Stagnant growth concerns mayor

There wasn't much disagreement over whether economic development is lagging in La Grande. But at the end of a La Grande City Council work session Oct. 29, the question remained: What to do about it?

Discussed during the well-attended meeting at the Cook Memorial Library was Mayor Colleen Johnson's highly publicized proposal to hire an economic and community development director for the city.

It's a proposal steeped in controversy, since Johnson has suggested eliminating annual city funding for the Union County Economic Development Corp., and reducing funding for Union County Tourism.

Citing stagnant population growth, median income lower than the state average and other gloomy indicators, Johnson repeated her oft-stated contention that a new approach is in order.

"The numbers I'm seeing tell me we're treading water," she told the community and business leaders gathered at the table. "Maybe that's some people's vision for the community, but it's not mine."

Johnson said Union County's population growth rate of less than 1 percent a year bodes ill for the city.

"I don't think that kind of population growth gets us to a revitalized downtown and family wage jobs," she said.

It took some time for the group to begin talking about Johnson's proposal for a city economic development director.

First, there was lengthy discussion on whether increased population is a good thing, and on the role tourism should play in the local economy.

Local RV park owner Dale Mammen, media specialist and businessman Michael O'Connor and community activist Mary McCracken all touted tourism as an important component, one that should be carefully nurtured.

"We're not well-diversified, so when one sector runs into trouble, we're not in good shape," said O'Connor. "I'm suggesting tourism as a viable part of our diversity.

But a consensus wasn't in the offing. City Councilor Todd Richmond took the position that tourism will never be La Grande's salvation.

"I travel in the off-season, go to these places that are built on tourism," he said. "Most places, people are working two jobs, and up and down the highway every other place is for sale. As a solid foundation, it's not the way to go. As a major economic force, I don't see it."

Talk eventually turned to other economic development issues, especially the need to attract industry, create jobs and develop La Grande's downtown.

Donna Betts, formerly of the Northeast Oregon Economic Development District and currently a private consultant, said she thinks it is important to help existing businesses grow.

But she also said more industry and more population are needed.

"We're going to run into a crisis soon. We do need people to move here," she said. "Even with all the well-paid jobs that are available, our median income is still one of the lowest in the state."

Howard Perry of Anderson Perry and Associates said he thinks La Grande should capitalize on its strengths, improve its infrastructure and work together.

"We need to minimize conflict. It's hard to sell this as a good place to live if we're fighting among ourselves," he said.

Johnson's proposal to hire a city economic development director received support from Doug Campbell of the

La Grande Downtown Development Association and Judy Loudermilk, director of the Union County Chamber of Commerce.

Both said they believe the director could play a pivotal role in downtown revitalization.

"I think you need a designated communicator, an organizer and data gatherer," said Campbell.

Loudermilk, who has been working with the Renaissance Committee, a group charged with improving downtown, agreed.

"No matter how you look at it, it still needs somebody who is there to make things happen. It has to be someone with a passion for economic development. There should be be a focal point," she said.

Richmond also was among those who think a director would improve the city's

fortunes.

"We need someone to organize and focus things, instead of relying on volunteers," he said. "We need that person to bring the ideas together and make the information flow."

Others said they have faith in the people who have been working local economic development issues and don't see a need to change too much.

Councilor Dan Pokorney defended the UCEDC, which could lose all its city funding if Mayor Johnson's proposal ever gains approval.

Pokorney pointed to the private, non-profit group's past achievements, which include development of the Baum Industrial Park and growth of the local recreational vehicle industry.

"We can't look forward without looking back. It's important we don't throw our past successes out the window," Pokorney said.

Pokorney also said he doubted the wisdom of hiring a director as Johnson suggests.

"I really wonder if this highly paid person is going to succeed when many other groups including this council haven't succeeded," he said.

Janet Dodson of Union County Tourism said she was in an uncomfortable position. While she supports the idea of a director working specifically on downtown issues, she faces a cut in funding for her program if one is hired.

She said she hopes the council will look at other ways to fund the position, including using money out of the Urban Renewal District budget.

City council work sessions are held to explore issues and gather ideas only. Decisions are not made during the sessions.

City Recorder Sandy Lund said this week more sessions will follow, though none have been scheduled yet.