Los Gatos Weekly-Times

Chamber of Commerce seeks funding

Group wants to take on economic development

By Clarence Cromwell

The second economic development plan proposed in two weeks changed hands from the Town Chamber of Commerce to town councilmembers last week.

But business owners would be premature to sigh in relief. Both plans lack a dependable source of money. Mayor Randy Attaway, however, said the budget may contain room for needed economic-development funding.

A week after downtown revitalization consultant Dave Kilbourne lectured merchants on the importance of promoting themselves, the Town of Los Gatos Chamber of Commerce, a part of the San Jose Metropolitan Chamber of Commerce, asked the town to pay $75,000 for the first year of a five-year economic development plan, drawn up by the chamber. It proposes to bring tourists to town at off-hours, market the town and attract needed types of businesses. The chamber's written proposal suggests that the council could set funding in future years based on how successful the efforts become. An additional $25,000, to be raised by the town chamber, would boost the program budget to $100,000.

The success of the funding proposition may appear unlikely, since the town cut off funding to the Downtown Association last year due to budget constraints.

The town originally agreed to pay the LGDA $77,000 over the course of 18 months, but the funding ended last December, six months early.

Funding for any proposal that might grow out of Kilbourne's presentation is tenuous as well.

Kilbourne addressed merchants May 16 on the need for a plan to attract shoppers to the town. He sketched for them the steps in planning their marketing strategy and finding money to carry it out.

Kilbourne hinted that merchants might want to bring back the business improvement district the town formed to help merchants recover from the 1989 earthquake and later dissolved under fire from dissenting merchants.

The same dissenters who sunk the BID on its maiden voyage attended Kilbourne's talk and spoke against assessments before anyone else raised the subject.

Attaway said councilmembers might consider spending money for economic development because such a plan could bring the town more money in sales tax. But he prefers to wait until budget hearings are finished, when he and other council members will know more about the town's financial position.

Linda Asbury, the San Jose chamber's staff liaison to the Town of Los Gatos Chamber, said the economic development plan is a natural progression of the San Jose chamber's move into Los Gatos. Discussions of an economic development plan began almost as soon as the chamber established the Los Gatos office last June. The town chamber, governed by local businesspeople, replaced the defunct Los Gatos Chamber of Commerce that sunk under the weight of financial difficulties. The local chamber makes decisions on Los Gatos issues, but all fiscal responsibility rests with the San Jose chamber.

About $30,000 would go toward a marketing plan. The chamber would use it to hire consultants who would promote local businesses, investigate the town's economic climate and create a listing of available commercial properties.

The $40,000 slated for business development, expansion and retention would recruit needed businesses to the town and retain current ones. It would set up a troubleshooting service to strengthen local businesses and lobby on behalf of Los Gatos businesses.

The recruiting efforts would bring quaint, resident-friendly businesses, such as boutiques, Asbury said. She added that the chamber would not encourage big-box retailers to come to town. "We want the revenue from economic development, but we want to keep the charm of Los Gatos," she said.

A $30,000 tourism management plan for the town, included in the chamber's proposal, may be drawn up by the San Jose Convention and Visitors Bureau.

The chamber proposes that the tourism management program would attract daytime and overnight visitors to town during off-hours. It would do so by printing 20,000 brochures, to be displayed at the San Jose International Airport, the San Jose Chamber of Commerce and other places. The program would also market businesses usable as conference centers.