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Economic re-growth conference demonstrates need for focus, leadership and specific ideas to re-grow Rumford and the upper Androscoggin River Valley
The room at the Linnell Conference Center was nearly full to capacity September 29 as residents, officials and businesspeople gathered to discuss the economic re-growth of Rumford and the upper Androscoggin River Valley. Hosted by Grow Rumford, the gathering was billed as “Challenges and Opportunities”, and was a day meant to get a clear picture of the status of economic development efforts and policies in the area.
The picture: somewhat vague. Or, more aptly: a clear picture was presented of a vague situation. The featured speaker, Commissioner John Richardson of the Maine Department of Economic and Community Development, spoke in general terms about the need for a community to have the proper “attitude” and a specific economic development “vision” in order to promote economic growth. He did not outline any plans by his office to assist the Rumford area. Quoted in the local daily newspaper, Richardson said: “The most valuable tool is a room full of people committed to a region and its success."
According to the daily Sun Journal in its September 30 edition: “The state could help with funding for technology and education, although such funding is low right now, he said. The rest must come from within…He advised the towns to look to the Androscoggin Valley Council of Governments, one of six regional planning commissions in the state.”
Richardson was followed by a panel of local and regional officials describing their own economic development efforts. Of these, the most ambitious was that of Diane Ray, the acting executive director of the River Valley Growth Council, who described her efforts to launch a campaign to prospect for businesses to move to the area. Ray also described a labor training initiative she is taking, and her efforts to find uses for a building given to the Growth Council several years ago. The building, the Technology Center, has housed the offices of the Growth Council, but has not proved viable as either a marketable property nor as an incubator of new businesses, since it needs rehabilitation and remodeling work which, Ray estimated, could cost as much as $4 million. Rob Cameron, acting as moderator for the panel, asked whether it would be an exaggeration to refer to the building as an “albatross” for the Growth Council.
Another panelist, Robert Thompson, executive director of the Androscoggin Valley Council of Governments (AVCOG), described a list of economic growth and business assistance programs his agency administers, but indicated by his remarks that, in general, his agency does not take the initiative in economic development efforts, but waits for businesses or the community to come to them for help. Jim Doar, town manager of Rumford, and John Madigan, town manager of Mexico, described their governments’ economic efforts as modestly funded, and noted they rely on the Growth Council for economic development policy and programs.
The morning ended with a panel on the private sector of the local economy. Realtors Lynda Hebert and Roger Whitehouse, looking at statistics on median home sale prices, told the audience that real estate prices in the area were only about half of what they are statewide, and even a smaller fraction of the national average, with the Rumford area average about $100,000 and the Maine state average about $190,000. The panelists, including Phil Blampied of Grow Rumford, agreed that the bargains available in the real estate market are going to attract investors and businesses. Panelist Richard Allen, a commercial loan officer for Franklin Savings Bank, noted that the bargains can sometimes get investors in trouble, as when they buy commercial property here just because it’s inexpensive, but then discover they have difficulty renting it out at a profitable rent.
Blampied described three specific business ideas that might succeed in the area, and listed some franchise offers which would allow a businessperson to open up quickly. These included a dry cleaner, an auto rental agency and a mailbox/packaging store. (Details on this website). Blampied also noted that the Waldo Street area, noted for its currently deteriorated state, was “ripe” for redevelopment because many of the owners are willing to sell or make lease arrangements at a reasonable cost. He pointed to the experience of community leaders in Wilton, Maine, in which the old Bass Shoe factory was redeveloped by using the technique of acquiring the buildings and then selling them for a token amount to a developer who had the capital needed to rehabilitate them.
Click here for a summary transcript of Commissioner Richardson’s comments. A video clip from the conference will be posted on Grow Rumford in the near future.
