IDA power

Relying on the Jefferson County Industrial Development Agency as an umbrella group for employee pension benefits could undermine the independence of participating economic development organizations.

The Watertown Local Development Corp., Watertown Industrial Center Local Development Corp., and others scattered around the county have relied on suspect claims that their executive directors and other staff are actually employees of the JCIDA to qualify for benefits from the state retirement system.

An ongoing investigation by the state comptroller's office raises questions about the legality of the practice. Hoping to deflect any forthcoming criticism, the JCIDA is looking to clarify its relationship with the various organizations through written agreements such as that reached with the WICLDC earlier this month.

It essentially grants the JCIDA total control over three WICLDC employees at the Watertown Center for Business and Industry, who are put under the direction of the JCIDA. The administrative services agreement provides for "due consideration" of the recommendations of the WICLDC board of directors, but personnel matters from recruiting to hiring and firing are put in the hands of the JCIDA.

It will be reimbursed for employee compensation, including benefits, and will receive $50,000 annually for JCIDA services related to WICLDC board activities and operation of the Center for Business and Industry on Starbuck Avenue. So why bother with a separate group?

The agreement is seen as a template for other organizations such as the Local Development Corp. that might want to maintain their JCIDA connection. But doing so could mean transferring control over a basic organizational function and sacrificing a degree of independence.

Of course, that could be beneficial by eliminating some of the redundant economic development organizations in the county. However, that worthy goal should be achieved openly and through public discussion instead of a transfer of authority creating an economic czar for Jefferson County under the guise of fringe benefits.