3 Callaway County economic organizations move closer to merger

City of Fulton and Callaway County officials approach FACC, FADC and SMIC about consolidation

With months of brainstorming conversations and formal meetings behind them, three of Callaway County's economic-driving entities are nearing to combining as one force.

The Joint Committee for Consolidation, which consists of city and county officials and business leaders, approached the Fulton Area Chamber of Commerce (FACC), Fulton Area Development Corporation (FADC) and Show Me Innovation Center (SMIC) with a plan to come together in order to strengthen the county-wide initiative to spur economic development.

Fulton Mayor LeRoy Benton said some of those involved met in November as the first step in moving the process forward. The idea of consolidation is one that has been discussed for years, but this is the first time it's come close to reality. Members of the FACC will meet after the upcoming Chamber Business After Hours, which ends at 7 p.m. on Tuesday, June 2, and vote on whether or not the chamber should continue pursuing the merger. According to a press release, the FACC must have five percent of its membership basis present for a quorum and they need to vote to make changes.

The FACC board was the first to vote to go ahead with the plan, and the FADC gave initial approval at is May 14 board meeting, but will hold a special meeting in June for a full vote, according to a press release.

The process started in the fall when city of Fulton and Callaway County officials approached the entities with the idea. The city of Fulton and Callaway County are the two biggest investors to the FACC and FADC. For their services, Benton said the city historically gives $35,000 to the FACC and $53,000 to the FADC, while the county budgeted $14,000 to the FACC and $10,000 to the FADC for 2015.

Benton said there was growing frustration over empty store fronts seen throughout the city.

"It appeared to me that our economic development in the community was becoming more and more fragmented," Benton said.

FADC Board Chair Tom Howard echoed Benton's sentiment, stating that retail business is what's missing in the area. He added that Fulton and Callaway County are ideal areas for businesses for three main reasons - location and infrastructure with I-70 and U.S. Highway 54 going through both the city and county; educational facilities with two local colleges and more in the surrounding mid-Missouri area; and the trained workforce.

"Callaway County has a great work ethic," Howard said.

By bringing together the groups, Benton said the new organization will have a more holistic approach to business growth. The FACC's primary focus is retail businesses, FADC looks to attract larger companies to the area and the SMIC is designed to support small businesses and entrepreneurship. Benton added that one organization will allow for a one-stop-shop for those with business-related needs.

SMIC Director Kim Barnes said the FADC and SMIC will contract with the FACC to "execute actions and produce results," using the precedent the city and county used for years. If all goes according to their plan, the new organization will be located in the SMIC's building - commonly known as the old police station, located at 510 Market Street. Being under one roof will allow for better opportunities for cross collaboration and better use of staff, Barnes said.

"By being all together in same place with common leadership, it lets us be certain that we're going to use all the money effectively rather than having some inadvertent mistakes," Barnes said. "It also lets us not duplicate staff. And, it should allow us to hire a better caliber of staff. With pooled funds, we'll hire people with better expertise."

With a new organization will come new leadership. Once the new organization is officially formed, a newly-formed 11-member board will search for a director.

"I'm only one voice but there's pretty good consensus that the director needs to be someone who has the ability to think strategically and can work throughout the county with decision makers, with support, with constituents. They have to be able to communicate well, they have to be able to hire and motivate staff to execute a vision," Barnes said.

Howard also said he wants to see the new director be a good communicator in addition to someone who is energetic, a leader, an expert in economic development (and has had success with it in the past), is organized and is visible to the public. Howard said chamber members will vote on the 11 board members for the new organization, who will serve a three-year term. That group will then select the new director.

Matt Gowin, FACC president, said the proposed name for the new organization will be the Callaway Chamber of Commerce. Though the chamber will be fused with two other groups, Gowin said the new organization will continue to provide return to the FACC's current investors.

"We will continue to do everything we do now at the chamber of commerce and we're going to enhance our operations with additional opportunities, probably looking along the new business line," Gowin said.

Joint Committee for Consolidation members included Benton, Barnes, Gowin, Callaway County Presiding Commissioner Gary Jungermann, Holts Summit City Administrator Brian Crane, City Manager of Kingdom City Curt Warfield, FADC board chair Tom Howard and FACC president-elect Michael Westerfield.

The chamber will keep its 501c6 status in order to retain its memberships. The FADC will maintain its 501c3 status, allowing the new organization to accept grants and donations. The FADC will also continue its mission of economic development in the county with the new name Fulton Area Development Foundation that has a five-member board.