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Southwestern Community College pulls out of EDC
By Lynn Hotaling
Still reeling from county leaders’ surprise decision to seize their records and audit their books, county economic development officials took another blow during their Tuesday (Feb. 15) session.
Southwestern Community College President Cecil Groves, attending in place of Economic Development Commission treasurer and SCC representative Gene Couch, announced that his school was “suspending participation” in the EDC.
While praising the service and commitment of EDC members, Groves characterized the recent EDC upheaval as “an opportunity for members of the Economic Development Commission (to) meet in public session with the county commissioners and other stakeholders to review, discuss and establish a more workable and understandable model for economic development.”
In announcing the SCC decision, Groves read from a prepared statement that indicated SCC’s desire to be part of the process by which commissioners and the EDC develop that “more workable and understandable model.”
EDC member Jay Coward, a Sylva attorney, cross-examined Groves.
“If it’s something everyone needs to talk about, why are you getting up from the table?” Coward asked.
“Because all parties are not here,” Groves said.
In response to Coward’s questions, Groves said SCC would be willing to talk if commissioners were present.
Suspending SCC’s participation in the EDC is not a decision made by SCC’s Board of Trustees but by Groves and his staff, Groves said.
Coward, a county commissioner from 1994-98, said that when he was first elected he had doubts about the EDC’s effectiveness but was convinced by then-EDC Chairman Daniel Allison and others that the group was “the perfect vehicle (for the county, towns and institutions of higher education) to work together in one cohesive unit to promote economic development.”
Groves said that may have been the case in the past, but it is time to clarify roles within the EDC and look at “other models,” especially those of counties that are experiencing high growth.
County commissioners provide a significant portion of SCC’s annual budget. According to county finance officer Darlene Fox, the community college received $1,141,636 during the last fiscal year. Of that amount, $949,636 went toward operating expenses and $192,000 was allocated for capital improvements, Fox said.
When asked after the meetin if they thought SCC’s action was the result of pressure from county commissioners, neither McClure or Coward commented directly, but Coward saidhe “didn’t see how a responsible community college can withdraw from the EDC.”
After Groves made his exit, EDC Chairman Tom McClure said he was disappointed by SCC’s decision to leave the group, saying the EDC had led the way in the past with regard to county strategic planning. He reminded board members of the EDC’s lead role in a yearlong series of Smart Growth meetings that were held in every precinct and attended by more than 1,200.
With that McClure turned attention back to the meeting’s agenda, saying the EDC is a “functioning entity” and should get on with its business.
“If the county wants to pull out we don’t have to fold up our tent and go home,” he said.
Sylva Mayor and EDC member Brenda Oliver moved the EDC request their records from the county and set a time limit – today (Thursday) – for receiving them. Coward seconded, and the motion passed unanimously.
Forest Hills representative Irene Hooper then moved the group again request a meeting with county commissioners. During discussion, EDC members chose Tuesday, March 2, as the date they would invite county commissioners to join them in an attempt to iron out the two boards’ differences. That motion carried unanimously as well.
McClure then offered updates on recent EDC contacts, telling board members he has been talking with four businesses that would like to relocate to Jackson County.
He also reported on progress at QC Apparel, which he said is currently doing well.
The plant is producing some 15,000 pillows a week as well as manufacturing fabric air ducts with tremendous market potential due to the increased cost of traditional metal ductwork, McClure said.
A recent credit line established for QC by Jackson Development, the EDC’s non-profit holding company, is working well and has improved QC’s cash flow, McClure said.
A delinquent revolving loan from Jackson County to QC Apparel was the apparent trigger for commissioners’ Jan. 12 motion that removed McClure, who directs WCU’s Office of Regional Affairs, from all appointed county positions, dissolved the county’s revolving loan fund, ordered the surrender of EDC records, ordered an audit of EDC books and ordered foreclosure of the QC loan and any other delinquent loans.
Commissioners’ initial action indicated they planned to bring the EDC under county control, but by the following day they had changed their wording to indicate they had “suspended participation” in the EDC. McClure’s status on the EDC was not affected because he is Western Carolina’s appointee to that body.
Deputies were dispatched immediately after the Jan. 12 commissioners’ meeting to McClure’s office at WCU to take possession of EDC records.
McClure said during a Jan. 20 emergency EDC meeting that he was too surprised by the action to deny the request, though he maintains the county has no right to the documents. According to McClure, the EDC is an independent entity created under G.S. 158, a statute that allow municipalities and counties to come together for the purpose of economic development.
EDC members also decided Jan. 20 to request their records back and asked fo a joint meeting with commissioners.
County leaders Jan. 25 declined both parts of the EDC request, saying they would neither return the records or meet with EDC members until they received a final audit report.
Auditor Mitch Crisp of Dixon Hughes presented that report to commissioners last Tuesday (Feb. 8), saying that his firm’s audit had revealed three instances where transactions executed by the EDC chairman did not appear to match approvals recorded in the EDC minutes.
County commissioners will again focus on economic development Tuesday, Feb. 22, at 6 p.m. in Room A-227 at the Justice Center. The session’s stated purpose is for county leaders to discuss their future position with regard to the EDC.
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