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EDC through the yearsBy Times staff writer © St. Petersburg Times, published February 3, 2001 Since it began in 1995, the Economic Development Commission has been a magnet for controversy. Here are some of highlights of its rise and fall. 1994Al Fluman resigns as head of county's Economic Development Department; the department is dissolved. 1995Local business people propose creating an industrial development authority, a public-private partnership, to handle economic development. The authority would be funded by the county and have the power to issue bonds; buy, sell and lease land; construct buildings; and apply for grants. Authority members could be volunteers representing a cross section of the community and would be appointed by county commissioners. County Commission approves a major reorganization plan that put the Public Works Department director in charge of the Hernando County Airport and Airport Industrial Park, both of which had been managed by the county Economic Development Department. Along with an industrial development authority, business leaders propose a private group called Hernando Progress. The private group would be the fundraising arm for the IDA and advise its board. However, the Hernando County Manufacturers Association opposes Hernando Progress amid concerns it would be dominated by big businesses. County Commission approves 11-member industrial development authority. The IDA would coordinate the county's economic development activities, taking over all or part of the Economic Development Department's $275,000 budget. The non-profit corporation would have authority to issue bonds, buy and sell land, construct buildings and apply for grants, among other things. Resident Janey Baldwin criticizes the IDA's all-male membership. Commissioners agree that four of the slots would go to residents they would appoint. 1996Concerned that the IDA would be bound by the state's Sunshine Law, the IDA votes to form a new private group called the Economic Development Commission that could meet privately and secretly negotiate with businesses. IDA members drew fire when critics learned that groups would have identical memberships. After residents and some county officials charged the EDC's secrecy leaves the group accountable to no one, members promise to open most of their meetings to the public. The group says it will meet in private only to protect the identity of business prospects. Some residents push for openness because the EDC draws its more than $240,000 budget from the county. EDC names as its executive director Rick Michael, a Seminole consultant and former assistant economic development director for the Pinellas County Industry Council. EDC creates a corporate advisory council to raise private dollars to lure business to the county. The private donations are meant to supplement the EDC's $244,000 budget. The donations are meant to provide extra money for marketing and recruiting expenses, such as paying to wine and dine visiting executives. In one of its first major initiatives, EDC starts an export assistance program aimed at helping local manufacturers plumb foreign markets. The EDC also joins the Tampa Bay Partnership. 1997Hernando Progress pledges $50,000 to EDC. The donation prompts questions from some EDC board members who fear the group will try to control the EDC. After serving apple and cherry pie slices to county commissioners, the EDC wins back $30,000 that county staffers had wanted to cut from its budget. The approved amount is $229,280. New EDC president Ed Daus promises the agency will be more open to the public. EDC members agree to shift all fundraising to Hernando Progress. 1998EDC gets $100,000 from state to start fish farming program. EDC asks taxpayers for a 46 percent budget increase to hire more staff. EDC officials said they need the money, $105,000 more than it received last year, to hire a qualified professional capable of taking over some of the workload. EDC closes meeting to the public for the first time. Officials say the private meeting, which was held without a quorum, was needed to discuss two New York business prospects, but they ended up discussing budget issues as well. EDC jump starts industrial development in the Corporate Airpark, an expansion of the filled industrial park, when it obtained grant money to build Aerial Way. With that project completed, PAR International, an electric circuit board company, moves in, followed by HNA Computer Systems, a medical software provider, and finally Kinematics & Controls Corp., which designs and makes sensors for businesses that need to control water levels in their products. County Commission approves the EDC's $334,000 budget request. Michael bristles when Commissioner Paul Sullivan questions the group's expenditures. Commissioner Bobbi Mills also points out that the county's intent when it created the EDC was for the amount of public money to shrink each year. Michael disagrees. Businesses return from EDC-sponsored trip to Mexico aimed at developing trade partnerships with companies there. 1999EDC board increases Michael's salary by 4 percent, citing his hard work and commitment. Michael's salary increases from $66,000 to about $68,600. He also gets a $2,500 performance bonus and additional disability coverage on his health benefits. EDC report says it has brought 174 jobs and $554,000 to the county. Michael receives a $3,500 salary increase, bringing his salary to $72,100, as well as a $3,500 cash bonus from private money and a $500 increase in his benefits package. Michael and EDC members clash with county Planning and Zoning commissioners over the planning commissioners' recommendation to deny a request by Florida Crushed Stone to double the size of its cement plant in the county. 2000Michael promotes the Hernando County Airport as the site for a new Spring Hill campus of Pasco-Hernando Community College. Trustees eventually opt for site near Hunter's Lake. EDC asks County Commission for a 20 percent budget increase. The $477,562 proposed budget, including county and private funds, is up from the current year's $386,026. EDC promotes a project that would put a 1,500-bed prison in Hernando County that would house federal inmates. After supporting the project, County Commission eventually backs away after learning of problems with the private company that would operate the prison. The St. Petersburg Times publishes stories that raise questions about accomplishments for which the EDC took credit. EDC violates its county contract by having a closed meeting without its County Commission liaison present. The meeting prompts county commissioners to call for the EDC to obey all open meetings laws. Michael is forced to resign as executive director County Commissioner Diane Rowden demands detailed accounting of how the EDC spends its money. 2001Rowden and Commission Mary Aiken unsuccessfully vote to dissolve the EDC Michael says he has not received his severance pay from the EDC and demands it. He also says until he receives his severance, he is considered still on the county payroll and is also owed salary. He threatens to sue if payment is not made by Feb. 8. Michael accuses Duane Chichester, president of Hernando Progress and publisher of Hernando Today of withholding the money the EDC would use to pay Michael. EDC agrees to pay Michael his severance package but not the salary he says he is owed. Chichester, whose wife is an EDC employee, resigns from the EDC and Hernando Progress. County Commission sets a deadline for the EDC to comply with the Sunshine Law. County Commission Chairman Chris Kingsley, the liaison to the EDC, says he will vote for the group to be dissolved. His vote would mean a majority of commissioners favor ending the county's relationship with the EDC.
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