By PETER HUSSMANN
There's a $75,000 question out there that's getting little public attention but most certainly has not gone unnoticed by the Newton business community, especially to those involved with the Newton Development Corporation.
In 30 short days, one of the NDC's major funding streams - if not its biggest - will dry up unless the Newton City Council takes action to keep the funds flowing. And that's the big question. Will it?
The $75,000 of which I speak comes from the city's hotel/motel tax. Back in 2005, when voters approved bumping the tax rate from 5 to 7 percent, an agreement was reached between the city and NDC that allowed the NDC to receive the first $75,000 raised by the 2 cent increase in the hotel/motel tax rate. The money is to be used to assist the NDC in promoting development efforts on behalf of the city.
But at the end of this month that allocation provision expires. And coupled with the council's March decision to eliminate the NDC's longstanding 17 percent allocation from 5/7 of the total hotel/motel tax generated (about $30,000 last fiscal year), and the NDC could find itself completely weened of city financing for its operation.
Some argue that's a good thing. City tax money should not go to a private development organization, they argue. And if it does, some scope of services rendered oversight should be put in place so taxpayers know what bang for their buck they are getting.
Others, however, say that economic development is a hard ball game that governmental agencies have limited abilities in which to succeed. A private development entity working in consort with a local government can better produce results that benefits all involved, they argue.
And with Iowa Telecom's recent acquisition announcement, economic development in Newton and Jasper County once again rises to the fore. What do you think? How to economic development?
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