EDA could go solo under new proposal

By Alicia Rimel

Published: July 29, 2008

Waynesboro’s Economic Development Authority would be refashioned to give it autonomy from the city and responsibility for generating its own money under a proposal by Vice Mayor Frank Lucente and backed by the remainder of the City Council.
While authority board members would be appointed by the council, the organization would hire an economic development director to replace Meghan Williamson, who is resigning effective Aug. 8. The new director would be an authority employee answerable to the organization rather than the city. Williamson is a city employee.
The authority, which relies on city money, would be tasked with generating its own operating income. The EDA will receive more than $1 million in city money this year. No deadline has been set for the financial transition.
“We could free this money up for other city services,” Lucente said during a council meeting Monday. “[It] would be my hope that they could become self-sufficient.”
Councilwoman Nancy Dowdy backs the move.
“First of all, I think it’s a great idea,” Dowdy said Monday. “But, before I would support them being independent, an EDA being independent, I want to make sure that we do this in the right way and don’t rush into something and that being said, I want to make sure that they have an ambition statement, are set up properly, are ready to go forward.”
Development officials say the change Lucente proposes is not unheard of.
“the intent is basically to convey the fact that this organization is more directly involved in economic development activities,” said Robin Sullenberger, CEO of the Shenandoah Valley Partnership. “There are a couple others in the region that do it that way.”
The Shenandoah Valley Partnership is a nonprofit organization providing marketing and support for business, government and educational leaders in the Valley.
“Because they are an authority and [would] have their own financing authority abilities, they [would] have a great deal of flexibility in terms of what they are able to accomplish,” Sullenberger said. “It can, in some ways, remove those decisions, to some degree, from the political process.”
Lucente cited several advantages to his proposal, including the authority’s ability to sell bonds, buy and transfer land and borrow and make loans. A possible disadvantage might be loss of power, according to Lucente.
“From municipalities, the downside I’ve heard about doing this is that the council loses power,” Lucente said. “And yes, we do in a sense, but that doesn’t seem to be a concern of mine and I don’t know how the rest of council feels about it, but we still the power to appoint these board members to the EDA as we do for the housing authority, so we will have some control. It will take four of them to get out of line before we really get out of line.”
Officials agreed.
“At this point in time, I think Waynesboro is likely to need to develop a plan as to what their long-term goals and objectives are and that may have a bearing on whether this is the appropriate mechanism to use,” Sullenberger said. “That decision is up to the city and I think, certainly with a new council, it’s a timely initiative in terms of making those decisions.”
Williamson’s departure creates a chance to make some changes, Lucente said.
Losing Williamson, Lucente said, “is a sad thing because she was a great economic development director ... On the other hand, it gives us an opportunity.”