Dar Schwanbeck can’t understand why councillors have slashed his agency’s funding in half for 2012 when he says there is so much more they could do that would benefit St. Albert’s economic base.
“I guess I’m just seriously frustrated,” the managing director of the Northern Alberta Business Incubator (NABI) said Thursday after councillors voted to slash the non-profit’s funding from $20,000 to $10,000 for 2012. “We’ve attracted something like 35 new businesses to St. Albert in the past two years. We’re doing our damnedest to attract new jobs and businesses to the city, our damnedest to grow and accelerate the success of businesses here. We can do more coaching with funding resources.
“I just don’t get it.”
Mayor Nolan Crouse, who brought forward the motion, seemed almost indignant during debate Tuesday night, questioning why such a successful enterprise with such strong financial footing needed any city money in the first place.
“They never have and will never fundraise,” Crouse said. “They are here to ask for money. Have one raffle, have a barbecue where you ask for $5 for a burger. This has really stuck in my craw. We have an organization that will not fundraise.”
Prior to Tuesday’s debate, Schwanbeck spoke to council to share some numbers, estimating NABI tenants paid $68,000 in property taxes and another $9,000 in license fees this year. He said in total, NABI businesses have contributed $24 million in gross domestic product and account for $8 million in local payroll.
But it also carries a healthy balance sheet, Crouse argued, putting up a chart that showed NABI holds approximately $400,000 in assets and $81,000 in liabilities.
“NABI is right for St. Albert. It’s the good balance sheet and the inability to fundraise, that gnaws at me,” Crouse said.
Schwanbeck said Crouse was looking at the numbers in a different way.
“His argument is that we’re cash rich, but until last year we didn’t have a capital reserve fund,” Schwanbeck said. “We didn’t have that kind of reserve set aside and we’ve done that and it’s getting to be appropriately funded, but it means setting money aside.”
The incubator has been able to secure steadily increasing levels of provincial funding that now exceed $100,000 per year.
“The idea of partnerships is quite popular so that everyone does their part to support economic development,” Schwanbeck said, explaining why the city’s money is important for continued grant increases. “It’s about, ‘Gee Mr. City, the other players agree, like what we’re doing, and now want to decrease the resource. Your symbol of commitment is going down.’”
Schwanbeck found vocal support from Coun. Malcolm Parker during debate on Crouse’s motion.
“What bothers me is they’ve progressed in big strides and this council talks about economic development and making it a priority and yet we won’t support this group to the tune of $20,000 when we’ve given more to other agencies,” Parker said, his voice rising.
“I am just puzzled that we go through this same exercise every year. Even if they are self-sufficient, the message we’re sending out is wrong and we have to continue to support NABI.”
Schwanbeck said the city is also looking in the wrong direction when it comes to local economy. The best option isn’t trying to lure big box stores to town but to invest in small businesses that are growing with NABI’s help, which will provide much of the economic diversification St. Albert needs.
“We can help sustain businesses and we can help grow business in St. Albert,” he said. “There are lots of small businesses that could help and my fear is they are looking to attract new business to come here when the best opportunity is to grow from within.”
