Oak Ridge Today

DOE asks for more information on $2 million CROET grant

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The U.S. Department of Energy has requested additional information as it tries to close out a $2 million grant awarded 16 years ago to a nonprofit organization that owns, develops, and manages former DOE property.

The grant was issued in 1997 as part of a larger grant that the Community Reuse Organization of East Tennessee requested from DOE, said Lawrence Young, CROET president and chief executive officer. Most of the money was used for a high-risk loan program for small businesses. The purpose was to create jobs and promote economic development in East Tennessee, said Mike Koentop, spokesman for the DOE Oak Ridge Office. [Read more…]

IDB endorses professional services contract with Chamber

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The Oak Ridge Chamber of Commerce could provide an office for the Industrial Development Board, store its files, prepare its meeting minutes and agendas, and take care of its accounting under a proposal endorsed Monday.

The Chamber would do the work for $25,000 per year, IDB Chair David Wilson told board members. [Read more…]

Council considers budget amendments, raises spending for Chamber of Commerce

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Oak Ridge City Council Budget Meeting

The Oak Ridge City Council considers a series of potential budget amendments during a special meeting Thursday.

They were scheduled to consider more than a dozen budget amendments Thursday, but Oak Ridge City Council members approved only one that could immediately affect spending. It was a recommendation to spend another $50,000 on the Oak Ridge Chamber of Commerce contract.

The proposal will be considered by the City Council during the second and final budget reading on May 28. The new fiscal year starts July 1.

During a special four-hour meeting Thursday, Council rejected other proposals to increase spending on capital maintenance by $250,000 and cut spending on travel. Members asked for further study on a recommendation to consider relocating Fire Station No. 2 in east Oak Ridge to Melton Lake Drive. [Read more…]

Guest column: Hope proposes funding increases for fire station, economic development, maintenance

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Chuck Hope

Chuck Hope

Editor’s note: The following proposals by Oak Ridge City Council member Chuck Hope were first considered at the Monday, May 13, City Council meeting but postponed to a special meeting at 5 p.m. Thursday, May 16, in the Municipal Building Courtroom.

I would like to make a motion for an amendment to the ordinance to provide revenue for municipal purposes for the fiscal year beginning July 1, 2013, to increase the funding in the general fund in three critical areas.

The first area is in economic development. I would like to increase funding by $200,000 to strengthen our economic strategies that the city manager has proposed for the upcoming year. I would like to see an additional $75,000 be added to the Oak Ridge Chamber of Commerce contract to fully fund the three-part approach the city manager has developed, with the remaining $125,000 set aside to be used if any additional projects come forward this next calendar year.

The second part of this amendment would be to add $250,000 to the capital maintenance portion of our maintenance and operations (M&O) budget. We have several projects that will need to be updated and repaired this next year. If put off until further in the future, we will be doing these projects under a emergency situation, which always cost us more in repairs. It is essential that we maintain a proper M&O budget so we can get the most out of all of our city assets. [Read more…]

Council members clash over Baughn’s budget-cutting proposals

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Trina Baughn

Trina Baughn

Charlie Hensley

Charlie Hensley

Several Oak Ridge City Council members clashed on Monday as they debated a few last-minute proposals to reduce city spending in some areas and increase it in others.

Most of the debate centered on proposals submitted by Oak Ridge City Council member Trina Baughn. She asked the City Council to consider nine budget-cutting proposals and consider selling the Centennial Golf Course and the property used by the Oak Ridge Chamber of Commerce, among other things.

Baughn said she represents the citizens of Oak Ridge and is trying to find the highest and best use of city-owned property. She has previously said she would like to lower the property tax rate and has advocated for a more limited government. [Read more…]

Council considers budget with no tax increase, less money for Chamber, ORCVB

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Mark Watson

Mark Watson

The Oak Ridge City Council on Monday will consider a budget that does not raise property taxes but could cut funding for the Chamber of Commerce as well as the Convention and Visitors Bureau.

It would include contracts with economic development consultants Ray Evans and Steve Jones and a 1 percent cost-of-living pay raise for city employees.

Under the budget proposed by Oak Ridge City Manager Mark Watson, the property tax rate would stay at $2.39 per $100 of assessed value. [Read more…]

Guest column: Chamber hopes to continue working with city on business development

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Throughout the years, the Oak Ridge Chamber of Commerce has been a valuable asset to the community, supporting local businesses and promoting new business development in our city. For more than 20 years, the city of Oak Ridge and the Oak Ridge Chamber of Commerce have had an agreement through which the Chamber works in partnership with the city to attract new business to the community.

