Bethany Tabb, Courier-Times Staff Writer
Conflict between the New Castle-Henry County Economic Development Corp. and the City of New Castle came out into the open early Thursday morning.
EDC board members met in a regular meeting to discuss its uncertain budget. But when Mayor Jim Small made an appearance at the meeting, tensions ran high.
In December, the city announced it will pull the $75,000 it put toward the EDC and fund its own Economic Development Directorate instead. That news came just weeks after the board voted to fire former president and CEO Bryan Coats.
Board Chairman Jerry Gassen told the board the city's decision created a financial crisis for the EDC.
As members brainstormed for ideas to make up for lost funding, Gassen asked the board if anyone had a comment.
Small and another board member raised their hands at the same time. Gassen didn't look at Small and called on the board member, who asked if all efforts to return the city to the EDC had been exhausted.
Gassen immediately said that after holding several meetings with city and county officials, he believed that was the case.
Then Small stood and said he'd speak for only a few minutes and then leave. The city doesn't plan to support the EDC financially, he said, but he intends to cooperate with its efforts.
Other cities with their own economic development offices have established alliances with their counties' organizations, Small said. That's a setup that has worked well for many areas, he said.
Small also said he would recommend the EDC to industries that would be better suited outside New Castle's city limits.
"Cooperation is a two-way street," he said. "...To think that we're going to sit off as an island I think is a misstatement. We do intend to be part of you."
Board members stared at the tables in front of them as Small spoke. Gassen walked to the refreshment table to refill his cup of coffee as the mayor spoke.
When he finished speaking, Wil Ruback, who attended the meeting, raised his hand to comment.
"You gave the impression that you and Jeana (Davis) are smarter than this group collectively," he said to Small. "You're taking over the EDC. And that's the impression that goes out to people even outside the community."
Small responded that their hands were tied in regards to funding, but he repeated that the city is willing to cooperate. There may be some in the EDC who don't want to cooperate with the city, he said.
He said the board would probably feel more comfortable if he didn't stay at the meeting, and he left.
After Small was gone, Gassen said he didn't agree with the mayor's comments.
"The spirit of cooperation, quite honestly, is bull," Gassen said. "...We have made numerous attempts on the part of the county to work with the mayor, and he has drawn his line in the sand. I'd like to say he's taken the ball and gone home because nobody wants to play by his rules."
County Commissioner Kim Cronk said the EDC was still open to the city returning. He believes there will come a point when the city will want to come back, he said.
"We need to have our arms wide open for them to come back," he said.
Carol Goodwin, who attended the meeting, said the door should stay open to the city. But the trust between the two entities is gone, she said.
Gassen said the EDC doesn't intend to block the city from coming back. But the EDC still needs to be careful, he said.
The board decided to meet on a monthly basis until a new president and CEO is hired. The board also announced that Penny York, former Henry Township assessor and EDC special projects coordinator, would move into the EDC's office. Gassen said that position was paid by county funds.
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