PORT ANGELES — The yearlong PA United effort is dead for now, putting on hold an effort that began with three business groups meeting in January to talk about merging under one umbrella organization.
Representatives of the Port Angeles Regional Chamber of Commerce, the Port Angeles Business Association and the Port Angeles Downtown Association had discussed the possibility of fostering economic development as one group with one vision, budget, staff and office to save money and present a unified front to the business world.
But that’s not to say the discussions and planning were all for naught.
The five-task-force infrastructure and five-year strategic plan that grew out of nearly a year’s worth of meetings could live on in a Port Angeles Regional Chamber of Commerce that may coordinate government-affairs advocacy with the Business Association.
Chamber board members who were present at an Oct. 10 meeting unanimously passed a resolution offered by board member Jim Hallett, president of Hallett Advisors, a financial services company.
“I move that the chamber board publicly recognize the effort and collaboration of those involved in what is known as the Port Angeles United process; to affirm the objectives of this process; and to direct the chamber’s bylaw committee to prepare for the board’s consideration at its Dec. 12, 2014 meeting recommendations as to how the chamber can implement the intent of PA United including leadership, strategic planning concepts and organization task force structure.”
Chamber board President Todd Ortloff, station manager at KONP radio, said Friday that the chamber board felt it was time to act and go it alone.
Ortloff said a seminal moment occurred when the Downtown Association board withdrew from the effort in July, saying in an email to the group’s more than 175 members that “dismantling three longstanding organizations is premature for a model that is unproven.”
The Downtown Association’s 2013 revenue was $93,279, including $20,000 from the city economic development fund.
Funding passes through the city as taxes on downtown businesses, based on square footage, that are in the Parking and Business Improvement Area (PBIA).
Downtown Association revenue includes event proceeds, membership fees from individuals and businesses outside the PBIA and state B&O (business and occupation) taxes that go to the Downtown Association through the state Main Street Program. It has an office and a single paid staff member, Executive Director Barb Frederick.
Ortloff said the Downtown Association’s exit left the chamber, which has a $495,000 annual budget, an office, a paid staff and a membership of about 450 businesses, potentially merging with the much smaller Business Association, which has an annual budget of $10,000, no office or paid staff and about 70 members.
“I would say it was more the size than the dynamics or the mission of the two groups,” Ortloff said.
“There was really no economy of scale as far as office space and ways you could consolidate those infrastructures, those types of things,” he said.
“There aren’t a lot of savings in that sense.
“Our members were saying, things won’t change much for the chamber to merge, we have to continue what we’re doing anyway.”
Business Association President Jack Glaubert said Friday the Downtown Association’s departure was part of the reason the merger effort was “languishing.”
“Right now, there’s not a lot of traction to go forward,” Glaubert said.
“There’s been a lot of effort put forward with a lot of people, and it hasn’t gone very far.
“It’s dead for now.”
Glaubert said the Business Association, which has a regular public speaker program and is active in communicating with legislators and government agencies, is forming a government affairs committee with the aim of coordinating efforts with the chamber and may even reach out beyond Port Angeles for members.
The Business Association has voted to keep the merger process moving forward,.
“We’re gonna hold our own course, just keep moving,” Glaubert said.
Tim Smith, a Business Association board member and retired Port Angeles economic development director, spearheaded the merger effort.
Smith could not be reached for comment.
The PA United task-force plan called for five groups focusing on five issues: downtown-main street; promotions and marketing; government affairs; operations and business development; and entrepreneurship.
A three-group merger could have brought about $47,000 in savings in administration, telephone, website insurance and other expenses duplicated by the three groups, according PA United meetings facilitated by Jim Haguewood, former head of the Clallam County Economic Development Council who is now a business consultant.
Goals laid out in PA United’s five-year strategic plan include a 2 percent increase in retail sales tax revenue, a $60,000 increase in average building permit value and a 23 percent increase in employment of people age 25 to 44.
“We’re looking at ways to implement the strategic plan that all this is based on,” Ortloff said.
As far as coordinating activities with the Business Association, “we’re leaving that open but we’re not committed to that yet,” he added.
“It would be great if we could make it work.”
________
Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at pgottlieb@peninsuladailynews.com.
