Elk Grove City Council Questions Practices of Elk Grove Economic Development Corporation

One item on tonight's Elk Grove City Council meeting agenda that sought continued funding in next year's budget for the Elk Grove Economic Development Corporation (EGEDC) turned into more of a inquiry of practices of the organization partially funded by the city.

Elk Grove City Manager Laura Gill had sought approval for continued funding for the EGEDC as well as funding for a city development director. Gill acknowledged the EGEDC had limited success but framed their efforts in the context of the Great Recession.

Gill said the EGEDC had failed in its goal to bring 1,500 jobs to Elk Grove since its formation in 2007. "The economic climate here has been the most challenging since the Great Depression," Gill noted.

During council deliberation Council Member Jim Cooper focused on the lack of audits by the EGEDC and questioned Gill as to why they were not performed or more information was presented to the council.

"Why wasn't this brought to our attention," Cooper queried. "I would have cut [funding] them off then."

Gill just responded by saying she "took care of it" but did not provide further elaboration.

"I don't think there was money laundering going on," Council Member Pat Hume said. Hume went on to say he didn't think there were any financial improprieties.

Council member Gary Davis said that the city shouldn't shy away from the EGEDC's successes but noted that there should more scrutiny before he could offer continued use of taxpayers money in the endeavor.

"We need to take a step back," Davis said. "I want to see how the EGEDC plans to move forward."

Mayor Steve Detrick noted that there would be some developments with regards to the EGEDC in the coming weeks. "Lots of things will be coming out about their future," Detrick noted. 

Detrick did not elaborate but noted activity on the EGEDC including the resignation of Tim Moran from their board. Moran recently resigned as the Chair of four area hospitals owned by Catholic Health Care West  under murky circumstances.

The city council will further consider Gills proposal during their next meeting on May 24.