Developing the Developer: EDA Reform Begins

The process to reform Northfield's Economic Development Authority (EDA) began Wednesday night with an outsider's candid criticism and recommendations.  

"I think it's clear that there has not been sound strategic and financial planning going on," said Thomas Clough, principal of nonprofit consultant Horizon Associates.

While the Northfield City Council will ultimately decide to retool, eliminate or otherwise reform the EDA, Clough said he was optimistic the outcome would improve the city's ability to plan future development.

After raising repeated complaints about the EDA's productivity in recent months, the city council voted earlier this year to utilize an independent arbitrator to guide the reformation. 

The primary issues were outlined in a 10-page report which will be put to city councilors for discussion at next Tuesday's work session. Included in the list of concerns were: 1) A lack of cooperation among EDA members; 2) A lack of a clear strategic plan; 3) Limited business experience among EDA members; 4) Confusion about the role of the EDA, city officials and city councilors in developing Northfield's economic strategy. 

But the chief problem, Clough said, are "deficiencies in the [EDA's] concept of mission," which have arisen due to disagreements in the philosophies by which industries will expand and heritage sites will be conserved. 

That gridlock "leads to focus on form and process rather than substance," Clough wrote in the report.

City councilor Betsey Buckheit has joined other councilors in criticizing the EDA. Buckheit is reserving judgment on potential solutions until the council has a chance to formally addresses the issue. However, she did say she was "very impressed" with Clough's report.

Buckheit also echoed points previously raised by EDA member Steve Engler. She argued the need for economic and environmental data in all discussions on the subject. 

Missing the middle term

While Clough praised the city's comprehensive development plans, he said it lacks a clear strategy to help implement broader goals. "You're missing that middle term" of three to five years, he explained, which would include material estimates for project completion, expense budgets and other particulars.

Medium-term plans, Clough added, could be made regularly and would "provide a basis for performance evaluation" for councilors, staff and board members. 

EDA members seemed generally receptive of the report, though few took exception on particular items. 

"I don't want to sound defensive," said EDA member Rick Estenson. "But to say [we have] no strategic plan sounds a bit heavy."

Engler justified his frequent dissents on board decisions, arguing that the board has failed to amend its policies in light of the economic landscape changed by the recession. He also defended his focus on process issues, arguing that the EDA should have a hand in carrying out policy as well as helping craft it.