Comments? Feel free to contact us at info@growrumford.com
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September 29 conference reminds former River Valley Growth Council President of similar event organized in 2000. |
The September 29 economic re-growth conference organized by Grow Rumford was a re-play, in some ways, of a similar conference seven years ago, also, coincidentally, held at the Linnell Conference Center. The earlier event, organized by the then River Valley Growth Council President Joseph Derouche, was much bigger and more ambitious, though, both in scope and results. Recalling the event recently, Derouche explained that he organized it with the assistance of the office of then-Congressman John Baldacci. As a result, it was attended by then-Governor Angus King, as well as Senators Olympia Snowe and Susan Collins. The impetus for the event was a lay-off of over 200 people from the Rumford paper mill, then owned by Mead. The event lead to three further "summit" meetings, according to Derouche, among town officials from throughout the upper Androscoggin River Valley, and lead directly to a $22,000 planning grant from the state which came, Derouche says, "without our even having to fill out an application." The initial grant was followed by a larger legislative grant, and eventually by federal grants. Eventually, nearly three million dollars in grant money came to the area, spurred initially by the conference. The effect of the funds on the local economy, however, was negligible. Derouche had to step down from his various positions due to health problems and, after his departure, most of the money went into organizational expenses for the River Valley Growth Council. Over a million dollars was spent on rehabilitating the building which the Council owns and in which it is now located, but which has not succeeded in being, as it was hoped, an "incubator" for new entreprises. A significant additional chunk of the funding went into an effort to establish a program to turn wood products into a petroleum-like fuel. Advocates of the effort, which has yet to be proved either technically nor economically feasible on a commercial scale, are still seeking additional funding, but have made it clear they no longer are considering locating the project in Rumford even if they do find more money.
In contrast, Derouche was extremely successful working with modest funding in rebuilding the retail economy of Mexico, a town of which he was town manager for many years. By a persistent personal sales effort, he was able to attract several developers and major retailers to locate along the Rt. 2 corridor. His biggest success was to draw in a new Wal-Mart. "Everyone thinks I gave them a tax break," he says. "But I didn't. I just kept calling them. For five years I drove them nuts." Derouche's success with Wal Mart is continuing to bear fruit in Mexico, with a major national retailer, whose name has not yet been revealed, scheduled to break ground early next Spring on a lot near the current Wal Mart.
Comments? Feel free to contact us at info@growrumford.com
Views from the audience
Participant found conference useful
comment by Mark Henry
Commisioner Richardson was a good selection as a keynote and
helped lend credence to the conference. However, he made
no suggestions for action and provided no pathways or programs for
improvement - either of which could have created a rallying point for
the first panel. He did state, rather abruptly, that it is the job of
the rural municipalities to identify a vision or goal and then create
their own economic development plans from that. His teams, including
AVCOG, are only there to provide support, not direction or encouragement.
With the exception perhaps of John Madigan, the first panel seemed
rather self-serving. While Diane Ray is trying hard to bring large employers
to the region she's missing out on all the small-to-mid sized
opportunities that knock on her door. I can understand why this is,but
it was disheartening to hear that the acting executive director
of the growth council only spends 10% of her time there. I hope that the
RVGC is paying her accordingly, while they search for a full time
replacement.
As you noted, there is no group vision, no driving force, no focal point
for the region. I was surprised to hear that Bob Thompson of AVCOG has
an economic development plan for the tri-county region, but more
surprising was that no one else on the panel had seen it or even knew it
existed. How could Rob create a plan for a region that includes the
River Valley without including input or representation from the region?
It appears that while all these groups want to do good work, they think
they're each operating in a vacuum.
I think that I received the most benefit from the second panel, and was
disappointed when so many people left during the break. Roger Whitehouse
made several good points, and helped keep the panel focused. Richard's
comments on cashflow and pricing were also right on target. No matter
how good an investment looks, if you can't generate the right cashflow
to support it, then it's not a good investment. Lynda Hebert's
preparation was also excellent. I appreciated her bringing real estate
pricing comparisons as they helped us see, and understand vividly, the
depressed nature of the local market in comparison to closely
surrounding communities. I also appreciated the experience and
viewpoints you (Phil Blampied) brought to the group, and your suggestions for recreating
Waldo St. are excellent.
