City, county, EDA gather to debate funding

Published 12:00 am Tuesday, February 3, 2009

NATCHEZ — A four-hour meeting and comments from 14 local leaders left Adams County Supervisors wondering if their previous decision to suspend funding to the Economic Development Authority is even legal.

But the board wasn’t ready to vote again, and the three supervisors who originally voted to cut funding weren’t giving up their ground yet.

In a joint meeting of the board of aldermen, the board of supervisors and the EDA board Monday, Alderman Dan Dillard brought up House bill 1847 — the legislation that governs the EDA.

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“I think we would all be better off if we looked at the bill we have already have in place,” Dillard said.

The legislation, he said, mandates that the city and county boards meet every August to discuss EDA funding. No such meeting has occurred in recent years.

“I’m new to the process, but if all of you guys have been to all of these meetings and you’ve been here as many years as you have, you should have been here every August meeting to discuss the efforts you were going to put together,” Dillard said.

Dillard went on to read from the legislation that once funding for the EDA is set for the fiscal year, it cannot be changed.

“For anyone to think that they can withhold funds, I think they would be in dereliction of their duties,” he said. “You can do it, but the consequences would be that possibly you are in violation of your oath to uphold the laws of the State of Mississippi.

“Before you jump off into some deep water here and find out that the hole is deeper than you think it is, I think we need to look at this.”

Last month, the supervisors voted 3-2 to suspend its funding to the EDA.

The supervisors supply $175,000 to the EDA, while the aldermen supply $100,000.

Dillard, along with the other city alderman, spoke in favor of the EDA’s work and expressed concern over the supervisor’s recent decision.

Supervisors President Henry Watts said if the legislation mandates that the supervisors pay, that’s what they’ll do.

He said County Attorney Bobby Cox is waiting to hear the Mississippi Attorney General’s opinion on the matter.

Watts and supervisors Mike Lazarus and S.E. “Spanky” Felter voted to suspend the EDA funding.

Watts said his decision was based on finances.

“This whole issue is, quite frankly, about money,” Watts said.

In a shaky economy, the county has to make cuts, Watts said.

Lazarus said the EDA issue wasn’t about money, but about effectiveness.

Lazarus summed up his argument by citing former EDA board member Vidal Davis’ reason for resigning a few months ago.

At the time, Davis said it was disorganization and a lack of communication among the board members.

Lazarus said the communication problems exist to this day.

“I’m sorry it’s come out like this, but it’s got to be resolved,” he said.

Watts also argued that the city and county could do what the EDA does.

Many developments the EDA has lobbied for have either not panned out or have cost the taxpayers money, he said.

Watts mentioned the proposed biofuel plant John Rivera wanted to establish at the port. Rivera is now tied up in a lawsuit for allegedly swindling an investor and his Natchez plant doesn’t exist.

EDA officials have said they were not involved in Rivera’s locating in Adams County.

Watts also pointed to collection agency KinardMichael Baker Co., an engineering company that never hired any employees and left town a few months after coming, with county computers in tow.

Metal fabrication plant Venco, of Baton Rouge, broke ground on a facility in the port area in 2004. The EDA worked with the company, Watts said. The $1.8 million project that was supposed to create 50 jobs vanished soon after.

Successful developments — like Rentech and Corrections Corporation of America — were not handled entirely by the EDA, he said.

Watts said when Rentech was searching for a site, the EDA pushed Rentech to the Belwood property, as the EDA was pursuing another developer for the International Paper Company site.

Businessman Frank Peoples was interested in turning the IP site into a power plant, but later died before the project could come to fruition.

Only then did the EDA suggest the IP site, Watts said.

He said mainly the city and county were responsible in getting CCA and Rentech.

Watts also brought up an alleged personality conflict between former EDA Director Jeff Rowell and EDA Chairman Woody Allen.

Watts pointed out that the EDA board did not allow Rowell, who recently left his position to pursue other ventures, do his job.

Watts said Rowell said he was routinely left out of the Rentech deal.

“He would say he knows nothing about the project and is left out of the loop,” Watts said.

Allen — who was called before the supervisors to speak — said when Rentech was scouting out Adams County, there was no executive director in place, so he took the reins.

He also said Rowell was incapable of doing his job.

“If he could do his job, he would have been doing his job,” Allen said.

Thomas “Boo” Campbell said now that Rowell is gone, there shouldn’t be a problem.

“(Rowell and Allen) didn’t get along. That’s a fact. Everybody on this board knows that,” Campbell said. “But that’s over now.”

Allen said he realizes the board has not been working well together and that there have been communication breakdowns and butting of heads.

The board is working to improve that, he said.

Supervisors asked Allen for a long- term EDA plan, something they said they’d never seen.

Allen said the EDA was prepared — before funding was cut — to make a presentation to the city and county boards in February regarding their plan.

The EDA recently completed a large study of all potential industrial sites in the area.

Allen said a U.S. Department of Housing and Urban Development grant funded the survey.

With this compilation, going after industry will be much easier, he said.

Lazarus said he would feel better in making a decision about the EDA after seeing that presentation.

EDA board member James West told the city and county board he was more than willing to meet with them more often.

“For the county to throw a stone at the EDA is not the way to do it,” West said. “You don’t throw a stone and then say, ‘Let’s talk.’”

He reminded the boards that the EDA board members are unpaid volunteers, who, especially in the case of Allen, are putting in countless hours of free work.

“The EDA doesn’t get anything for being on the board,” West said. “We don’t get a turkey; we don’t get a ham. Woody’s not getting paid.”

Alderwoman Joyce Arceneaux-Mathis questioned whether the EDA board would be able to continue functioning without the county’s funds.

Allen said the $100,000 the EDA gets from the aldermen should be enough to pay the salaries of its two employees and cover rent and utilities for the rest of the year.

Supervisor Darryl Grennell, Campbell and the entire board of aldermen all said they wanted to see the EDA stay around.

And Lazarus, Felter and Watts said they never wanted to disband the board, they just want to see change.

In the spirit of the joint meeting, all three boards — supervisors, aldermen and EDA — agreed that having more communication and meeting more often is key.

“There has to be cooperation,” Campbell said. “We can’t do anything in this county if we’re fighting each other.”

Mathis suggested the boards meet quarterly to discuss the EDA’s performance.

And the boards decided they would meet again soon to further discuss the EDA’s funding. Only the aldermen will continue funding the EDA. The county plans to discuss their portion of the funding further after the AG opinion.