By Mary Drier
Staff Writer
CARO — The failure to approve a millage to fund the Tuscola County Economic Development Corporation (EDC) during Tuesday’s election could mean the demise of the 30-year old agency that promotes development and retention of jobs.
EDC Director Steve Erickson and several board members attended the Tuscola County Commissioners’ Board meeting Thursday to talk about EDC’s future… or lack of due to finances.
Voters rejected EDC’s ballot proposal of .20 of a mill for six years to fund the agency in a vote of 2,487 “no” votes to 1,609 “yes” vote. Because of that, Erickson talked about possible major changes to EDC operations, the need for funding as well as and the agency’s possible elimination.
“The Tuscola County EDC has been struggling with how to provide stable funding for EDC and now with the failure of the millage we must take another look at what services we can continue to provide with a very limited budget,” said Erickson reading from a prepared statement. “This creates the need for us to make some difficult but necessary decisions…”
Some of those decisions include lowering operational cost, staff reductions, which would hurt efficiency, and turning over operations to the county’s administrator office as well its demise.
“In order to keep ourselves funded to complete and take on new program commitments for the next fiscal year we will need an increase of $40,000. Thereafter, we will require an annual budget of $90,000,” said Erickson. “This will allow us to maintain our present services and keep our commitments of present projects moving forward.”
In order to trim costs, Erickson asked commissioners to provide rent-fee office space for EDC operations in one of their facilities. However, office space is at a premium so there aren’t many options outside of a conference room at the Purdy Building on Lincoln Street in Caro.
“We are looking to the county commissioners to provide the funding necessary to fully support the county EDC. We need to know as soon as possible, if our funding can be in place to sustain the EDC as our ability to provide assistance to our businesses is dependent on having staff to do the work… at the present time our staffing is in question,” said Erickson.
“If the funding commitment is not in place by the next full board of commissioners meeting, we will provide you with an exit strategy per our by-laws, of turning over our revolving fund , equipment lease fund, and their administration as well as all of Tuscola County EDC projects and initiatives of the county control.”
The next regular Tuscola County Board of Commissioners meeting is 7:30 a.m., Thursday, March 12.
If the EDC closes, Tuscola would be the only county in the state not to have such an agency. EDC is the agency that works attacking businesses to a county.
“We our (limited) funding I don’t know how we are going to help the EDC,” said Commissioner Craig Kirkpatrick.
“The lack of information and knowledge of people that spoke out is very disappointing when we have seen the reduction in property values and the loss of revenue.”
A millage to fund the EDC was put on the ballot so the county and other municipalities wouldn’t have to take money out of their general fund to support it.
There might be a little leeway in having to make a decision in a few weeks. Even if the millage had passed, the money would not have been available to use it until next year from when taxes are collected at the end of this year. Also, there are other elections coming up where another ballot try could be attempted.
In discussing the matter, it was noted that despite informational presentations along with a video explaining EDC operations very few people understand what the agency does.
EDC promotes, fosters, encourages, and assists new and existing businesses in starting, expanding and growing their job base by retaining and the creating jobs. The agency coordinates county programs and incentives for companies looking to grow in the county with the goal to retain and create jobs. It offers incentives, grants, and loans to help businesses manufacturers grow.
Some of the other services it provides includes: Brownfield Redevelopment, downtown development, equipment leasing, revolving loan fund, small business counseling, master plan writing and development, and also grant writing. The agency has a 95-98 percent success rate in securing grants, and secured over $5 million in grants.
Besides voters not understanding EDC operations, there was some misinformation put out and a faction working against the proposal.
In the meantime, the commissioners’ finance committee will meet with EDC officials to explore options to make a recommendation to fellow commissioners at the March meeting.
Mary Drier is a staff writer for the Tuscola County Advertiser. She can be reached at drier@tcadvertiser.com.