Shelbyville council approves $45,000 retail-development contract, shifts funding to hotel-motel account and requires annual review

The Shelbyville City Council on Sept. 11 approved a one-year contract with Retail Strategies for retail recruitment and development at a cost of $45,000, shifting the full payment to the hotel-motel fund and requiring a council review at the end of each year.

Councilmember Williams moved to approve the contract with two changes: that the entire $45,000 come from the hotel-motel fund and that the council be given the opportunity to review performance annually. The motion was seconded and carried on a roll-call vote. During discussion Williams said she wanted “a 1 year review process to make sure that they're actually performing.” The mayor confirmed the council intended the full $45,000 to come from the hotel-motel fund.

City staff previously proposed using a $10,000 hotel-motel allocation and $35,000 from the general fund; the council amended that allocation to draw the entire amount from the hotel-motel fund. Councilmembers asked that staff provide an annual administrative briefing so the council can decide whether to continue the contract.

The contract language the council reviewed included an automatic multi-year renewal; council members requested that the city maintain the annual review and the option to discontinue. The council did not specify later-year contract terms beyond the requirement for a yearly council review.

The council removed this item from the consent agenda earlier in the meeting for separate consideration before voting on the amended motion.

Ending: The contract is effective following the council vote; staff were directed to implement the funding change and to provide the yearly performance review to the council for potential renewal decisions.