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Richland Economic Development recommends keeping current county-funded model; presents alternatives
Summary
Richland Economic Development (RED) presented four funding models and said the office has generated net new construction revenue that can offset operating costs; RED recommended maintaining the current structure but provided alternatives including city funding or mixed public-private funding.
Richland Economic Development director Jason Glassbrenner briefed the committee on RED—s response to a county resolution asking the board to explore funding alternatives, including a model where half the economic development budget would be private-sourced.
RED presented four models in declining order of board preference: (1) retain the current county-funded structure; (2) transfer funding to the city; (3) a 50/50 public-private funding split (county/city vs. private donors); and (4) convert RED to a private nonprofit that raises 100% of funding. Glassbrenner said the RED board—s recommendation is to keep the current structure as the most effective model given the office—s revenue-generation track record.
Glassbrenner told the committee the department has produced project-driven net new construction that led to increased tax revenues; he cited examples in exhibit B (including a CDBG project the office helped save, and new tenants such as Dollar Tree and Dunkin—). He said the office had generated enough recurring new revenue that, in the board—s view, future revenues from projects RED helps facilitate could be treated as "profit" to fund other county services.
Committee members asked whether the commercial sector would be willing to fund half of RED—s budget; Glassbrenner said private-sector board members and business representatives on the RED board questioned why businesses should fund an office that already generates county revenue. He said RED would explore whether a referendum or a permanent levy reduction would be preferable if private funding were pursued.
The committee did not make a formal decision; Glassbrenner said RED will return to its board in November with follow-up information on private fundraising feasibility and comparables from other counties.
