The Register-Herald, Beckley, West Virginia

Local News

February 24, 2009

Tamarack’s economic impact huge, study shows

Citing a need for fairness, the Tamarack Foundation on Tuesday released findings from a study that shows Tamarack contributed $18.6 million to the state’s economy, $5.9 million in income, and supported 236 jobs during the 2008 fiscal year.

Ann Bradley, chair of the Tamarack Foundation Board of Directors, said reports regarding expenses of the Parkways Authority and at the Tamarack facility failed to address the direct and indirect economic impact of Tamarack on the state’s economy. The nonprofit foundation’s board of directors provided funding for such a study, and the Center for Business and Economic Research at Marshall University carried it out.

“This impact is real and positive for artisans and the communities in which they live,” Bradley said during a news conference at Tamarack. “It never appears in register sales; nonetheless, it is a very real benefit that occurs because Tamarack exists.”

The study looked at how Tamarack’s economic impact translates into income and jobs throughout the state. It found that every one of West Virginia’s 55 counties receives benefit from the production of handcrafted products, art and performance art supported by Tamarack.

According to the study, the annual direct benefits of Tamarack and its operations include 123 full-time equivalent private sector jobs, 2,500 artisans represented, 1,200 artisans receiving orders each year, $3.3 million in annual payroll in Beckley and the surrounding area, $3.1 million in local spending supporting additional jobs for West Virginians and $750,259 in state and local tax revenue paid to state and local governments.

In addition, the presence of Tamarack, the Tamarack Foundation and related spending by its activities result in indirect and induced spending in the state’s economy as follows: created an additional 113.2 full-time equivalent jobs, increased output by $6.4 million, increased income over $1.9 million and generated an additional $690,482 in state and local tax revenue, the study showed.

“It is vital that our state’s government and business leaders know how much artisans contribute to our economic development as West Virginia moves toward establishing a creative workforce where entrepreneurs in every field, including the arts, are as important as traditional businesses to West Virginia’s economic success,” said Sally Barton, executive director of the Tamarack Foundation.

“Our study confirms what national studies show: The arts and related cottage industries are important to a growing community and have a continuing positive effect on the communities and the states in which they operate. This study will help us make our case for continuing support of this industry.”

Dr. Cal Kent, Marshall University’s vice president for business and economic research and a principal author of the report, said the study confirms Tamarack is enhancing arts and arts communities in West Virginia, and that it is vitally important.

“Tamarack is an economic engine that has generated across this state income and jobs for people,” Kent said. “The new economy is based on creative people from all types of enterprises. As the most recent research shows, this generation of highly skilled and tech-savvy individuals is flocking to those places which offer arts.

“Creative people attract other creative people,” he added, noting those areas of the country with the fastest growth are those with strong arts industries.

What’s more, he said, is the positive image Tamarack gives the state.

“Tamarack represents the image of West Virginia that is the proper image, a state of creative people that are doing what needs to be done to advance the state and to enhance its culture,” he said.

The research found Tamarack is unique among the 50 states. While other states have artist centers and programs, Tamarack provides the most comprehensive and extensive program through the Tamarack Foundation. The foundation, a nonprofit organization, offers professional skills training, business advice, scholarships and networking opportunities to West Virginia artists.

The study also included results of an artisan survey. Seventy-nine percent responded that Tamarack had improved their economic situation; 75 percent reported they were able to expand production because of Tamarack’s support; and artisans reported an increase of $656,154 in annual revenue as a result of exposure through Tamarack. Performing artists also reported Tamarack had improved their economic situation.

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Since Tamarack opened in 1996, the retail Caperton Center has generated gross sales revenue in excess of $89 million, collected state sales tax revenue exceeding $4.5 million, provided a marketplace for more than 3,000 West Virginia artisans and attracted more than 5.6 million visitors, the study noted.

It also concluded Tamarack continues to create jobs, income and tax revenue which would not exist if Tamarack ceased to exist, and that Tamarack provides an outlet for the works of state artisans, which is vital for their income and development of the state’s art industry.

“Tamarack was never established with the expectation that it be entirely self-sufficient,” the study reads. “But its goal is to promote the state’s economic development by establishing and supporting a vibrant arts community.

“That goal has been and will continue to be met,” the study concluded.

Barton said the study will be presented to the Legislature.

- - -

Tamarack is attached to the state Parkways Authority, which also operates the 88-mile West Virginia Turnpike. The study notes the authority provided $2.3 million to Tamarack during the fiscal year that ended June 30, 2008. About half of the authority’s allocation goes to retire bonds sold to build Tamarack. The bonds should be paid off in 2015.

In exchange, Tamarack produced $18.6 million in taxes, wages and other benefits, the study says.

“Not one single toll dollar has gone into the Tamarack project,” Barton said. “The money that has gone into Tamarack is a percentage of concession sales on the turnpike. It’s hot dogs and gas money.”

Still, the Parkways Authority is struggling to maintain the toll road with its current revenue stream and Gov. Joe Manchin has called for placing Tamarack within the Department of Commerce.

Manchin made the proposal in March 2007 after an audit called Tamarack a fiscal failure.

“We have to continue to work with Tamarack to get it into the proper financial condition before it can be moved to any other agency or department,” Manchin spokesman Matt Turner said. “We still have plans to move it from Parkways, but we can’t do that until we remove that financial burden.”

In the meantime, Barton said the foundation felt it was important to complete Tamarack’s story.

“This study quantifies that value to the people of West Virginia is great,” she said.

— The Associated Press contributed to this story.

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