Cedar Rapids leaders look to redefine relationship with Metro Economic Alliance

Cedar Rapids Mayor Tiffany O’Donnell says it’s time to redefine the city’s relationship with the 12-year-old Cedar Rapids Metro Economic Alliance. However, she stressed this week, she doesn’t favor ending the city’s membership with the CRMEA altogether. The issue emerged at Tuesday’s Cedar Rapids City Council meeting, when Ms. O’Donnell asked to remove the city’s $75,000 CRMEA membership renewal from consideration as part of the meeting’s consent agenda – a list of council actions generally considered routine and non-controversial, often approved as a block under a single motion. In moving to remove the item from the agenda, Ms. O’Donnell said she wanted city leaders to “take a closer look at what that looks like for us for the coming year.” This week, Ms. O’Donnell elaborated on her thoughts on the matter, noting that she had heard concerns from other city council members about the relationship between the city and the CRMEA. “I felt that it would be prudent to hold off and dig a little bit deeper into what the city's doing and what the Economic Alliance is doing,” she said, “making sure that we're not duplicating services and that we’re all aligned with the same goals for the city.” The Cedar Rapids Metro Economic Alliance was formed in 2012 by merging the economic and community development efforts of the former Cedar Rapids Area Chamber of Commerce, the Cedar Rapids Downtown District and Priority One, the chamber’s economic development arm. Since that time, Ms. O’Donnell said, the nature of economic development has evolved dramatically. “The world is very different today than it was, say, 10 years ago, when we imagined the role of the Metro Economic Alliance as it relates to the city,” she said. “We used to need a third party to broker and bring us (candidates) for economic development. Today, that's really not the case. Today, companies and developers go wherever the money is, where the incentives are, and that's directly to the cities.” Since the CRMEA was formed, the city has intensified its economic development efforts, adding two full-time employees focused solely on economic development, plus an employee dedicated to workforce development. Ms. O’Donnell has made economic development a focus of her time as mayor. In her annual state of the city speech in May, she noted that the city recorded a record year for growth in fiscal year 2022, reporting a total valuation of $773 million in building permits, topping the previous record by $323 million. “Cedar Rapids is the driver of the metro economy,” she said. “We take that very seriously and are committed to living up to that expectation by putting more talent and resources on the plate.” Like the city, the CRMEA also works on economic development and workforce recruitment, she said. However, she noted, the CRMEA is focused more broadly on the metro area and its surrounding communities, not specifically on Cedar Rapids. “When you look at the mission of the Metro Economic Alliance, there's nothing in there that is solely for the city of Cedar Rapids,” she said. “I have no doubt that much of the work that happens with the Economic Alliance is for Cedar Rapids. I really want to formalize that. I want accountability to specific goals that the mayor, the council and the city have put forward. We don't have that right now.” Ms. O’Donnell stressed that the city plans to continue its partnership with the CRMEA, albeit under a more formalized agreement that delineates areas of focus and responsibility. “I am not in any way suggesting that the city of Cedar Rapids not be a part of the Metro Economic Alliance,” she said. “I think there's an absolute role for a metro entity. Workforce is a great example – as it relates to growing a population, that is a metro issue.” She also pointed to educational and development programs such as Leadership for Five Seasons, as well as workforce retention initiatives, as important functions. “There's definitely a role for all of that, and the city wants to be a part of that,” she said. “We just want to ask whether our dues go toward some of the work we're already doing in the city, and whether we could use those resources within the city targeted toward our very specific city goals. Regarding next steps, Ms. O’Donnell said she’s been meeting with city staff to identify current roles, and plans to ask “a couple of” city council members to serve on an ad hoc group to examine “what this looks like” for the city moving forward. “The council has questions,” she said, “and it's my job to make sure we get an answer.” Ms. O’Donnell said she hasn’t heard directly from CRMEA leaders since Tuesday’s council meeting, but that once the city has clarified its priorities, she hopes to convene a meeting with leaders from the city and CRMEA to iron out any issues and move ahead constructively. “These conversations are very amicable,” she said. “I work with the Metro Economic Alliance all the time. I don't anticipate any issues with them. We just need more clarity. What I know is that the landscape has changed. The level of growth and intensity as it relates to economic development has changed significantly within the city. And I want to be responsive to that.”

CRMEA executive director Doug Neumann said he welcomes a formal discussion with Cedar Rapids leaders. “Business leaders are eager to meet with Mayor O’Donnell to resolve her concerns and continue what for many decades has been a strong and essential partnership,” he said in a written statement.