Despite doubts, committee approves county funding for MCEDC

McHenry County leaders approved a plan Tuesday to continue using taxpayer money as the McHenry County Economic Development Corporation's main funding source, despite a litany of complaints about the organization and its effectiveness.

The county board's Finance and Audit Review Committee voted 5-2 in favor of a four-year contract to provide the MCEDC with $152,018 next year and 3 percent more each of the following three years. The contract would cost the county $635,985 over four years.

The measure now moves to the full county board Nov. 6 for final approval.

The MCEDC, formed in 1993, is a public-private partnership created to attract new business and retain existing businesses in the county. The county provides the organization with more than a third of its annual budget, officials said.

A majority of committee members agreed to continue that relationship even after several of its members - including some who voted for it - questioned whether it was a worthwhile investment.

"I recognize the importance of an economic development corporation, but I feel shorted as a customer, as the public in the public-private partnership," said county board member Barbara Wheeler, who voted against the contract. "I just don't feel we're getting bang for our buck."

Wheeler was especially critical of MCEDC President Christopher Manheim, suggesting the corporation "has a leadership problem."

Manheim was not available for comment Tuesday.

Marc Munaretto, chairman of the finance committee and the county board's liaison to the EDC, said that is no reason not to support the organization.

"I would hate to tie our contract to our pleasure or displeasure with one person," he said.

Board member John Hammerand, who joined Wheeler in voting against the measure, said giving the MCEDC an annual 3 percent funding hike sends a bad message at a time when many in the business community are being forced to make cuts.

"Wouldn't you think that during the bad times we should put more effort, more money into business retention?" Munaretto replied.

An ongoing study by the MCEDC eventually could make Tuesday's debate and vote moot. The study, partially funded by the county, is examining whether the organization is economically viable over the long term or whether it should be dissolved.