Hagerstown has confirmed that it intends to quit the Economic Development Corporation of Wayne County. The town departed from its usual four-year agreement with EDC, only partnering until the end of 2025.
Some council members have expressed dissatisfaction with the EDC for several months, deciding in October to renew the contract for one year. On Dec. 2, attorney Jon Madison said the town should have notified EDC last summer of its intention to withdraw from the contract at the end of this year. Without that, he said the existing contract automatically extended through 2024 and the earliest the town could withdraw would be the end of 2025.
At the Nov. 4 meeting, EDC President Valerie Shaffer had encouraged the town to ratify a new four-year contract. Council member Fred Dill asked for a list of EDC projects from the past four years in the Hagerstown area. Shaffer sent that to council in a three-page letter dated Nov. 26.
Of several projects on the list, council discussion focused on a sign for the Hagerstown Industrial Park at Indiana State Road 1 and Paul R. Foulke Parkway. Dill said the town “had to do a lot of tooth-pulling” before EDC reimbursed the town for $20,114.
Council member Donnie Benedict said the list included more “failed projects” than successful and added, “When I went through it (the list) I thought it kind of odd the largest project was a sign.”
Western Wayne News asked Shaffer if she thought the town had difficulty getting repaid for the sign. She said EDC reimbursed the town as agreed.
Speaking from the audience as a former council member on Dec. 2, Rick Cole urged the council to consider what might happen if the town quits EDC. “If we pull out of it and a company here wants to expand and they go to EDC, do they (the EDC) say, ‘You’re out of it, no.’”
While that question is not answered in Shaffer’s letter, two projects she discussed might provide direction. She wrote that the EDC is developing a Housing Accelerator Program to help provide infrastructure to already-planned housing projects, and a Wayne County Blight Program to eliminate unsafe buildings. Both will be available only to participating EDIT communities, the letter states.
Some council members seemed confused about how EDC is funded. Approved in 1992, the county agreed to create a countywide Economic Development Income Tax, allowed by state law as a local option. Every incorporated city and town in the county receives a share of that tax based on the amount of state income tax paid by that municipality’s residents. EDIT paid by residents who live outside of towns and cities goes to the county.
In forming the EDC, the county, the City of Richmond and most town councils agreed to designate half their EDIT to pay for countywide economic development. The other half of the EDIT stays with each town or city, to be used for their own projects benefiting economic development.
The county and City of Richmond spearheaded the EDC’s formation to provide the services. It replaced separate efforts by the city, county, the Richmond Chamber of Commerce and some towns. Hagerstown had its own volunteer-staffed economic development commission that ceased functioning when the town joined the consolidated effort at its inception.
Because EDIT is a tax administered by the state, towns that quit the EDC still receive their money.
According to the EDC website, the tax generates about $2.3 million yearly. Money not spent directly by EDC goes into a consolidated EDIT fund which can be used for projects outside of normal EDC budgets. Those projects require county approval.
In 2024, Hagerstown is entitled to $97,494.96 from EDIT, according to Julie Neal, town clerk-treasurer. The town keeps $48,787.48 and contributes an identical amount for EDC.
The EDC is a semipublic corporation with a five-member staff. Their activities are governed by an appointed board and funded by the Board of County Commissioners. Hagerstown, Cambridge City and Centerville each appoint one board member. Other board members are appointed by the County Commissioners, County Council, City of Richmond and Wayne County Area Chamber.
Brad Robinson represents Hagerstown on the EDC board. He told the council that he is sometimes disappointed by the share of money that goes to projects in the Richmond area. But, he said, some of that might be because Hagerstown doesn’t seem to have a plan for economic development. “We can’t just say we need some money over here, we need a plan. If we pull out of it, I wouldn’t look for much help.”
Brian Longbons made the motion to extend the EDC contract until the end of 2025. Madison said he’d notify EDC that the town intends to quit then. Longbons and council members Becky Diercks, Allan Bullock and Donnie Benedict approved the extension; Dill voted no.
Longbons said the town could use EDIT funds to help pay for a $2 million water line replacement program, with major bills coming due in 2026.
Dill said he is going off of Town Council on Dec. 31, having decided against serving another term. When the council next considers its commitment to the EDC, he urged members to consider how much service is coming directly to the Hagerstown area.
EDC lists work in Hagerstown area
Here is a summary of projects discussed in a Nov. 26 letter to Hagerstown Town Council from EDC President Valerie Shaffer. Council member Fred Dill had asked her to list projects of the past four years in Hagerstown.
- Project Topper, an auxiliary building manufacturer, looked for a site in Hagerstown in 2021. The EDC helped look but with no land under control, zoned and with excess utility capacity, was not successful.
- Infrastructure requirements for Autocar: In 2023, “My team and I met with executive leadership numerous times … but ultimately the company did not apply for funding….”
- “In addition to Autocar, the EDC has met with and offered assistance to Country View Family Farms, Manchester Industries, Precision Wire, and Tedco over the years.”
- New signage at Hagerstown Industrial Park. “The EDC advocated to support the project and reimbursed Hagerstown for the cost of the sign totaling $20,114.”
- New housing development: EDC organized a trip to Rushville to learn about their programs; invested $30,000 for a 2021 housing needs study and a 2023 update; and consulted with the town on viable building sites. The EDC does not develop housing sites but will help in “cultivating interest from builders and developers when the town is ready.”
- Housing Accelerator Program: $500,000 budget to help complete unfinished single-family housing subdivisions by paying some infrastructure costs. This new program is under development.
- Wayne County Blight Program: $780,000 budget to demolish 40 unsafe and deteriorating single-family homes in 2025. Hagerstown is participating.
- Jump Start, in collaboration with Wayne County’s Early Childhood Coalition, an onboarding and training program for early child care workers. “The more childcare workers we have, the more childcare seats we have so that our residents can enter the workforce.” Seven of nine trainees in July 2024 were for New Testament Church of Christ in Hagerstown.
- Assistance to Nettle Creek School Corporation: Connecting students to job shadowing opportunities; tours on National Manufacturing Day to expose students to manufacturing careers; assisting with the “elevator pitch” competition; assistance in trying unsuccessfully to revitalize the JAG (Jobs for America’s Graduates) job-training program; volunteering at career fairs and hiring fairs.
In her conclusion, Shaffer wrote, “… the EDC is engaged in numerous community and economic development initiatives across the county, including Hagerstown. While not every project or initiative results in EDIT investment in the community, the EDC’s staff time should be considered an investment in the community.”
A version of this article appeared in the December 11 2024 print edition of the Western Wayne News.