Saturday, March 21, 2009

EconDev

A Tribal Council record of instruction was put out to sign on Thursday. Most everyone signed "yes". One Council member didn't like the wording, from what I can tell got two other Council members to change their votes to "no", and before you know it, a new R.O.I. was circulating. I am not sure what the hang up was, or why people changed their votes. It is hopefully not a sign of things to come, because if so, then the reason I opposed creating an Economic Development position/department two years ago is valid.
Here are a couple of observations I've made about economic development in Indian Country: one, it helps since tribes nationwide are all coming to the same realization that while gaming is lucrative, it is not indefinite and with there being limitations to the number of slot machines we can have, you can only add so many amenities to a casino, so many additional revenue drivers before the earning power of the facility starts to peak. Two, enabling an environment where economic environment is even possible might be the greater challenge.
There are multiple tribes in Oregon that have set good examples. One tribe has developed a minor food industry, a creamery, smokehouse, a truckstop cafe. Another, in Eastern Oregon, established the very impressive-looking Cayuse Technologies, though how that has panned out I cannot say. Yet another tribe has a golf course and sports bar, directions we've always talked about in Grand Ronde.
Several years ago we had multiple meetings on creating the position of Economic Development Director, a position that would have undoubtedly blossomed into a department. In the past we had Spirit Mountain Development Corporation, an operation that led to at least one good investment, the Gregory Lofts in the Pearl District of Portland. But for whatever reason that arm of the tribe ceased, one of the main reasons being something I am reluctant to say.
Discussions around creating the position/department ultimately floundered. There were different perceptions about how the we would engage in the process of looking at ventures. Some Council members thought the director would carry out the instructions of Council, while I personally saw it has being somewhat autonomous, with Council through the budget process supplying the necessary capital and having the patience to know that most ventures will be slow at first. In other words, don't expect a profit for some businesses the first year or two. As you might guess, the divergence in expectations played a large role in dousing the hopes the position would move forward.
I was told some time ago that the Grand Ronde Food and Fuel Company, or "GRFFCo" (pronounced griff-co), or the "C-Store" was a total pet project of some then-Council members. It was moved forward despite some objections, having been shown not to be the wisest investment. For the first two or three years, that might have been the case. In fact, it was the case. But now, if we've been informed correctly, the c-store is actually starting to make money, and supply jobs. Point is, you never know.
But the issue remains of to what extent Council needs to get involved in economic development. Business ideas are plentiful from our membership. Probably more than most issues I've gotten comments from Tribal members and non-members about how "such-and-such" would be a good way to make money. In the hallway, at lunch, at General Council meetings, on the phone, via email. Give our membership credit, they are creative and passionate when brainstorming ideas about how to help this Tribe boost earnings. But you have take them all for what they are, ideas, many of them improbable. Problem is, Council members are just as likely to do the same thing, and have the authority (and authority to money) to act on what they think are "eureka" type business ideas. I believe sometimes such thinking might have been integral to the Strategic Wealth Management debacle years ago, interesting considering SWM often seems the reason we are so gun-shy on these sorts of things.
Which goes back to the whole committee sheet at the beginning of this post. If we are haggling over the committee sheet, how will it go when it comes to actually investing the members' money?

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