New economic development alliance to launch in 1Q

FORT COLLINS – A new Northern Colorado economic development organization that will launch in the first quarter is shooting for an annual budget of $1 million, as the organization seeks a high-caliber chief executive to head its efforts.

The Northern Colorado Economic Alliance, founded by auto dealer Scott Ehrlich and Woodward Inc. (Nasdaq: WWD) CEO Tom Gendron, will employ at least five people. The organization has not found office space yet, but representatives are aiming for a central location.

The economic alliance, first reported by BizWest in October, will focus on regional economic development in Weld and Larimer counties, though its efforts could span as far north as Cheyenne, Wyo., and as far south as Longmont. Northern Colorado currently has two economic development organizations: The Northern Colorado Economic Development Corp., which focuses on Larimer County, and Upstate Economic Development, which focuses on Weld County.

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“We need to advocate for the region,” Gendron said. “We need a better voice.”

Unlike other economic development organizations in the region, the economic alliance will not seek public funding. The economic alliance, which will be classified as a 501(c)(6) business league, instead will rely on private contributions from businesses and organizations.

Ehrlich, who plans to resign as chairman of Upstate, said the idea to start the organization followed conversations with site selectors who were unfamiliar with the region’s economic diversity and opportunity.

“It was very obvious that nobody knew who we were,” he said.

The economic alliance will focus on attracting companies in a variety of industries, Gendron said. The group has pitched its idea to a number of business leaders lately and has garnered support from McWhinney founder Troy McWhinney; Ed Holloway, co-CEO of Synergy Resources Corp. (NYSE MKT: SYRG); developer Martin Lind; and Colorado Rockies co-owner Charlie Monfort, among others.

The economic alliance is not in a hurry to find a chief executive: It will take its time to find an experienced, well-known economic development leader.

“The idea is to find that right person to do the work to bring people together,” Ehrlich said.

Economic development officials cautioned that a third organization would create confusion among prospective employers and site selection consultants.

“This inevitable obscurity is not a winning strategy for the region and undermines the relationships NCEDC has nurtured with site-selection consultants and more than 120 public- and private-sector investors over the last 14 years,” Paul Mueller, president of the Northern Colorado Economic Development Corp., wrote in a recent column for BizWest. Mueller could not be reached for comment Monday.

The NCEDC’s chief executive resigned in September after serving since October 2011. Last year, the organization helped attract 1,328 new primary jobs and retained 1,130 jobs.

Upstate Economic Development Corp. CEO Eric Berglund said that a third organization may result in less funding from private sources for all three economic development groups. Upstate, which has less than a $700,000 annual budget and five employees, helped create 1,145 new jobs and retain 1,837 jobs last year.

Upstate and NCEDC work together to market the region and at times share leads on prospective employers, he said.

“Everything they’re proposing to do, we provide that service currently in Weld County,” Berglund said. “The more we can market Northern Colorado, the better, and I’m excited to use them for some of that if it makes sense with what we’re doing, but for the last 30 years, our model has been working pretty well.”

Members of the economic alliance have said they plan to collaborate with Upstate, NCEDC and city economic development departments.

“I see this as a network tied together: not working in conflict, but working together,” Gendron said.