The future of economic development in Flagstaff was decided Tuesday night, with the Flagstaff City Council deciding to sever its contract with its long-standing economic development partner, the Greater Flagstaff Economic Council.

The 5-2 decision ends months of wrangling between city staff and GFEC over their two competing visions for driving future economic growth in the city.

The $447,000 proposal, which redirects $367,000 the city had initially set aside for GFEC next year, differs from the proposal Community Investment Director Michael Kerski outlined in a city budget retreat held last February.

While the proposal still include Kerski’s initial request for two new staff positions related to economic development, the title of one of the positions — initially described as a economic analyst — has been changed to business retention and expansion. The two positions will cost the city $170,000 in salaries and benefits annually.

Roughly $80,000 had already been set aside to fund the business attraction specialist prior to the council decision Tuesday night to cut GFEC’s funding.

The bulk of the funding will go to new programs and initiatives never publicly discussed prior this week’s council meetings.

azdailysun.com