Greenwood’s economic development arm spent more than $317,000 on outside consultants in 2019, about 14% less than they spent on the same services the year before, but a nearly 50% increase from 2017.
The reason is simple, if you ask Kevin Steinmetz, the city’s capital projects manager: Growth. The city is growing at a rapid pace, by more than 2% in 2018. Its population has more than doubled since 2000. That growth is outpacing its growth of employees, he said. The city will have just shy of 300 full-time employees this year, according to its 2020 budget.
The city pays private consulting firms for advertising and public relations, economic development and financial services.
The redevelopment commission, which oversees the city’s many tax increment financing — or TIF — districts, recently unanimously approved renewing contracts with all three firms. TIFs redirect tax dollars in economic development areas to infrastructure improvements in those areas instead of to other public entities that would traditionally split those tax dollars, including police, fire, schools and libraries.
The city will pay CRC Consulting, which specializes in economic development and real estate projects with an emphasis on Old Town revitalization, at least $6,000 a month for the next two years. The city paid the agency about $173,000 in 2019, and more than half a million dollars since 2017, according to city documents. CRC manages much of the day-to-day work for the redevelopment commission, which meets once a month, Steinmetz said.
The city will pay Hirons, an Indianapolis-based advertising agency, $5,500 a month this year. The company is receiving a 2.5% raise, the first since it started work for the city nearly four years ago. The city paid Hirons at least $60,000 in 2019, and at least $228,162 since 2017, according to city documents.
“By having professional media relations, we’re able to tell our story as well as continue to drive development in Greenwood,” Steinmetz said.
The city also employs a full-time community relations and marketing strategist.
“They had three years where they didn’t get those increases. Four years is vast in government, to adjust to a change,” he said.
The redevelopment commission placed a $10,000 cap on the agency’s services this year, meaning they cannot charge the city for more than $10,000 worth of work produced beyond its monthly retainer without the commission’s approval. That $10,000 buffer is needed due to the urgency of some special projects. The possibility of breaking news situations makes it hard for special projects to come before the commission for approval, Steinmetz said.
Redevelopment commission member Mike Campbell recommended the cap.
“I love Hirons and I love what they’ve done, but I don’t like open-ended contracts,” Campbell said.
The city will also continue to pay ADS Consulting for its financial services. The firm’s paycheck more than quadrupled in 2019, up to about $84,000 from $19,000 in 2018. The city paid ADS about $27,000 in 2017, according to city documents.
“As this commission grows, there’s a lot going on,” Steinmetz said.
ADS monitors the city’s TIF budgets, which are also growing, and has been working to reset the city’s financial plan, he said. The city’s consultant, Adam Stone, helped with many of the city’s major redevelopment projects in 2019, including work on the deal to bring Cummins’ information technology and digital hub to the city, and a rare luxury apartments incentives deal.
“We’re lucky enough that we don’t have to pay big firms for it,” Steinmetz said.
The city also employs a full-time controller.
While there are individuals on the city’s staff who could do some of the work the outside firms provide, the redevelopment commission is a separate entity that can’t take away from city time. TIF funds cannot be used to pay city employees, Steinmetz said.
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Here is a look at how much money Greenwood taxpayers spent on outside advertising and public relations, economic development and financial services the last three years:
2019:
CRC Consulting;$173,188
ADS Consulting;$84,005
Hirons;$60,000
2018:
CRC Consulting;$267,972
ADS Consulting;$19,305
Hirons;$81,500
2017:
CRC Consulting;$102,704
ADS Consulting;$27,225
Hirons;$86,662
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