Fairbanks commission backs memo to let FEDC replace borough as regional development organization

The Fairbanks North Star Borough Economic Development Commission voted unanimously Oct. 28 to approve a memorandum asking the Alaska Department of Commerce, Community and Economic Development (DCCED) to terminate the commission's designation as the Alaska Regional Development Organization (ARDOR) and consider designating the Fairbanks Economic Development Corporation (FEDC) in its place.

FEDC President Jomo Stewart testified during the meeting that his organization had spent months collecting the statements of support required by state rules and that the action before the commission is a procedural step: "There is no statement or language relative to a transfer. There's only standing them up and terminating them," Stewart said, explaining FEDC's request that the commission terminate itself so DCCED can take the next step.

Commission staff told commissioners the state requires the holding organization to request termination before the department can rescind a designation and bestow it on another body. A staff presenter said DCCED told borough staff that the word "transfer" used in an earlier resolution was not sufficiently explicit and that DCCED expects a termination request from the commission before assigning a new ARDOR.

The commission briefly discussed risk and continuity. One commissioner asked whether terminating the borough's ARDOR status before FEDC is approved could leave the region without a designated ARDOR. Stewart said he had received "no indication from DCCED that there's any problem" but acknowledged there is some risk. Staff said the most recent Comprehensive Economic Development Strategy (SEDS) was updated June 30 and that FEDC has been subcontracting and performing much of the related work, which staff said should limit disruption if the designation changes hands.

Commissioner McGinnis moved to approve the memo of support and Paul Rasmussen seconded. The commission approved the motion by roll call, 5-0 (Miss McGinnis: yes; Mr. Rasmussen: yes; Ms. Wagaman: yes; Mayor Hopkins: yes; Ms. Tidwell: yes).

The memorandum asks DCCED to terminate the borough commission's ARDOR designation and to consider FEDC's application to become the regional development organization. The staff presenter said the timeline for DCCED action is in the department's hands and could range from weeks to months.

Next steps: with the borough's memorandum on record, DCCED will consider whether to rescind the commission's designation and bestow it on FEDC; the department's timetable and final decision were not specified during the meeting.