From the Richmond Palladium-Item:
If Mayor Sally Hutton moves forward with her plan to cut Richmond’s contribution to the Economic Development Corporation of Wayne County, the city could lose some of its seats on the EDC board.
Hutton has said she intends to change the city’s contribution from 50 percent of its Economic Development Income Tax funds to 25 percent for the next two years.
On Monday, the EDC board approved changes in its contract with the Wayne County commissioners to allow itself to “vacate or reduce the number” of positions from any municipal entity that fails to contribute 50 percent of its EDIT distributions to the consolidated fund — the fund used for EDC operations. The previous contract did not specify the 50 percent contribution.
Richmond has three representatives on the EDC board, two appointed by the mayor and one by Richmond Common Council. These representatives would not be allowed to vote on a proposal to reduce their number.
The commissioners approved the same contract changes at their meeting last week. The contracts have been signed by both parties.
“We want (the EDC) board to understand that they can change the makeup of the board,” said Commissioner Denny Burns.
Such a change would require a two-thirds vote by the board, excluding representatives of whatever city or town does not contribute the full 50 percent of its EDIT funds. This exclusion is new to the contract.
Valerie Shaffer, EDC president, stressed the board is not required to change its makeup. “An important point to remember is that it does say ‘may’ and it’s a board decision,” she said, referring to the language of the revised contract.
Burns said the "may" appears because the commissioners want the decision to be the prerogative of the EDC board. “The commissioners have no intention of interfering with the function of this board,” he said.
Burns expressed hope the contract change could influence Hutton’s decision. “The mayor could still say ‘I change my mind,’” he said. “We’re trying to give her every opportunity to do that.”
http://www.pal-item.com/apps/pbcs.dll/article?AID=2013303040027
Richmond Mayor Sally Hutton came out firing Tuesday when told that the Wayne County Commissioners and Economic Development Corporation’s Board of Directors discussed removing city-appointed members from the EDC board.
The commissioners and board discussed the move Monday in response to the mayor’s decision to halve for the next two years the amount the city donates in Economic Development Income Tax to the county for use by the EDC.
Hutton said she read of the discussion in the newspaper Tuesday.
“I thought that was a wonderful way to find out,” she said. “It’s all just silly and childish. I think they need to take some lessons in collaboration.”
The mayor has said she will give one-fourth of the city’s share of Economic Development Income Tax to the county for use by the EDC for two years and then return to the past practice of giving half the city’s share in EDIT, usually slightly more than $300,000.
But she hinted that she will reconsider her plan and make a final decision by the end of this week.
“I need to sit down and think this whole thing out. And I need to talk to some people here and at the state,” she said. “I don’t think I will change my mind, but I don’t want to penalize the citizens of Richmond because of my decision.”
Hutton said she plans to use the portion of EDIT not going to the county to bolster the city’s Rainy Day fund. She said if the EDC comes up with a deserving project she “will write them a check.”
“They have plenty of money, but if they need another $300,000 I will provide it,” Hutton said.
The mayor appoints two members to the 12-member board and the Richmond Common Council appoints one.
Tracie Robinson, EDC board chairwoman, said that it is “not our intention right now to do any reduction off the board as far as the city’s representation.”
But she said Monday’s discussion was to change the contract the city would have with the county and any other entity so that if the board did decide to remove members “we would not have to change the EDC contract.”
“We did agree to make the change in the contract,” she said. “All these other communities are giving 50 percent and we want to make it fair all the way around.”
Only the EDC board has the power to remove members from the board.
The Wayne County Board of Commissioners suggested the change. Commissioners president Denny Burns said the commissioners are split on the question. He said one commissioner favored removal of one or more city-appointed members, another “thinks they are too valuable to remove.”
“So that leaves it up to me and I’m going to have no opinion, so the commissioners do not have a suggestion for (the EDC board),” Burns said.
Valerie Shaffer, EDC president and CEO, said that regardless what the mayor does “we will continue to support the city and continue our mission as we have.”
“An ideal situation would be that the city contribute 50 percent but I don’t think that will happen,” she said.
http://www.pal-item.com/apps/pbcs.dll/article?AID=2013303050021
