Commission debates future of economic development program
- Charlene Sims, Journal staff
- 13 minutes ago
- 5 min read
By Charlene Sims, Journal staff
MOUND CITY – The Linn County Commission heard the possible ramifications of dissolving the county’s economic development committee and not hiring an economic development director at its meeting on Monday, Feb. 23.
County Counselor Jacklyn Paletta had been assigned the task of looking into how the eCommunity board was formed and if there was information on how it could be dissolved.
That directive came after Commissioner Jason Hightower said he thought that the county should not spend money on hiring an economic development director. He said that was because the director’s position was not supported by the commission.
Paletta was also asked to determine how the funds and property in the eCommunity group would be distributed after Economic Development Committee Chair Jennifer Leach-Harlow and committee member Janell Aust told the commission at the Jan.1 commission meeting that the eCommunity board was a waste of the board’s time and the county’s time without a leader. The members also said that the committee was not willing to continue without an economic development director.
The eCommunity board fund holds the ownership of land near the Casey’s convenience store in Pleasanton and some next to the La Cygne Industrial Park.
Paletta explained to the commissioners that Linn County had entered into an agreement with eCommunity where Linn County agreed to have an economic development board to oversee and participate in the disbursement of grants and loans.
The loan program eCommunity is operated through Network Kansas and provides low interest financial loans to local entrepreneurs startup expansions and offers grant support for community level entrepreneurs.The loans serve as a gap loan to fill in the extra funds needed on top of a present loan. At a previous commission meeting Leach-Harlow said that since the beginning of eCommunity in Linn County it has assisted businesses in Linn county with $247,000 in loans.
Leach-Harlow also said that the program connects local needs with statewide resources and also offers grant support for community level entrepreneurs. The Youth Entrepreneurial Challenge (YEC) event held annually for the last three year is mostly funded by Network Kansas.
“So we do have businesses within Linn County and business owners that are recipients of such loans and grants,” Leach-Harlow said. “So if we were to dissolve the economic development board it would also dissolve cooperation with eCommunity, which would in turn mean that the businesses that are currently benefitting from the loans and grants would no longer (be funded)?
However, in a phone interview on Tuesday, Feb. 24, with Janet Miller, she said that the loans would not be taken from the businesses. Miller is the manager of rural entrepreneurship, for the Southeast Regions of Network Kansas,
Miller said that having an eCommunity group gives the county businesses priority access to loans. Other loans are available through Network Kansas but require more paperwork. With an eCommunity board the applications are recommended by the local committee to Network Kansas.
While many eCommunity boards in other counties are the same people as the economic development committee members in the county, the Linn County eCommunity group is unique because it actually owns land and other eCommunity groups do not.
She said that the process works best when the eCommunity group has another committee to work with like economic development committees. However, she added, it could be another group also.
The Youth Entrepreneurial Challenge (YEC) that Linn County has offered high school students for the past three years is mainly funded by Network Kansas. All of the prize money is provided by Network Kansas.
The YEC contest this year is slated for next Tuesday, March 3, at Pleasanton High School. The judges for the contest will view displays and interview contestants in the late morning, and the event will be open to the public for a while after noon.
At the commission meeting Paletta said the commission needed to consider the consequences of disbanding the economic development framework.
“And so we need to decide whether that is something that, you know, were those intended or unintended consequences of potentially dissolving economic development board,” she said. “Did we understand when we were contemplating that that would mean that those grants and loans would become unfunded that they would need to be wrapped up type of a thing?”
Commissioner Jim Johnson asked, “What’s happened in Miami County, they did away with their economic development? How did they handle that?”
Paletta answered, “I didn’t look into that but I can. I will say that getting rid of an economic development director doesn’t necessarily mean dissolving an economic development board.”
Since previous economic development director Jessica Hightower left in August 2024, the commission, the new economic development director and the economic development committee has been unclear about the difference in the economic development committee and the eCommunity board. This was made more difficult because the board had the same members as the committee.
Johnson said maybe the confusion came because Linn County had both groups being the same and Miami County had different people on the groups.
Paletta replied, “Or maybe they ultimately had a board chairman that was willing to continue without (a director). I mean we don’t know. I’m just saying I don’t know that part.”
Commission Chair Alison Hamilton asked, “So are you saying that the eCommunity loan situation that a business that used eCommunity for a loan that if we dismantle that you’re saying that they are going to pull the loan?”
“And grants,” added Paletta.
However, Paletta’s take on the situation was in stark contrast to that of Miller’s with Network Kansas.
The commissioners discussed how many businesses in Linn County that would affect and Commissioner Jason Hightower said he thought something like five to seven.
Hamilton said that was an issue.
Hightower agreed.
Paletta told the commissioners that they needed to decide what they were going to do and then come up with a long-term plan.
“It seems a little bit unreasonable to sort of abruptly dissolve and leave businesses hanging,” said Paletta. “So one idea would be to take the chairman up on the recommendation to do a stipend or interim economic development director to kind of tie up these loose ends. If you don’t want to continue to have an economic development position here that you decide to do it for a period of time with the idea to either work themselves into it or work themselves our of a job.”
It was decided that Ware would check with Miller, to see how many loans were out, with who and how long they were for.
Hamilton said, “Let’s say its five years we’re going to have to have an economic development board for five years, and they say they are not going to operate without the directors. So that would make me just sit back and kind of make a solid decision on this interim for one year or not.”
Commissioner Hightower added, “I think we find that information we see what I guess the consequences are. And at the same time, I am not opposed to an interim economic development director to tie some of this stuff up and see where it goes from there.”
No discussion was held about how the funds and land that the eCommunity group holds would be disbursed.