By SARA WIDNESS

This fall, folks doing business in downtown Rutland will know more about the local and regional market forces that impact their pursuits, thanks to a joint study conducted by the Rutland Redevelopment Authority (RRA) and the Downtown Rutland Partnership (DRP).

The study, scheduled for publication in early fall, will show where business is coming from; what kinds of businesses should be wooed; and whether the city is losing business.

Better high-speed Internet broadband access is another issue the RRA wants to tackle, having a vested interest in working with statewide organizations to increase broadband access in the state. In early September, Rutland as a rural community was scheduled to file an application with the U.S. Department of Agriculture for monies that may be available to bring Vermont into the 21st century, communications-wise.

These are just two of the many projects that Tom Macaulay, executive director of the two-person RRA, has been immersed in since he took over the leadership reins of the Wales Street office in November 2006.

“Rutland County does not have the broadband that it needs,” he said. “Certain areas of (the) county are served with better (service) than dial-up; others don’t even have that.

“If we as a state and as a county don’t take on this need, companies that require that kind of technology will go elsewhere,” said Macaulay. “I can’t say specifically that we’ve lost business, but it is difficult recruiting in these days. With the economy as it is, being at any kind of disadvantage is something we have to address.”

A recent study shows just how far behind Vermont is in providing high-speed Internet access. According to Speed Matters, part of the Communications Workers of America (CWA), Vermont ranks 45th in the U.S. in Internet connection speeds, with an average speed of 3.32 megabits per second.

Faster Internet service is crucial to the business community: for every $5 billion invested in broadband infrastructure, 97,500 new jobs are created in the telecommunications, computer and information technology sectors, according to the U.S. Department of Commerce. High-speed Internet service “is essential to economic growth and will help maintain our global competitiveness,” according to a statement from Larry Cohen, president of the CWA.

Assisting existing businesses and attracting new business to Rutland is another primary concern of the RRA, said Macaulay. To this end, RRA functions are being streamlined. Because RRA is an arm of the city, its bookkeeping functions that relate to the review and administration of grants are now the responsibility of the Rutland City treasurer.

“This grant administration assures that when we accept money from state or federal governments, that we have done due diligence as regards compliance in terms and conditions of grants,” Macaulay said. The suggestion to use the city treasurer for RRA bookkeeping evolved from a city audit noting that because the RRA is an arm of the city, the city should be “a little more responsible about reporting what we’re doing.”

In return for the city handling the RRA’s bookkeeping, the agency will handle grants administration for other city departments as well as its own grants.

“RRA is unique in the state. It’s the only such authority that exists,” Macaulay said. “We have our own charter; separate municipality and taxing authority imminent domain powers. We can do things that other municipalities can’t do. We’re using those tools to make things different and better.”

This unique situation came about between 1989 and 1991, when the city was looking for ways to avert economic disaster by creating an opportunity for the city to generate new economic activity. Macaulay said that “other interesting things” were happening at that time regarding taxation.

Specifically, RRA became a taxing entity that raises money for the downtown special business district. This allowed the agency to assess a percentage above and beyond property taxes. The money then is funneled to the Downtown Rutland Partnership (DRP) to carry out mandates to boost economic vitality.

“I think it’s working fine,” he said. “Every three years, we have a vote to see if the people being taxed want to continue; every time the vote has passed on about a 3 to 1 basis.” The tax, approximately 17 percent of the existing property tax, applies to all properties in the special benefits district, he said.

In addition to sharing the business development goals of the DRP, Macaulay networks and confers with the Rutland Economic Development Corp. (REDC). The former concentrates on keeping a specific section of Rutland’s downtown and historic section viable and attractive; the latter offers county-wide reach. Macaulay’s directive is to assist the business economy of the City of Rutland proper, which often involves interfacing among the three organizations.

More specifically, he said, DRP is responsible for economic development activities; special events such as Friday Night Live; and business recruiting to the downtown area.

An example of an incentive to recruit new businesses downtown has been an offer by the DRP of free rent to new business tenants for a year. Another example of DRP activity is a revolving loan fund, which is funded by the Rutland Board of Alderman from annual payments made to the city by the Diamond Run Mall. This payment originated more than 15 years ago as an impact fee when the mall was built; it is dedicated to economic development for downtown revitalization.

Macaulay said if a company wants to locate in Rutland but can’t find available space, his organization refers it to the REDC, and vice versa. The RRA works with a wider variety of businesses, while REDC provides loans to industrial and manufacturing firms.