Lemoore Council talks retail and industrial economic development at Tuesday night study session

About a month ago, during budget deliberations,  EDC was unceremoniously dumped from the city’s budget and prompted a visit from the EDC and its president John Lehn.

Councilmembers, at their last council meeting, opted to hold a study session to ponder the city's economic goals, which may or may not include the EDC or another firm that specializes in retail development. In a staff report from City Manager Jeff Laws, he acknowledged that commercial and industrial development benefit the community by bringing jobs and increased property revenue. But he also argued that a city like Lemoore might get a bigger bang for the buck with retail.

City Council Staff Report on Economic Development

He stated that on a $1,000,000 investment, the city receives approximately $95 in property tax revenue. If the same development was a retail project with $1,000,000 in taxable sales, the city earns about $7,500 in taxable sales.  

Councilmembers are considering hiring a new firm to handle the city’s retail development. CrisCom, a company that specializes in governmental affairs, business development, and public relations, is currently assisting the city’s police department in obtaining funding for a proposed dispatch center.

At the August 19 meeting city officials recommended that councilmembers hire CrisCom to actively pursue retail economic development to the tune of about $5,000 per month, which includes the $1,500 it currently gets for seeking funding for the dispatch center. The total annual cost to the city for CrisCom’s services would cost Lemoore $60,000 annually.

Currently the city pays the EDC $37,079 per year, primarily for its industrial development services. Lemoore has had an economic relationship with the EDC for approximately 48 years.

Councilmember Ray Madrigal, a recent newcomer to the council, expressed his displeasure with the way the Kings EDC was treated during recent budget hearings. “We owed them (Kings EDC) the opportunity to come and speak to us before we make a decision,” said Madrigal. He added that former councilmember Gordon was on the EDC’s board. “Did he ever come back to report to the council. I think this is a two-way street. We owe them something.”

Madrigal also made it clear he supports the EDC after hearing Lehn outline a long list of things it does for Lemoore. Lehn recited a long list of efforts the EDC has undertaken for Lemoore, from business retention to simply educating local businesses on legislative efforts which could affect them.

“I don’t think it’s a good time to get out of the EDC,” Madrigal said.