To the Editor,
Re: Economic strategy surges ahead, March 17.
Last Monday, council directed the Economic Development Commission to “proceed with the establishment of an economic development corporation within the constraints of existing city funding levels and appoint the existing commission members as the interim board of directors.”
The vote passed 7-1. The funding thereby approved was $1,357,000, considerably higher than the $350,000 we started with in 2005.
On March 21, council was to deal with a recommendation to hire a consultant to find a leader of the economic development corporation, thus proceeding quickly down a very hastily and ill-defined path of expenditures for which the taxpayers of Nanaimo will be liable.
In speaking with city hall about this matter, I suggested a truly private mode for its operation whereby primary funding came from those sources mentioned in the staff report to council: $400,000 raised from a two-per cent local hotel tax; the $70,000 in memberships referenced; and tying down some of the other sources of contract income noted in the report to council.
I further suggested a substantial sum similar in proportion to that provided by the hotel tax from other city businesses.
In this case the city could provide some additional initial funding, perhaps over a three-year period to assist in the establishment of the corporation while its success is measured.
I was informed that such a model was discussed with business, but was rejected. On reflection their reasoning is clear: Why buy the cow when the milk is free?
If taxpayers pay the total freight, how can the corporation be arm’s length?
The issue of economic development is an important one. The corporate structure as presented is simply a case of moving around the deck chairs on the Titanic.
The concept is worthy of more discussion, but cannot be successful without the tangible buy-in of our local businesses, and that buy-in will not take place without independence from city hall.
Ron Bolin
Nanaimo
