An assembly discussion about funding the Haines Economic Development Corporation reflected some sharp contrasts in how the nonprofit is viewed.
After a long discussion, the assembly voted to increase funding to HEDC in the upcoming fiscal year from $25,000 to $40,000 — but with a condition that the funds would be contingent on the state budget, which has yet to be signed by the governor.
Specifically, the assembly included a condition that the extra $15,000 would decrease proportionally with the percentage of past school bond debt reimbursement — totalling $2 million — that the state decides to fund this year.
The assembly was split 3-2 (with assembly member Caitie Kirby excused) about whether to allocate extra funds to HEDC without the caveat. Assembly members Stickler and Thomas initially voted against the budget amendment but later supported it with the state budget condition.
After the assembly voted to allocate $30,000 for Porcupine Road maintenance, citing the road’s economic value since mining, timber and tourism companies use it, Haines Borough Mayor Douglas Olerud questioned the stance opposed to the additional funds for HEDC.
“So we’re willing to spend $30,000 to fix up a road for a couple companies but we’re not willing to spend an extra $15,000 to look at broad-based economic development throughout our community. I think that’s absolutely wrong and disappointing,” Olerud said.
Stickler responded that she doesn’t see broad-based economic development from HEDC. “I see a very focused economic development,” she said. “I don’t see that they’re pursuing resource development. I don’t see that they’re pursuing getting funding for major infrastructure to come alongside the borough.”
Olerud countered that economic development corporations are not geared to bring in infrastructure funding.
“Their job is to create a platform for businesses to succeed. Their job is to work on planning efforts and things like that to allow businesses an opportunity to move forward,” Olerud said, citing a recent grant HEDC received to create a boroughwide plan for year-round motorized and non-motorized trails that businesses could take advantage of.
Later in the meeting assembly member Thomas moved to reconsider the decision on HEDC, and the assembly ultimately voted in favor of it with the school bond debt reimbursement condition.
Thomas said it was “unorthodox” for him to vote for some of the additional spending items passed on Tuesday but he felt that the institutions needed borough support to return to normalcy coming out of the pandemic.