Council axes $63,000 agreement with CAREDF

The City Council in a 4-3 split voted against renewing a $63,000 agreement with Central Arizona Regional Economic Development Foundation. Alan Marchione, Carl Diedrich, Marvin Brown and Marquisha Griffin voted against the agreement. Julia Gusse, Vice-Mayor Edward Farrell, and Mayor Anthony Smith voted to renew the agreement, which the city has maintained for five years.

“For $63,000 I am disappointed the city did not receive one call during the whole year,” Marchione said at last night's regular meeting. “Economic development is important but I would anticipate something for hundreds of thousands of dollars. We got zero point zero return. I will not support this.”

Marchione said the $23,000 contract with the Greater Phoenix Economic Council had at least produced numbers that the council could review. He added that the city was expanding its own economic development team and thought the agreement with the Maricopa Economic Development Alliance better suited the city.

Economic Development Director Danielle Casey told council that since the budget retreat on May 6, CAREDF had “put together a plan and a set of services to better interact with the city.” She said CAREDF had a database of an estimated 2,500 businesses they worked with and that with a renewed agreement there would be an increase of data reports, more meetings and technical assistance.

Smith believed their agreement would be “tailored to fit the needs of Maricopa.” Farrell thought the five-year relationship was important to maintain, and that “it isn’t just a regional economy anymore, but a global economy.”

Earlier in the meeting, the city passed agreements with MEDA and the Maricopa Chamber of Commerce. The agreement with MEDA was easily passed as Keith Kirkman, CEO of Orbitel Communications and MEDA board member, said the organization had raised more than $70,000 through grants and private partnerships that would help diversify Maricopa’s economy. The council unanimously agreed to the $50,000 partnership with MEDA.

The council also unanimously approved its $40,000 agreement with the chamber. Chaired by Bob Gilliespie, the chamber is working to expand its office and become a visitor center for tourists and business clients entering the city.