The future of Mackinac County’s Economic Development Corporation (EDC) may be in jeopardy if the County Commission decides to seize EDC functions. A possible solution to the conflict, however, could be to hire a full-time EDC director.

The EDC has produced too little, too late, Mackinac County Commission Chairperson Dawn Nelson told the EDC at its meeting Monday, August 1, just as it announced it received $955 in revenue last month from its newly formed Hot Spots wireless Internet program for downtown St. Ignace. The program also saved $400 in telephone bills for the county.

The new program, which started June 1, offers tourists and residents wireless connection to the Internet from the St. Ignace Public Library, the Chamber of Commerce, Little Bear East Arena, and the city marina, however, Mrs. Nelson said because the EDC has not gotten enough done over the past six years, commissioners likely will place the EDC in a “frozen mode” and re-evaluate it at the next commission meeting.

Even though a recent audit of the county’s budget showed it to be in the black by as much as $115,411, Mrs. Nelson believes county funding is tight, considering the state and nation’s economy.

“I’m not opposed to EDC,” Mrs. Nelson told The St. Ignace News later, “but I’m not for it at this point because of the state we are in. We’ve spent a lot of money on EDC.

“In the last six years, what have they accomplished?” she asked. “Do I really want to shut down EDC? No. But I feel it’s spun out of control.”

Other commissioners didn’t offer much support, either, when asked for their thoughts by The St. Ignace News.

Even though, in April, he was adamant in saying that the EDC was not going to be eliminated, Commissioner Joe Durm now believes EDC should be halted.

“They’re going to be frozen because times are tough,” Mr. Durm said. “For the past six years, the total money spent on EDC was, I’d say, about a half-million, and no jobs were created from it.”

Added Lawrence Leveille: “I think the EDC should be more self-sufficient. They are still moving, but there’s just not enough results. It looks like it’s not a go right now.”

“I’m not that involved,” said Commissioner Jim Farero about the state of EDC. “I don’t know what they’re doing, so I cannot say much about it.”

“It doesn’t look very promising,” said Commissioner Carl Frazier about the state of EDC. “I’ve been on the board for five years and I haven’t seen one new job or any new great improvement to bring in jobs yet. That bothers me. You can’t take and spend county money and not be productive. You’ve got to have some end results.

“I’m not opposed to economic development, but any new jobs would be a plus,” he continued. “I just don’t see the direction EDC is going to get some employment into the county.”

Members and former members of the EDC, however, disagree that EDC is failing at its mission to improve the county’s future economic infrastructure.

Michelle Walk is the EDC chairperson and director of the Michigan State University Extension in Mackinac County, which has been providing staff for the county’s EDC and Planning Commission since the commissioners dissolved their administrator’s office in February.

“It’s a Catch-22,” she said. “Some people out there say we’re not committed enough to bringing in or creating jobs for the county, yet we can’t secure funding to begin projects.”

Ms. Walk worries that if EDC functions are halted, its connections to resources and interested parties for certain EDC projects will be lost and hard to reconnect. She pointed out one example where she thinks commissioners may be misled by EDC’s budget numbers. Last year, EDC received a $50,000 community development block grant from the Michigan Economic Development Corporation that was placed in the EDC budget and quickly transferred to the Eastern Upper Peninsula Nature Tourism Alliance, thus leaving the possible perception that EDC spent $50,000 and had nothing to show for it, said Ms. Walk.

The $50,000 did, however, fund marketing and consulting assistance for the alliance’s new Web site for its Great Waters project that promotes tourism focusing on the Upper Peninsula’s natural features.

Former county EDC and Planning Commission project coordinator Cindy Oliver, who helped get the Hot Spots funding through a grant last November, believes the money EDC has spent is minimal. With an annual budget of $50,400, Mrs. Oliver said the EDC spent about $12,000 last year, with its average spending for a year being only $10,000.

