[EDAWN Column for the Reno Gazette Journal for Sunday, June 12, 2011]
Beyond the headlines commanded by higher profile legislative actions, a bill, AB449, was passed Monday. The bill that “revises provisions relating to economic development,” has great potential depending upon interpretation and implementation. The result will be either more coordination or more bureaucracy. Governor Brian Sandoval, the Legislators, and their staffs deserve credit for making economic development a high priority. This bill will work if everyone in the state seeks true cooperation. The Governor, by continuing to bring people together, will be key to that success. His continued focus on economic development and collaboration is absolutely vital.
AB449 creates both a Catalyst Fund and a Knowledge Fund. The $10 million Catalyst Fund may be used for “grants or loans to, or investments in, business seeking to create or expand in this State or Relocate to this State.” Criteria, application procedures, accountability and reporting will be established in coming months. Ultimately the funds will be managed by local government entities. The Knowledge Fund is designed to “provide financial assistance to certain institutions within the Nevada System of Higher Education for the development and commercialization of new technologies.” Separately, SB75 provides up to $50 million of existing investment reserves for managed, appropriate investment in growing Nevada companies. These are basic tools that we need at a minimum to be competitive with other states in growing our own businesses and creating sustainable jobs.
In an effort to reorganize the structure of economic development statewide there are other changes that could be beneficial depending upon leadership and cooperation. AB449 creates a new Advisory Council on Economic Development comprised of state elected officials and a new Board of Economic Development (Board) which eventually replaces the Nevada Commission on Economic Development. The board will be made up of state elected officials, a higher education leader, a Department of Employment, Training & Rehabilitation appointee, and six private sector appointees by the Governor and legislative leaders.
The Board will search for, and recommend to the Governor, three finalists for the position of Executive Director. The Governor will make that appointment. The Executive Director will oversee the Office of Economic Development, operating within the Office of the Governor. He or she has a wide range of duties and much authority. Among other things, that person, in consultation with the Board and Advisory Council, along with local government entities, will create a State Plan for Economic Development, criteria for applying to receive Development Resources (grants, etc.), criteria for and designation of Regional Development Authorities, criteria and procedures for the Catalyst and Knowledge Funds, reporting and accountability standards, statewide coordination, general re- organization and oversight of incentive programs.
The potential within this bill comes in creating an organized economic development process within the state, and channels to improve communication and cooperation amongst the entities charged with recruiting and expanding companies. Leadership from the Governor and citizens statewide will be the true test to realize our full potential. This bill provides the framework, but together, we must provide the substance to succeed.
[Chuck Alvey, CEcD, is President and Chief Executive Officer of EDAWN
The Economic Development Authority of Western Nevada]
The Economic Development Authority of Western Nevada]
