EZ Policy Blog

From the Oroville Mercury Register:

OROVILLE — The City Council Tuesday night approved a $30,000 agreement with the Chamber of Commerce to market the Enterprise Zone.

However, the approval came after city staff had already been working with chamber staff to market the zone for nine months.

While councilors approved using $30,000 from Redevelopment Agency funds to pay for the chamber’s work, one questioned why approval came after most of the work had been done.

City Administrator Sharon Atteberry said the chamber had worked with staff on many things to promote the zone since last year, including an informational workshop, the Pulse of Business and the recent Business Showcase.

Additionally, the chamber had developed fliers and press releases, she said.

The Enterprise Zone offers a variety of tax and employee-tax credits to businesses located in it. The goals of the program are to attract new businesses, retain existing businesses and help them expand, according to Atteberry’s staff report. This helps create jobs, and increases the city’s tax revenue, he noted.

City and chamber staff had also worked with the Butte County Private Industry Council to give information at workshops for the zone, Atteberry said.

“So if I’m getting this right, we’re approving a contract for $30,000 that’s been worked on for nine months,” said City Councilman Art Hatley.

“That’s right,” Atteberry replied.

“That seems backwards to me,” Hatley said.

Atteberry said they would have the chamber submit a specific plan earlier next time.

Hatley said he wasn’t against paying the chamber, but he didn’t like the city doing business without council approval.

“This better never happen again,” Hatley said. “This is absolutely wrong.”

The item was on council’s consent agenda to be approved with a number of other items with one vote. Hatley asked to have it pulled for discussion.

Claudia Knaus of the chamber said it had performed the work in good faith. While she agreed it wasn’t quite proper, it had just happened.

Hatley said he wasn’t blaming the chamber.

“What I am saying is that I don’t like having business done first then approved later,” Hatley said.