Council will hear from Economic Development Corporation at Tuesday meeting

Lehn will argue that the EDC, despite the recent recession, is more important than ever, particularly with the economy recovering and more businesses seeking to expand in California.

No reason was given at the time for the city’s leaving from the EDC. In a surprise move, the city council, during its budget sessions, quietly voted to approve the budget, which included the elimination of funding for the EDC, which for the past 25 years or so has worked hand in hand with the city to provide opportunities and create the climate needed to attract new businesses and jobs.

Council EDC Memo

There was no discussion and no reasons from the budget committee that recommended the drastic cut. They just simply struck it from the city council’s budget, where it has been for many years, and other than a brief mention of the EDC at a budget study session there was no further discussion, particularly as to the reasons for the cutback.

Members of the budget committee included Mayor Billy Siegel, Councilmember Lois Wynne, and City Manager Jeff Laws.

At an annual cost of approximately $37,000, Lemoore seems to get quite a bang for its buck, getting itself a full-fledged economic development agency, a major responsibility of which is to work hand-in-hand with city leaders to attract job-creating industries or businesses.

Apparently someone on the “budget” committee during recent committee meetings, suggested the city drop the EDC. However, the preliminary budget recommended continuing the city’s relationship with the EDC. Based on the Budget Committee’s recommendation, city staffers quietly removed the budget item from the revised budget and during the June 17 budget study session, Laws briefly mentioned the EDC cut, suggesting that the recommendation to cut the city’s ties with the EDC came from a budget committee member. The discussion lasted all of 30 seconds or so, with nary a peep from councilmembers. Laws didn’t say who the committee member was who wanted to cut ties to the EDC, but rather insisted he couldn’t remember who made the recommendation.

Laws, in a memo to the council, states that since the demise of the city’s Redevelopment Agency, the annual $37,000 contribution to the EDC has come from the city’s general fund.

“Kings EDC primarily focuses on industrial (and) manufacturing development. This type of

development brings jobs and increased property tax revenue to the City, but typically does

not generate sales tax revenue,” stated Law’s memo.

He went on to state that the city’s emphasis to promote industrial development has weakened somewhat since the amount of property tax revenue generated by such uses is significantly less than it was when redevelopment was in place.

“Additionally, the City does not have enough water to accommodate many of the manufacturing uses. Therefore, during the 2014-2015 budget discussions, staff recommended eliminating the contribution to Kings EDC.”