Branstad economic development plan drawing praise

A proposal by Gov. Terry Branstad to replace the Iowa Department of Economic Development with a public-private partnership is drawing praise from private sector developers.

Branstad's “Iowa Partnership for Economic Progress” would be charged with promoting and marketing the state to attract investments and jobs. The public part of the partnership would take over the duties currently handled by the Iowa Department of Economic Development and the non-profit portion would solicit and accept private donations that would be used to recruit and retain business.

“We know firsthand what it takes for Iowa to compete globally with other states, regions and countries,” said Kathryn Kunert, president of the Professional Developers of Iowa, which represents more than 300 economic development professionals across Iowa.

“We must embrace a strategic vision and business approach to successfully assist our existing businesses with expansion opportunities along with bringing high-quality, long-term jobs to Iowa.” Kunert said. “A public-private approach is the right, forward-looking direction for Iowa to take in bolstering our economic development programming.”

No public funds would be used to support the non-profit entity and it would not have any authority to spend public dollars. Both the public and non-profit units of Iowa's Partnership for Economic Progress would be required to submit annual reports to the governor outlining expenditures, loans, accomplishments and defaults.

The new entity would be governed by an independent board of directors made up of business people from across Iowa with the lieutenant governor or governor serving as chairman. The Iowa Partnership for Economic Progress would be led by Debi Durham, director of the Iowa Department of Economic Development.

Joe Raso, president and chief executive officer of the Iowa City Area Development Group, said the board of directors would take on a different role than the current IDED board.

“The focus of the board and its work will be a little bit more strategic than what we've seen in the past,” Raso said. “In the engagement I've had with the board through our clients, they've been closer to the ground as they work through projects. I think it's a lot to ask this kind of board to do the due diligence that can be handled by the staff.

“I think the structure that's being proposed will use boards to set policy and strategic direction, as you probably have seen them used in private sector organizations. We've been doing public-private partnership in economic development for decades at the Iowa City Area Development Group and Priority One.

“If you want to point to examples where this model can work, I think you don't have to look any further than the Corridor.”

While the IDED board is chaired by one of its members, having the lieutenant governor or governor lead the proposed board may provide a better understanding of what businesses are going through as they seek state financial incentives, said Jeff Rossate, vice president of business development for Priority One in Cedar Rapids.

“When they're working with the staff of the organization, they can have a better ‘on the ground' feel for it,” Rossate said. “The governor or lieutenant governor can be a deal broker or door opener, so giving them a better understanding of the process is appropriate.

“It's a forward-looking approach to not only how we sell the state, but it also will allow existing or new businesses to work through a process more efficiently and hopefully meet their timelines.”