMENTS: • EDC Team Jefferson Presentation Materials ,;h6IS Date 4/16/2015 April 20, 2015 Jefferson County Board of Commissioners EacTEAM W Team Jefferson Story 2006 - Economic Development Council's were a mess — Three failed EDC efforts in 7 years 2007 A new way of doing it: — Bill Wise, Katherine Baril, Marty Gay and Criag Weir said • "Let's put together a team of people, not an organization that lives or dies by a single person" • "Let's call it Team Jefferson" — They applied for the ADO designation from the County and were approved. The County has supplied $25,000 in assistance for well over 12 years. — Under the umbrella of WSU until 2011 • Many costs were absorbed by WSU which they could no longer continue. — We met for two days and decided to become a separate entity, applying for the ADO designation from the County. • We were successful for the 2011 -13 biennium • Re- designated for 2013 -15 biennium. Team Members Name Organization Additional Organizations Frank DePalma Totera Web Systems CoLab, YPN Heather Dudley Nollette Hastings Estate CoLab, Main Street Program, YPN Marty Gay Jefferson Cannabis Windermere olycap,Fort Bill lames Team Jefferson Warden PDA Earll Murman MIT Retired County Lean Champion Christina Pivamik Christina James Wines Port Townsend City Marketing Peter Quinn The Writers' Workshoppe Quimper Mercantile Company /SCORE Casey Reeter Team Jefferson JC Chamber, YPN Shelby Smith Jefferson Land Trust Quimper Mercantile Teresa Verges JC Chamber Why are we succeeding ? • We're a team of professionals — Many different talents and energies • We focus upon supporting existing businesses — 1 -1 consulting — Education that gets results — Advocacy— an independent voice in collaboration with the Chamber. • We prioritize work based upon champions — If we don't have a champion, we don't do it. • We focus on 3 -5 things at a time. Period. • Our independence allows us to: — Be Switzerland — Act as catalysts and peacemakers — Maintain objectivity — Beholding to everyone 4/16/2015 2 In order to thrive, Jefferson County needs 1,000 more incomes: In order to assure our continued vitality. Improve earning power countywide. To stay at least as good as we have been. — The key is to attract and grow business owners. The BIG goals • Focus upon creating business owners — Help them gain skills — Provide wise counsel — Partner with them to purchase, lease, grow • Build on our strengths — Work where you want to live — Maritime and outdoor expertise — Leverage significantly improved access to broadband — Take advantage of the new economy to grow existing business and start new ones. 4/16/2015 3 ADO Report 2014 — Recruitment Activities TARGET Total 2014 2 4 — Retention and Expansion 2014 100 126 — Startup Assistance • 2014 15 7 — Readiness and Capacity Building • 2014 1 5 Highlights • 2014 — Tenant recruitment • Worked with DOC and Port staff to attract 3 boat builders to Port Townsend • 2 are still active but no longer DOC initiatives — Worked to retain 22 jobs • Needed 30h space and didn't believe it could be built in Jefferson County • Worked with the City and First Western to meet their needs • They chose not to move to Kitsap County and stay here 4/16/2015 1! Team Jefferson Initiatives Keep our partners thriving • LION — Needed administrative assistance • CoLab — Fund space for prospective business owners • Lean — critical training for businesses • Co- locate with partners — Chamber, SBDC, North Olympic Dev. Council. — Business resource • 126 individual consults in 2014 • 4 Recruitment efforts • 2 major retention successes — Convene and facilitate • CEO Breakfast • Five things we CAN do twice a year • Advocacy and Policy — collaborate with Chamber focusTHRIVE • Productization of our offerings into one umbrella brand. — focusLEARN — Business Planning, bIQ, Lean Training — focusSHARE — Brainstorm at CoLab for startups — focusCEO —TJ funded space at CoLab for business owner — focusLAUNCH — Dedicated assistance to get started. — focusFUND- LION, DPO, Craft3, other funding — focusBUY— help a prospective owner find, buy and relocate a business to Jefferson County 4/16/2015 5 4/16/2015 Five things we CAN do Five Things We Can Do Summit 10/29/14 - Quick Summary & 6 Things — Collective — Co- location of EDCiJ /Chamber /VIC /SBDA (City, Chamber, EDC) — Comprehensive Plan Update, assessment & benchmarks (City, County, Port) — Industry Sector Study(Port/EDC) — Expand Fiber Optic Network, build out & SWOT (PUD, EDC) — Recruit Businesses from Targeted Areas (EDC, Port) — Brinnon Master Plan /Marijuana & Ag Land Use Rules (County) EDC Team Jefferson — Co- location of EDCTJ /Chamber /VIC /SBDA — Convene & Facilitate — bIQ Classes— continue to offer and expand — Re -start the Advanced Technology Group — Recruit Businesses from Targeted Areas Current Funding — Department of Commerce —thru June, 2015 • $42,360 per year • Assuming $40,000 per year for the next biennium — Jefferson County — thru June, 2015 • $25,000peryear — Port of Port Townsend — thru December, 2015 • $25,000 in 2015 —four consecutive years • Also provided office space from December, 2011 through April, 2015 — City of Port Townsend • Providing free office space —cash savings of $3,000 - $12,000 value • A five year commitment with 4 renewals— 20 years total. — Herbert Jones Foundation Grant thru June of 2015 • $25,000 to fund business planning classes and blQ sessions • Have applied for $30,000 for the next biennium — Revenue from classes - $2600 — TOTAL OPERATING REVEUE= $ 108,600 2015 Expenditure overview • Payroll — $90,000 - 1.25 FTE's — incl. benefits • Consulting - $6,000 • focusThrive expenses - $4,000 • D &O Insurance — $2,000 • Rent - $750 through May • Utilities -$1,400 • Supplies - $1,000 • We are running at breakeven - sort of. Reduction in service • EDC Team Jefferson has never been fully funded. • Executive Director has been paid what remained after other expenses. — Ranged from $8,000 in 2010 to $55,000 in 2014 — Dropping to $48,000 annually in second half of 2015 — Vacation and unemployment benefits only • Average of $75,000 plus full benefits for ED in Washington state for like sized counties. • ED will move to 3 days a week July 1st • In order to build a sustainable EDC presence we need an additional $50,000 in ongoing operational funding. — To assure succession without a drop in capability or capacity. 4/16/2015 7 How to proceed • Pursuing additional funding sources — Herbert Jones Foundation - $5,000 increase — City of Port Townsend — pursue direct funding — Port of Port Townsend — approved through 2015 • Have asked for a 5 year commitment. — We will not pursue membership • Jefferson County Chamber and Main Street are about all a business can handle How to proceed • Request of Jefferson County Commissioners — Designate Team Jefferson for the next biennium — Increase level of support • PIF funds are appropriate for EDC support • County funding has been level for over 12+ years — 3% inflation alone would suggest $35,000 per year — Team Jefferson would request an increase to $50,000 per year — With a 5 year commitment to fund the designated ADO NOT a commitment to Team Jefferson but to the ADO which is designated every 2 years. 4/16/2015 4/16/2015 How to proceed • If Jefferson County provides the additional $25,000 • And the Port continues to fund at $25,000 • And the Jones Foundation grant is renewed and increases by $5,000 • And the City provides $12,000 in addition to space. • And there is a multi -year commitment from funders • Jefferson County will have an EDC that is staffed and paid on par with other counties • It will be sustainable, able to attract good talent who can represent us well in and out of the county • It can move forward with assurance to work in the best interest of Jefferson County.