Jackson Chamber asks for money after city's nixing of funding

The Jackson Area Chamber of Commerce's director asked the Industrial Development Authority for a grant Wednesday to make up a shortfall stemming from the city of Jackson's decision to stop funding the chamber last year.

Chamber director Brian Gerau made a presentation to the authority board highlighting economic development activities the chamber undertook in the last four years, including developing a relationship with the Missouri Partnership, participation in the Missouri Economic Development Committee, Magnet, Missouri Chamber of Commerce Economic Development and Southeast Missouri Regional Planning and Economic Development Commission. He also cited certification through the International Economic Development Council and activities through the Jackson Industrial Development Company.

Gerau said the chamber's future goals included investing in marketing programs, attending industrial conventions and events to promote regional benefits, assisting Magnet with recruiting and marketing and soliciting industry to the region.

Gerau said the chamber's budget for economic development was "basically gone" after the city voted last year to eliminate the $15,000 it has allocated each year since June 2006, in payments of $7,500 made in January and June. The chamber's total yearly budget is approximately $160,000.

He speculated the city made the decision because the chamber was not vocal enough in its support for Jackson's attempt to annex part of Fruitland in 2011, which would have brought two quarries into the Jackson city limits. The chamber supported the annexation but did not come out publicly, Gerau said. The chamber board was given only a few days to review details of the action and make a public statement, which was not enough time, he said.

Alderman Joe Bob Baker on Wednesday said he initiated a review of the chamber's contract with the city last year after the chamber did not publicly support the annexation effort. As part of the annexation process, public hearings were held in which Magnet and the Jackson Industrial Development Company officials spoke in favor of the action, but Gerau, who was in attendance, remained quiet, Baker said.

Baker pointed to language in the chamber's contract that states the chamber director should have "expertise in industrial development" and the city will "utilize the services of said director in conjunction with the city's other activities in the promotion of the industrial development within the community."

Industrial development was cited by city officials as the primary benefit of annexation.

"I don't know why we're giving them money if they're not holding up the contract," Baker said. "To me, that's their job."

The initial contract also stated the city would provide "seed money" and the chamber eventually would not depend on it for funds, he said.

Baker said the action to give the chamber notice that funding would be discontinued was discussed among aldermen and "everyone had their own opinion," but they ultimately voted to make payments through January 2012, then stop.

Jackson Mayor Barbara Lohr said talk of whether to continue funding had been going on for several years. She felt the chamber had not held up its end of the bargain and had not been helping the city with economic development "in any way."

The lack of support for annexation was "the final straw," as far as the board of aldermen was concerned, Lohr said.

The annexation eventually was overturned at the ballot box in February 2012.

Jackson began funding the chamber in June 1998 and initially funded it at a much higher rate. Twice-yearly payments of $25,000 were made until July 2001, when they were decreased to $12,500. In July 2002, the rate was $7,500 and it further decreased to $5,000 in July 2003.

The chamber tourism board has received a separate contract of $10,000 per year since June 1993 that has been unaffected.

The development authority tabled the grant request, pending further study.

Gerau said the chamber would look at other ways to make up the funding if the grant application is denied.

salderman@semissourian.com

388-3646

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