Manatee County Officials Discontinue Support for Bradenton Economic Development Corporation

Key Information

• Contract Amount: $337,000
• EDC Budget: $1.13 million
• Contract Expiration Date: September 30
• Commissioners In Favor: George Kruse, Mike Rahn, Amanda Ballard
• Commissioners Opposed: Tal Siddique, Jason Bearden, Bob McCann, Carol Felts
• EDC’s Revenue Sources: 40% public, 60% private

Manatee County commissioners have decided not to renew a $337,000 contract with the Bradenton Area Economic Development Corporation (EDC), with some officials questioning the necessity of an EDC, likening it to lobbyists engaging in favorable arrangements.

Both Manatee and Sarasota counties have voiced concerns regarding their respective EDC’s effectiveness and operational structure. The Sarasota County EDC recently faced funding changes that will now burden taxpayers, while Manatee’s commissioners are skeptical about their EDC’s return on investment.

Commissioner Bob McCann stated in the September 16 meeting, “I don’t think investing in the EDC is producing the results we expected,” suggesting it resembles a “collaborative country club” for social networking rather than a beneficial economic development entity.

In response, EDC President Sharon Hillstrom insisted via email that the organization operates as a nonprofit dedicated to economic diversification in Manatee County, not as a lobbying firm.

Contract Dynamics

The decision to cancel the contract, worth $336,960, reflects about 30% of the EDC’s operational budget for the fiscal year. Initially, a motion to allow the contract to expire was voted down 4-3, but a subsequent motion for renewal also failed, leading to its expiration.

Commissioner Carol Felts shifted her support against renewing the contract, while other dissenters cited concerns over the EDC’s membership size and effectiveness in addressing economic challenges in the county.

Concerns Over Operations

Critics are increasingly concerned that the private structure of the EDC lacks transparency, as it operates under different rules than public entities. This has raised questions about accountability and public engagement, with some commissioners emphasizing the need for open governance.

Hillstrom requested an extension of the EDC contract through December for further negotiations, highlighting the implications of this sudden pullback on the organization’s ability to foster economic growth.

Budgetary Insights

During the meeting, questions were raised regarding the EDC’s allocation of budget on administration versus business support. The EDC reported $76,579.75 in administrative costs, coming from a total revenue of over $1 million.

Commissioner Kruse suggested that hiring county employees for economic development might lead to greater efficiency, allowing the county to retain more funds directly.

Future of EDC

Several commissioners proposed that the EDC’s purpose should be reevaluated. There are indications that some businesses have opted to engage directly with the county instead of going through the EDC, further complicating the organization’s justification.

This article originally appeared on sister site YourObserver.com.