Calls grow for national search for EDC director

The last time Rhode Island went national in its search for a chief economic-development executive, it offered an Arizona business consultant $250,000 per year, plus a car, to lead the state out of the financial crisis.
The salary drew protests and state leaders never found out whether the planned investment was worthwhile: the nominee, Ioanna Morfessis, backed out of the job before being confirmed by the Senate.
Now what might be the most star-crossed job in state government is available again. The man acting in the role for the past 10 months, veteran R.I. Economic Development Corporation staffer William J. Parsons, turned down a permanent appointment recently because of a “serious health issue.”
Assuming Gov. Lincoln D. Chafee finds someone to take the job before the end of the year, the person he hires will become the sixth to serve or be nominated for EDC executive directorship in five years.
The rapid turnover and Rhode Island’s checkered economic record have renewed calls for a more aggressive approach, even if paying corporate executive wages for a public position remains unpopular.
“It is critical that the EDC have experienced, visionary leadership and that requires a broad search,” said Gary Sasse, director of Bryant University’s Institute for Public Leadership and a former director of administration under Gov. Donald L. Carcieri. “The best practice is to find a leader who is nationally recognized and has accomplishments and a sense of strategic direction. The last national search didn’t work out so well. It was the right process but it just didn’t turn out successful.”
The main concern with conducting a national search like the one that led to the Morfessis appointment, Sasse said, is time and the urgency to get a new, permanent leader in place as soon as possible.
From the moment Carcieri announced the nationwide executive director search until Morfessis turned the job down spanned nine months.
“I think you have to balance two things: the state’s ability to hire an experienced, effective leader with national and global exposure, and the need to move on a fast track,” Sasse said. “There is a balance required. You don’t have two years to do all this.” Aside from improving national conditions, circumstances in Rhode Island have likely made it more difficult to lure a top-shelf executive director than it was four years ago.
The last two people to serve as executive director, J. Michael Saul and Keith W. Stokes, both came from within the state and from within the EDC.
And now both are being sued by the state for their involvement in the 38 Studios LLC loan guarantee.
Turnover throughout the agency has been extremely high since 38 Studios abruptly closed, a debacle that damaged the agency’s reputation with potential business partners.
Chafee’s distaste for special economic-incentive deals has reduced the tools available to the agency and led to internal disagreements between Chafee, Stokes and former board members about its direction.
Recent studies of the EDC pointed to the lack of a coherent economic-development plan as a primary problem and those skeptical of hiring a “rock star” to lead the agency argue that forming a policy is more important than who implements it.
“The [Greater Providence Chamber of Commerce] does not feel that now is the time to search nationally for a new EDC director,” said spokeswoman Bethany Costello in an email. “We are focusing our efforts at this time on supporting legislation that would require the creation of a written economic-development policy for the state and a strategic plan for implementing that policy during the first year of each new gubernatorial term.”
In the weeks after Stokes resigned, Chafee searched within the state for a permanent replacement, but with 38 Studios dominating discussions, he couldn’t find anyone and handed it over to Parsons on an acting basis.
Since Parsons declined the nomination to take over the agency full time, Chafee has been silent on whether he will look for another internal candidate to lead the agency or cast a wider net. Chafee spokeswoman Christine Hunsinger said in the past the governor has favored looking within the state to fill such jobs, but won’t necessarily take that route this time around.
Chafee also has not said what salary range he has in mind for the job.
In the days following Stokes’ resignation, at least one candidate Chafee offered the EDC directorship to, Interstate 195 Redevelopment District Commission Chairman Colin Kane, passed on the offer.
Citing a preference not to leave his current day job as principal of development company Peregrine Group, Kane said this time around the state would do well to look outside its borders, even if the best candidate eventually turns out to have a connection to the area.
“Too often in Rhode Island we know what we know, but it is a pretty small lens,” said Kane. “This is a very important opportunity and we want someone who is really committed. There is a long history of failed directorships.”
Kane says the director’s role is not just the state deal maker and booster that many envision, because of the heavy administrative lifting, of all the federal pass-through programs it handles.
Even outside of the director’s salary, Kane said the lack of resources in the EDC budget, for things like travel, conferences and advertising, make the job less attractive than comparable roles elsewhere.
While Kane thinks the search should look outside the state’s borders, he said finding someone with a connection to the region could be necessary to keep the compensation package politically feasible.
“I think a national perspective is very important, but think of how hard it is to sell the state without being able to go to conferences,” Kane said. “We are competing against Nashville and Salt Lake City and the rest of the country: the concept that we are the cheap Boston and people are just going to come here doesn’t work.” •

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2 COMMENTS

  1. I’ll take the job for $150k and a car. It’s so simple it a joke that it never gets done the right way. I would loan to every viable RI small business that has good credit. I would have 8 to 10 year amortizations 3.5 to 4.5% interest rates and allow debt consolidation as well.That will make a huge difference to cash flows for small businesses. That’s what its going to take to genuinely help RI small business. And by small business I mean real small business not 500 or fewer employees. That’s not small business in RI. The vast majority of RI small businesses in RI are 25 or fewer employees. Those are the companies that need cheap flexible capital that gives owners the time and space necessary to grow their businesses in this depressed State economy. Erik C Warner, President, TJ Russell Supply, Bristol, RI employer of seven souls