With more funding, Island County leaders expect EDC growth

There’s a reason they call him Taz. David Fernandez, who goes by the hyper-active monicker, recently gave Island County Economic Development Director Ron Nelson a whirlwind tour of his automotive shop on Goldie Road, speedily explaining the benefits of his new equipment and his current projects — which includes an engine rebuild for a 1984 Mustang.

There’s a reason they call him Taz.

David Fernandez, who goes by the hyper-active monicker, recently gave Island County Economic Development Director Ron Nelson a whirlwind tour of his automotive shop on Goldie Road, speedily explaining the benefits of his new equipment and his current projects — which includes an engine rebuild for a 1984 Mustang.

Business at Taz’s Auto Services, Fernandez said, has taken off since he got his start just a couple of years ago with the help of Nelson, who provided him with market demographics, worked with him on a business plan, accounting and even assisted with a business permits.

“The tools I got from Ron were probably the best tool I could have even gotten,” Fernandez said, adding that he even gave Nelson’s son free service because he was so pleased with the help.

Nelson said it was a pleasure working with Fernandez, who prioritizes ethics and honesty in business. He said he has many other success stories — such as Summit Dogs and Whidbey Distillery — but the one frustration in his job is that he can’t always share them with the public because of confidentiality concerns.

Nevertheless, the EDC, under Nelson’s leadership, enjoys the support of local leaders and is in line to get increased funding, though some of those leaders hope that the agency will be able to do more, especially in luring more businesses to the county.

Island County Commissioner Jill Johnson said she supports the increased funding to the EDC, but that she will expect more results in the future.

“I think it’s fair to expect a return on investment and to hold the EDC accountable,” she said. “Maintaining the status quo doesn’t grow the economy.”

Likewise, Island County Commissioner candidate Rick Hannold, who will come into office shortly, pending a recount, said during his campaign that he would like the EDC to be more of a force in recruiting outside companies to the county. He points to Langley’s IT recruitment program and the successes of the EDC of Skagit County.

“I question exactly what they are doing,” he said. “They should be working to diversify the economy. There has to be a reason for young people to stay here.”

But contrary to some expectations, the EDC’s focus isn’t on business recruitment, but rather retention. Nelson explained that recruiting business often means handing out incentives. He said it’s more effective — in creating jobs and growing the economy — to work to help local businesses become more successful.

After a lengthy discussion, he said, the EDC’s large, 24-member board decided to focus on start-ups and existing businesses this year, as opposed to trying to bring outside companies to the county. The EDC’s mission statement doesn’t mention business recruiting, but states that the focus is “on promoting and assisting business growth.”

Nevertheless, Nelson has worked with the City of Oak Harbor in business recruitment efforts and provides comprehensive demographics and economic information to requestors.

From July to September of this year, the two-person EDC office provided a wide range of services to 166 businesses, governmental entities and individuals. Services include everything from business counseling to workshops on social media. Nelson said he works hard at business outreach and talked to and visited 38 businesses during that three-month period.

Nelson also has partnered with a wide range of organizations, from Sno-Isle Library to WorkSource.

The EDC membership has doubled to 55 members in the last three years, he said.

Nelson acknowledges that it’s difficult to assess agencies such as his. He pointed to a Washington State Auditor’s Office report issued earlier this year, “Performance Measures In Economic Development Programs,” which outlines the complexity of measuring the effectiveness of such organizations and programs.

“We found that assessing the performance of economic development programs, including the associate development organizations, is hampered by the difficulty in establishing a direct link between economic development activities and employment growth,” the report concludes.

“In addition, some important activities of the development organizations are not readily measurable, while others provide a longer-term benefit not directly related to job growth.”

In Island County, those who worked with Nelson feel that he is doing a great job in a vital agency.

Oak Harbor City Councilman Bob Severns, who represents the city on the EDC board, said Nelson does a “pretty darn decent job,” though he wishes the EDC had better funding so it could do more.

He said he was happy with the partnership between Nelson and Ethan Spoo, the city’s former economic development coordinator. They were working on bringing a business into the empty Kmart building in Oak Harbor, among other projects; Spoo has since left the city.

The Council of Governments, a group made up of elected officials from across the county, recently voted to increase the EDC funding from Rural Counties Development Fund, also known as “0.09 funds.”

The politicians supported an increase from $67,000 a year to $75,000 next year; the agency hasn’t had an increase in six years. Island County commissioners are expected to finalize the agreement next week.

Elaine Marlow, the county’s budget director, said the county will bring in about $760,000 this year in Rural Counties Development fund, which is a sales-tax rebate from the state. In addition to funding the EDC, the county distributes the rest of the money in the form of grants for infrastructure projects.

In the past, the City of Oak Harbor received funds for the redevelopment of Pioneer Way and installation of sewer pipes on Goldie Road.

According to Nelson, the funds from the county make up half of the EDC’s annual budget. About 40 percent comes from state funding and 10 percent from membership dues.

Nelson took the reins during a difficult period after Sharleen Eller, the former assistant director, was accused of embezzling $30,000 from the agency. Prosecutors charged Eller with first-degree theft; she’s still wanted on a warrant. Director Sharon Hart resigned.

Before Nelson was hired as director in 2011, the EDC’s most public success stories were bringing the Waste Management call center to Oak Harbor and the annual Uniquely Whidbey Biz Expo, which the EDC took over from the Port of South Whidbey in the 1990s.

Unfortunately, the call center closed its doors this fall. Nelson said the Biz Expo is canceled for lack of interest.

Still, Nelson is upbeat about the future. As a former Pentagon employee, he is focused on long-term planning and strategy.

Nelson is a 1980 graduate of Oak Harbor High School.

“This is why living-wage jobs are near and dear to me,” he said. “I left home because there were no jobs.”