Last updated on 2011.05.04
Let's review:
Forward Madison is an investment initiative that has embraced the community and surrounding county. The goals are to create 400 new jobs over the next 5 years, to increase the population of Lake County, to increase the sales tax and property tax revenue for Lake County, increase capital investment, and assist the growth of entrepreneurs in the Heartland Technology Building [Dwaine Chapel, executive director, Lake Area Improvement Corporation, LAIC Newsletter, July/August 2007].
Results we've already seen:
- Lake County population down for the decade 0.6%
- Madison population down 1% from 2000
- 510 jobs lost since beginning of Forward Madison
And now the Madison City Commission piles on. At last night's commission meeting, City Finance Officer Jeff Heinemeyer reported that, except for a spike in 2008, Madison sales tax revenues have stayed about the same every year since 2006.
2006. That's the year the LAIC hired Dwaine Chapel as its new exec. That's the year the LAIC kicked off the Forward Madison campaign. That's the year the LAIC got 110 investors to fork over $2.3 million to pursue the above stated goals.
On three of the most tangible metrics of economic success—residents, jobs, and sales—Forward Madison has failed. We took $2.3 million out of the deepest pockets in town, plus several hundred thousand in tax assistance from the city, and got... bupkis. That's also what folks got in the way of explanation of this failure at the LAIC's annual kum-ba-ya with Senator Thune in January.
If I were one of those 110 investors, or a city taxpayer, I'd be asking for my money back.
It all begs the question, what if anything can be done to enhance local economic development?
I'm a firm believer that we should diversify ourselves, using LAIC on one end and their skill-set, and then investing more into the arts here in our community.
We're sitting on and essentially ignoring a huge potential tool for our community, one which not only directly improves the quality of our own lives, but let's be honest, makes communities stronger and richer candidates for drawing new companies, (and keeps existing companies here too) especially those in technology fields and with an emphasis on younger workers too.
We actually have the potential to become the cultural hub of the east-side, much like that of Hill City out west, and I say this because I can see this happening, the pieces are here. (and I'm working my best to make it happen everyday)
So what do you say?
My understanding, from Michael Hope and other (new) small business owners, is that the LAIC is only interested in you if you can hire 25 people. Not how much income, interest, tourism you can generate. Madison could become like Hill City, if they recognized that the arts, combined with outdoor activities, (as in Hill City) can bring in a LOT of tourism. But they keep looking for manufacturing, and that's pretty much a dead end.
But Eve, Dwaine assures us that "retail business retention and growth" is one of thhe LAIC's big goals this year. Surely you can't doubt that Dwaine will bring his laser-like focus to this pressing need. Surely.
Chris, we missed a golden arts opportunity when the City cut down the massive tree on the NW corner of the Public Library. Would have made a great carving or totem pole arts project...
I noted with curious interest that Brookings has now surpassed Watertown in population and growth.
Oh, Rod, there you go again with your pro-Brookings agenda....
It's obvious at this point that Dwaine is not capable of meeting the LAIC goals. Now, I don't know the details, perhaps his hands are tied in some administrative fashion, but that withstanding the LAIC goals have not been met.
We have examples from the surrounding communities that modest goals can be met so this isn't a "but the whole world's economy has gone bad so it's not my fault" situation either. So the only conclusion to draw is that he is either not properly motivated nor not capable of doing the job.
I would propose that we create very strong incentives for him to succeed. I would slash his base salary to $30k/year. Next I would create a tiered incentive structure. Perhaps $2.5k payment per job created or some ratio that could be negotiated. If he doesn't want the new compensation structure let him go and open the position up. There are thousands of alpha's out there who would kill for such a position.
Project proposed: Turn the street tourism banners into arts tourism banners, featuring selected Madison artists (visual artists, musicians, writers) on each banner. What a great way to promote the arts and culture here in Madison.
Project Proposed: Sculptures along Memorial Park and Egan Ave.
