Saturday, March 19, 2016

Chamber of Commerce closes in Manchester

Rutland Herald
By Patrick McArdle

Staff WRITER | March 19,2016
 

Patrick McArdle / Staff file photo The Manchester and the Mountains Regional Chamber of Commerce has shut down its operations in Manchester. The Visitor Center will close at the end of business on Sunday.
MANCHESTER — The Manchester and the Mountains Regional Chamber of Commerce shut down Friday, closing its operations as a chamber and the welcome center in Manchester’s downtown.

In addition to Manchester, the chamber served Arlington, Danby, Dorset, Jamaica, Landgrove, Londonderry, Pawlet, Peru, Rupert, Sandgate, Shaftsbury, Sunderland, Wallingford, Weston and Winhall.

A letter emailed to chamber members on Friday said the decision was made after “painful deliberations” in response to financial pressures the chamber had been under for years.

Berta Maginnis, executive director of the chamber, said Friday the welcome center would be closed after Sunday.

“This is the end of the chamber as you now know the Manchester chamber,” she said.

Maginnis, who said there was one other full-time employee beside herself and a bookkeeper who worked for the chamber, said the decision to shut down was made at various board meetings from the last week.

Town Manager John O’Keefe said the town had been informed about the decision and had been asked to place the issue on its meeting agenda for Tuesday. O’Keefe said there would be discussion at the meeting, which starts at 7 p.m. at Town Hall, about the future of the chamber, its welcome center and events such as the car show, which the chamber had hosted.

In its letter to members, the chamber board of directors said the organization had seen declining membership after the economic downturn in 2009.

The chamber’s income dropped in 2014 as well when the state began Vermont Health Connect and the chamber was no longer a source for health insurance for its members.

Last month, Maginnis said chamber officials and its members spent 14 months looking at ways to make the chamber more relevant to its members and the community.

Working with Hildene, a nonprofit tourist attraction and historic site in town, the chamber board decided to create a partnership between the public, through the residents of the towns it served, and the private businesses that were chamber members.

The new organization, which would have been called the Partnership, was expected to get off to a big start through public funding requested at town meeting. The largest request, $25,000, was made to Manchester, the largest population and business center for the chamber.

However, the vote failed by what Maginnis called the “fatal five votes,’’ 626-631.

The letter to members called Manchester “the single town most crucial to our ability to move forward.” The unsuccessful vote there was a blow because the town meeting vote had been intended to “signal to our private investors that everybody was in ...” the letter added.

While chamber officials had considered the possibility of a reconsideration vote, they ultimately decided it was too late.

“We cannot overcome this loss of momentum and confidence of buy-in by all,” the letter said.

Maginnis said she thought it was a responsible business decision for the chamber to close down.

“When we lost the Partnership vote, what I call the ‘five fatal votes in Manchester,’ that precluded us from going out for some rather important private sector funding. If I had had in hand $60,000 from the town meeting votes, I could have said to a large company, ‘I have $60,000 right here. I need your $10,000. I’ve got $10,000 here’ and built a war chest or real money that would have catapulted our ability to get into economic development in a big way and get into destination marketing,” she said.

Maginnis said the chamber’s leaders were concerned about what would happen to their resources if they pursued a reconsideration vote and lost.

“You can’t in good conscience be billing for dues when you know you’re not going to be there. This way, we can fulfill our financial obligations within the community and leave on a good note,” she said.

Maginnis said there were expectations that some members would continue some events. For instance, she said some of the members who are automobile aficionados would likely keep the car show alive, at least for this year. The car show is scheduled for June 11 and 12.

Maginnis, who said she plans to stay in the Manchester area, said she would remain positive.

“Something good will come from this for the town, for the region. What that is, I don’t know, but I think we have to get behind whatever it is that comes forth. This town is poised, this region is poised. Unfortunately, both sides didn’t meet in the middle on this one and that happens,” she said.

The chamber’s welcome center is on Bonnet Street and is owned by Manchester businessman Bill Drunsic. A call to Drunsic asking about the future use of the site was not returned.

Comment: Well, at least they have democracy in Manchester. Maybe we should have a vote here.
Vito

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