Glen Ellyn debates ways to attract business
Glen Ellyn plans to reduce funding for a local economic development group, but village officials say that doesn’t mean they’re not serious about attracting and retaining business.
What it does mean, they say, is that they want to do more of the work in-house.
Under the village’s proposed fiscal 2011-2012 budget that takes effect May 1, the Glen Ellyn Economic Development Corporation would receive $70,000. Last year, it received $191,000 and it requested the same amount this year.
But village staff members say they can handle more economic development duties and officials maintain there isn’t a funding cut at all — just a reallocation.
The budget’s general fund, which provides money for day-to-day village operations such as police, public works and village manager duties, would now also include $376,000 for economic development.
Interim Village Manager Terry Burghard said the $39.8 million proposed budget remains under pressure on both the expenditure and revenue sides.
“I don’t want to be harsh in any way. This community has spent lots of money (on economic development). The question is whether there has been a return on investment to the village,” Burghard said at a public hearing Monday.
In a letter to the village president and board of trustees, EDC Board President Neil Dishman argued the village could afford another $50,000 to $90,000 to give to the EDC and Transitional Downtown Organization in addition to their combined proposed allocation of $281,000.
Cutting funding “would cripple Glen Ellyn’s efforts to remain competitive with its peers and likely doom its hope of increasing its sales tax base in the coming years,” Dishman wrote.
He questioned some concerns of village trustees at previous budget meetings that the EDC’s staffing costs are “administrative” or “overhead,” arguing that dollars spent on staff directly accomplish the group’s mission through connections, calls and visits that lure businesses to town.
He said the EDC would not be able to afford its full-time staff member with only $70,000 from the village.
Sue Cleary, a business owner in downtown Glen Ellyn, credited the EDC and Executive Director Janie Patch with networking efforts to bring businesses to Glen Ellyn. Cleary questioned whether village staff could handle those duties.
“The residents of Glen Ellyn are passionate about their downtown. It’s looking good now because of what Janie and the EDC does,” Cleary said. “I can’t see how it could possibly be done by the village, which is already staffed down.”
Trustee-elect Diane McGinley said organizations such as the EDC and chamber of commerce may have overlapping responsibilities in working with businesses. But in the end, she said, “No one seems to be getting together and saying what’s best for the village.”
Village President Mark Pfefferman said he sees the glass as half full, not half empty, and thinks all groups have a meaningful impact.
“How we should structure going forward is a question to go on. Most of our neighboring communities have had government involved in some way. We have not had that. We are proposing that. Some overlap is good. There’s no desire to take over all functions, but there is a desire to refocus,” Pfefferman said.
Trustees voted to table a straw vote on the entire budget, which must be formally approved by April 25.