Bloomington will continue making annual funding contributions to the Bloomington-Normal Economic Development Council, but with a series of conditions attached.
The Bloomington City Council on Monday authorized three installment payments totaling $100,000 for the next year.
“One of the primary benefits we get from them is the operation of the enterprise zone, but there are many other things that they do that we benefit from,” said City Manager Jeff Jurgens. “Staff does believe that this is an investment that does yield a great deal of return for the city.”
Jurgens said the budget adopted by the city for this fiscal year includes a line item for $120,000 in funding for the EDC, but with the organization in the midst of a leadership change, the staff adjusted the funding proposal.
The resolution approved Monday — without additional council discussion — also established “Conditions of Use” that include monthly written progress reports, financial accountability documentation, and strategic alignment with the city’s economic priorities.
Tyler Cravens was named the EDC’s interim CEO in March, following Patrick Hoban’s resignation to take a new job after six years in the position.
With Hoban’s departure, Mayor Dan Brady expressed an interest in re-examining the city’s relationship with the EDC. Bloomington, Normal and McLean County combine to provide the bulk of the organization’s funding.
Brady previously told WGLT that in many other markets, businesses contribute a majority of the EDC’s funding, not local governments.
“I question the future of the EDC from the standpoint of Bloomington having a community enhancement division that I think is very capable of putting together projects and someone such as myself, our city manager and others are very capable of advocating on behalf of that city,” Brady previously said.
The Bloomington-Normal Enterprise Zone managed by the EDC provides economic incentives to businesses within a specified area that take on new investments such as facility expansion or other improvements. Two weeks ago, Bloomington expanded the enterprise zone by more than 170 acres.
In its agenda memo to the council, city staff recommended the restructuring “to acknowledge the BNEDC’s value while ensuring measurable progress.” Jurgens described the conditions put in place as “nothing that we think is overly onerous.”
Those six conditions are: hiring and maintaining a qualified CEO; submitting regular written reports detailing activities and progress toward objectives; delivering an annual presentation to the city council; maintaining accurate financial records, with the city allowed to request documentation that verifies expenses; complying with all applicable laws and city policies; and performing core functions.
The core functions listed include administering the enterprise zone, representing the city in external incentive programs, and “providing comprehensive assistance with business retention, expansion, and recruitment initiatives.”
Failure to comply with the established benchmarks could result in Bloomington suspending or terminating EDC funding, at the council’s discretion.