So why was the second panel so much better prepared than the first?
Perhaps it's because the second panel was comprised of business people
and investors, rather than professional public servants? I noticed that
the first panel spent more time justifying their job, while the second
spent their time trying to help people understand how to make money form
the opportunities that are available in the area.
All-in-all I think that it was worth while for me to attend. It might
not result in instant opportunities, but I made several good contacts. I
think that will be the most valuable outcome from these types of
meetings - the opportunity to network with like minded individuals. The
next time you attempt this (and I hope there is a next time) you might
consider hosting a social hour just for networking, and schedule
speakers with specific topics (How to Buy and Manage a Rental, Reducing
Legal Exposure, How to Improve Your Credit Score, etc) rather than
hosting panel sessions.
Next steps... my suggestion would be to pursue the formation of some
kind of venture capital group. Perhaps it starts off small with 2-3
investors that can agree on a first project or two. Once those prove
profitable, the group could openly solicit for investors (or not, as the
case may be). I'm not sure how that works, or what laws and regulations
would need to be observed. However I do know that local investors are
very risk adverse and a group like this (perhaps formed as an LLC) could
help offset the project's risk significantly. Do you have a comment? Let us know at info@growrumford.com Participant thought pep talk necessary comment by Judith O'Neil First let met say that it was very well done, in a pleasant setting with great coffee - all good to start with and very comfortable. It was enlightening to hear what efforts are being made by the state and what other groups are doing.
As for the Commissioner's pep talk - I think we desperately needed it. Clearly he said that when we know what we want to do, they will be there to help us and he gave several concrete examples to that end. It would be unwise of him to come with a development plan for our area, although probably some would expect this. I believe that economic development is driven by citizens (attitude and willingness) and private investment. It is not something that can be mandated by government. Attitude, as the Commissioner said, is integral to success. The Commissioner was quite diplomatic about it but I heard a message to get going on the attitude. Nothing he said about that is any different than how I perceive it. (And I am familiar with the Sanford situation - it is as he describes it.) As for whether our collective Rumford attitude affects us negatively, I believe it does. I traveled around southern Maine a lot this summer and heard lots of comments with people shaking their heads and laughing at the antics of our selectpersons, etc. Yes, this affects us.Attitude also affects the volunteer who is reluctant to come forward unless they have a strong stomach for dissention. (Some people just want to show up, have a pleasant conversation or two, do the task at hand, be thanked and go home.) The Commissioner said we need a vision - I agree wholeheartedly. We have a great number of willing people who don't know what to do even though they want to help (including some of the selectpersons). Too many chiefs...you know the rest of how that goes. This vision is what comprises the comprehensive plan that we need. Some questioners I believe were leading in the direction of saying we need one overall organization to bring the groups together on ED. It's too soon here for that. I worked for three years on economic development at the local Catholic School and at the Diocese - until the people are ready and willing to work together and agree on the outcomes, progress is difficult at best. Of course we were working in a hierarchical structure rather than a democracy - talk about a learning process! What's next? Again, the idea of driving the press rather than them driving us is one that I mentionedto the selectmen. Diane Ray need not be put into the position to defend her work (but that's what the critical attitude of some here demands). There's a lot more but in summary, I would say the commissioner's pep talk is more of what we need. Development outside of town is going to happen but what the people here can SEE is more important for driving the attitude we want. When I drove down Congress St. today and saw the lady painting something outside DiConzo's Restaurant and then the three gentlemen putting up a sign and cleaning the store front of a bookstore it gave me that good community feeling. Last week some of us painted the side of the Sun Journal building ...stuff like that comes from the PEOPLE and inspires others to do the same ...and also gives people a feeling that things are happening - we have to SEE it.
