EDC, chamber might be headed toward merger

RICH LADEN
THE GAZETTE

Two decades after a bitter fight led the Colorado Springs Regional Economic Development Corp. to break away from the Greater Colorado Springs Chamber of Commerce, the city’s two leading business groups might be headed for a reunification.

The boards of each organization will meet Tuesday to vote on the idea of a merger — and key members of each group say there’s momentum to reorganize under one roof. How a merger would work, the structure of a combined EDC-chamber, its mission and staffing aren’t yet clear.

“Everybody is inclined to find a way to make this merger happen,” said Bill Hodgkins a Boeing Co. executive and chamber board chairman. “There is a lot of devil in the details that will have to be worked out, but I haven’t heard anyone say this isn’t what we want to do.”

EDC Board Chairman Doug Quimby, a Springs real estate developer, said he doesn’t know which direction Tuesday’s meeting will go. But he personally is leaning toward a merger.

“I think that a unified, integrated organization focusing on the economic vitality of the region would be a good idea,” Quimby said.

At stake for the community would be the direction of crucial job creation and retention efforts, along with addressing the problems of local businesses as they deal with health care, government regulations and other public policy issues that affect their bottom lines.

“It’s an important decision that will have long-term implications for the community,” Quimby said.

The idea of a merger, which has surfaced occasionally since the EDC split from the chamber two decades ago, began picking up steam this year as representatives of the two organizations discussed how to improve the local economy.

Among the area’s problems: an unemployment rate of 9.6 percent in May, after having reached a record 10 percent in February; a housing market that continues to struggle; and manufacturing and high-tech industries that have been decimated by two recessions and global economic changes over the last decade.

Talk of a merger heated up after a May visit by Springs civic and business leaders to Oklahoma City — where the local chamber includes economic development operations and tourism promotion. Oklahoma City’s chamber helped lead an economic rebound for that city, which has maintained one of the lowest unemployment rates of any metro area in the U.S.

While Oklahoma City’s success helped accelerate discussions, Quimby said, the local economy remains the dominant issue.

“More than anything, it’s the state of the economy and the lack of job growth over the last several years that has led the business community to ask itself whether or not we’re doing all we can to improve the economy in Colorado Springs,” he said.

Soon after EDC President Mike Kazmierski stepped down in May under pressure from his board, an EDC-chamber committee began studying a merger, which included looking at other cities and how they operate. Denver, for example, has combined economic development and chamber operations.

Launched in 1971, the EDC operated for years as an arm of the chamber, which itself was founded in 1892. In 1991, after years of infighting and turf battles mainly over the direction of job creation efforts, the chamber granted the EDC its independence. Since that time, the EDC has had several successes, especially in the early 1990s when Apple, MCI Telecommunications and the Focus on the Family ministry all brought thousands of jobs to the area over a period of just a couple of years.

But times change, Quimby said, and what has worked over the last 20 years might not be the best structure going forward as the economy continues to slump.

On Tuesday, the EDC-chamber committee will present its findings and make a recommendation to a joint meeting of the EDC and chamber boards, which then will meet separately and cast votes on what direction they want to go, Quimby and Hodgkins said.

Hodgkins said negotiations between the two groups over the direction of a combined organization might follow after they cast their votes.

­Contact the writer at 636-0228. Staff reporter Wayne Heilman added to this story.

ABOUT THE EDC AND CHAMBER

• The Colorado Springs Regional Economic Development Corp. works to attract primary jobs to town — those that bring wealth and investment into the community. It also works to retain existing businesses and to encourage them to expand. In recent years, as job attraction and retention has become more critical and the Springs has competed with other communities to woo businesses, the private, nonprofit EDC has been in the community spotlight.

The EDC is funded in large by investor contributions, but also receives funding from the city of Colorado Springs and Colorado Springs Utilities. Its 2010 budget was $1.45 million, and its current staff numbers less than 10 people.

• The Greater Colorado Springs Chamber of Commerce is an advocate for businesses, addressing their concerns and seeking to foster a better business climate by lobbying on their behalf, offering educational programs and the like. The chamber also has been a strong supporter of area military installations and the armed forces.

The chamber has more than 1,600 members — mostly small businesses — who have a combined workforce of 75,000. Its annual budget of about $2 million is funded in large part by member dues, along with revenues from chamber programs and investments by businesses that belong to the chamber’s leadership council. The chamber has about 20 employees.