Aberdeen council approves contract with ARM for Main Street USA bid

Three-year deal to fund effort, including hiring a required full-time director

The Aberdeen City Council has approved a contract with the Aberdeen Revitalization Movement to fund the city’s bid for Main Street designation.

Councilman Jeff Cook, chairman of the city’s finance committee, brought the recommendation up for discussion at Wednesday night’s council meeting and Mayor Erik Larson, who negotiated the contract with the revitalization movement’s current president, Gary Jones, broke down the specifics for council members.

“The contract is for $17,000 for the remainder of this year, and $60,000 per year for the remaining three years,” he said. The major expense for the Main Street movement is the required hiring of an official Main Street director, budgeted in the contract at $66,000 annually to start. Tax credits, fundraisers, grants and other sources will make up the remainder of the cost of the Main Street funding.

A Main Street designation is granted to cities where a core group of businesses work together to improve the economic vitality of a city. To get the designation from the State Dept. of Archaeology and Historic Preservation, a full-time director must be hired to organize the group of businesses to improve downtown buildings and market the effort.

Councilwoman Margo Shortt said she had her doubts about the importance of the effort and whether the city should fund it.

“When I read this (contract) immediately red flags went up,” she said. She talked about big-ticket items, like a new fire truck costing more than a half a million dollars. She said she was concerned about financial priorities and unexpected expenses that inevitably occur. “I fear we are going to find ourselves suddenly out of money,” she added.

Larson said the contract comes with a 60-day termination clause, meaning if the city comes to the conclusion the Main Street program is not providing the services listed in the contract, the city can, with 60-day written notice, terminate the contract. And he added the city is doing well financially, with revenues up and expenditures down — about $1 million better than expected.

“If the question is can we afford it, the answer is yes, we can,” said Larson, adding the cost of the contract makes up only .05 percent of the city’s budget. “Would this expense be the breaking point for the new fire truck? No.”

Larson then expressed his disappointment in what he saw as a lack of faith in his negotiations with the revitalization movement, saying comments to that effect were “insulting to me as a director.”

Councilman Peter Schave voiced his support for the contract.

“We have to keep plowing ahead with our efforts to improve the downtown economy,” he said, adding the amount invested was “small potatoes” when compared to the potential benefits.

Councilwoman Karen Rowe said she has had many conversations with downtown business owners, some of whom thought the Main Street designation would benefit them, some of whom considered it a waste of money. She herself was on the fence until Wednesday’s meeting.

“Up until this moment I didn’t know, but I want Main Street here,” she said. “If it passes I am for it and look forward to seeing their first quarterly report.” Quarterly updates to the city by the Main Street director are required under the contract.

“The potential benefits of this far outweigh the risks,” said Councilman James Cook. “Even if they can deliver only half of what they say they will this will be good for the city.”

A roll call vote was taken, with Councilwoman Kathi Prieto and Councilman Alan Richrod excused from voting because of their involvement with the Aberdeen Revitalization Movement, and the contract was approved 9-1, the lone no vote cast by Shortt.

The area of focus is from D Street and the Wishkah River on the east to L Street on the west, and 1st Street to the north to the Chehalis River in the south. That is another requirement for Main Street designation; the area must be a well-defined, recognized downtown core of businesses.

During its first year, the organization of the Main Street effort will be the major focus, including hiring a director and determining staff needs. There will also be meetings with local businesses to encourage participation and to gain financial support. Work will also begin on the Main Street application itself. Since there won’t be time to meet the Oct. 31 deadline for 2018 certification, the Aberdeen group will be working toward 2019 certification.