Her husband, Dick Oliver, who serves on the EDC board, said the Hot Spots is an indication that the EDC is moving toward being self-sufficient.

“The EDC is, for the first time, bringing in money,” he said at the EDC meeting. “It’s not enough to support itself, but it is a good start. We can’t do it now without the county help, but we’ve made more progress now than we ever had years before.”

“I think the County Commission is waving around the administrator’s office cost through the EDC,” said former EDC member Linda Hudson, who pointed out that part of Mrs. Oliver’s salary was in EDC’s budget. Mrs. Hudson, who is now the Clark Township supervisor, said she resigned from EDC in frustration with the County Commission for its lack of commitment and support of the EDC. “We have not had enough money in the budget to make any kind of impact.”

Mrs. Hudson said she was appalled to hear that the County Commission may halt the EDC.

“What are they thinking? How do they think the county operates?” she asked, “especially when Mackinac County has the highest unemployment rate in the state.”

Mrs. Hudson believes the commissioners must realize the EDC is developing the county’s economy for tomorrow as well as today.

“If you just look at the Hot Spots program, it’s a huge thing,” said Mrs. Hudson. “It is bringing in a technological infrastructure to the county seat. Almost any conceivable economic development hinges on this, but the Commission doesn’t seem to recognize the importance of that achievement. It’s the first step in the EDC’s attempt to be self-sufficient.”

EDC Vice-chairman Brandon Postma said the problem with the EDC board is that it focuses too much on getting feasibility studies together and not enough on actually getting projects going.

“We’re too worried about the County Commission and not enough about the actual economic development,” he said.

He also believes a full-time director is not needed now because there would not be enough projects for that person.

The EDC was formed in the mid-1980s, but stalled in 1988, with EDC members meeting only once a year as a formality. The board was revived in 2000 with the hiring of Jill Eyre as the county’s administrator. With Cindy Oliver on her staff, she assisted the EDC and Planning Commission in projects such as Hot Spots, a kitchen incubator for small product businesses, a lending program with Northern Initiatives of Marquette, and the 1st Step program (both programs that provide consulting and financial assistance for businesses), developing a county master plan, and expansion of the county airport facility, which was completed last year.

When Ms. Eyre resigned last November to take a city manager position at Douglas, the county administrator’s office was eliminated and Mrs. Oliver was taken off both committees to be a direct assistant to the County Commission.

The Extension office agreed to take staffing responsibilities for both EDC and Planning Commission earlier this year, providing commissioners could come up with a strategic plan by October 31. That strategy may be to lay off the two boards.

The EDC and County Commission agree that a full-time director would direct the EDC in a more productive manner and, eventually, that person could steer it toward being fully self-sufficient.

“We need a dedicated, passionate person,” said Chairperson Nelson at the EDC meeting. “This is going to take a full-time director or staff to make this succeed.

“I agree that we need a full-time person to make EDC work,” Ms. Walk told The St. Ignace News later, but the question is, Will the County Commission pay for it? If they are going to hire a director, you’re looking at $35,000 to $40,000 a year for a salary, and that’s on the low end. Anything lower than that probably won’t attract the kind of person they’re looking for.”

EDC member Tom Augugliaro likes the idea of hiring a director, as well.

“If we can hire a good director, I think a lot of opportunities for the Eastern Upper Peninsula and Mackinac County would open up to allow businesses to sustain themselves,” he said. “But I also understand it could be difficult to hire someone good for only $25,000 a year.”

Mrs. Hudson said another improvement the EDC and County Commission can make is to broaden their focus away from St. Ignace.

“I believe St. Ignace is always the central interest for EDC and the County Commission,” she said. “I’m afraid they are using ‘St. Ignace’ and ‘Mackinac County’ interchangeably.”

Mr. Oliver said he would like to see the EDC be more involved in County Commission meetings, providing the board with updates on progress of EDC projects and letting them know more about its strategic planning in the county’s future economic development.