The city of York and local business leaders are forging ahead with plans to create an economic development panel to help promote and attract new and existing business.

The York City Council last week approved creating the City of York Economic Development Board, to be chaired by Mayor Eddie Lee. Other city representatives will include City Manager Charles Helms and council members Harmon Merritt and Bill Miller.

The 10-member panel also will have six members appointed by the council: one each from the real estate and banking sectors, two from education and two from the Greater York Chamber of Commerce.

"It's a real challenge, but it's a challenge we have to meet," Lee said, referring to economic development. He said he plans to convene a meeting as soon as he receives suggested names from the York chamber and other organizations for the six other members.

Lee said the board will talk about economic development in its totality: "the bypass, the East Liberty Street corridor, out by Walmart and Lowe's, existing businesses and new business."

Merritt said, "We need some kind of board to represent the Western York County area, not just the city of York. Over on this side of the county, we very much need the tax base. It would be good for the municipality, plus it would be good for people who are looking for jobs."

The chamber and the city have existing economic development panels that will continue to function. However, city officials said the new panel will have broader representation.

During a recent city economic development committee meeting, in which the panel was discussed, chamber member and York attorney Jim Bradford asked city officials to consider hiring a part-time employee to work on economic development .

City officials said they can't do that because the 2011-12 city budget doesn't include another employee. "There is a need for someone to help with economic development," Lee said. "But there is no money at this time, and we told them that."

Lee said board members, the existing city staff, Helms and city attorney Bill Brice will work on the issue. "We have competent people to get us started," Lee said. "Hiring someone, I think that's something that will happen in time. We're going to take it one step at a time."

The York panel is patterned after similar economic development boards created by the cities of Rock Hill and Clover. A recent success of the Clover panel was its participation in recruiting PermaShrink, which will have a new manufacturing plant at the Westgate Industrial Park.