A pair of organizations who work year round to promote and enhance business in the community of St. Joseph are up for renewal agreements at City Hall tonight, and both are anticipated to garner approval from the St. Joseph City Commission’s consent agenda as a result.
Cornerstone Alliance’s long-running agreement with the city to provide economic development services to St. Joseph is one of those contractual agreements on the docket tonight, and the other is with the merchant promotion organization St. Joseph Today.
Both long-running agreements are for $30,000, while the St. Joseph Today support also includes a separate $5,000 agreement with the city’s Downtown Development Authority.
Cornerstone Alliance, Berrien County’s lead economic development agency, provides multiple services to the City of St. Joseph on the economic development front, including:
- Publicizing and promoting the business advantages of the City and the labor shed area, to attract and encourage industry and businesses to locate, expand or remain in the City.
- Providing management of all business and industry contacts, inquiries, prospects and projects in a professional and timely manner.
- Serving as the lead economic development agency for the City and provide technical assistance and advice on economic development related issues.
- Providing technical assistance to businesses and entrepreneurs seeking to create or expand operations in the City.
- Providing educational sessions to members of the city commission, city staff and/or committees as designated by the City Manager, as requested but not to exceed two sessions per year.
- Providing quarterly reports and/or updates on economic development programs in the City.
The contract with Cornerstone covers July 2020 to June 2021 to correspond with the city’s fiscal year according to City Manager John Hodgson.
Cornerstone Alliance has similar municipal contracts with Benton Charter Township, Oronoko Township, the City of Benton Harbor, Berrien County, Lincoln Charter Township, St. Joseph Charter Township, New Buffalo Township, Bridgman and Lake Charter Township and Royalton Township.
Most recently the organization helped 30 companies across the county to gain access to grants and loans related to the COVID-19 outbreak, including half a dozen in the City of St. Joseph. Cumulatively those grants and loans add up to nearly half-a-million dollars. The city also shared in the 9 major expansion projects and 23 business start ups shepherded by Cornerstone over the past year.
Additionally, in 2019 Cornerstone reports $38-million in investments resulted in $2.1-million in new equipment, a $112.8-million annual economic impact, 249 new jobs created with a new payroll total of $40-million and a total tax impact of $11.5-million for the region.
St. Joseph Today’s agreement with the City of St. Joseph calls for the organization to continue to provide a community Welcome Center in the central business district, the provision and distribution of tourist information, and public restroom accommodations among other services.
Edgewater Bank President Rick Dyer is St. Joseph Today’s Treasurer and recently sent a letter to City Manager John Hodgson requesting continuation of the ongoing contractual relationship with the city. With the pandemic forcing cancellation of all major events ordinarily hosted by the organization, they face a projected net loss for the year in the $80,000 range. He notes, however, that due to the leadership of Executive Director Amy Zapal, the organization successfully offset a portion of the operating loss “through efforts such as a forgivable PPP loan, grants, member contributions, individual contributions, and expense reductions.”
Dyer’s letter also points out that the current financial forecast for St. Joe Today “assumes receipt later this year” of the annual provision from St. Joe, noting, “Without such funds, we will have to make additional expense cuts and will not be in the desired position to help members and merchants in 2021.” He concludes, “We’ve made tough decisions and have significantly closed the financial gap created by the pandemic, but ask for continuance in 2020 of the annual support so we do not have to eliminate or reduce other services.”
The St. Joseph Today Welcome Center saw more than 20,000 visitors last year and typically hosts more than 70 annual events designed to draw residents and visitors alike who enhance the area through investment and diversity.
Both contracts are before the St. Joseph City Commission in their virtual Zoom meeting tonight.
