Town focuses on park future

By Bryan Gentry
Media General News Service
Published: November 5, 2008

Two local economic development gurus are betting that they can bring new businesses — along with jobs and tax dollars — to the town of Amherst.

Lee Cobb and Roger Beeker are offering their marketing and consulting services for the town’s business park for $500 a month.

If they succeed in attracting new businesses, their consulting firm will be paid up to $150,000 in commission.

Amherst’s Industrial Development Authority this week said yes to the offer, hoping to increase activity at the 150-acre business park that has just two tenants.

The Town Council will discuss the proposal on Nov. 12.

IDA board members were hesitant at first about the deal and they scrutinized the costs to the town before approving it.

“The whole idea is to provide jobs,” said IDA chairman Jack Bailey. “Should the town pay $200,000 to have that happen? That’s what it’s going to cost to have someone locate.

“You’ll get an industry that offers jobs and has a payroll … and pays taxes.”

Amherst spent about $3 million to buy and develop the L. Barnes Brockman Business & Industrial Park 10 years ago.

Centra Health opened a long-term care facility shortly after the park opened. Mutual Telecom, which makes telephone equipment, came later.

But for several years, “the phone has stopped ringing,” said Jack Hobbs, the town manager.

Bailey said the town can’t afford a full-time economic development director to market the park, but the deal from Cobb and Beeker is inexpensive up front.

Several members of the IDA board are concerned that a national recession could make it hard to attract businesses, but they said that Cobb and Beeker are the men for the job.

“They’ve got more contacts than anybody around,” said Richard Wydner, IDA board member.

Cobb and Bailey have decades of experience building business in the region.

Cobb was Lynchburg’s first economic development director and went on to lead Region 2000’s Economic Development Council. He also advised Amherst on the development the Brockman park.

Beeker helped start Central Virginia Community College’s workforce development program and later worked for Region 2000, helping local companies expand.

Beeker retired last year, followed by Cobb this spring. They started a firm called High Ground Partners as a way to keep busy, Cobb said.

Their proposal to Amherst calls for a 25-month contract starting Dec. 1. They would not market any other industrial site in the region in that time.

For $500 a month they would advise the town on the zoning and pricing of the park, create marketing materials and visit prospective business tenants.

If they get a business to build in the park, then they would be paid a commission based on the value of the businesses’ real estate: 3 percent on the first $2 million in value, 2 percent on the second $2 million and 1 percent on the next $4 million.

That would be a maximum total of $150,000. Also, the town would be allowed to subtract half of the monthly fees it pays in the interim.

They are also asking the town to set aside $10,000 to $12,000 to advertise the park in the Lynchburg and Charlottesville area for one year.

Cobb said an economic recession is a good time to start working on business expansions.

“If we can do our research and our fundamental work now, we’ll be able to take advantage of a better economy,” he said.

The $500 a month they are asking for won’t cover daily operating expenses, Cobb said, but he’s sure they will get a project and earn commission.

“We’re confident we can make something happen,” Cobb said.  “We wouldn’t have agreed to enter the arrangement … unless we thought the payoff would come.”

Why? Because “I’d be better off working BINGO if 500 (a month) was all I would get.”