The Haines Economic Development Corp. has expressed dissatisfaction with the McDowell Group’s work on a five-year economic development plan and revised baseline economic data report, and will ask the consulting company to explain its work.
In January, the corporation signed a $49,500 contract with Juneau-based McDowell to compile the documents.
McDowell staff in April presented the first draft of the economic data report, intended to establish a baseline of community attitudes, priorities and data on Haines’ economy. This week they submitted a revised report to the corporation, which HEDC executive director Margaret Friedenauer said was supposedly 99 percent finished.
McDowell also gave the corporation an outline for HEDC’s five-year strategic plan. In its final form, the plan will be the guiding document for economic initiatives.
The HEDC board has had three meetings in the past two weeks to discuss the documents.
The five-year-plan outline included four broad economic development initiatives, each with more specific goals, objectives, actions and timelines.
Board member Doug Olerud said at the June 14 meeting he felt the outline focused too heavily on tourism, and should consider other industries like fishing, logging and mining, and road, dock and building improvements.
“They have a highly concentrated amount of tourism in the plan, which I don’t think should be the focus.” Olerud said he thought McDowell “wimped out,” or didn’t put much effort into creating an outline better suited to the corporation’s needs.
Board member Jessica Edwards said she wanted the initiatives to be more tangible and specific, as well as include emerging industries and things the community should plan for.
Board member Sean Gaffney said he wanted McDowell to “provide rationale for the decisions and directions they’ve chosen.” He thinks the reason they prioritized tourism is because the tourism industry is where the community sees the greatest return on investment.
Board president Heather Shade said McDowell listed some initiatives that other organizations have already worked on, like the chamber of commerce or the borough tourism department. She said she also didn’t like vague language in the outline like “support, develop, maintain, continue to and work to.”
“To me, they aren’t solid things you can do. … To me that could mean anything,” Shade said.
The HEDC board agreed at the June 14 meeting they would prefer the baseline economic data report be finished before they move forward with the five-year plan.
Friedenauer reworked the five-year plan outline this week to include more direct language and pared down repetitive items, but didn’t get to present at HEDC’s June 19 meeting before the board decided the document needed even more work.
Gaffney said he felt strongly that HEDC needs actionable items in the plan, and an explanation of how those items would bring value to Haines’ economy.
Friedenauer said many economic development corporations run ideas for future projects through three main criteria: Does it create jobs? Does it increase the tax base? And, does it spur business?
Gaffney said HEDC needs that criteria before it can work on a five-year plan. “There should be a framework for our decision-making.”
The board tasked Friedenauer to research “models and frameworks” that other economic development corporations use to guide their decision-making.
The board also reviewed the revised baseline economic data report at its June 19 meeting. Gaffney thought McDowell Group’s estimation of the worth of the visitor industry was “obviously wrong.”
McDowell reported the total footprint of the Haines visitor industry, adding up sales tax, survey results and visitor spending data, is valued at $25 million to $30 million a year. Gaffney said after he did the math, he thinks McDowell Group is missing about $5 million to $10 million. “I say, what the blank you guys? Show me your math,” Gaffney said. “They pulled it out of a hat. … The $10 million missing is 20 percent of our $50 million economy.”
Friedenauer said it could cost HEDC another $10,000 to ask McDowell to complete a more formal survey of the visitor industry.
Shade said she would request McDowell add a section to the report about limitations to data and methodology.
HEDC will send written comments to McDowell Group about the five-year plan and baseline economic data report. The board hopes to speak with McDowell staff before moving forward on either document. Shade said McDowell was already behind schedule on the strategic plan outline and baseline economic data report, and the corporation’s suggestions will push back progress. Both documents are due for borough review by Aug. 30.