Council votes to pursue independent Economic Development Corporation and direct staff to negotiate interlocal agreement

The Sydney City Council on Dec. 15 voted to accept a proposal from E3 to form an independent Economic Development Corporation and to pursue an interlocal agreement with Cheyenne County, while stopping short of executing a binding contract.

Sarah Sinead, introduced as E3 president, told the council the new corporation would be a 501(c)(3) governed by a privately managed board and would take on roles historically handled by the city’s economic development director. "It opens the community up to more funding," she said, citing grant opportunities that are available only to nonprofit economic development organizations. Sinead said E3 would transfer its responsibilities into the new group and recommended attorney review before any interlocal agreement is approved.

Sinead outlined a funding model that asks the city for $115,000 annually and the county for $20,000, and said E3 has roughly $700,000 in private commitments and a $97,000 USDA grant already identified. She said the group would seek a $3.5 million endowment to fund operations over the long term. "No, we're not raising your taxes," she said in response to public concerns about tax increases.

Council members pressed for specifics on the timeline, governance and appointment process. Staff and Sinead advised that an interlocal agreement and ordinance revisions would be required, that the initial board appointments should be in place before hiring an executive director, and that the EDC would report quarterly to both the city council and county commissioners.

On a motion to approve the EDC proposal and pursue an interlocal agreement, the council recorded affirmative votes and carried the measure. The motion included direction for staff to coordinate attorney review, return an interlocal agreement for council consideration, and post any required positions for board appointments or at‑large members.

Next steps identified by council included drafting an interlocal agreement with legal review, revising city ordinances that assign economic development duties to the municipal director, and establishing a process for appointing representatives to the EDC board. The action does not bind the city to a final contract until an interlocal agreement is signed.