Project Proposed: Visual artworks throughout the two major alleys in Madison along Egan (Rapid has a similar thing, it's incredible)
Project Proposed: Studio spaces for artists downtown, perhaps provided for free, as a way to help bring the arts and artists downtown. (Dakota Drug would be a great place to start with, 10+ Studios already there, as well as the old Garfield school too)
Proposed project: Funding to provide for staffing and operations for The BrickHouse, and funding to expand all of the programming as well.
When should we start? I can rattle off 10 more ideas for starters. This isn't hard to do folks, it's almost too easy, so let's get it done.
You know, Tony, thinking about what Eve said, I'll bet a $2.5K-per-job incentive would get an LAIC exec to focus on hiring at even the smallest firm. Every job counts!
Chris: all capital ideas. Let's find a city commission candidate who will back them... and some benchmarks for LAIC performance!
This looked like a good place for this comment. Now these are just my views, and my numbers are just my estimates.
Last night while eating at the Stadium with my family, I stopped the waitress and asked her if she was working Saturday night. She said yes, and I proceeded with a second question. “Could we reserve a section with at least 20 seats for 5:15pm on Saturday?†The first question she asked me is this with the tournament. There is a tournament in town.
No this was not for the tournament, but for an event we were having on campus. It ends at 5 and we have four guys from Washington, DC, two from Colorado and teams from South Dakota, North Dakota, Montana and Wyoming, and we were going to invite everyone to meet us there afterwards.
I was then told that they could not reserve us any spots due to the tournament. I was told that the Stadium will have on 3-4 extra workers Saturday to accommodate the increase in business (and that increase did not include us). So I had to do some checking.
Come to find out that the Madison Booster Club Classic is going on Saturday http://madisonsd.com/Booster/Classic/. After going to their site I found that they are not taking any more teams. So how many teams are in this? It appears that there are about 55, 7th and 8th grade teams. Now I can do some simple numbers on my calculator.
55 Teams * 8 players and 2 coaches = 550 players/coaches. Now what if each of those 550 people brings only one family member, now we have 1100 extra people in Madison. Now all these people need to eat (therefore we can’t reserve anything for the 80 people we will have in town Friday and Saturday), fill up with gas, and possibly stay at a hotel. So if each one of these 1100 people spends only $10 in town Saturday that is an extra $11,000 to Madison businesses.
I am sure you realize that my numbers and estimates are pretty conservative. I would say you are going to be closer to 2000-2500 people for a 55 team tournament. If you are in town from 8am to 6pm, you will be closer to $15-$20 per person. So could we see an economic impact of $55,000 thanks to a 55 team tournament?
You can guess where this is going. What if we had the facilities to hold an 80 team tournament (Madison has already done that), or even a 150 team tournament? Hold four to five of these a year. What impact would that have on the community?
I think it would be great to see what the businesses in town do for revenue Friday-Sunday this weekend. I know we are paying for 80 buffets at Pizza Ranch on Friday, and that has nothing to do with the tournament.
Growing up in Mitchell I have seen the impact of one thing change a community. Bringing in Cabella’s changed Mitchell. Look at their sales tax revenue for 2010 http://www.keloland.com/NewsDetail6162.cfm?Id=0,110516. Could it have been different, yes Cabella’s originally wanted to be in Chamberlain, but they didn’t know how they would support the need it would cause. Well for my family I am glad they were not thinking and it came to Mitchell.
Could multiple 150 team tournaments bring another fast food business to town, could it bring another hotel, could it help the locals at the farmer's market outside the library, could it change the Madison? I guess we will never know.
You're right, Rob: since building a big events center sounds like a great economic development plan, the LAIC should immediately direct its Forward Madison funds toward building such a facility. That could be the one concrete achievement of an otherwise failed economic development initiative.
That would also free the Madison Central school board to focus its limited dollars on its core mission of improving academic achievement.
Cory, I think you've found the solution.
Rob found it; I just put the pieces together. See what good ideas come about when school board candidates listen to everyone? :-)