Morgan Hill Chamber works with city to lure specific businesses
to town
Morgan Hill has an eye on four industries to herald in the
future of the South Valley city
– recreation, retail, renewable energy resources and
biotechnology.
Morgan Hill Chamber works with city to lure specific businesses to town
Morgan Hill has an eye on four industries to herald in the future of the South Valley city – recreation, retail, renewable energy resources and biotechnology.
In the coming year, the Chamber has identified four industries they’d like to recruit into the city, including the standard retail jobs that tend to come with lower wages and less benefits. They are, however, also pushing for recreation, renewable energy resources and biotechnology, fields that may bring higher paying jobs to the city.
Working together, the Morgan Hill Chamber of Commerce and the city’s Business Assistance and Housing Services department came up with three proposals for the future of economic development in Morgan Hill that were presented to the Community and Economic Development Committee April 21.
“We are in a three-year partnership [with the city] and with the conclusion of this third year coming up, the Chamber is coming back to the city,” said Dan Ehrler, the executive director of the Chamber.
Of the three proposals – ranging in price from $125,000 to $221,000 for the year – the committee will recommended the proposal with the lowest price tag to the city council on May 3. Seated on the committee are Council members Greg Sellers and Larry Carr.
The proposal marks a shift in thinking about economic development for the Chamber and the BAHS, though it will cost the city the same amount of money as they have been paying yearly for their contract with the Chamber.
“Just in the last several months we’ve become more engaged in terms of getting into the competitive marketplace,” Ehrler said.
The purpose of economic development programs, such as the joint program between the city and the Chamber in Morgan Hill or the Economic Development Corporation in Gilroy, is to bring new businesses to the cities or to keep flailing businesses from closing down shop.
In the past, the approach to economic development has been much more advertising based – offering information on a Web site or in trade publications – but the new proposal would look at more aggressive approaches to bringing new businesses into town.
“I think we need to recognize that communities are competing for businesses,” Ehrler said. “We need to be a part of the whole process and decision making by companies who are looking for a place to start or larger companies looking to put elements of their companies in different places.”
If approved, the Chamber and BA HS will work with prospective and current businesses through the city’s approval process. They will organize what they call “red”teams to address potential loss of businesses. “Green” teams will arrange and coordinate site visits for acquisitions of new businesses. The group targets prospective businesses through advertising, trade publications and will be attending trade shows to promote Morgan Hill is a place to relocate or start a business.
The two agencies will keep on top of economic development throughout the region, as well. A representative will attend local and regional meetings such as the Bay Area Economic Development Alliance, Silicon Valley Economic Development Alliance and the Central Coast Tourism Council.
The groups work together to address the concerns throughout the region. The Central Coast Tourism Council, for instance, looks at ways to bring travelers to cities from Santa Clara to Santa Barbara. Participation in the groups allows Morgan Hill’s economic development to follow trends throughout the region and stay on top of what industries are being recruited into other local communities.
“The services that the Chamber professionals would provide is going out and being more engaged with the acquisition as well as retention,” Ehrler said. “We need to do it in a proactive way and instead of in a responsive way.”
The other two proposals submitted to the Community and Economic Development Committee will be reviewed by the City Council, rule of thumb: when you are referring to a specific city council, in this case Morgan Hill’s, it is uppercase. When you are referring to city councils in general, lowercase. but will not be recommended. The two proposals came with heftier price tags because they include provisions for the hiring of an economic development professional.
“We believe that is the ideal – that would be an ideal option,” Ehrler said. “However, given the [city’s] economic circumstances, the money we can spend at this time, [the other option] would work.”
Currently, Chamber staff members and Business Assistance and Housing staff work together to provide the services that would be provided by a professional. The proposal is for the 2006-2007 fiscal year and new proposals can be submitted the following year.
The City of Morgan Hill has foreseen a budget shortfall of $1.5 million a year.
“Beginning from youth to adults that might be hired, you create a better situation for everyone if you can live and work in the same place,” Ehrler said.
Breakdown of expenses for 06-07 Economic Development
Promotional materials, including Web site: $7,500
Advertising, PR, including trade publication ads: $28,500
Chamber Professional Services: $48,000
Conferences and Tradeshows: $5,000
South County Regional Tourism Program: $36,000
Total: $125,000
