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The Town Council has approved a contract with the Canvass Group to assist town staff with commercial and retail business recruitment.
The contract is for $27,000 with an option to renew in one year for another $27,000 or $54,000 maximum.
This agreement is an extension of a three-year program with Retail Strategies approved in 2017. However, Economic Development Director Scott Cooper explained that the two principal players for Retail Strategies had split off to form their own company, Canvass Group.
Cooper said he wants to maintain the relationship with the partners in the new start-up firm.
“Staff spent a considerable amount of time working with the two principals of this company,” Cooper said. “[We feel] comfortable and confident in their abilities to maximize our combined efforts.”
Vice Mayor Dennis Brown asked Cooper if he is certain he is comfortable using a start-up firm for this service with no back-up options.
Cooper affirmed that he is.
Town Manager Grady Miller pointed out that this agreement has “pay as you go” deliverables so there can be no loss to the town.
Councilman Art Tolis expressed his skepticism over the agreement. He asked what tangible results they had seen after one year working with the consultant.
Cooper said a normal cycle for seeing return on investment would be 18 months to three years. He said one year would be too soon to expect anything, but stated he is optimistic about what he is seeing.
“I feel this is throwing good money after bad,” Tolis said. “Retail outlets have total control and know their market needs.
“We would be better off to offer cash incentive to come here.”
Resident Bob Shelstrom asked if there were metrics to measure with a target goal.
“A better way to compensate a contractor would be to offer a piece of the action,” Shelstrom said. “A percentage of tax revenue.”
Miller pointed out that state law has restrictions that would limit or prohibit either cash incentive or percentage of tax revenue.
The council voted 5-1 to approve the agreement with Tolis dissenting.
