County EDC Is Reinstated
After Slicing Budget, County Now Favors Reorganization Plan
By Karen Gould

A year ago the future of the county’s Economic Development Corporation looked bleak. The county commission had sliced the agency’s budget, leaving only enough to fund a few meetings. Now, commissioners are rethinking their decision, increasing the agency’s 2007 budget in support of a reorganization plan proposed by the EDC director.

Commissioners agreed Tuesday, December 19, to budget $3,400 for the EDC. Although a long way from funding levels of past years, it is enough to cover meeting costs for the next year for five EDC members, say commissioners, who looked favorably upon a plan that calls for increased communication between the EDC and the county, an expansion of the county’s Web site, support for efforts to introduce high speed Internet access throughout the county, and reorganization of the EDC from a corporation to a commission.

In 2006, commissioners allocated $1,750 for the EDC, down from $59,200 in 2005, because commissioners said they saw little progress in fostering economic development. At that time, the agency had been operating with a nine-member board, and the reduction to five members is part of the reorganization plan presented by EDC Chair Michelle Walk.

Ms. Walk, Lynne Batchelder of Naubinway, Dean Baker of St. Ignace, and Tom Augugliaro of Cedarville are the only remaining members of the organization, which ran out of funding in August.

Until February 2005, the county also provided staffing support for the agency with personnel from the county administrator’s office. When commissioners shut down the office, Ms. Walk took on support responsibilities through the MSU Extension office, which she directs.

For the EDC to move forward without staffing assistance, it needs board members who are people with specific interests, skills, and backgrounds, said Ms. Walk. She and Mrs. Batchelder are seeking three other people who would be willing to put in the time needed to benefit the agency and community, she told commissioners.

“The key to how successful we will be is the commitment of the people on the board,” said Ms. Walk.

She explained to commissioners that her background is in grant writing. Mrs. Batchelder has experience in real estate, and they would like to get board members with other experience, including banking or finance.

The EDC also receives revenue from the Internet hot spots project it spearheaded in 2005. The “hot spots” offer Internet connection for a fee. Those buying connection time at the Little Bear East Convention Center, the St. Ignace City Marina, and the St. Ignace Library generate revenue for the agency. Without the figures with her at the meeting, Ms. Walk estimated they earned approximately $1,200 in 2006. She told commissioners that money is supposed to be earmarked for future upgrades for the Internet equipment.

Ms. Walk said under the new plan, the EDC would partner with local Chambers of Commerce and Merchants Associations, including those from Mackinac Island, St. Ignace, Naubinway, and Curtis, to develop programs that would help communities retain the businesses that are operating in area towns.

Commissioner Jim Farero supported Ms. Walk’s idea of the EDC working with the local organizations to assist businesses already in the community.

“Working with the chambers is a good idea,” said Mr. Farero. “Because the chambers have their fingers on the pulse of the community.”

Commission Chair Dawn Nelson, who also supported the reorganization plan, said she recently attended a new commissioners meeting hosted by the Michigan Association of Counties. Of the 100 people attending, approximately 50 percent said their goal was to get more economic development into their community.

Ms. Walk said part of the plan for the new EDC would be to make it a commission rather than a corporation. An insurance coverage change forced that decision, she said. Previously, the EDC had been covered by the county’s carrier, the Michigan Municipal Risk Authority (MMRA), which changed its policy. While the MMRA will insure commissions, it no longer includes municipal corporations like the EDC in its policy.

Following the meeting, Ms. Walk told The St. Ignace News that she gathered insurance quotes for basic errors and omission coverage that the corporation would need, and learned the coverage would cost the EDC between $500 and $700 yearly.

“Given our financial status, that money just really wasn’t in the budget,” she said.

To reorganize as a commission would involve writing new bylaws, she said. Ms. Walk is investigating the matter to see if the corporation status of the EDC can be put on hold to keep future options open for the organization, while EDC members move forward with working to convert the organization to a commission.

Other plans include communication with commissioners three or four times a year to keep them apprised of progress being made. The EDC works with agencies to encourage entrepreneurs, and works with First Step of Mackinac County, which offers counseling to individuals interested in starting a new business. The organization would help expand the county’s Web site to include information on area agencies. Promoting marketing efforts of local artists and products from agriculture to paintings is included in the new plan. Also under consideration is offering workshops to businesses to promote tourism-related endeavors. As part of the new plan, the EDC would support efforts to bring wireless or high speed Internet to the entire county, explained Ms. Walk.

Upon reviewing the new plan for the EDC, county board members said they appreciated the efforts to revitalize the organization.

“I think next year at this time we may be seeing success, which may be small, but at least we won’t be going backwards,” said Mrs. Nelson.

The EDC will next hold work sessions in January and February and hopes to have its new board in place and begin holding regular meetings in March, said Ms. Walk.

The county commissioners are expected to adopt the 2007 budget, which includes the EDC funding, this week.