BY TRACY LEE TATE
Times Editor
LAKE BUTLER — The City of Lake Butler is still working to bring in new business and revitalize the current commercial areas in an ongoing effort to increase economic development in the city.
For the past three years, the city has contracted with the company Retail Strategies in hopes of locating businesses that are looking for a place to call home or that are interested in expanding their number of locations. Although this company has shown an excellent track record in their work for other municipalities (such as Lake City) they have located only a few prospects for the city and have yet to come up with any willing to commit to locating here.
The city’s current three year contract with Retail Strategies is ending in September 2022 and both the Lake Butler Board of Commissioners and City Manager Dale Walker have given them notice that they want proof of what they have been doing on Lake Butler’s behalf for the term of the contract.
According to Walker, the company is still working on several possible projects for bringing new business to the city but, so far, they have produced no new business.
“It takes a while to develop and create economic strategies and interest in a small community,” Walker said. “We have looked at a number of possibilities located by Retail Strategies but, so far, none have been willing to take the chance here.”
Walker said a number of business have expressed some level of interest in locating in the city, many of which he has spoken with personally, but many are national or regional chains that are willing to put in the infrastructure but are not willing to run the businesses as corporate stores. These corporations want to have franchisees operating the businesses and such people are hard to find.
Most recently, a large national chain of auto parts stores has looked at the city and is still trying to find a suitable location. Dunkin Donuts showed some interest in locating a store in the city, but this involved an extension of a Jacksonville franchise that wanted to put in a combination donut shop/gas station. There is currently no progress on this front, possibly because of waning interest on the part of the Jacksonville franchise holder. Also willing to locate in the city only if a franchisee can be found for the operation is a national coffee chain.
Walker said the current economic climate in the nation and the demographics of the city are both factors inhibiting many businesses from locating in Lake Butler.
“In the past few years we have had the pandemic, growing inflation and increasing fuel costs all facing businesses,” Walker said. “Our traffic counts are increasing at a rate of about 10% per year but are still rather low. The city has no hotel or motel, something many businesses look for when choosing a location. Lake Butler is a tough sell when trying to bring in a new business. We have low numbers in population, both in the city itself and the surrounding county and municipalities. All of these things work against us in attracting new business. We are continuing with trying to revitalize our downtown area and have hopes that this will make the city more attractive to new business.”
Walker said he has talked to numerous prospects himself, referred to him by Retail Strategies, and most are reticent to locate here without sharing the risk with a franchise holder. He said he would believe it when he saw a business coming to Lake Butler in this economic climate.
“You never know for sure until construction starts on one of these businesses,” Walker said. “We cannot rely on any of them until they actually locate here.”
The city is continuing to improve the infrastructure through the planned construction of new wastewater treatment plant and downtown redevelopment, but at present just has to wait and see if these measure will attract new business. Walker said he is working on bringing dry cleaning services to the city – a possible plus for businesses that require specific dress from their employees. Also in the works is the conversion of the old wastewater spray field into an industrial park.
The Board of City Commissioners will soon be discussing whether or not to renew its contract with Retail Strategies and the fact that the company, so far, has produced not a single new business in the current contract period will be a great part of that discussion. At a cost of about $30,000 per year to the city, it is a matter of concern as to whether or not to continue a relationship which offers little or no return on the city’s investment.
