Courier-Times

With his first year in office complete, Mayor Jim Small says the second year of his term will focus on economic development.

But with the national economy in a recession, layoffs from New Castle businesses becoming more frequent and the city's past economic development agency in crisis, the deck could be stacked against Small.

"It's going to be tough, but I'm used to tough. I've been shot at, dive-bombed and everything," Small said earlier this week in an interview referring to his career in the military.

In November, the New Castle-Henry County Economic Development Corp. Board of Directors voted to fire the agency's President and CEO, Bryan Coats, after he was arrested and accused of burglary and stalking.

Small, who once worked for the EDC, urged the board to fire Coats.

Just weeks later, Small announced the city would cut its $75,000 in annual funding to the EDC and start its own economic development directorate with Jeana Davis, the mayor's current assistant and a former EDC employee, in charge.

"New Castle needed a champion for its own economic development," Small said this week.

He added that having worked at the EDC, he and Davis saw the agency's shortcomings.

"It's a good organization but it wasn't really geared heavily toward New Castle," Small said.

Some officials for the Henry County, which shared in funding the EDC, felt slighted by Small's plan. But Small says he's had four meetings over the past days with County Commissioner-elect Kim Cronk.

Small also had one meeting that numerous county officials attended. The mayor said what came out of the meetings was the understanding that city intends to work "very closely" with the county

Although Small says no new decisions have been made on the future of economic development in New Castle, he said an economic development alliance may be possible. He added that it will take weeks for the new development agency to take shape.

Whatever that agency is will play a major role in both Small's second year in office and his entire term as he plans for development to be the focus of his second year.

Economic development was at the heart of Small's victorious mayoral campaign against former Mayor Sherman Boles.

During that campaign, Small criticized Boles for the jobs that left the city while he was in office.

"You can't blame a mayor when you lose a factory, but you can blame him if he doesn't bring something in to replace it," Small said in 2007.

Asked if he still believes the mayor should be judged on the economic development that occurs while he or she is in office, Small said when it comes to development the "buck stops" with the mayor.

Small cited KVK Technologies, a German plastic company, and Scrap Tire Technologies as two businesses just getting started in New Castle.

But during his first year in office, there were many setbacks when it came to business.

Metaldyne, one of the city's largest employers, laid off about 250 people in 2008 while in the last months of the year, Allegheny Ludlum Corp. laid off about 115. Also, New Castle's Starbucks closed in 2008.

Although he says he doesn't know of any new business "surprises" that on the horizon, Small, like many officials across the country, will be working to turn the 2008 tide in 2009.

A look back

This week, Small said his first year in office was about cleaning the city up. He said that he's gotten many compliments on his efforts.

"I fully intend that we will be the nicest looking city in Eastern Indiana in 2009," Small said. "And then, we'll become widely recognized."

His first year was also about improving the city's downtown. The city held Christmas and Halloween parties downtown in 2008 that got glowing reviews from residents. His administration also worked to get the Historic Landmarks Foundation of Indiana appointed as a receiver for downtown's L.A. Jennings Building. The foundation is currently overseeing construction on the building.

Asked if he had any regrets from 2008, Small said he wished the city didn't have to lay off three members of the parks department for the first three months of 2009.

That move was made to save money. The city had to cut $900,000 from it budget for 2009. Through work with city unions, including the American Federation of State County and Municipal Employees, Small's administration made the budgets cuts and had to make only three temporary layoffs.

"We came through the economic problems of 2008 without impacting services to the citizens or really impacting our own city administration," Small said.

He added, "It could have been much worse."

When Small was elected in November 2007, a photograph ran on the front page of The Courier-Times that showed Small with a smile on his face embracing one his supporters.

Asked he still had that kind of excitement for his job, Small said, "100 percent."

"It's the city that I love," Small said. "The people who are supporting me. I feel like I can make a major difference."

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