County to review EDA relationshi

During a July 17 workshop by Loudon County Commission, one commissioner proposed forming a committee to review a longtime agreement with the Loudon County Economic Development Agency.

“I think it’s a good idea,” Commissioner Chase Randolph said. “The document hadn’t been opened since ‘08. All the signatures on it are people that’s dead and people that’s no longer currently in office. I think we can go through there, maybe find some common ground and get some things worked out.”

Commission plans to vote on creating the committee, which would review the EDA’s interlocal agreement, at its regular meeting at 6 p.m. Aug. 7.

The EDA was formed as a joint venture between the county, Lenoir City and Loudon to provide economic and community development programs and market the community. The agency also works with local schools to increase engagement in the workforce.

Randolph said the committee would include himself and Commissioner Rosemary Hines Quillen to represent the county. John Cardwell and James Webb, members of Loudon City Council, would represent Loudon.

Randolph said he asked Lenoir City Mayor Tony Aikens to appoint two people to represent Lenoir City. He said Aikens refused.

Aikens said he, Loudon Mayor Jeff Harris and Loudon County Mayor Rollen “Buddy” Bradshaw met a month ago to discuss the EDA and wishes by the county to pull out of the agreement.

Aikens said he believes the county is making a mistake and that Jack Qualls, EDA executive director, and his one staff member do an excellent job for the county.

He said he asked Bradshaw to set up a meeting in executive session with members of commission and both city councils to talk about a lawsuit between the county and Lenoir City, EDA and urban growth boundaries. Aikens said all those subjects are related.

Qualls said he indirectly heard the county was looking into reviewing the interlocal agreement.

“I think it’s a real opportunity for not just for some of the new commissioners but some of the legacy commissioners to review (the) document,” Qualls said. “I mean, it is somewhat of an older document. I think it provides insight into the agency as well as the makeup of the board. The commission currently has two representatives on the Loudon County Economic Development Board, whereas the cities only have one.”

Qualls said much of the operations of the EDA board are established by state code. He said every year the board submits an annual work program and budget request to all the governments that are part of the interlocal agreement. He said he believes there is an opportunity for all parties to review the annual work program and suggest modifications if needed.

He said economic impact is measured directly and indirectly. Direct benefits can include property and sales tax from new manufacturing or development projects, while indirect benefits can be roads and infrastructure.

“There’s a lot of grants and things that EDA does that really benefit the county not just directly but indirectly,” Qualls said.

Prior to Randolph announcing the committee, commission had on its agenda the annual confirmation for the Three Star Program, which is developed and managed by EDA. Qualls requested the confirmation be placed on the Aug. 7 meeting agenda for a vote.

Qualls said a part of the program is to review goals and strategic planning sessions. EDA recently opted to create an economic development plan using data from a local study. The plan included more than 600 public and business comments, which focused on the community and what future goals residents would like to see.

He shared a few aspects of the plan with commissioners, including the 47.8 median age locally compared to 40 in Knoxville.

Qualls said the eye-opening data confirms why recruiting for manufacturing jobs is difficult with 32% of the county population over 55 years old. Housing in the county is 21% renter occupied, with more than 30% of renter income going toward housing. He emphasized that a single teacher in the county could not afford to own a house here.

Other parts of the study cover retail leakage, land-use patterns and a strategy board.

After the presentation, Commissioner Van Shaver asked Qualls if he was participating in or helping Loudon try to annex 400 acres in Hotchkiss Valley.

Qualls said he was not there to discuss that matter and did not answer the question.

Shaver asked if a statement from commission citing great opposition to any Loudon annexation in Hotchkiss Valley would help.

Qualls said such a request needs to go to Loudon.

Shaver said he had no problem with that but believes Qualls is helping the city. He added that since the county pays most of the bills for the EDA and Qualls, Shaver said he thinks the commission’s voice should be strong when they have a conversation.

Qualls said Bradshaw and Commissioner Gary Whitfield are members of the EDA board and he asked that information be provided them.

Qualls later said he previously stated at another meeting that he didn’t have any current involvement in the project.

Later in the workshop, Randolph said having the director of the EDA refuse to an answer a question to the governing body that funds 70% of the organization is unacceptable. He said he hopes the new committee will be able to find common ground and move forward.

Qualls said roughly 68.9% of the EDA’s funding comes from the county and until last year the county has paid the same amount for a decade. He said last year’s contribution was increased $14,000 to $177,000.

Shaver said he was in favor of the committee, emphasizing the agreement has been needing review for some time.

Shaver said since Qualls arrived in 2016, the county has provided $1.5 million to the EDA to pay salaries. He said the county receives nothing from the EDA and is being damaged through annexations and PILOTS the county knows nothing about.

“We’re getting nothing for our money,” Shaver said.