Six months after restoring an economic development agreement with an independent contractor, North Little Rock Mayor Joe Smith said he plans to place those functions under city government as of July 1.
The North Little Rock City Council will consider a personnel ordinance tonight that includes adding a "director of development" under city administration, which consists of the mayor, the eight elected council members and the mayor's staff.
The move will transfer Economic Development Executive Director Todd Larson from being an independent contractor to becoming a city employee, Smith said last week. Larson has been in his current position since 2000. Previously he was with the city's Department of Commerce and Government Relations since 1989.
The nonprofit Economic Development Corp. will be closed, though Larson will continue to have a rented office in the North Little Rock Chamber of Commerce headquarters, 100 Main St., Smith said.
North Little Rock City Council in December approved to include $275,000 in this year's budget to the one-person Economic Development Corp., after city requests for qualifications received only two bids. The city's action followed state voters approving a constitutional amendment in 2016 to restore a legal means for municipalities to allocate money to chambers of commerce or private economic development promoters.
The constitutional amendment vote came in response to a 2015 ruling by Pulaski County Circuit Judge Mackie Pierce that said Little Rock and North Little Rock couldn't legally pay their respective chambers of commerce or private entities for economic development services. Pierce said in his ruling that there wasn't proof of the services provided in exchange for those payments.
"Because the new law requires that so many of our activities would need City Council approval, it seemed to us it would be a little more efficient for economic development to be part of city government in contracting and asking for approval of things," Larson said. "I'll still be the contact for economic development. Nothing's really changed, organizationally."
With the state law that took effect Aug. 1, 2017, both Smith and Larson said it makes more sense to have those services be part of city government rather than handled by an outside party with what Larson called "a separate identity."
"I asked [Larson] to come here to help us, and he said he would," Smith said of the personnel move. "We're going to take him and add more to his plate. His 30 years of experience will help us with our management team."
Smith said Larson's "gift of writing" will aid the city in applying for grant funding for economic development, law enforcement, public safety and other purposes.
Under the law, cities are authorized to contract and provide funding for economic development services but must state a proper public purpose and list specific criteria to measure progress or achievement toward that public purpose.
State law also distinguishes "economic development services" from "economic development projects." The law restricts who is eligible to receive funding and the use of funding and sets conditions that must be met before and after funding is awarded.
City Council approval is necessary for all contracts, for economic development services or economic development projects, and all contracts must be in writing under the law. Contracts for more than $100,000 cannot be approved until an independent economic impact and cost-benefit analysis has been completed and approved.
Larson continuing to work inside the Chamber of Commerce offices shows "my strong belief that economic development and our chamber's work go hand-in-hand," Smith said. Larson and John Owens, the Chamber of Commerce's president, will continue their partnership for the "creation and retention of businesses," he said.
Larson said staying within the chamber's offices will allow him to keep close relationships with existing businesses and assist with any of their plans or issues.
"I've thought for years that it's important for us to send a positive message to businesses that the chamber, the city and economic development are partners," Larson said.
Metro on 06/11/2018