Is Tonight The Night The Super Majority "Pays Back" TREO For Its Support Of Them

Consent Agenda Item I on tonight's council meeting calls for "Authorizing and Approving a Financial Participation Agreement between the Town of Oro Valley and Tucson Regional Economic Opportunities, Inc." The cost of this agreement is over $40,000.

For what? For a failed economic development group to fail to deliver results for Oro Valley.

We've written countless time of TREO's incompetence and how Oro Valley gets nothing from TREO's services. It has been a gigantic money pit for Oro Valley.

TREO openly supported Mayor Hiremath and council members Waters, Hornat and Snider.  And these four appointed developer Solomon.  So they have a super majority. They can do as they wish.  Perhaps, it is payback time for them.

Bill Garner has advocated a "pay for performance" system for TREO, a system with real measures of results and a focus on Oro Valley.

We do too!

Our friend John Musolf has completed a detailed analysis of the TREO and Oro Valley. We post it here for your review.

John's conclusion bears repeating"

" I don’t believe that TREO’s suggested recommendations in this draft FPA meet any emphasis on promoting Oro Valley economic development specifically. It is a canned or boilerplate statement for the Tucson region and TREO itself with limited measures for promoting development for Oro Valley."

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Town Summary

At the April 28, 2010 Study Session, Town Council directed the Economic Development division to work with the Legal Department to draft a Financial Participation Agreement (FPA) between the Town of Oro Valley and Tucson Regional Economic Opportunities, Inc. (TREO) that identifies 1) Specific performance measures for the agency and 2) Evaluation criteria and reporting.

Musolf Comment
Signing a Financial Participation Agreement with the Tucson Regional Economic Opportunities (TREO) is based on a “trickle down theory” of promoting development. If Oro Valley gives TREO $43,521 it will be used to promote REGIONAL development in the Tucson area. Somehow, TREO’s Regional efforts are supposed to trickle down to Oro Valley (even the name of the TREO organization suggests it will promote TUCSON REGIONAL economic development) not specifically Oro Valley.

Musolf Analysis

Look at TREO’s 3 major recommendations!

TREO Recommendation 1

1) Retention, expansion and attraction of primary employers
Strategies:

• Support local company formation as a method to create jobs and capital investment as well as showcase the Tucson region’s innovative strengths.

• Conduct 3 Economic Development missions/trips to showcase the region’s competitive strengths.

• Publish/sponsor 15 media articles showcasing the region’s competitive strengths

• Conduct 4 outreach meetings with regional primary employers to discuss current and future issues associated with operations, workforce, sales, local government, and other important matters. These meetings will focus on businesses within the four targeted industries and primary employers which produce goods and services in excess of what can be consumed by the local market.

• Attract and assist businesses outside of our community to relocate into the region and create new jobs. TREO shall focus on companies within the four targeted industries.

• Host 2 site selectors in Oro Valley.

Musolf Comment
The first five bullet points all emphasize regional development. Only the last bullet point mentions Oro Valley specifically. Somebody at TREO needs to be trained to understand that if you are going to take money from a client (Oro Valley), it should be clear how you are going to perform tasks and be measured on performance specific to that client (Oro Valley).

As an example of how it could be Oro Valley specific, why not change the third point to read: “Publish/sponsor 15 media articles showcasing Oro Valley’s competitive strengths”. 

As a second example why not change the fourth point to read: “Conduct 4 outreach meetings with Oro Valley primary employers to discuss current and future issues associated with operations, workforce, sales, local government, and other important matters”.

TREO Recommendation 2

Economic development policy and tools development and pursuit
Strategies: 

• Pursue reinstatement of State Job incentive grant funds.

• Enhance and standardize the State enterprise zone program for use in relocation of primary employers.

Musolf Comment
Pursuing a goal of State development help is a worthwhile goal. Considering Arizona’s State’s current chaotic financial and economic conditions, in my opinion, the Oro Valley’s Economic Development Manager can do just as an effective job of lobbying as TREO.

TREO Recommendation 3

Marketing and promotion of the region as a business center
Strategies: 

• Continue national public relations outreach to position TREO as a business center by conducting 2 press trips, one out-bound and one in-bound. 

Musolf Comment
This third TREO point emphasizes the REGION (TREO) again, not Oro Valley specifically. Push Oro Valley as a business center in the press trips.

Town Staff Recommendation
Town staff recommends approval of the FPA between the Town of Oro Valley and TREO.

Musolf Recommendation
Why recommend approval? I don’t believe that TREO’s suggested recommendations in this draft FPA meet any emphasis on promoting Oro Valley economic development specifically. It is a canned or boilerplate statement for the Tucson region and TREO itself with limited measures for promoting development for Oro Valley.