Again, thank you for your efforts - they opened up the possibilities and I found the seminar inspiring and enlightening...good job! Do you have a comment? Let us know at info@growrumford.com Facilitating not enough; we need action The conference did a fine job bringing people together to touch upon the
evasive subject of Economic Development. The most telling symptom of a
serious problem was when each of the panel members discussed their role as
that of a facilitator. When I asked the panel WHO would be responsible for a
visionary PLAN with a defined set of OUTCOME statements, they fell very
short. I am not surprised that the town managers feel that they are
facilitating' municipal operational tasks rather than personally developing
the Economic Development plans. Our River Valley region needs a dedicated
group of talented volunteers (Facilitators and Task executors) to develop a
useful and visionary PLAN. When I suggested that to Steve Eldridge over two
years ago he decided to 'wing it' without a viable plan for Rumford. Now we
need a regional plan.
I think John Richardson was an asset with his attendance. Although his
answers seemed too long and without action statements, I agree with his
premise that each region should (I say must) develop a Vision with outcome
statements and the supporting strategies and tasks to ensure Community
Development and Economic Development.
Diane Ray demonstrated that she is a bright person who can help the cause IF
we can muster the energy to develop a VISION and several meaningful OUTCOME
statements. Without a regional Vision, I believe that Diane will migrate to
the easier tasks to have one or two very small successes while she laments
the lack of real support from the CURRENT RV GC members. Is it true that she
spends only 10% of her time at the RVGC? I thinks it may be time to revisit
the purpose, the structure, the membership and the expectations from each
member of the RVGC. If the RVGC is expected to be the River Valley Economic
Development organization, there is much to be done.
The panel discussion with the town managers, RVGC, and AVCOG was most
interesting to me because of my compulsive interest in process technology to
bring good paying jobs to River Valley:
I held back my questions when John Richardson brought up the issue of
Bio-Fuels and the $10,000,000 and $30,000,000 that they plan to route to U
of Maine for Bio Fuel (Ethanol) research development. During the break,
however, I approached John Richardson with a few questions that he had
difficulty answering. He opted to have me ask the questions to Bob Thompson
(AVCOG). My questions aligned themselves to a technical session that I held
several months ago with the professor responsible for the BIo-Fuel programs
at U of Maine. During the discussion, I told John and Bob that after my
visit to U 0f Maine with an MTI director, I wrote a follow up letter asking
a few technical questions dealing with the program process improvement from
Breadboard research" to "Applied Engineering" to "Pre-Production Application
Eng"; then to "Production". I told John and Bob that the professor never
replied. I read his NO RESPONSE as a major flaw in the spending program.
I suggested that MTI and others should ask tough questions early in the
program to ensure that spending is properly aligned to progress against
realistic goals.
Unfortunately, the "BoonDoggle" Tech Center program sponsored by Senator
Bryant and mismanaged by Christensen to the tune of over $350,000 in three
years seemed to disengage our region from the real opportunity for our
region to be the "Renewable Energy Applied Technology Center" for Maine and
other small rural regions in America.
Although the DECD (John Richardson's Department of Economic Development) has
plans to have the Old Town paper mill support the U of Maine research team, I
mentioned that River Valley is better suited to focus attention on the
the Bio-Fuel and other renewable energy development programs. After all, our region is blessed with abundant WWW
(Wind, Water & Wood). They did not disagree with my position.
They felt that it would be critical for River Valley to document a VISION
and an Implementation proposal to influence the funders and the current
program management folks. I agree! My position is simple: If our state and
federal government wants to spend $40,000,000 in Maine for Bio-Fuel research
and production implementation, River Valley should get a large share of the
investment money. The investments would produce good paying jobs, create an
influx of educators, and provide the momentum for increased economic
development.
I will plan to readdress and make visible a proposal that I submitted to the
former Rumford Town Manager for a renewable energy program for River Valley.
Perhaps we can have channel 7 broadcast the presentation this Winter to
stimulate local interest in "What we CAN BE when we innovate".
Thank you for bringing people together for the advancement of our region. Do you have a comment? Let us know at info@growrumford.com
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