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Business Recruiter Approved



In contrast to the proposal for Clinton to pursue a state juvenile detention center, no opposition whatsoever was voiced at Tuesday's City Council meeting to the city engaging a consultant to recruit retail business to the community. The council subsequently voted 5-0, just as it had to pursue the juvenile detention center, to enter a one-year contract with Retail Attractions, LLC, of Owasso, at a set fee of $20,000.

The company will also be eligible for performance bonuses of up to $25,000 per year if it is successful in recruiting businesses that individually occupy 2,500 or more square feet of floor space and singly or together provide 25 or more jobs, each paying at least $25,000 annually in salaries and benefits.

Before the vote, City Manager Grayson Bottom explained that some years ago he looked at a company that would study Clinton and give the city a list of potential clients. Its fee was $65,000.

"Sixty-five thousand dollars and you got a list," he said, indicating he did not consider that a good deal.

In this case, Bottom said he contacted Rodney Ray, a good friend of his who is the City Manager at Owasso which has experienced exceptional growth, and was given the name of Rickey Hayes. Before starting his own business Retail Attractions, Rickey Hayes spent six years as economic development director of Owasso.

Bottom said he called a number of cities for which Hayes has recruited businesses - among them Enid, Claremore, Bixby and Guthrie - and received good reports. The two then visited.

"His first recommendation was a single-fee payment," said Bottom. "I wasn't real excited, so I talked to him about modifying it."

The end result, he said, was the proposal brought to the council. That involves a $20,000 per year base fee consisting of $1,000 per month plus $8,000 for market and demographic data which Hayes will develop. It also includes the bonuses which will be based on performance, giving Hayes and his company the opportunity of being paid up to $45,000 each year.

Bottom especially liked the idea of the market and demographic study.

"We will buy the demographic data," he said. "I have a real interest in that data."

As an example of what the city will pay in bonuses, Bottom said the Kentucky Fried Chicken-Taco Bell facility now under construction on the west side of Gary Boulevard opposite the Jaycee Lane intersection would have cost $12,500 if Hayes' company had recruited it. The company will occupy 3,000 square feet of floor space and employ at least 50 people.

"That's certainly a very reasonable fee for that kind of attraction to the community," said Bottom.

Councilman Bob Marcy wanted to know if Hayes gets paid a bonus if a company locates here on its own and he has nothing to do with recruiting it.

"He does not," replied Bottom.

Mayor Allen Bryson said there are currently three sales corridors in Oklahoma that really attract attention. He identified then as Yukon, southeast Tulsa, and Owasso, a Tulsa suburb.

Of the latter, he said, "You see the retail area and it is phenomenal. This gentleman (Hayes) in integrally involved in that, so I'm interested in him. Utilizing him gives us an opportunity to get our story out in a way Grayson and I cannot."

Councilman John Jordan wanted to know how many other towns Hayes would be working for at the same time he's contracted to Clinton. Bottom said he currently has seven clients but that's not the important thing. Rather, he said the key is how many "investors" (or companies) he's working with.

No number was given on that, but the implication was it's significant.

After no comments were received from teh audience, Terry Wheeler made a motion to approve the agreement and Marcy seconded. Joining in the 5-0 vote were Bryson, Jordan and new councilman Steve Jones.

The agreement is actually for two years, witha one-year contract entered now that would be renewable a year from now. Each of the parties has the right to terminate it on 30 days notice at any time.