Vermillion County Council reduces economic development budget and dissolves EDC

Vermillion County Council members voted Jan. 27 to reduce most of the 2025 appropriation for the county's Economic Development Fund and to dissolve the county's Economic Development Commission, department and Economic Development Coalition as part of a move the council said would create a clean slate for future structure.

Council President Neil Costello opened the special meeting with a timeline of events and asked for transparency: "In an effort to be transparent as possible, please bear with me for this lengthy statement," he said, laying out notices, meetings and emails dating to Dec. 2024 and early January 2025 that the council said created confusion about who had authority over hiring and spending in economic development.

Why it matters: The council said it cannot leave roughly $330,000 in local income-tax-funded spending authority in place when it believes the legal structure that governs how that money may be spent is unclear. The council approved a reduction of $291,586 from the Economic Development Fund, leaving $38,684 in the fund for limited, specified items such as payroll and basic operating costs. The council also adopted an ordinance dissolving the county's Economic Development Commission, department and coalition so that elected officials and county attorneys can negotiate a new, single governing document.

What the council said: Costello and other council members argued the joint 2023 resolution that created the Economic Development Coalition and the older ordinance creating an Economic Development Commission left overlapping or unclear authorities. Costello cited Indiana Code Title 36 in describing the council's view of statutory authority and said the goal of the actions was to "provide a blank slate" for a single, clear structure.

What the commissioners said: Commissioner RJ Donovan urged the council to table the votes and work jointly instead of immediately wiping the structure out. "We are proposing the county council table any decisions today," Donovan read from a letter signed by him and Commissioner Misty Hess, and asked for a joint executive meeting followed by a joint regular meeting within 48 hours to seek a new agreement. At the meeting Donovan said repeatedly that the commissioners want economic development to be independent of day-to-day commissioner oversight: "We just don't wanna oversee economic development," he said.

Hiring and authority dispute: The meeting included contested details about a director recently hired by the Economic Development Commission (EDC). Ron Donovan, president of the EDC, confirmed the commission voted to hire the director and that the hire took effect the day after that commission meeting. Council members said they had not been given full notice or documentation about the hiring process, the application pool and whether a formal offer and start date had been completed. Applicant and council member Ashley James described irregularities in the interview process and lack of standardized application materials.

Other operational concerns: The council raised a series of past operational and financial concerns the council said had prompted the move, including small-business loans the council says sometimes lacked bank review or adequate collateral, use of department funds to pay attorneys, and purchases that had been approved without sufficient documentation. The council said that, until a new structure is agreed, it would take custody of outstanding loan files and consider audits or collection steps.

Interim operations and redevelopment funds: Council members voted to allow the county Redevelopment Commission to use currently budgeted redevelopment professional services funds to contract BCS Management (Lana Verazzazzi) to continue immediate operations and maintain continuity while the county and commissioners negotiate next steps. Council members emphasized the allocation is a limited, specific use of redevelopment funds rather than restoring the full economic development appropriation.

Votes at a glance

- Resolution 2025-01 (Reduction of Appropriations, Economic Development Fund): Approved. Council reduced appropriations by $291,586, leaving $38,684 in Fund 1149 for limited line items. Mover: Neil Costello. Second: Mrs. Furry. Council recorded unanimous voice approval.

- Ordinance 2025-02 (Dissolution of EDC, Department and Coalition): Approved. Ordinance repeals county ordinance 94-2 (1994) and joint resolution 2023-05 to clear remaining authorities tied to the county's economic development structure. Mover: Mr. Somerville. Second: Mr. Bose. Approved by voice vote; ordinance will be finalized per standard ordinance procedures.

- Redevelopment spending authorization: Approved. Motion to permit the Redevelopment Commission to use its current budget to contract professional services (BCS Management/Lana Verazzazzi) passed. Mover: Mr. Weir. Second: Mrs. Furry.

Next steps and schedule: Commissioners and council members tentatively agreed to schedule a joint meeting in early February to draft a new single governing document for economic development and to instruct county attorneys to coordinate. The council said it will take custody of small-business loan files for review and possible follow-up. Commissioners publicly pledged not to spend remaining economic development funds until a new agreement is in place and asked the council to table decisions; the council proceeded with the reductions and dissolution votes.

The meeting included extended public comment. Several residents and local business owners urged collaboration and expressed concern that the county's actions could harm recruiting and retention of businesses if the county appeared disorganized. Other residents said they supported the council's move to secure taxpayer funds until a new, clear structure is adopted.