Port cuts funding to economic development group

The Port of Vancouver on Tuesday reduced its financial support for the Columbia River Economic Development Council, as port leaders signaled disappointment in the nonprofit’s efforts to create jobs.

The decision, by a 2-1 vote of the port’s elected Board of Commissioners, comes after other local governments have raised their own concerns about the nonprofit economic development agency.

“It’s fair to say there have been concerns with how CREDC is integrating local jurisdictions into economic development,” said Steve Stuart, chairman of the Clark County Board of Commissioners. Stuart said each local government in Clark County has different needs and different strengths. “We need a more cohesive strategy to leverage individual strengths toward greater shared success.”

Stuart and others said their concerns about the CREDC focus primarily on two issues: the economic development council needs to do a better job of communicating with some of its public partners, and it needs to focus more on supporting and building up companies that got their start in Clark County.

Despite the concerns raised by some of its members, others have defended the CREDC and its work. Vancouver, Camas and some port leaders said the nonprofit is doing a good job at recruiting companies to Clark County despite major economic challenges. And even those who’ve raised concerns have said the CREDC and its work to recruit businesses and to market the region is worthy of support.

Reached by phone, Bart Phillips, president of the CREDC, which receives both public and private funding, declined to comment. The flap over the CREDC, which is guided by a board representing both the public and private sectors, comes as Clark County nurses an unemployment rate that’s above 12 percent and as it struggles to regain its footing in the long shadow of the Great Recession.

Barbara Bushell, director of leasing for Columbia Tech Center and chairwoman of the CREDC, said Tuesday that the agency is instrumental in representing Clark County’s economic interests abroad, including in China, and in pursuing important industries such as the semiconductor and solar sectors. She urged port commissioners to maintain support for the group.

Port commission President Jerry Oliver, who cast the dissenting vote, wanted a bigger reduction in funding for the CREDC. During discussions of the port’s budget last month, Oliver had expressed disappointment in the work of the CREDC. But his motion Tuesday to drop the port’s contribution to $10,000 and invest another $20,000 in the port’s internal marketing efforts failed for lack of support from the other two commissioners. Instead, the port will pay $30,000 to the CREDC in 2011, down $10,000 from this year.

After the vote, Commissioner Nancy Baker said the port reserves the right to further reduce its support for the CREDC “should we not see improvement by June.” Baker said she’s tired of the “blue sky” talk from the agency. “I want to know what we’re going to do.”

Commissioner Brian Wolfe, who said he’s supported the CREDC since its inception in 1982, defended it, saying its partnerships and economic development efforts in Clark County have made the community stronger. “I want to see it succeed,” he said.

Camas Mayor Paul Dennis also defended the CREDC. Dennis said he is aware of local jurisdictions that would like to see the economic development council focus more on “homegrown” companies and “less on heavy hitters.” But that doesn’t necessarily mean anyone should think ill of the CREDC and its long-term mission, Dennis said, adding that the city of Camas has benefitted from the agency’s ability to market the region abroad.

Backed by Vancouver

The city of Vancouver, financially one of the CREDC’s biggest public-sector backers, expressed confidence in the regional economic development agency. In fact, the city increased its contribution from a base investment of $65,000 to $100,000 in a five-year commitment to support the CREDC’s Forward Thinking Direct Action campaign, which is aimed at pumping up jobs in the region. After 2012, the city’s contribution goes back to its base investment of $65,000 per year. Vancouver City Manager Eric Holmes said the CREDC is “the right model and the right agency” to accomplish the region’s economic development objectives.

“It’s safe to say that everybody is frustrated with the economy, period,” Holmes said. “We all want to see more job growth. We all want to see the unemployment rate come down.”

Meanwhile, the CREDC is developing a new countywide economic development strategic plan. Earlier this month, the agency signed an agreement with Clark County to receive $80,000 — derived from excess funds from the county’s Industrial Revenue Bond Fund — to spend on developing that new plan. The CREDC is to complete the countywide strategic plan no later than June 30, according to the agreement.

For now, the agency has its backers and critics, including two commissioners serving the Port of Vancouver.

In an interview, Commission President Oliver said the CREDC promised a year ago to bring the port 12 leads of businesses looking to expand or relocate that could benefit the port. “We didn’t get a single lead that met the criteria,” Oliver said, “not one of the 12 that was promised.”

Commissioner Wolfe said the board’s discussion on Tuesday of how much money to contribute to the CREDC — one line item in a $58 million budget — may not seem all that significant, “but it’s the most seriously debated one.”