Dubois Strong requests greater funding commitment from the county
The local economic development organization, Dubois Strong, received a promising sign from the Dubois County Council for more funding to support their refined mission to support business growth and development.
The county council approved advertising to increase the organization’s funding commitment to $240,000 for 2014 — up $180,000 from the original $60,000. However, the council wouldn’t commit to the organization’s request for the county to provide $320,000 in economic development income taxes for Dubois Strong’s 2015 and 2016 budget.
Councilman Shane Lindauer pointed out the current council can’t guarantee the funds being requested for 2015 and 2016 due to changes in the council composition in the coming election cycle.
“We are just asking for your intent to fund us,” Dr. Johnson stated.
When Dubois Strong, then known as the Dubois County Area Development Corporation, was originally founded in 2005, it was intended to be funded through a 50/50 public private partnership with an annual goal of raising $250,000 for operating costs — $125,000 from government units and $125,000 from the private sector.
Since its inception, the contributions from the public sector have remained stable. The private sector, although never reaching the intended goal of $125,000 yearly contributions, was strong until 2008 when contributions fell from over $100,000 to $81,151. Support fell dramatically in 2009 when contributions from the private sector were only $48,450.
According to Interim President Michael Cummings, this dramatic decrease from the private sector was largely due to a decision at the time to suggest to the corporation’s private donors to halve their annual contribution due to the economic downswing. The recommendation to decrease the contributions to the corporation was included in the annual fundraising letter to contributors.
Since last year, the group has been able to increase private contributions by 20 percent. Its newly announced initiatives to increase the local workforce and support local businesses and entrepreneurship in the county plan includes filling the president’s position vacated by Jim Dinkle in 2012 that is currently being filled by Cummings.
Cummings had been hired to fill a position as a marketing and research specialist. This will bring the organization’s paid staffing up to three people.
According to Dr. Alan Johnson, Chairman of Dubois Strong’s Board Directors, the president will will become the face of the organization and seek to facilitate better relationships with local companies and public entities as part of a three-part strategic direction.
The new plan includes three initiatives:
–Grow the county’s population by collaborating with local governments, builders, developers, realtors and planners to create more moderately-priced housing. They will also support enhancements that will attract individuals and families to live here.
–Assist companies that are already here to grown and thrive through proactive outreach by the Dubois Strong leadership. They will also seek new businesses to complement the current businesses.
–Foster an entrepreneurial environment by supporting business startups with Dubois Strong programs, advisers and network resources.
Besides the new position, the group will use the funds to pay for a housing study for the area as well as other business-based studies to determine their future course of action. “We need to grow the population and we need to know where that population is going to live,” Dr. Johnson said. “Right now housing is tight. Moderately-priced housing and apartments are in short supply.”
In asking for the increased funds, Dr. Johnson stated the group has created a plan that includes measurable aspects to allow the county to determine if the investment of the economic development income tax ( EDIT) funds have been appropriate and effective.
Councilwoman Martha Wehr told Johnson she was leery of the added funding since the county was the only public entity being asked to increase the investment into Dubois Strong although all the cities and towns will benefit from the new initiatives. “We are looking at five times our original agreed investment,” Wehr stated referring to the $320,000 increases in 2015/16. “It bothers me somewhat that the cities and towns are not adding to their part of it [investment]. I am wondering why you are relying more on the county.”
Johnson pointed out that Dubois Strong represents the entire county as a local economic development organization and that the county has greater capacity in its annual EDIT funding to cover the funding.
“It’s pretty simple to me,” Jasper Mayor Seitz said. ” I am already supporting a county function with funds for our city. I could withdraw all of that and support just my city only.”
Seitz then asked the council to step up in their roles supporting all of Dubois County’s residents. He pointed out the county has placed $800,000 of its economic development taxes from 2012 into a reserve. “I think it is time that the county does look into doing this, like we do with ours,” he said. “To me it’s important that you take a greater role in this matter.”
Huntingburg Mayor Denny Spinner stated that the percentage Huntingburg invests in Dubois Strong is a higher percentage of their EDIT funds than the county’s. “Plus, the cities are part of the county as well and the county money that is going there [into Dubois Strong] is generated by the residents of Huntingburg and Holland and Ferdinand and Jasper and Birdseye,” he explained. “The citizens in our communities are paying a portion of the county’s investment as well as the city’s investment.”
Wehr stated that this was the agreement made when the organization was formed.
Johnson resonded that the situation now is very different than when the organization was formed. He pointed out that the state funding has changed and affected the organization’s budget.
Essentially, Johnson drilled down to the fact that Dubois Strong’s board has defined a clear plan of action whereas its predecessors did not and were limited by the size of their budget.
Councilman Nick Hostetter stated he could support the new plan and its measurable aspects.
Council president Greg Kendall agreed and stated he was leaning in favor of the additional funding but if results weren’t forthcoming in the following years, he couldn’t see continuing the increased funding.
Approval for the increased funding is expected to occur during the meeting scheduled for April 21 at 4:30 p.m. in the Dubois County Council Chambers.
