County Commisioners table business tax for now, support EDC with $400,000 from reserve fund instead

The original item on the Commissioners' May 30  meeting agenda was shown as:

22. Economic Development Council – Execute FY 2009-10 funding agreement with Economic
    Development Council
    
Although the agenda didn't go into any more detail about item 22, it was a renewal of the county's annual $196,000 funding for the EDC. It was one of the consent agenda items the Commissioners almost always approve soon after a meeting's start with a single vote on all of them instead of a separate vote for each one. But Commissioner Whitmore asked to pull this item out of the basket and to consider it separately. So, after disposing of a number of routine matters, the Commissioners returned to item 22 at 11:30 a.m.

Here is a rough paraphrase of the conversation that followed:

Commissioner Whitmore: said she had been listening to constituents and that the ”community needs more education before we proceed further.“

The complaints aren't coming from the "big boys," she said, but from "small and fringe businesses." She said she worried about "legal issues, like beauty shop operators renting chairs" and independent, self-employed real estate people who share a broker's office.

So, Whitmore said, the commission should "consider tabling the business tax until the (county) adminstration and the EDC have had more chance to clarify it."

Chairperson Hayes: said she was not in favor of new tax, and that it ”probably never get my support,“ but no matter what, wanted this matter ”tabled until far in the future.“

She mentioned tax collector Ken Burton's concern that this tax might cost more to collect than it would bring in, a concern also voiced by Whitmore.
 
”Folks do not have confidence in who would be spending this money,“ said Hayes.
 
Commissioner Brown: in 2009 we met with the business community about changes we needed to make to make this county more business-frendly. We came up with several views and learned about chaging needs. "I think we're done a good job (of working with business)," she said, "but we still have high unemployment."

Brown quoted some constituent concerns she said sh'd heard, some of which stemmed from the fact that "not all businesses are chamber members or interested in chamber-type stuff."

The Board of Commissioners has historically not done much to promote biz here, she said, but "we're doing a little more now, and getting a little smarter."
 
Brown then proposed that the County give EDC $400,000, not from a special tax (even though this was the amount the business tax was supposed to raise), but "out of the county's savings" to help them help businesses, ”both those that are here and those that are not here yet.“ She then made this a formal motion, at which point Chairperson Hayes jumped in.

Hayes: "I'm not going to support this motion. We need to think and consult. $400,000 is a lot of money."
 
Commissioner Bustle: said we all agree that we need additional development money; "the argument is over how to get it."

One piece of vagueness Bustle asked about and Brown clarified: yes, she meant $400,000 in addtion to the already-budgeted $196,000.

Commissioner Chappie: noted that the public has concerns about how this money will be spen, and who will monitor it, but he also said that when it comes to attracting businesses to Manatee County, ”The time is now.... if we don't get on board now, we're going to miss the boat," and pointed out that the county has "an obligation to help our people who are unemployed" and to support the EDC.
 
Commissioner Getman: Reminded fellow commissioners that they had already agreed to hold workshop-type discussions about a business tax before doing anything, and that "we need those workshops. There are a lot of rumors out there -- and few facts."

One thing Getman would not woud not support, he said, was charging a multiple-property real estate owner a separate business license fee for each house, and was that or was that not the way the proposed tax would work?  

Yes, Getman said, we do need to support the EDC, but when it comes to the tax, ”The public can't understand it if we don't understand it.“

Whitmore: $196,000 is already budgeted (for the EDC). Mr. Hunzeker, "Would you take $400,00 out of our reserves to support this – for the first year, anyway?"

County Administrator Hunzeker: "Do you think we can do this ($400K) right now? Is it worth it?"

Hayes: ”I cannot sit up here today and support $400,00 that's not in our budget.“ We need to think more, she said, "especially after Mr. Hunzeker told us (earlier in the meeting) how tough things are."

Hunzeker: There are two issues. First, the motion for $400,000, and a second fundamental issue, and possibly legal issues with the business tax. The four chamber (of commerce) organizations that may need time to ”educate their members“ about the tax. Then there are  legal issues and we need to work things out with the tax collector.

In the mean time, Hunzeker said, that $400,000 would be used to fund what Mr. Basinger proposed at the last commission meeting: outreach to businesses that might be persuaded to locate here.

Maybe, he said I could come back this afternoon with a more exact proposal/contract? We could use the $400,000 to show people how this works, and that might help clear the way for the business tax by showing what good a well-funded EDC can do.

On legal issues, Hunzeker said, we may not have the contract with EDC changed by this afternoon, but we certainly will by next commission meeting.

Brown: a workshop is not going to take care of all the concerns I've heard from small biz owners. ”We're not going to resolve them in a workshop, in one day, in two days.“ She said, "Some small businesses cannot give you $35. It's painful. But to do nothing waiting for a workshop... we need to think not only about businesses that aren't here but about ones that are here, asking 'how do I keep my doors open?'"

Bustle: either way, we still need workshops, and will have to figure out long-term financing for EDC outreach efforts.

The $400K proposal was then moved and seconded. The vote was 5 to 1, in favor, with chairperson Hayes dissenting.

Whitmore: (to Hunzeker) This is not money for a new bureacracy. This money goes strictly to the EDC for business outreach.

Another motion, to pass the already-budgeted $196,000 for EDC, plus a postponement of workshops about the business tax, passed unanimously.

Lunch break 12:20 p.m. - 1:30 p.m.

After lunch, Hunzeker proposed a budget amendment authorizing the $400k EDC support as a one-time expenditure. And, he said, ”If you approve this, a subsequent contract amendment will come back to the commissioners“ telling exactly how the $400,000 will be spent.  

Chappie said, "This is a job-creation measure," then restated, ”it is about creating jobs.“

The amendment resolution was moved for by Brown, seconded by Bustle.

Hayes said she still couldn't support it.

Whitmore: "This goes with our 2009 motto: 'jobs now!'"
 
The vote was five in favor, Hayes against.
 
Editor's note: In a private conversation after the Commission adjourned for the day, Hayes said she wasn't against the funding, but didn't like the spur of the moment factor and wanted commissioners to spend more time "reflecting and thinking" before spending that much money.