Chelan pursues grant to diversify local economy

CHELAN — The City of Chelan is seeking state grant funding to help chart a more diverse economic future, with a proposed five-year strategy aimed at reducing the community's reliance on tourism and agriculture.

Chelan City Council on July 14 unanimously approved an application to the Washington State Department of Commerce's Community Economic Revitalization Board, or CERB, requesting up to $75,000 to help fund the development of an economic diversification strategy.

City Administrator Laura McAloon said city staff has been researching funding opportunities to advance economic development and identified the CERB planning grant as a way to help Chelan build a long-term roadmap for growth.

"A diverse economy, as we've discussed, reduces the city's current reliance on agriculture and tourism, both volatile industries, by increasing additional opportunities for employment and earnings," McAloon told council.

McAloon said the proposed strategy would identify Chelan's economic strengths, weaknesses and opportunities while establishing priorities for economic development over the next five years.

The city modeled its application after Douglas County, which recently received CERB funding to develop its own countywide economic diversification strategy.

Council is seeking the maximum grant available for a planning project under the current funding tier. McAloon said the city has already budgeted $60,000 for the study but expects the cost of a comprehensive strategy to exceed that amount. If the grant is awarded, the existing budget could be leveraged to satisfy CERB's required local match while expanding the scope of the final plan.

Councilmember Tim Hollingsworth asked whether the city or the state would select the consultant responsible for preparing the strategy. McAloon said Chelan would retain control of the process and would follow its standard competitive request-for-proposals process to hire a consultant.

"I just want to make sure that we get some good benefit from it," Hollingsworth said. "It's a worthy cause."

Councilmember Shane Collins asked whether the city would still move forward if the application is unsuccessful.

"It will be what you fund," McAloon replied, explaining that, if the grant didn’t get approved, the city would proceed using the $60,000 already budgeted, though the scope of the final strategy would depend on available funding.

"I like this," Collins said. "Diversifying outside of tourism and ag is definitely needed."

Councilmember Terry Sanders asked whether the city could build on Douglas County's experience if the grant is awarded.

McAloon said staff has already been working with Douglas County during the application process and would continue collaborating as the project moves forward if funding is approved.

Applications for the current CERB funding cycle are due later this month, with awards expected to be considered by the board in August.

Council approved the resolution unanimously.

Andrew Simpson: 509-433-7626 or andrew@ward.media