Manatee County officials halt financial support for Bradenton EDC.

Manatee County commissioners have chosen not to renew a $337,000 contract with the Bradenton Area Economic Development Corp. One county official even questioned the necessity of an Economic Development Corporation (EDC), likening it to lobbyists engaging in questionable deals.

This decision, while politically independent, parallels a move by Sarasota County commissioners last year to repeal a business tax that funded their EDC. Sarasota essentially transferred this financial load to taxpayers, implementing a 50% match for private investments. The business tax had generated $472,421, roughly 28% of the EDC’s annual budget of $1.82 million.

Common concerns have emerged in both counties regarding the EDCs’ return on investment and operational structures.

“I don’t see the EDC delivering the expected outcomes,” Manatee County commissioner Bob McCann remarked during a recent meeting, asserting the organization operates more like a “collaborative country club” and compromises transparency.

In response, EDC President and CEO Sharon Hillstrom emphasized in an email that the EDC is not a lobbying entity but a nonprofit aimed at diversifying Manatee County’s economy. “We aim to foster connections for businesses to thrive and stimulate economic growth,” she explained.

Strong relationships

The decision to cancel the EDC contract accounts for $336,960 of the EDC’s $1.13 million budget this fiscal year.

Initially, it seemed the contract renewal would pass after a motion to let it lapse failed in a 4-3 vote. However, a subsequent motion to approve it also failed, primarily due to Commissioner Carol Felts changing her vote.

The contract, in effect since 2021, will end on Sept. 30.

Commissioners George Kruse, Mike Rahn, and Amanda Ballard supported the renewal, while Felts, Tal Siddique, Jason Bearden, and McCann opposed it.

Siddique raised issues about the EDC’s structure, which includes 47 board members and does not operate under the Sunshine Law, calling for more transparency.

Post-meeting, McCann reiterated his pledge to combat “greedy builders” and prevent dubious political practices.

Hillstrom acknowledged the EDC’s method of aiding businesses involves leveraging relationships, but McCann contested this practice, suggesting it resembled lobbying.

In a counter-response, Hillstrom stated, “The EDC operates under its contract with the county, detailing services provided to businesses and interactions with county staff.”

‘Unexpected challenge’

Further criticisms arose regarding the EDC’s private structure and its lack of public accountability, as noted by Siddique.

The Bradenton Area EDC receives 40% of its funding from public entities and 60% from private sources, leading to concerns about lack of transparency in their operations.

Typically, EDCs hold private discussions with companies considering relocation or incentives, as many would avoid free public discourse.

During the meeting, Hillstrom requested an extension of the contract to December to facilitate further discussions, expressing concern about the abrupt decision to let it expire.

Despite the funding cut, the EDC will continue operations with private investors and public partners to navigate this “unexpected challenge.”

Administrative costs

Questions arose during the meeting regarding the EDC’s allocation of its budget—specifically, dividing administrative costs and direct assistance to businesses.

For the upcoming fiscal year, the EDC reported administrative expenses of $76,579.75, with total funding of $1,133,813 from public and private sources.

The EDC’s 2022 tax return indicates total revenue was $1,123,700, with $966,805 in expenses, primarily for salaries and benefits.

Commissioner Kruse contended that if the EDC does not renew, the county would assume the responsibility of direct economic development operations.

Purpose driven

Other commissioners voiced doubts about the EDC’s effectiveness and relevance.

Siddique highlighted businesses like SpaceX, which opted to directly negotiate with Manatee County, bypassing the EDC altogether, raising questions about the latter’s responsiveness and reliability.

This article originally appeared on sister site YourObserver.com.

Key Information

• Manatee County commissioners rejected a $337,000 contract renewal with the Bradenton Area EDC.
• Concerns included the EDC’s effectiveness and transparency.
• EDC President Hillstrom defended her organization as focused on economic diversification, not lobbying.
• The contract ending on Sept. 30 represents about 30% of the EDC’s budget.
• Discussions on how administrative costs are allocated were raised during the meeting.
• Concerns about private operations and lack of public oversight were highlighted.