Restructuring won’t change facets of economic development

Published 12:00 am Wednesday, October 29, 2003

Although Albert Lea’s economic development restructuring plan introduced by Greater Jobs has been touted as allowing for significant changes, numerous facets of the current economic development system will stay unchanged.

Three significant internal aspects of economic development that would remain the same are the functions, staff, and assets of organizations.

Though they will be placed under the umbrella of a new organization called the Albert Lea Area Economic Development Center (ALEDC), Greater Jobs, the port authority, the Convention & Visitors Bureau and the Chamber of Commerce will have many of the same functions as before.

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According to Greater Jobs President Brad Arends, each group has different abilities and responsibilities, and the new structure would continue to allow those groups to perform those functions.

&uot;There are things that the port authority can do that Greater Jobs can’t,&uot; Arends said. He outlined some of those differences in a presentation at Monday’s city council meeting. One example is that Greater Jobs is a public organization and &uot;can maintain client confidentiality,&uot; while the port authority is &uot;really a public entity.&uot; The port authority can offer property tax breaks, while Greater Jobs can borrow money quickly and easily.

Proponents of the new structure argue that the ALEDC can efficiently utilize the functions of all groups it encompasses.

Port Authority Director Paul Sparks said the restructuring will &uot;open up some opportunities to do some things we have not been able to do in the past.&uot;

In addition to function, each organization’s assets would be maintained within their respective system. The organizations may share finances, but they will remain separate. Therefore, the port authority will remain the wealthiest organization.

Sparks explained the possibility of a relationship between Greater Jobs and the port authority while under the ALEDC, using venture capital as an example. The port authority cannot develop venture capital. Greater Jobs has the ability, but does not have the financial flexibility to invest in it. Within the ALEDC, Greater Jobs could develop venture capital with financial aid from the port authority.

In addition to consistent function, staff members would remain the same.

The head of the ALEDC would be Sparks. Pam Bishop, vice president of Greater Jobs, would act as vice president. These heads would have responsibilites similar to those they have had in the past, however they have more of a partnership.

Both the ALEDC and the port authority would have boards of directors, but the port authority board would be comprised only of members from the ALEDC board. The Albert Lea Business Development Center would continue as a &uot;separate entity with (its) own board of directors,&uot; Arends said.

(Contact Benjamin Dipman at ben.dipman@albertleatribune.com or call 379-3439.)