- April 24, 2024
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The County Commission denied pursuing a restructuring plan for Enterprise Flagler, which would increase city and county funding. No new economic plan has yet been agreed upon.
In a 3-2 vote, the Flagler County Board of County Commissioners, Monday, Aug. 8, rejected Enterprise Flagler’s restructuring plan, presented by co-president David Ottati.
What initiative will replace the public-private economic development organization remained undecided.
“Enterprise Flagler doesn’t create jobs; it creates an atmosphere for economic expansion,” Ottati told the board at the start of his presentation. Part of the reason for the public’s apparent lack of confidence in the 11-year effort, he said, is many do not understand its function — not because it’s been ineffective.
Ottati, who is also president of Florida Hospital Flagler, then presented a plan to make the Enterprise Flagler board leaner. In the proposal, there would be 12 members (six public and six private) instead of 22, plus a three-year funding contract with cities. That contract would include clear deliverables and performance-based cancel clauses, greater transparency and 14 times the current marketing budget.
It also included increased funding from the county ($225,000 instead of $90,000) and cities (Palm Coast would contribute $100,000, Flagler Beach $5,000 and Bunnell $2,750).
Ottati asked the board to indicate either its support or opposition, so as not to continue to“linger in a state of unknown.”
By slim majority, the board opposed his plan.
Board chairman Alan Peterson compared Enterprise Flagler to the manager of a losing football team. It might not be the manager’s fault his team is losing, Peterson said, but the buck stops with him.
“I think that the public perception of Enterprise Flagler throughout the county is that Enterprise Flagler has failed,” he said. “Therefore, I would like to start over. I would like an entirely new organization … I would like to request applications from the entire (county, for participation on the board).”
Commissioner Barbara Revels disagreed, both that the public has lost faith in Enterprise Flagler, and that dissolving the organization makes sense.
“I’m greatly in favor of this restructuring, of this proposal,” she said. “I think we need to make a strong and bold statement to the cities … and I think we need to do that today.”
Commissioner George Hanns also supported the proposal. Just because another organization would be new, he said, doesn’t mean it would be better.
Since 2005, Ottati said, Enterprise Flagler has projected approximately 1,095 jobs created and 1,465 retained from various business contracts (not including recent downsizes). It has brought $280 million dollars to the county and, without the projects it helped attract — Palm Coast Data, Sea Ray, ACI and others — the unemployment rate could be as much as 50% higher than the current 14.6%.
That’s with just a two-person staff and only a $5,000 marketing budget, he said.
Still, commissioners Nate McLaughlin and Milissa Holland voted no.
“We’ve got to do something real, something that’s more reportable,” McLaughlin said. “I’m fully and unequivocally in favor of a Tourist Development Council-like business model.”
County Administrator Craig Coffey presented a plan for an Economic Development Council last week, modeled after the TDC. The EDC would replace Enterprise Flagler, and his plan outlined a funding hierarchy similar to Ottati’s.
Holland, who supports replacing Enterprise Flagler, opposes an alternative that contracts economic development with the Flagler County Chamber of Commerce & Affiliates.
“I’m not looking at creating something under the chamber,” she said. “I think it needs to be separate.”
Revels agreed. “I don’t want to see one organization in the county that encompasses that much power,” she said. “I don’t think it’s (the chamber’s) primary mission … This is a very, very specific operation … and I think it should operate independently.”
Peterson, who’s for the chamber taking charge, brought back the “pay to play” theory. If the county funds a majority share of an organization, he said (as it does with the TDC) the county should get to appoint the board, ideally with private-sector specialists.
Enterprise Flagler will regroup before determining its next move, Ottati said. But it most likely won’t approach the cities with the same proposal.
“On the state of economic development, we took a stand here, I think,” McLaughlin said. “This thing’s been dragging on since I’ve been elected … and I’d just like to get some clarity.”
He suggested holding a workshop to finalize a plan and come up with a “foundational something.”
The item was added to the Aug. 22 agenda.
WILL THE NEW STRUCTURE OF ENTERPRISE FLAGLER WORK?
Alan Peterson: NAY “I don’t think this reorganization goes far enough. I personally think we need to start over with a brand new organization and a brand new board.”
Milissa Holland: NAY She supports a fresh alternative, but with one caveat: “I’m not looking at creating something under the chamber,” she said. “I think it needs to be separate.”
Nate McLaughlin: NAY “I’m fully and unequivocally in favor of a TDC-like business model.”
Barbara Revels: YEA “If we don’t bring everyone together in a team effort … we’re going to have individual efforts done in individual cities … and it’s going to lead to competition between cities.”
George Hanns: YEA “Changing it doesn’t necessarily make it better.”
