Free Lance Editorial: Loss of HDA funds is a big blow to downtown efforts

One of the more devastating results of the demise to the
Hollister Redevelopment Agency is the loss of funding – one-third
of the organization’s yearly budget – to the Hollister Downtown
Association. 

Through the years, the HDA has proven successful in its
efforts to boost business activity in a downtown district
struggling to maintain its economic viability and historic identity
while adapting to changing consumer habits. The organization has
made progress by successfully working with businesses on a
day-to-day basis in finding marketing strategies – such as the
Downtown Club Card or its many networking events – to not only help
those individual merchants, but also the entirety of a symbiotic
business community. 

It has made a particular stamp, though, in its oversight of
several key events downtown, including the weekly farmers market
during the spring and summer, the Lights On Celebration following
Thanksgiving, the Street Festival & Car Show in July, and
Movies Under the Stars in summer.  

Those events require money and time to organize, and the
organization will take a significant hit to its finances with the
$65,000 loss in annual funding from the RDA. Another organization,
the Economic Development Corp. of San Benito County, faces a
$75,000 loss of its own. 

If we had to pick one over the other in its value to the
business community – and in a county where donations are few and
far between, there might not be room for both – the downtown
association wins out.  The EDC, which is losing about one-third of
its budget as well, lacks a proven track record and has continued
to lag in showing results with job creation. The EDC has always had
tremendous potential to generate long-term benefits. Its leadership
over the years hasn’t shown the necessary drive to return value to
the investment, though, so it is difficult to see a reversal
anytime soon.   

They are both facing serious financial problems because the
RDA is set for dissolution following a California Supreme Court
ruling that sided with the governor’s decision to eliminate the
agencies, while justices also barred their continuance through
so-called “blackmail” payments back to the state. The Hollister RDA
had planned to continue operating under the payment system, so it
was stunning for some local officials when word came down about the
court’s decision. 

The HDA has responded appropriately by immediately convening
board members for special meetings to hash out potential budget
cuts. Major adjustments are necessary, and the organization will
likely have to take such urgent action as reducing employee
compensation and increasing membership fees. It will have to get
very creative, too, while looking at other possible events to
improve the revenue stream and other sources of outside funding,
including private donations. 

It might have to even consider taking advantage of the biggest
potential draw Hollister has to offer – by reviving some sort of
major motorcycle event following the annual biker rally’s own
demise after 2008. 

HDA officials and downtown business leaders have their work
cut out for them, but we trust the organization will find its
financial way and evolve into something even better.