Appropriately, during these challenging economic times, the city is looking at all of its economic development relationships and asking itself whether or not it’s a good investment. We recognize the city’s efforts to conserve public dollars and have made a proposal to City Council for the formation of a better and less expensive partnership for the future. [Read more…]

Oak Ridge hires former Clinton city manager as industrial, commercial recruiter

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Steve Jones

Steve Jones

Former Clinton City Manager Steve Jones has been hired by the City of Oak Ridge to provide economic development support services, with a particular emphasis on industrial and commercial recruitment.

The term of the support services agreement is April through October 2013. Jones will be paid $3,500 per month and will report to Oak Ridge City Manager Mark Watson.

“Steve was extremely successful as a recruiter during his 10-year tenure as city manager of Clinton,” Watson said. “With the advent of the Uranium Processing Facility project and the upswing in industrial activity in the region, the city will benefit from having a professional business developer focusing everyday on opportunities for Oak Ridge. I look forward to having Steve representing us at the regional and state levels.” [Read more…]

Guest column: ORCVB, Chamber funding should be reduced 50-100 percent, festivals outsourced

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Note: This is an edited version of a letter submitted by Oak Ridge City Council member Trina Baughn at a March 25 work session.

Mr. Watson and Fellow Council Members:

At our last retreat, I proposed that we each share our specific positions regarding the Economic Diversification Fund. A successful economic development strategy must focus on both retaining and increasing business and residents with a primary goal of establishing a more competitive financial position. For Oak Ridge, that means becoming a more affordable place to live and work. With that in mind, I present my point-by-point response to Mr. Watson’s Eight Point Economic Statement:

1) I support the city manager’s proposal to eliminate this fund and distribute the costs within the general fund if that distribution includes some reduction and/or reallocation of funds to the direct benefit of our taxpayers. Of the $1.4 million we currently spend, I recommend that we attribute half toward a reduction in the property tax rate (the equivalent of 7.7 cents). Such a reduction will benefit every existing and future business and home owner. [Read more…]

Guest column: The velocity of money is 70 mph

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By Pat Fain and Leslie Agron

The usual theory behind economic development for a community is that the local economy is too small. So, economic development experts seek to bring in new companies, especially industrial ones, to enhance that economy. The theory is that increased local purchases by new companies and their employees are multiplied several times as the money spreads throughout the community. Every additional purchase results in additional sales tax from the same original dollar that exited the new company. Companies that manufacture goods or provide services externally have the greatest value theoretically as they actually bring new money into the community. The rate at which this happens is called the velocity of money.

In Oak Ridge, however, the size of the economy that occurs within our city limits is enormous for our population. The problem for Oak Ridge is that much of that economy occurs within non-taxable institutions and the vast majority of their staff does not live in Oak Ridge. Thus, in Oak Ridge the velocity of money is 70 mph—the speed at which those folks are cruising down Interstate 40 on Friday evening as they take their paychecks home!

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Guest column: The beginning of hopeful change in economic development

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By Pat Fain and Leslie Agron

On a cool Monday evening at a recent Oak Ridge City Council work session, City Manager Mark Watson did something else. He offered the city and the Council a creative and achievable road map to changing the decades-old paradigm that is today’s Oak Ridge. He offered new exciting ideas geared to the 21st century and designed to promote both the fiscal health and the allure of the city.

The focus of the room was total, and one could almost hear the gray cells churning to take it all in. It is really fun to be present at the very beginning of hopeful change. The inertia of the city has been challenged, the status quo has been shaken, and the restlessness of the citizenry has been given a positive direction around which to coalesce.

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Guest column: Changing the economic development game in Oak Ridge

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There’s no nice way to spin it: The results of our city’s bad decisions for the past decade are catching up with us.

In addition to having high debt and property taxes, our sales tax revenues continue to decline, we are exporting more than $727 million per year in U.S. Department of Energy payroll (1), and we have a comparatively stagnant population growth. Even with all the new restaurants opening, these projects won’t fully replace the revenue we’ve lost from the countless businesses that have closed up shop or left town for greener pastures.

Continuing down this path is not an option. Thankfully, our city manager understands this and wants to strategize a more competitive position for Oak Ridge. He is proposing that we change our approach to economic development (2) by finding other uses for the $1-2 million we’ve been spending annually on nearly 20 different external organizations like the Oak Ridge Chamber of Commerce.

[Read more…]