County Council OKs economic development 'fusion cell' despite lack of details

Erie County Executive Brenton Davis, who's sought to make economic development a centerpiece of his administration, is now citing a vote by Erie County Council as proof.

On Tuesday, members of council narrowly passed a proposal by Davis to revive an economic development department within the county executive's office.

The department, which has existed in county government for years but has largely gone unfunded due to other entities taking the lead on economic development, will now consist of three positions: a director, an assistant director and an office manager.

Council voted 4-3 to fund the positions for at least two years, using $280,000 in federal COVID relief aid and another $50,000 from a National Association of Counties grant.

A little background:Erie County Executive Brenton Davis, Council Dems clash over tracking of Rescue Plan funds

The department, which Davis refers to as a "fusion cell," represents a key component of his regional economic vision. Not only will it track the use of American Rescue Plan Act funds in the county but it will aim to collaborate with other counties and find opportunities to invest, leverage and maximize returns on ARPA funds.

It will also firmly place county government in the driver's seat for the county's economic development priorities, helping to shepherd the work of other entities like the Redevelopment Authority, the Land Bank and the Chamber and Growth Partnership.

As Davis put it, during a Wednesday appearance at the Manufacturing and Business Association in Erie, county government should be the "maestro to the symphony" when it comes to economic development projects.

"We have no intention to play the tubas or the drums," he said. "We need to have experts doing what they do. But it's my goal with this economic development department and the Office of the County Executive to put things on one page."

The measure received the support of Republican councilmembers Brian Shank, Ellen Schauerman and Samuel Bayle, along with Democrat Jim Winarski as the swing vote.

Davis called the result a "bipartisan victory." Democratic councilmembers Mary Rennie, Andre Horton and Terry Scutella, who voted against the proposal, say the idea is still vague and risky.

A 'clear risk to taxpayers'

During Tuesday's council meeting, Rennie argued that making county government the ringleader of economic development posed a "clear risk to taxpayers."

Not only would taxpayers have to foot the bill for the fusion cell once federal funds dried up, but the county could find itself in a costly legal dilemma, she said.

"If the county makes a decision on behalf of economic development and insists that something go forward and we are later sued for it, aren't we then liable for whatever comes of that?" Rennie asked. "I believe we are."

Rennie added that Davis' fusion cell and overall economic vision, which involves unofficial multi-county working groups and fledgling plans to tap into the $6 trillion Great Lakes economy, were still short on details and not convincing enough to devote ARPA funds.

Davis economic vision:Erie County Executive Brenton Davis plans to take lead on economic development

County Council Solicitor Tom Talarico agreed and urged council members Tuesday to table the proposal.

"We do not have enough information to determine whether the money the administration is asking for is going to be spent for ARPA purposes," he said. "And it's illegal to spend ARPA monies on creating economic development bureaus to make money on the future and establish relationships with other entities across the Great Lakes region."

County Director of Administration Doug Smith, speaking on behalf of Davis on Tuesday, said the county's ARPA consultant — Witt O'Brien's, a firm that specializes in risk assessment and management — said the fusion cell did fall within ARPA's new spending guidelines.

Horton, however, said the ARPA funds should be focused squarely on those most affected by the COVID-19 pandemic.

"I believe that county government's No.1 job should always be human services," Horton said, pointing to the county's gun violence and opioid problems, and lack of investments in the homeless and youth. "It seems like we're electing to put people last again at the behest of business and big corporations."

ARPA re-budgeting

By June, Erie County is expected to receive roughly $26 million in federal recovery aid, the second half of a $52-million pot of ARPA funding awarded to the county.

Davis, since February, has been requesting council to re-budget this $26 million, insisting the funds shouldn't have been allocated in the 2022 budget by the previous council in December, considering three council members, along with former County Executive Kathy Dahlkemper, were outgoing.

Davis plan to pull ARPA funds:Davis seeks to re-budget Erie County's 2022 American Rescue Plan funds

While council has indicated it needs more details before it will overturn the ARPA spending plan — which was unanimously approved by council last year — Tuesday's vote to approve the fusion center could signal a council majority warming to Davis' economic ambitions.

As such, Democrats are fearful Davis will focus more on maximizing profits than using the ARPA funds toward areas of health, human services, diversity and equity.

"I'd rather put a bag of groceries and a half a gallon of milk on a single parent's table so their kids can go to bed at night on a full belly — that's all I want to do," Scutella said. "I don't want to take $5 million and try to make $50 million (out of it). I'd probably be dead before that happens. But I can do something now."

A.J. Rao can be reached at arao@gannett.com. Follow him on Twitter @ETNRao.

This article originally appeared on Erie Times-News: Erie County Council approves economic development fusion cell