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City joins group to help bring regional growth

Published: Thursday, June 11, 2009 6:36 PM CDT
Thelma Grimes/San Pedro Valley News-Sun

To improve the city's economic development outlook, the Benson City Council has approved $7,000 in the new budget to bring in more growth.

The council is also discussing how to spend that money, with a planned $2,500 investment in the Tucson Regional Economic Opportunities (TREO) group.

During the May 26 council meeting, David Welsh, TREO's senior vice president, said while the organization has been mainly aimed at the Tucson area, they are looking to expand into Cochise County, with Sierra Vista recently coming on board.


"This gives Benson the opportunity to come to the regional table when it comes to economic development," Welsh said. "We bring tools to take the strategic plan you already have, and move it into action."

Welsh said TREO is not good at the retail or small business side of growth, but it was formed in 2005 to help meet the needs of a rapidly growing region.

Welsh said groups like TREO are going to be important to communities in the coming year because it appears the Arizona Department of Commerce is going to be eliminated to make up for the state's budget shortfalls.

"I think TREO is another opportunity for us to use their sound expertise," said City Manager Glenn Nichols. "Like he said, the department of commerce is going to go away, and at this point, I think TREO's expertise would be great for us."

Welsh said by investing, Benson would be invited to monthly meetings where all the investors and groups share information and projects.

Nichols said he doesn't expect TREO to bring in retailers, noting that Benson is going to need a lot more homes and increased population for that anyway.

The city manager said he hopes that TREO will provide their expertise on how to put the general development plan into action, and when they hear of manufacturers looking for a home, they can keep Benson in mind.

Nichols said a manufacturing company would be ideal for Benson because it would bring in more sales taxes, more jobs and more people.

While the City Council has not approved an official contract with TREO, during the May 26 meeting, they appeared to be in favor of it.

Councilman John Lodzinski, who heads up the city's economic development committee, said he is in favor of the contract.

"They can help bring larger employers in with about 90 consultants and a small number of firms," he said. "This gives us a chance to get on the radar and maybe have projects come this way."

John Whiteside, an area resident, asked the council not to approve such a contract during the meeting's call to the public, stating he was not happy with the fact that some of TREO's investors were developers such as Diamond Ventures.

Diamond Ventures, a Tucson developer, was stopped from building a large master-planned community several years ago west of Benson when county voters rejected the project in a special election.

However, city officials said Diamond Venture is not the only investor in TREO. There are more than 60 investors listed on the www.treoaz.org Web site. Several of them are public entities such as the City of Tucson, Pima County and Sierra Vista.

Most are private companies including Tucson Electric Power, Cox Communications, Tucson Newspapers, Wick Communications' Inside Tucson Business and several banks and lending organizations and Realtors.

St. David's Apache Nitrogen Products, Inc. is also an investor, with the company CEO Bob Cashdollar being named as one of TREO's 16 board members.

Cashdollar was also on the board for the General Tucson Economic Council (GTEC) that the city invested $5,000 in 2003. GTEC was later disbanded, and city officials have said they got nothing for the money they spent.

Nichols agreed GTEC was a "flop" for the city and has raised those concerns with Welsh. The city manager said he wanted assurances that they would get something for their money.

Mayor Mark Fenn raised similar concerns during council discussions, stating he would like the city to keep track of any progress or help TREO has given Benson before the annual contract could ever be renewed.

Besides TREO, the council also has approved a measure to support the Southeast Arizona Economic Group (SEAEG) in its effort to bring the solar power production industry into Benson.

Former Benson Mayor George Scott heads the group, and recently asked that the council approve a resolution supporting a SEAEG and Venture Catalyst Inc. Solar Development Initiative.

With council approval, Scott said the group wants to apply for all the federal funding now available in the renewable energy industry on behalf of the city.

While the council did not approve any funding for the project, they have directed staff to assist Scott and his group however they can.



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