Mat-Su development council disbands

WASILLA — The state of Alaska is seeking a new partner to promote economic development in the Mat-Su Borough after a long-time economic development organization disbanded.

The Mat-Su Resource Conservation and Development Council, Inc., (MSRCDC) no longer serves as the regional economic development organization for the Mat-Su Borough, Economic Development Manager Ethan Tyler told the borough assembly Tuesday.

The state first revoked the company’s status in September, but by then the non-profit corporation had already largely ceased operations, Tyler said.

“They were all but shuttered anyway,” he said.

State and local officials tried to bring back the MSRDC to no avail, Tyler said.

“There was an attempt to kind of resurrect that organization. They were going through the application,” he said. “It just fell short. I think the cards were stacked against them. They didn’t have funding.”

Regional economic development organizations serve as clearing houses for federal, local, state and private grant funds. They’re designed to leverage local and state contributions through matching funds available at the federal and non-profit levels. That means when private groups or federal agencies have matching grants available to promote economic development, they can use those organizations — frequently composed of individuals who know the local business community and its needs — to amplify local funds.

At the same time, regional economic development organizations research and provide information about their markets for large and mid-sized companies that want to move in to local markets, Tyler said.

The state has maintained 11 regional development organizations across the state since 1988. The groups range from the Anchorage Economic Development Corporation to the Southwest Alaska Municipal Conference to the Southeast Conference.

As an example of what economic development organizations do, Tyler pointed to the Yukon-Kuskokwim group’s role in coordinating the construction of a building truss manufacturing plant in Bethel.

The Copper Valley Development Organization in Glennallen, for example, takes about $70,000 worth of state funding and finds matching grants from federal agencies and private organizations to turn it into between $280,000 and $490,000 per year for economic development, said executive director Jason Hoke.

“I think it’s also about using money wisely, and it’s not about how much you get,” he said.

State officials ruled the MSRDC non-compliant with state requirements for maintaining the partnership, Tyler said. A federal funding source for the organization dried up, and the non-profit had been unable to persist, he said.

“They basically weren’t engaging in economic development activities and failing to provide appropriate deliverables,” he said. “We didn’t provide them with a grant in Fiscal Year 2015. After that they were not submitting the necessary reporting, not attending the necessary meetings, and they weren’t participating in any economic development.”

That means the group wasn’t providing sufficient data to show the group was benefitting the local economy, Tyler said.

“When somebody proposes a project and says we’re going to have meetings and involve the community, what does that mean?” he said. “We expect something like five community meetings and 20 members at each meeting. They would submit something that was pretty squishy. We need more specifics.”

The list of former board members for the MSRDC is a virtual directory of local public policy figures. Corporate filings show previous directors have included borough manager John Moosey, assembly member Darcie Salmon, Wasilla deputy administrator Lyn Carden, Houston mayor Roger Purcell and present Palmer Chamber of Commerce executive director Ralph Renzi. The most recent roster of company officials includes Alaska Rep. Lynn Gattis (R-Wasilla).

The registered agent for the company is Andy Murr, according to corporate filings.

Renzi described the organization’s role as providing a five-year economic outlook for the borough and companies considering relocation to the borough. Board positions were awarded based on status within the local business community.

“All we did was advertise (the five-year outlook) for them, and looked at barriers to the business,” he said.

Calls to present board members — including Gattis and vice president Samuel Goldman — seeking comment were directed to president Robert Yundt, a local developer, who did not return a phone call Friday. The organization’s web site returned only a default page for a web hosting, and the listed phone number for the organization has been disconnected.

The search for a new partner comes as state funding for regional economic development organizations is on the bubble at the state Legislature, Hoke and Tyler said. Funding for the program — and the program itself — don’t appear in the House budget, but officials are hopeful they can push forward, Tyler said.

“Nothing’s final until the gavel falls,” he said.

Alaska Rep. Shelley Hughes (R-Palmer) has introduced HB 314, which would eliminate state funding for the organizations while extending the program to 2021. That move would allow the organizations to still receive federal and private funding.

The Copper Creek organization feels the loss of funding particularly acutely, Hoke said. The Copper Valley, centered around Glennallen, is part of the state’s unorganized borough, and doesn’t have federal partners, like those on the Yukon, or local partners, like a borough, Hoke said.

“Without that state funds, I’m up the crick,” he said. “I don’t have anything to use as a potential match, and nothing to keep the lights on without any borough money.”

Contact reporter Brian O’Connor at 352-2270, brian.oconnor@frontiersman.com, or on Twitter @reporterbriano.