Wednesday, April 22, 2009
With several entities already focused on economic development in Mahoning and Trumbull counties, is there a need to hire a specialist who could earn as much as $210,000 annually for that purpose?
Economic development — including the retention, expansion and attraction of businesses — in the two counties is already done by the Youngstown/Warren Regional Chamber and the Mahoning Valley Economic Development Corp., among others.
The Ohio Department of Development has an office in Youngstown that helps the Valley with economic development.
The city of Youngstown has an economic development office.
Even U.S. Rep. Tim Ryan of Niles, one of the key backers of having the port authority hire this specialist, has an economic development director on staff.
Yet the Western Reserve Port Authority will vote today to hire Heidrick & Struggles for $75,000 to $100,000 to find an economic development director for the two counties.
The person hired could earn up to $210,000 annually.
Thomas Humphries, president of the Youngstown/Warren Regional Chamber, said he asked backers of the plan to make sure there isn’t a duplication of services.
“We don’t want to be knocking on the same doors,” he said. “We’d look pretty silly. We were assured that wouldn’t happen. Our goal is to see this as a partner. You want to make the best use of your resources. We have minimal resources and you don’t want to waste them.”
By state law, port authorities have broad power to buy land and build infrastructure.
The authorities can make loans through bond financing with many of the loans tax-exempt, said Tim Brookes, attorney for the Columbiana County Port Authority, who said creation of an economic development wing of the Western Reserve Port Authority is a good idea.
As for duplicating services, Brookes said if a port authority “can get millions of dollars to the area, duplication isn’t a bad thing.”
Ryan, D-17th, cited the Summit County Port Authority as the model the Western Reserve Port Authority should follow.
Christopher Burnham, Summit County Port Authority president, said that county and Akron have development entities, and that doesn’t adversely impact economic growth there.
“We do our best to complement and not compete with each other,” he said. “It’s possible to work together.”
Youngstown Mayor Jay Williams said the port authority’s broader powers will benefit the Valley.
“Admittedly there could be some overlap,” he said. But the person hired for the port authority job won’t be restricted by community or county borders and do what’s best for the area, he said.
As for the salary that could hit $210,000 a year or possibly more, Williams said, “With that type of compensation, we’ll get the attention of a lot of high-level players” who’ll want the job.
But the mayor added, “There will still be Youngstown-specific deals we’ll want our staff to work on,” he said.
Ryan said the person hired by the port authority won’t “replace the economic development work already going on locally, but will enhance and supplement it.”
Ryan added: “Whether by offering better bond rates, the ability to eliminate sales tax or taking risks that others can’t take, port authorities are uniquely positioned to do a wide range of economic development deals.”
Arnold Clebone, the Ohio Department of Development’s regional economic development director for the Valley, said the person hired by the port authority can help attract more business growth to the area.
Money to pay for Heidrick & Struggles, the person hired to be the economic development director and other related expenses will come from $375,000 per year provided to the authority by Mahoning and Trumbull counties as well as Youngstown, Warren, Niles, Howland and the Western Reserve Building Trades Council.