Logan County Alliance terminates economic development agreement with city of Lincoln

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[February 11, 2016]  LINCOLN - Tuesday evening the Lincoln City Council met for their first workshop session for the month of February. The six aldermen present were Michelle Bauer, Jeff Hoinacki, Kathy Horn, Todd Mourning, Steve Parrott, and Tracy Welch.

Several minutes early in the evening were dedicated to hearing from the Logan County Alliance Vice-president Greg Basford. Much later, after the council meeting was adjourned, Basford along with Sal Pollice of the Alliance Board held a press conference in the office of Mayor Marty Neitzel. The topic at the council meeting and press conference afterward revolved around an Alliance decision terminate its contract with the city of Lincoln for Economic Development services.

In Council Chambers, Basford announced that the Alliance had delivered a letter of termination for economic development to Neitzel. He opened by saying he was on hand to expand on the explanation as to why the Alliance had made this decision.

He noted that it had been an interesting first year for the new organization and that the resignations of the Lincoln/Logan County Chamber of Commerce Director, Nicole Cox, as well as the resignation of Alliance CEO Andi Hake, had come at the end of the year. Both resignations had been unexpected by the Alliance Council, but had opened a door for them to evaluate further some of the work the Alliance should be doing in the coming year.

He said that the economic development component of the Alliance had primarily been the responsibility of Hake to implement and keep going throughout the year. With Hake gone, the Alliance Council needed to focus on its ability to give the city of Lincoln the service they paid for and expected from the group. He said that the board did not feel they were able to do this adequately at this point.

Basford said that the council needed to step back and take a look at themselves. He said, “We felt it was time to understand what we were and to step back and see where we were.”

Basford also said that the council had met and had agreed that in this new calendar year, there needed to be a greater focus on membership. He said that membership (to the Chamber of Commerce) had not gone as hoped for in 2015, and there needed to be a bigger effort there. He also noted that in 2015, the legislative component of the Chamber had taken a back seat to other issues, and in 2016 that needed to be a new focal point for the Alliance.

In evaluating the task of economic development, the Alliance felt that correctly doing the job would require a full-time economic development person within the organization. He said that with the $60,500 the city paid the Alliance, it could not hire the well-qualified person who would give the city the service it desired. He went on to say, “The city deserves a full-time person, and we don’t have that.”

In addition, Basford noted that there had been somewhat of a misunderstanding regarding the $60 thousand. He noted that the total dollar amount paid by the city to the Alliance included many other components such as the annual Christmas Parade and sponsorship of the Lincoln Balloon Festival.

Speaking about the events the Alliance was involved in during 2015, he said that the parade this year was quite successful. He noted that the Logan County Tourism Bureau is also doing an excellent job.

Basford added that the financial shortfall the Alliance suffered due to the lack of increased membership had put a financial strain on the organization.

He ended saying that the Alliance Council felt that under the circumstances, ending the contract with the city was the right thing to do for both entities.

Steve Parrott asked if the contract termination would have happened if Hake not resigned. Basford, in summary, said that yes, it probably would have happened. He noted that while he didn’t know for sure how it would have gone had Hake stayed; he did know that her departure solidified the decision.

Basford also noted that the contract with the city has a 30-day termination notice written in for both parties. He said the city council should advise the Alliance as to how they would like to proceed. The city has paid the Alliance for services through January 2016 but would maintain the contract for the next 30 days if the city wished. Basford said the Alliance could keep working on the business retention plan. He said his concern was that the Alliance didn’t want to start conversations, then just drop them at the end of the 30 days.

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He also mentioned that in the recent past, the Alliance had reached out to a couple of manufacturers only to learn that they had already been approached by the Logan County Economic Development Partnership. He commented, “It can be a challenge when you have two economic organizations operating within the county.”

Kathy Horn asked what steps had been taken to replace Hake. Basford said the application process was now closed, and the Alliance received a great deal of interest. He said there were several of the applicants that were over-qualified for the job. The issue there, he said was money. The Alliance could not afford to pay those highly qualified individuals what they are seeking.

The group is now working to narrow the number of applicants and conduct additional interviews. He told the city council that the person hired will be required to live in Logan County, so if the person is not here already they will have to move.

Tracy Welch asked about the replacement of Chamber Director Nicole Cox. Basford said the council was still “kicking that around.” He noted that Hake's role had been CEO and economic development. With the economic development component gone, the new CEO of the Alliance could be in charge of membership recruitment and retention. Therefore, the Alliance may choose not to replace Cox at this time.

Offering a few updates, Basford said it had been a while since the Alliance had talked with Retail Strategies, but the last word they did have, that group was working hard to bring a major chain store to the city. Basford said he could not say who, but the last word was that Retail Strategies was making progress.

The Workforce Development component of the Alliance/Chamber has been shifted to Community Action. While the Alliance is still involved, Community Action is taking the lead role.

The Downtown Advocacy program is still moving forward. The Alliance/Chamber sponsored Small Business Saturday on the Square again this year, and that went well, and again he mentioned, as did the Christmas Parade.



The radio ad campaign promoting Lincoln as a good place to start a business ran from November through January. Basford said there had been some individual’s contact the Alliance about starting businesses. He said that there had been requests for tax abatements that the Alliance could not provide, so nothing had happened.

Basford noted that he, city administrator Clay Johnson and Mayor Neitzel had attended a meeting of the Greater Peoria Economic Development Council. There, Basford said Johnson had given an outstanding presentation regarding funding for the Fifth Street Road project. He and Johnson both commented on the possibility of grant funding. Johnson said there would be a letting process held in 2018 where the city may apply for funding for the project.

Basford noted that the Enterprise Zone application has been submitted to the Illinois Department of Commerce and Economic Opportunity, and it is now just a matter of waiting to see if Lincoln/Logan County earns an award. The Alliance worked with the county and city to development the application.

He finished by saying the Lincoln Land CEO program is still moving along and doing well.

Basford concluded, asking if anyone had any more question. No one did, so the city council moved on to the next topic.

At the end of the council meeting, Basford and several members of the Alliance Council were invited to use the Mayor's office for a brief press conference on this same topic. Coverage of that meeting also appears in today's edition of Lincoln Daily News.

[Nila Smith]

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