by Bradley Parsons
Staff Writer
New JEDC Executive Director Ron Barton sat quietly for the opening 45 minutes of his first commission meeting Thursday. But when he finally started talking, he said a mouthful.
Presiding over his first general meeting of the Jacksonville Economic Development Commission since taking over the top job in August, Barton wasn’t shy about proposing improvements. During the meeting, Barton unveiled proposed budget cuts, personnel cuts, a new staff structure and hinted at changes to the way the commission incentivizes small businesses.
The changes are all steps to reshape the JEDC into a less reactive body. Barton wants the commission making phone calls instead of taking them, shaping the market instead of fitting into it.
Right or wrong, the JEDC is perceived as a body that hands out money to developers, he said. That perception can be changed by refocusing the JEDC’s mission, he said.
Barton’s JEDC will act more as a conduit between developers and the market. He wants his staff members out on the streets identifying parcels ripe for development. Then their job is to put together the elements necessary to develop it.
In some cases, that might still include incentives, although Barton said he wants to be far more selective about when they are used and who they are given to.
“The incentives are a wonderful tool. I didn’t have access to some of the incentives we have here when I was in St. Petersburg,” said Barton. “Now I have the tools, but I want to be judicious when I use them.
“It’s like when you’re playing golf. Just because you have the driver in your bag doesn’t mean you want to hit it on every hole.”
The JEDC can still be productive in encouraging the growth of jobs and development without doling out incentives, he said. The commission can help pair developers with private equity, or ensure that the necessary infrastructure is in place to allow for development.
For instance, Barton questioned the JEDC’s small-business loan program during the Thursday meeting. After watching a spirited debate unfold among the commissioners over a $50,000 small business loan, Barton questioned whether the current program provided the best means to disperse millions of dollars intended to help redevelop Northwest Jacksonville.
“After witnessing much gnashing of teeth over what amounts to a $50,000 loan, I have to question whether we belong in that business,” said Barton. “We have to think about whether this is the best way to get the $8 million into the community.”
The current small business program is funded through the Northwest Jacksonville Economic Development Fund. It doles out low-interest loans to proprietors of small businesses operating in some of Jacksonville’s poorest neighborhoods north and west of the river.
The problem is, those proprietors often represent poor credit risks, making it difficult for commissioners charged with protecting public money to approve the loans. That was the case on Thursday when the commission rejected a loan to a sheet metal manufacturer on Wambolt Street, citing the company’s existing debt.
“We’re making decisions based on collateral not on their business plan,” said Barton. “We’re looking at it as a real estate loan, not a small business loan.”
Barton said he’s committed to preserving the loan program, but said he’ll look for other ways to make an impact in Northwest Jacksonville. That could include investing in infrastructure to ensure that the land is developable.
Barton also unveiled a new organizational chart. The new structure is more vertical. “A portrait,” said Barton compared to the old chart’s “landscape.” The new structure features only two directors and three division chiefs. The current structure has five directors and eight division chiefs.
The current structure is too spread out, said Barton, separating missions and encouraging staff to work as individuals. Barton announced that he will further cut staff positions to 27. Although the commission currently has 32 positions, 10 of those are empty.
Further staff cuts should help Barton rein in the JEDC’s $8 million budget. Barton has told the City Council that he will reduce the commission’s budget by 19 percent over the next two years, starting with a near 13-percent cut this year of about $1.3 million.