Leaner NCEDC focuses priorities on job creation

Many businesses in Northern Colorado have had to respond to the recession with sweeping reorganizations, and one of the region’s business boosters is no different.

In May, a major restructuring effort began in earnest at the Northern Colorado Economic Development Corp., highlighted by the immediate resignation of CEO Maury Dobbie. In the following months, the organization trimmed its staff to three, reduced its contribution to funding the work of regional economist Martin Shields and handed over its workforce initiative to the Larimer County Workforce Center.

“It really came down to an economic impact,´ said Mike Masciola, chief operating officer and senior vice president at NCEDC.

Around 88 percent of NCEDC’s budget comes from the private sector. Of that, 55 percent to 60 percent is tied to companies involved in the real estate and finance sectors – the two industries arguably taking the hardest hit from the recession.

“The good news is (the investors) stayed with us,” Masciola said. “But there were a lot of reductions (in contributions).”

Along with the monetary element of the restructuring was a strategic aspect as well. Masciola said there was a misperception that NCEDC had gotten away from business attraction and retention activities. In reality, it continued to perform the core activities of an EDC but had additional projects and programs that at times overshadowed those efforts.

In the economic development industry, it is not unusual for organizations to experience “mission creep,” according to Masciola, especially during good economic times, because  many activities can be called economic development. An economic slump  tends to force a refocusing of priorities.

“It’s what you’d expect any business to do during a downturn,” Masciola said.

For NCEDC, that included turning over its workforce development initiative, started in 2007, to the Workforce Center in March. Going forward, NCEDC will likely partner with other entities on programs related to economic development that fall outside of the core issues of job creation and retention.

“Our investors clearly want us to focus on job creation,” Masciola said.

Despite the fact that NCEDC is still without a formal head, the restructuring is largely finished. Masciola points out that the financial objective has been accomplished. NCEDC is probably in the best cash position it has ever been in, with $100,000 cash in-hand going into next year. Additionally, the board of directors is slated to discuss what to do about the vacant CEO position in the coming weeks. Masciola said he is confident the organization will ultimately have a chief executive.

For Masciola, an ideal scenario would be for the organization to operate with five staff members, but he admits that is a long-term goal. NCEDC was able to add a fourth staff member  – office manager Kay Wood – recently

Northern Colorado businesses can expect to see NCEDC continue operations next year in much the same way they are being handled now. The organization will hold a strategic planning session in January, but Masciola expects one message to continue to top the discussion.

“Our investors are abundantly clear that the No. 1 priority is job creation,” he said.

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