Village Board Suspends Funding for Oswego Economic Development Corp.

The will have to survive in the short term less $85,000 in funding after the Village Board voted Tuesday night to suspend the village's portion of the public-private entity's budget.

The 4-2 vote was part of the approval of the village's 2011-12 $26 million budget.

During the board's budget discussions at the Committee of the Whole meeting, trustee Tony Giles said Oswego officials should investigate whether economic development functions should be brought into the village. The board will discuss at its May 3 meeting the pros and cons of that concept.

"I really think the village needs to put our full emphasis behind economic development," Giles said. "I'd like for us to explore bringing that in-house."

Outgoing Trustee David Schlaker questioned the advantage of bringing economic development into Village Hall. He asked Giles to provide examples of how the village would benefit.

"I've not heard the advantages of this yet," he said. "I just think this is yet another in a series of attempts to grab control."

Giles said he thought it was important to study all options to find new avenues for economic development in these difficult times.

OEDC Director Michael Cassa came under some fire for what some trustees see as a lack of communication from his office. Trustee Scott Volpe—who voted with Giles, Terry Michels and Jeff Lawson, to approve the budget minus the OEDC funding—said he is unaware of the what businesses the OEDC is currently working with to locate in Oswego.

Cassa said he would work to find ways to improve communication with board members in the future.

Trustee Judy Sollinger argued the village would not save any money by bringing economic development into the village. After the meeting, Volpe agreed.

"My own personal feeling is that we need to take a hard look at what we're doing with economic development and we may need to make a much larger investment in that area," he said. "The only reason I supported the motion tonight was simply because it allows us to talk about it at the next meeting and then make whatever budget amendments may need to be made. ... What I'd like to see at the end of this is for us to have a plan for economic development. It's the one thing you heard over and over again in the campaign."

After the meeting, OEDC Board Chairman Mike Schoppe said the village's suspension of funding does not automatically spell the end of the corporation. The OEDC operates on an annual budget of about $400,000, of which about 65 percent is derived from private funds. Of the remaining 35 percent, the largest public contribution comes from the village, Schoppe said.

"We'll have to sit down and discuss what all this will mean," Schoppe said.