Role, mission of MCEDC under scrutiny

Role, mission of MCEDC under scrutiny

July 17, 2001

By Janelle Holden
Journal Staff Writer

With the departure of executive director Bill Argo, who plans to retire by the end of the month, the Montezuma County Economic Development Council is being forced to regroup and decide on its future direction.

Anticipating the changes, the council has invited more than 60 representatives of different interests in the county to attend an economic summit on Wednesday at the Cortez Conference Center beginning at 9 a.m.

"There’s no question in my mind and in a lot of people’s minds that economic development is needed," said Jim Mahlberg, the president of MCEDC. But whether the MCEDC has the money to replace Argo, and what the council might do if he isn’t replaced, are on the table for discussion.

"We lack the funds even to run a balanced type of a budget," said Mahlberg.

Since 1994, the city has invested $421,200 and private businesses have put more than $400,000 into an organization whose mission is to create new jobs in the county and help keep current businesses viable.

The council began in 1987 as a completely private enterprise. Since then, the city has become its largest backer, with some help from county government and the hospital district.

Currently the city invests $60,000 a year in MCEDC, the county $5,000, the hospital $2,000, and the 11 private businesses with voting privileges pay $2,000 each.

Council member Bill Hutchison, who helped found the organization, said that 15 private investors originally put in $5,000 apiece to start the council and incorporated it with $70,000 in the bank.

"It was our thought at that time that if we could get something started that within three to five years one of the public entities would take it over," explained Hutchison.

When the city became involved in 1994, a director’s position was created. Former directors include Alan Klein, Will Williams, and now Bill Argo.

Hutchison estimated that 400 to 500 jobs with a $5 million to $6 million payroll have been created by the MCEDC since its inception. The MCEDC counts as one of its successes bringing in Tuffy’s Security Systems.

Skeptics of the council’s accomplishments wonder whether businesses would come to Cortez despite the investment, and point to Osprey Packs as an example.

"I think where a lot of that comes from is the lack of performance that EDC has had. I think all parties are somewhat frustrated and maybe disappointed. However, the fact that there has been some success of EDC in the past might shed a different light into it," explained Mahlberg.

City Council member Jim Herrick said he wants to identify the economic-development council’s accomplishments before any decision is made to continue funding it.

"I’m not saying let’s not do anything. I’m just saying that we have the grand opportunity in dissecting it and figuring out what did work and what didn’t work," said Herrick.

"All we really have to sell is our lifestyle, and if we’re really good at selling it, will we lose it," said Herrick, who is worried that others might try to turn Cortez into another Durango.

"Hopefully we can come out with an approach that will concentrate more on expanding the businesses that we have here, and not spend all the time bringing in businesses from outside," said Mayor Joe Keck, who also said "everything is open for discussion" on Wednesday, including the level of funding from the city.

"It might be a better use to really work on saving existing businesses and helping them to expand," said Keck.

Wednesday’s agenda includes a presentation from J.J. Johnston, a representative from the Colorado Office of Economic Development, and Ed Morlan, executive director of the Southwest economic-development district. Johnston and Morlan will discuss the definition of economic development and answer questions.

David Eppich, assistant to the president for external affairs of Fort Lewis College, will moderate the debate.