Mayor Gary Moore doesn’t think the work of the Kewanee Economic Development Corp. (KEDC) is worth the money the city pays to support the agency.
Kathy Albert, executive director of the KEDC, responded with a lengthy accounting of her agency’s work and impact on the city.
At Tuesday’s City Council meeting, Mayor Moore questioned the wisdom of financially supporting KEDC.
Moore said he is “not satisfied with the service we are receiving for the money we are spending” with the annual allocations of city funds to the KEDC. The city pays the organization $30,000 a year.
“My suggestion,” Moore said, “is that we not spend any more money with KEDC.”
The mayor said he feels city staff could do the work KEDC is doing.
For example, he said, Katie Weber, the city’s grants administrator “could do an excellent job” in bringing state and federal grant funds to the city.
The council didn’t vote on Moore’s suggestion, but Councilman Tyrone Baker said that in his four years on the council he hasn’t seen results from KEDC’s work.
Moore said he has expressed his concerns to members of KEDC’s executive board “and nothing’s changed.”
On Thursday, Albert issued a detailed response to the mayor’s comments. She said the response was approved by the KEDC board.
The response, in part, was:
There has been a long standing partnership between KEDC and the City, and this collaborative approach to economic development is what has caused sustainability in Kewanee. KEDC has not deviated from this approach.
For instance, KEDC is the accountability partner to the City, to make sure the I’s are dotted and T’s are crossed when Revolving Loan Fund loans are given out. That process exists to ensure that risk is minimized, through proper loan collateralization and proper documentation process, so that when the money is paid back, it is available to loan out to future business owners for other projects.
It is also KEDC’s job to advocate for local business owners, including Kewanee’s largest industrial employer. The City should be serving its ‘customers,’ which includes these business owners, to make sure these businesses stay in business, in Kewanee. Again, the historical collaboration between KEDC and the City is what has allowed for the discussion of difficult topics and is what allows the City to best serve its constituents. KEDC has not cut off this communication. As always, KEDC advocates for local businesses that have a standing investment in the community to ensure their needs are addressed.
Strong leadership happens through communication and collaboration, which has historically been the case between the City and KEDC. The City’s choice to eliminate the conversation does not promote growth. It limits it. When loans are not re-paid because the steps are not followed, when grants are not awarded because deviation from processes with proven track records have been taken, it is Kewanee that suffers—both for businesses and for residents. If the City does not serve its ‘customers,’ they can and will go elsewhere.
I have always said in my own business dealings, if anyone ever claims to be an expert, to run away. Strong leaders surround themselves with others whose strengths complement their weaknesses, and they never stop learning.
The City should look at the results it’s achieved when it acts in isolation pursuing grants, working with business start-ups and on business expansions, and on loaning out money, versus when it works in cooperation with KEDC on these endeavors. The proof is in the track record.
Look at long term results. How many new businesses opened is not what is important. What is important is how many new businesses opened that still exist after five years, ten years and beyond because they had the necessary education to be prepared for what being in business entails.
How many loans have been given out is not what is important. What is important is how many loans have been given out that are paid in full or that are currently being paid back, versus those that are in default or that have been written off the books.
What is also important is that decisions are made to promote a healthy, productive and vibrant community and workforce. Asking, assessing, and communicating about these topics collaboratively, is what preserves and protects community vitality.
Everything KEDC does is for the benefit of Kewanee. For instance, if KEDC did not take the steps it did, the City would not have been granted the first round of the Downtown Revitalization Grant it was awarded in 2022.
In addition, ground KEDC owns for speculative purposes is always used for the City of Kewanee’s benefit. For instance, KEDC acquired the Kentville land and then sold it at cost to the City for vocational training. Part of that property is now being used for the cannabis grow facility. The remainder of that acreage was also to be used for economic development, and KEDC sincerely hopes the City will work with Great Dane on its current expansion, to preserve and increase jobs in Kewanee.
And soon, the funds that the utility scale solar project will put into the City’s TIF fund each year are also substantial.
In these instances alone, KEDC has prepaid the City’s future pledges for decades, in the monetary benefit it has brought to the City of Kewanee, not to mention the number of businesses that have chosen to stay and to expand in Kewanee because of KEDC’s efforts.
KEDC’s mission remains the same.
KEDC serves as the catalyst for the retention, development, and attraction of quality jobs in Kewanee, Illinois. As a leadership organization, KEDC works to enhance community assets by stimulating capital investment, business diversification, and community improvement in order to grow and expand Kewanee’s prosperity and the quality of life of its residents.
Through a program focused on business retention, expansion, attraction, and development, KEDC is focused on four main goals:
• Expanding economic growth opportunities.
