Lancaster County, economic group part ways

Lancaster County leaders are still looking for ways to spur economic development, weeks after cutting ties with the group they had relied on for the task.

On Aug. 10, Lancaster County Council decided to end funding for the public-private hybrid Lancaster County Economic Development Corporation. Both Indian Land representatives, Brian Carnes and Larry McCullough, voted against the eventual 4-3 decision. Carnes proposed extending funding for two quarters while the county developed a new plan, but the motion failed.

The county was paying $400,000 per year, about 60 percent of the total economic group funding. Other municipalities and private sector contributions made up the rest. The county funding cut came after “some friction,” Carnes said, between some members of Council and group leadership.

“There were some ongoing conflicts,” he said.

Both sides declined to give specifics on those conflicts.

On Aug. 24, council ended a lease with the economic development group for property at 1033 W. Meeting St. Council had voted earlier this year to let the group use office space free of charge, but gave a 90-day early termination notice Aug. 12. Since the economic corporation hadn’t moved in and remains in Indian Land, access won’t be allowed during the 90 days.

The corporation began in 1986 and was within two weeks of moving from its temporary Indian Land site to the new location when the county cut funding.

Now both the county and economic group are looking to their next steps.

“We’re still working on that,” Carnes said.

The county appointed its administrator to handle economic development for 30 days, with a six-month interim director to be hired. Staff is combing nearby, similar positions in York and Lancaster counties to help develop a job description. Such issues remain as whether to incentivize by area or countywide.

“We very much care about economic development,” Carnes said. “We’re regrouping and we’re still working projects we have.”

A recent council deferral could give some indication how the county plans to proceed. An Aug. 10 resolution, deferred and not since voted on, outlined a process for receiving projects. Companies would first make a pitch to council in behind closed doors in executive session, then wait as council directs its attorney to notify the company of any incentives to be offered.

When the attorney reports back to council, additional negotiations could take place.

At that Aug. 10 meeting, council listed five economic development projects to discussion in executive session. Three were back in executive session Aug. 24, along with two new ones.

For the economic group, future plans are still in flux. Chairwoman Margaret Gamble said there is one certainty.

“We will not go under as a corporation,” she said.

The group will meet in early September to chart a course. Keith Tunnell, corporation president, will remain through the end of September when funding stops. He will finish his 13th year with the group before leaving, along with another employee who gave notice prior to the funding decision.

“We don’t have the funds to pay them,” Gamble said.

Tunnell was away from the office last week on vacation. He declined Monday morning to comment further on the split.

The corporation had about a half dozen employees. Gamble said the upcoming meeting will determine the mission and scope of work moving forward. The county decision does not, she said, impact other municipal or private partnerships. It will, she said, impact how the county operates.

“They haven’t been dealing with this, attracting businesses,” Gamble said. “They don’t have a plan. From what I understand there is indication they have no clue what to do.”

Gamble said the reorganization will not be the first time her group faced a challenge.

“We have been very successful as an organization,” she said, citing projects such as Red Ventures and textile manufacturer Keer America in Indian Land.

“Our record shows that when the economy has been down and business has been slow, we’ve still been very successful,” Gamble said.

This story was originally published August 31, 2015 at 2:57 PM with the headline "Lancaster County, economic group part ways."