Invest MH will report to CAO in new revamp

By COLLIN GALLANT on March 22, 2023.

cgallant@medicinehatnews.com@CollinGallant

More than a year after a proposal to create “Invest 2.0” to handle municipal economic development was shelved, the city is planning to rejuvenate the office.

City manager Ann Mitchell said Monday she will retain the “Invest Medicine Hat” model as a direct function of City Hall, not a contracted-out service, and that managers would report directly to her office, not a committee of council.

That is largely how the office has been operated since 2019, but with top managers leaving after an effort to contract out the service in 2021, it has operated in a holding pattern.

Now, a new chief economic development officer will be hired and how day-to-day functions, like land sales, are handled will be examined.

“That’s something the senior managers need to address,” Mitchell told council’s meeting. “In the meantime, it’s my opinion that this division has been languishing too long, and we’re missing a lot of opportunities right now with positions vacant.

“It’s my intention to rehire and revisit the division to make sure we have the resources in place and the manpower we need to move this forward.”

Mitchell became the permanent city manager in early February, weeks after council debated but ultimately defeated setting economic development planning as her No. 1 priority coming into the role.

Monday’s announcement comes after about six weeks on the job, and was welcomed by council members.

“This is of essential importance,” said Coun. Allison Knodel. “The general public should know it’s a priority for us (council) and your team (administration). It’s been a big gap.”

Coun. Cassi Hider called it “wonderful news. It’s a crucial part of our community that’s had a lapse. I truly support Invest Medicine Hat.”

“I’m excited to get moving a bit quicker on the economic development front,” said Mayor Linnsie Clark.

“I completely understand the gravity of the situation … and understand how critical it is to get this right,” said Mitchell.

“I’ve been very anti-IMH as its been set up,” said Coun. Shila Sharps. “I’m 100 per cent going to swallow my issues and say ‘let’s get this done.’ You (Mitchell) have my support.”

In 2015 city council broke away as a funding partner in the regional Economic Development Alliance of Southeast Alberta and approved creating its own office, operated by a contractor and consultants, with a city, rather than regional, focus.

With the contract set to expire in 2019, council approved a measure to bring Invest back within city hall, offering jobs to managers, rather than re-tendering the contract and potentially losing staff.

That led then-city manager Bob Nicolay to develop an “Invest 2.0” model, answering to the top-administrator, and integrating utility offerings, land sales and other organizational support to lure potential investors.

Newly hired staff took over just prior to the pandemic, then managers left in 2021 after they formed a company to focus on winning a potential 10-year private contract to handle the service, including land sales and grant development.

Several council members made the Invest office a campaign issue in the 2021 election, just months after the bid was pulled back and the request for proposals was rescinded.

Coun. Darren Hirsch said citizens and the business community should be thanked for their patience.

“It will take a bit of runway for us to get up and running,” he said. “If there’s anything that people need assistance with, reach out, and we’ll entertain anything you have on your mind.”

Coun. Robert Dumanowski said the city has continued to deal with businesses in the interim, but can now expand its operations and offers, and focus its efforts.

“Economic development continued, and will continue in Medicine Hat,” he said “What we were short of was a clear direction from our now city manager.

“We can’t ever allow the economic development community to think anything other than we’re moving forward.”