Mac Hay has some economic development irons in the fire

While the process that landed him the job remains controversial, economic development manager Mac Hay is mining some prospects for new or expanded businesses in Sisters.

Hay reported to the city council at a workshop on Thursday morning. He discussed five prospects he has been working on. All of them wanted to remain confidential until plans are more firmly in place.

One is the possible expansion of an existing light manufacturing and assembly business in the industrial park that could add six to 10 positions by 2012. The local firm is considering a new product line that would require assembly personnel.

"I think they are jobs that can pretty much be trained for," Hay said. "They need people who can read plans and read a manual."

Hay said that, since the business is a traded sector company, he brought EDCO (Economic Development for Central Oregon) executive director Roger Lee into the conversation to lay out the benefits of Sisters' enterprise zone and other considerations.

Hay was impressed with Lee's presentation.

"It made (the value of) our investment with EDCO really very obvious to me," he said.

The second prospect is another existing local business, currently being operated out of the owners' residence. The owner is looking into state and federal contracts that could call for expansion of the light assembly business.

Hay is also in ongoing discussions with a private educational outfit that is interested in the former Weitech plant in the industrial park. Siting an education facility in that location raises some issues regarding the airport overlay zone, issues that Hay is trying to work through with state agencies.

"These people are serious about coming here," Hay said.

Some five to seven positions would come with the school, along with 40-50 students, by spring of 2011.

Hay noted that a film production company is interested in coming to Sisters. The initial contact was made by outgoing city councilor Bill Merrill. The company was initially planning to shoot in Canada, but Sisters is now in the running for a two-month period of work.

"I would say that we're in the running for that," Hay said.

Hay noted that an arts-based retail operation fell through in a manner that casts light on the pitfalls of economic development. A retired man and his family inquired about possibilities of siting a ceramics shop in Sisters and had selected a potential site.

"What a fit," Hay said. "I was jumping up and down with excitement."

However, as the reality of the investment in time, effort and money became clear, the entrepreneur decided to abandon the project.

"That's kind of what happens with some of these," Hay said.

Hay went through a list of performance standards with the council, including general outreach and community involvement.

Councilor Sharlene Weed requested that Hay beef up a list of resources for existing businesses.

"For me, community outreach and involvement is really the key," she said. "There's lots of great ideas out there."

Hay agreed that networking within the community is important.

"I pledge to do more at a community level," he said. "I've done some, but not enough."

Councilor Pat Thompson offered a concrete example of how local resources could help businesses grow. He cited an example of an existing local business that was turned down for a business loan because the bank didn't like the proposed business plan. With help from Hay in writing a clear, professional business plan, the business secured financing.

"That was a simple thing on your part that made all the difference for a local business plan," Thompson said.

The councilor also noted that business people also benefit greatly from having a sounding board off which to bounce ideas.

"I think we have the ability to have quite a think tank in our community," he said.

Such a think tank could provide ideas for startups - or dissuade people from trying things that just aren't viable.

"In some cases it could be a reality check," he said.

Councilor Merrill cautioned that the business community must buy into the economic development project.

"Right now it is totally funded by the city, the taxpayer," Merrill said. "In my view, the vast majority, if not the total of this budget should come from the people who would most benefit."

Thompson pointed out that those people are in fact helping to fund the program - they are taxpayers, too. He argued that the project has to get on its feet before direct private-sector support can be expected.

"Before anybody is going to open up their checkbooks or their wallets, there's going to have to be some successes - some very visible successes," he said.