Faribault Co. won't fund its own EDA
Sarah Day — Staff WriterBLUE EARTH - Faribault County's Economic Development Authority no longer will receive county funding; instead Go Minnesota will be given a chance.
Two weeks ago, the public and private economic development groups pitched their cases to county commissioners. Because of budget considerations, the county decided it would only fund one.
On Tuesday, commissioners discussed the reasons for their decision.
Commissioner Tom Warmka said he contacted almost all of the city clerks in cities he represents. He said they were hesitant to support dropping the county EDA and going solely with Go Minnesota, but he discussed it with them and they seemed to support it.
"The thing I found out, I don't care if it's Go Minnesota or Faribault County EDA, without buy-in from our cities it's not going to work," he said.
Warmka added he had researched the history of the EDA.
"The board of commissioners gave them some start-up money," he said. "It was going to be self-supporting. Their appropriation has been increased every year since."
Warmka said he is disgusted with how money has been spent for economic development.
"Wher-ever there's jobs in Faribault County - it doesn't matter if they're all in Bricelyn, Wells or Blue Earth - that's what we have to do," Warmka said. "If they're good-paying jobs, that's what we have to do. If we can't get this thing right in the next 2-3 years, I would never fund it again - any EDA. It would all be private then. When you've got good jobs, good-paying jobs, that keeps people here. That brings our kids back."
Commissioner Bill Groskreutz said several officials in Wells contacted him, saying they do not support going with Go Minnesota.
"They are not supportive of the county spending their tax dollars for that purpose," he said.
Warmka asked why.
"They said they just don't feel comfortable dealing with Go Minnesota," Groskreutz said.
Commissioner Tom Loveall, a staunch opponent to the county funding Go Minnesota until a couple months ago, said his decision is based on administration.
"To me, Go Minnesota's vision is not the question," Loveall said. "The Faribault County EDA board determines their policy. If they want to buy that vision, that is up to them."
He said he wanted to privatize for "substantial savings."
"The question is, now the policy will be determined by someone else," Loveall said. "Not at all. We're looking at different staffing."
The EDA board itself cannot dissolve (and commissioners can't dissolve it without special legislation). The EDA board will still have authority for development in the county; it just won't have funds to do anything itself.
Commissioner John Roper made a motion to enter into contract negotiations for 2010 with Go Minnesota and to cease funding the county EDA. It passed 4-1, with Groskreutz dissenting.
Zoa Heckmann, EDA director, went around the room and shook the hands of Go Minnesota board members and the director saying, "Congratulations."
Another point of contention for county commissioners was the funds the EDA has in reserves. The EDA could operate for more than a year just on its reserves.
"I was looking for no spend-down on those funds," Warmka said. "If this doesn't work out, then we have a place to start up from."
Loveall said the board can't make that determination. Erichsrud didn't want to see the EDA go away, and would like to see it use the funds to see through the difficult economic times.
"This is ridiculous," Warmka said. "We can't be spending down the money."


