Economic Alliance and city of Cedar Rapids must be partners

Last week Cedar Rapids Mayor Tiffany O’Donnell pulled an item from the City Council’s agenda renewing its $75,000 membership payment the Cedar Rapids Metro Economic Alliance for Fiscal Year 2024.

“What I look at is being the most responsible with taxpayer dollars, and what I’ve seen is that the city has stepped in to provide services that we haven’t received from the Economic Alliance,” O’Donnell told The Gazette’s Marissa Payne. “I want to make sure that we all have clear roles and expectations. I don’t want to spend the money twice.”

It’s entirely appropriate for the city to reevaluate a public expenditure. But the way this one was done may have been a response that could have carried unintended consequences.

We’re concerned with how this public airing of potential disagreements between the city and the alliance could affect regional cooperation on economic development. Trust takes a long time to build, but can be quick to destroy, and it appears the mayor's response may have been a little too hot. We’ve long called for a more regional approach to address numerous issues, so any hint of a possible split within existing regional kingpins is not welcome news.

This is an issue that has been brewing for years. When Jeff Pomeranz became Cedar Rapids’ city manager, he spearheaded the launch of an economic development office within city government. As the city’s role in recruiting businesses, retaining local firms and providing incentives aimed at both goals, it was inevitable that the city would eventually question how its work meshes with the Economic Alliance.

But the city’s role and the job of the alliance differ in important ways. The city is looking out for its interests while building its tax base while the alliance is serving the region. There's much nuance in how the work gets done, but trust among key players is crucial.

While every dollar is important, it's clear the city couldn't stand up an economic development apparatus for the $75,000 membership it would pay. Therefore, responses to concerns about issues also should be measured as lost projects could far exceed the amount involved in this case.

We believe it’s fundamentally important for the city and the region to remain partners, promoting the economic good Cedar Rapids and numerous surrounding communities. Growing the region’s economic base and its workforce require a collaborative approach. We agree that there should be clear roles and goals identified, but we also believe conflicts should be handled carefully.

This recent public saga appears to have boiled over about responsiveness and attention to detail and could simply be an effort by the city to exert more influence over alliance decision making, But it also creates a needless concern from other parties that the city an alliance are not collaborating well. We see the two institutions as teammates. When disputes spill out of the locker room and onto the field, constructive efforts to solve differences can be sidelined.

We believe, in the end, after evaluating the alliance’s value, the city will proceed with paying its membership bill. We hope this episode will foster greater communication and collaboration in the future. The region’s economy depends on it.

(319) 398-8262; editorial@thegazette.com