City officials have signed off on an agreement that creates a new upper-level position at Shawano County Economic Progress Inc. (SCEPI), but they and the SCEPI board are mum on what it means for the existing executive director.
The memorandum of understanding between the city of Shawano and SCEPI outlines the job of a chief economic development officer who will technically be a city employee, but will answer to the SCEPI board of directors and its executive committee.
An oversight committee will also be created that will make recommendations to the SCEPI board. That committee will consist of two representatives each from the city, the county and the SCEPI board.
There is nothing in the agreement saying where the executive director fits into the new structure, if at all. That post is held by Steve Sengstock.
According to the agreement, the memorandum of understanding goes into effect on Sept. 1 and remains in effect for three years, after which it can be renewed.
City and county officials have confirmed that several candidates have already been interviewed for the new position, but they are hedging on whether it is intended to be an adjunct to or replacement of the executive director.
“I think the SCEPI board is working with that. That’s their decision,” City Administrator Brian Knapp said. “The SCEPI board is going to have to decide on their remaining staff and support staff that are available to support this position.”
Knapp was part of a group of city, county and SCEPI board representatives that has been recruiting and interviewing candidates for the new position. The group also drafted the new job description, according to Knapp.
“It’s an updated job description, and I believe the expectations are higher for this new position than they have been in the past,” Knapp said.
The Shawano Common Council on Wednesday approved the agreement creating the new position.
Though it will technically be a city employee so that health, retirement and other benefits can be provided, according to the agreement, all of the city’s expenses related to the job — including the $85,000 salary — will be reimbursed by SCEPI.
Both the city and the county make annual contributions to fund SCEPI.
The city’s contribution has been 15 percent of revolving loan funds each year, Knapp said, but a more specific contribution that would go toward helping fund the new position is being negotiated with SCEPI.
That contribution, when the dollar amount is finally set, would come from the city’s Tax Incremental Financing (TIF) district, Knapp said. TIF rules allow for the use of TIF district revenue to cover administrative costs for the promotion of economic development.
Shawano County Administrative Coordinator Tom Madsen said the plan is for the county to continue making an annual contribution of $50,000 to SCEPI to cover the county’s share of salary and benefits for the newly created chief economic development officer.
Madsen was also among the representatives recruiting and interviewing candidates for the job. Others included Mayor Lorna Marquardt, SCEPI board president Dan Miller and vice president Rick Kane.
According to Madsen, the group has narrowed the candidates down to a finalist, but there was no word on when that person might be named.
Madsen declined to comment on how the new post affects the executive director position, saying it was something for the SCEPI board to comment on.
Miller would not comment, and several calls to Sengstock were not returned.
Knapp said it didn’t really matter which entity employs the chief economic development officer.
“He could just as easily be employed by the county,” he said.
Knapp said the post will be overseen by the SCEPI board to prevent any impression that the city might have undue authority over economic development decisions at SCEPI.
“We’re a partner in this,” he said.
Madsen said everyone in the county would benefit.
“Economic development is good for everybody,” he said. “It’s good for job creation, it’s good for the private sector and it’s good for the public sector.”
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