Failing so change the measurements

Item 28.1 on the Tuesday, June 28, 2016 city council agenda is another example of a failing project.

In August of 2011 city council awarded a four year grant to The Hub of Innovation.  The backup material contained this statement:  “This item is to approve funding for programs that encourage entrepreneurship, innovation and technology in order to create higher paying jobs within the city.”

Jobs

Job creation was an important part of the $4 million grant and the grant required the organization to come before council and demonstrate achievement of certain goals:

hubgrant

They were required to facilitate the creation of at least 224 full time jobs in the first four years.  That averages out to about 55 new jobs per year.

Then in August of 2015 city council approved a four year extension of the grant lowering the city’s contribution to $250,000 per year.

hubreport1

Few new jobs

The Hub’s first presentation to council under the extended contract has this slide:

hubreport2

It shows that they have only created 4.4 jobs out of the 12.5 that we should have seen in the first half of their year.

Their proposed solution is to change the requirements removing the hiring goals completely and replacing them with the requirement that they make more presentations as per the chart below:

hubreport3

We deserve better

Brutus

9 Responses to Failing so change the measurements

  1. dsf says:

    Who is running economic development?

    Like

  2. Want to Know says:

    Who are the founders of this program and what did they pay themselves???

    Like

  3. More of the Same says:

    This is just more of the same. It’s one more way for city council to keep a member of the club on the taxpayer payroll even though he doesn’t really need the money. By changing the metrics, they can justify this person keeping the job running yet another of the city’s failed economic development entities without having to show a return on investment.

    Like

  4. abandon hope says:

    Everyone should contact his/her City Council rep and ask for a vote against this.

    Like

  5. mamboman3 says:

    You point it out exactly. These people just rake in the funds for themselves and really don’t deliver the goods nor do they intend to deliver the goods. Making presentations is it and that is not the correct metric. Were we all born yesterday, or what?

    Like

  6. Jerry K says:

    Before The Hub there was another business incubator at UTEP that didn’t do much better if at all. Innovation and entrepreneurship are not so much a process as a culture. There is money here and connections to VC funding and help, too, but not much in the way of the culture and community of entrepreneurship.

    Spend some time in Silicon Valley and you’ll see what I mean. It’s in the water and air there.

    Like

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