By Kevin Haas
Rock River Current
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ROCKFORD — The Rockford Area Economic Development Council is working to rebuild its brand as the region’s go-to point of contact for all companies and job-creation opportunities.
That’s the focus of the nonprofit organization after a consulting agency offered a blunt assessment of the group’s past struggles, saying in a new report that key stakeholders here felt the organization lost credibility and has no clear mission.
“We found cracks in the foundation,” said Chuck Sexton, the CEO of Next Move Group, an economic development consulting firm that interviewed nearly 40 business and community leaders before issuing its report.
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But Sexton’s report also had a silver lining: The people interviewed said the issues the organization faces were of no fault of current leadership, and they view Therese Thill taking over the lead of the group as a sign of strength for its future.
Sexton showed his findings on Thursday during an event at Prairie Street Brewing Co. in which the RAEDC unveiled its 2022 annual report and its strategic vision for the future.
“We need to reassure our investors on RAEDC’s focus on primary employers, on job retention and job creation through business retention and attraction,” Thill told the Rock River Current after the presentation. “I think we need to be as transparent as possible … and I think we need to be prepared to be held accountable for our work.”
The effort for transparency and accountability is why the group shared its perceived shortcomings Thursday along with points of success it had in 2022.
The high notes were that the agency completed 51 requests for information on business prospects – nearly one a week – and it has 31 active projects in the pipeline.
Those active projects, about 70% of which are new businesses that would deliver jobs and tax revenue to the region, have the potential to pay dividends for both the agency and the people in the region.
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Sexton compared the economic development landscape to professional golf, in which earning one major victory against a large field of competitors can make your career.
“If you win one or maybe two majors – two tournaments, just twice – you’re in the Hall of Fame,” he said. “That’s economic development: One or two big wins and you’re doing better than so many others you’re competing against.”
RAEDC also provided 71 assists to businesses in 2022, primarily helping companies land training dollars and connections to Small Business Administration funding. It also helped complete four expansion projects that it was directly involved in.
Among the struggles Sexton’s report focused on was confusion over the existence of the Greater Rockford Growth Partnership, an umbrella organization for RAEDC and the Rockford Chamber of Commerce that was formed in 2021.
“Many former stakeholders are hesitant to ‘jump back in’ with support of RAEDC due to this confusion as to the roles of the three organizations,” the report reads.
Some also criticized the organization for taking credit for achievements not driven by the work of the RAEDC.
The group’s reputation also took a hit when the former vice president of operations, Leilani Hillis, was convicted of federal mail and tax fraud charges in 2019 and ordered to pay more than $630,000 back in restitution.
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In the coming year, RAEDC will focus its efforts on being the primary lead-generation entity for the entire region. The organization said it must take an aggressive approach to marketing the area and attracting new business.
The 31 active projects in the pipeline are a good start.
“I’m satisfied with that number, and I’m not satisfied by a lot of outcomes. That’s a good number for where we are right now,” Thill said. “In 2023 I want to focus more on business attraction, which is a much longer-term process.”
The strategic plan prioritized four major goals: organization development, product/property development, business retention and expansion, and marketing and attraction.
“We are excited by what the organization has achieved in the past year and what is currently in the works to increase the economic prosperity of the region for companies and residents,” Thill said. “RAEDC has remained focused on reconnecting with the business community, our municipal partners, and our investors.”
RAEDC 2022 | By the numbers
4 completed expansion projects
31 active projects
43 business retention visits
71 assists to businesses
$1.1 million in new capital investment
Source: Rockford Area Economic Development Council
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas