Manatee County officials terminate financial support for Bradenton Economic Development Corporation.

Key Information

• Decision: Manatee County commissioners decided not to renew a $337,000 contract with the Bradenton Area Economic Development Corp (EDC).
• Voting Outcome: A 4-3 vote against renewal occurred, with significant discussion about the EDC’s effectiveness.
• Budget Impact: The decision removes approximately 30% ($336,960) of the EDC’s $1.13 million budget for the current fiscal year.
• Criticism: Some commissioners expressed concerns about the EDC’s return on investment, structure, and transparency.
• EDC’s Stance: EDC President Sharon Hillstrom aims to diversify the county’s economy, denying any lobbying affiliations.

Manatee County commissioners have opted not to renew a $337,000 contract with the Bradenton Area Economic Development Corp. — with one elected official questioning if the county even needs an EDC and equating the organization to lobbyists doing sweetheart deals.

This decision, although politically independent, mirrors a similar action by Sarasota County commissioners last year to repeal a business tax as a funding source for that county’s EDC. Sarasota County’s funding changes, which shifted the financial burden to taxpayers, resulted in a yearly loss of $472,421, or 28% of the EDC’s $1.82 million budget.

Both counties share a common concern: the value and operating structure of their respective EDCs come into question.

Commissioner Bob McCann stated, “I don’t think investing in the EDC is producing the results we expected,” further likening the EDC to lobbyists. He remarked, “The EDC was supposed to be this great thing, but it’s more like a collaborative country club.”

In response, EDC President and CEO Sharon Hillstrom clarified in an email to the Business Observer that the EDC is a nonprofit aimed at diversifying the local economy by attracting high-wage jobs. “Our role is to collaborate with community leaders, businesses, and government partners to advance economic vitality,” she asserted.

Strong relationships

The decision to cancel the EDC contract translates to a loss of $336,960 from the organization’s budget this year.

Initial indications suggested the contract renewal would make it through, but a subsequent motion to approve failed 4-3. Commissioner Carol Felts changed her vote, leading to the current contract’s expiration on September 30.

Commissioners supporting the renewal included George Kruse, Mike Rahn, and Amanda Ballard, while Felts and other opposing commissioners cited dissatisfaction with the EDC’s performance and its need for restructuring.

Siddique pointed out issues such as an oversized board with 47 members, which contributes to management inefficiencies.

Following the meeting, McCann mentioned fulfilling his campaign promises to combat greedy builders and deceptive politics.

Hillstrom noted that the EDC’s role involves direct communication with county officials to facilitate business expansions, although this led to accusations of lobbyist behavior from McCann.

Another criticism raised concerns the EDC’s private funding structure, which allows it to bypass the Sunshine Law. Siddique expressed unease over possible transparency issues, stressing the need for public accountability.

Hillstrom urged commissioners to extend the contract for further discussion, arguing that the situation disrupts ongoing plans.

Administrative costs

Concerns were also raised regarding the EDC’s budget allocation. Records show that from October 2023 to September 2024, the organization plans to spend approximately $76,579.75 on administrative costs, out of a total budget of $1.13 million.

Fiscal year 2022 filings indicate EDC revenues were $1,123,700, with $966,805 in expenses, highlighting a significant portion dedicated to staff salaries and marketing.

Kruse proposed that shifting economic development efforts directly to the county could incur more costs and less community collaboration.

Purpose driven

Commissioners voiced the need for a reevaluation of the EDC’s mission and effectiveness at the meeting. Plans from major corporations like SpaceX to bypass the EDC for direct negotiations with the county were also noted as evidence of the EDC’s waning relevance.

Direct outreach from businesses that felt ignored by the EDC added to the narrative of dissatisfaction among the commissioners.