A regional strategy in which neighboring cities and counties work together to attract business stands a better chance of success, Cole County commissioners were told recently.
The county's economic development consultant seeks to help develop a regional economic development council and set short- and long-term goals for the region. The consultant also suggested the regional approach is being discussed by Jefferson City and its economic development consultant, the Jefferson City Area of Commerce, and the parties could all work together.
However, history between the parties may prevent that collaboration.
How did we get here?
For more than 20 years, Cole County paid the Jefferson City Area Chamber of Commerce to handle economic development matters for the county. In their last contract with the chamber in April 2018, Cole County paid the chamber $150,000 for economic development services, and Jefferson City also paid the chamber $150,000.
However, in September 2018, Cole County commissioners opted not to renew the county's contract with the chamber and hired other consultants; the city retained the chamber for economic development service.
The County Commission hired two consultants for economic development.
Victory Enterprises, a political and corporate consulting communications firm based in Davenport, Iowa, was hired to perform economic development work, including attraction of business and industry and marketing of the county.
Strategic Capitol Consulting, a Chesterfield-based group that develops political strategies and crafts legislative plans for clients, was hired to monitor legislation in the General Assembly that could affect the county and to provide business development assistance to the county and lobby the executive branch of state government on behalf of the county.
Both consultants were paid $60,000 apiece for their work.
The contracts with Victory and Strategic Capitol were renewed in 2019. This February, the County Commission renewed its agreement with Strategic Capitol.
Midway through 2019, Victory Enterprises and law firm Evans and Dixon joined forces as Polaris Strategies Group of St. Louis. The new company specializes in economic development, regional logistics and transportation issues.
For 2020, Polaris suggested Cole County needs a more regional approach to marketing and economic development.
A regional approach
Polaris Vice President Matt Alsager said he approached Cole County Western District Commissioner Kris Scheperle seven months ago with the idea of a regional approach to economic development.
He said creation of a regional economic development council could identify short- and long-term development of strategic regional assets, such as the Jefferson City Memorial Airport and the proposed Heartland Port Authority, which would create a commercial port access on the Missouri River.
Polaris could provide direction for creation of the council, as well as development strategy for the region's assets, Alsager said. Polaris would charge the county $5,000 a month, or $60,000 a year, he said.
"We want to make the agreement as versatile and easy as possible for our client," Polaris CEO John Nations said. "Rather than have them make a long-term commitment for us to provide service, this way we can work to achieve their goal and at any point they can terminate the contract."
He noted Jefferson City and the Jefferson City Area Chamber of Commerce are exploring many of the same issues and have hired Market Street Services, of Atlanta, to analyze the market and recommend achievable economic development strategies.
Market Street is expected to deliver its report to a chamber steering committee, of which Cole County Presiding Commissioner Sam Bushman is a member, today.
"We're having the same discussion in different rooms, so let's look in 2020 to have everyone come together," Alsager said. "Market Street has done a great job of analyzing how this should look; we want to help implement a regional economic development council."
Bushman acknowledges the approaches are similar.
"I think the Polaris proposal mirrors what Market Street is doing (with the chamber), and I think we need to work as a team," Bushman said. "We don't need separate entities. I believe Randy (Allen, executive director of the Jefferson City Area Chamber of Commerce) did indicate he thought they would be able to work together, and we don't need Polaris doing the same thing."
Bushman voted in 2018 to continue working with the chamber, while Scheperle and Eastern District Commissioner Jeff Hoelscher voted to go with Victory and Strategic.
Scheperle suggested a joint economic development venture might be possible.
"We've been looking at regional economic development long before Market Street," Scheperle said. "Everyone wants businesses in their backyard, but we have to look at what's best for the entire area, not just Cole County or Jefferson City. I think there are similarities to what is being talked about by Market Street, and I think we would be willing to do some type of joint economic venture."
Hoelscher agreed.
"It does look like it would kind of be the same idea, but my understanding is they could work together," Hoelscher said. "People are still asking me why we didn't go with the chamber (for economic development) in 2018, and I say we felt we needed to do something different.
"We'll see what happens here. I do like the regional look and how it could benefit Cole County," Hoelscher continued.
But Allen, with the chamber, said he believes the Polaris proposal would significantly change the scope of services provided under the economic development agreement, and it should be put out to bid.
However, Nations said, "The reason the scope changed is because the goals last year were achieved. If we get a regional council up and functioning this year, then the scope could change again next year. You don't have same goals every year. If you do, that's not the sign of progression."
County Attorney Jill Lahue said the county's economic development contract would be a professional services agreement, which doesn't have to be competitively bid.
"I'm not a fan of this process, and I don't think Victory fulfilled their contract for the county," Allen said.
In its 2018 proposal, Victory Enterprises officials said they would analyze the county's existing policies, infrastructure and amenities and how they relate to business attraction and retention, then develop and execute an "exhaustive public relations, messaging and media delivery plan to better tell Cole County's story on why businesses should locate here."
Two of the three commissioners last Tuesday said Victory Enterprises has made progress toward that goal.
"It's hard to measure in just one year, but they have experts and contacts who they were willing to go out and talk with in areas that I felt helped the county. They set up a network for success," Scheperle said.
"I was going to give them a couple of years and then re-evaluate," Hoelscher said. "I can say I have talked a number of times with Matt (Alsager) about what he and others with Victory were doing, and I trust them working for us."
However, Bushman said the economic development he's seen has been the result of private developers and not by consultants.
"In my personal opinion, I saw more economic development being done with private developers such as the Farmers along Missouri Boulevard with Starbucks, Burger King and the new Marriott Hotel as well as the Kampeters with the new Mid-America Bank at Stadium and Edgewood," Bushman said. "That wasn't done by the chamber or Victory."
Bushman added: "I like the idea of a regional look, and I'm comfortable with it being a new group instead of Victory. We have to bring folks from Moniteau, Callaway, Miller and Osage (counties) into the conversation as well. People are going to spend money somewhere, and chances are we'll get a part of it."
Discussion of the Polaris contract is on the agenda for the commission's next meeting, scheduled at 9 a.m. Thursday.
UPDATE: This article was edited at 8:23 a.m. March 11, 2020, to reflect that the Polaris contract has been placed on Thursday's agenda.