Mt. Vernon's Jane Hood survives salary confusion

Hood’s initial two-year contract as the city’s first economic development director was set for a one-year renewal in February, but the situation got complicated when Mount Vernon aldermen voted unanimously Jan. 10 not to pay part of her salary.

The problem was a lack of communication – or at least a lack of communication about why there was a lack of communication.

Hood’s job is to woo businesses to Mount Vernon and Lawrence County. Because she’s not officially affiliated with the city, she can deal confidentially with businesses interested in moving to the area.

However, the city does pay almost one-third of her $36,000 annual salary and felt like it wasn’t getting its money’s worth because it wasn’t receiving frequent updates about Hood’s dealings.

Hood’s need for confidentiality in negotiations was the reason for the trickling flow of communication, but the city didn’t realize that.

“We just didn’t know what was going on,” said Mount Vernon Mayor Dave Eden. “We felt like because we were kicking in $10,000 we should have more information.”

Hood is officially contracted through the nonprofit Mount Vernon Area Economic Development Corp., which pays a third of her salary, while the Mount Vernon Chamber of Commerce pays the remaining third.

Hood, the former head of the state Department of Economic Development office in Springfield, said EDC officials assured her that she wouldn’t be out on the street even if they had to find funding elsewhere.

“The EDC … immediately (said), ‘You’re staying with or without the city. We want you in this position,’” Hood said. “It’s actually been kind of flattering.”

Hood also received interest from other cities in need of her economic development expertise, including Lebanon.

Mount Vernon’s city government eventually came around, voting unanimously at a Feb. 14 Board of Aldermen meeting to pony up the dough.

So why the change of heart?

EDC President Scott George and Director Bill Lee met with Eden and four aldermen after the city’s January vote to pull out of the agreement. George and Lee outlined 32 accomplishments since Hood took her post in February 2004, from securing new businesses to securing $4 million in state highway funds.

And, most importantly, they hashed out the communication problems.

“The lines of communication were reopened,” Eden said.

Hood pointed to increased sales tax revenue as a mark of her accomplishments. General revenue sales tax in Lawrence County increased 20 percent during her first two years, going from $1.18 million in 2003 to $1.42 million in 2005.

“Jane’s just done an outstanding job,” said EDC’s George.

The contract renewal also gives Hood the chance to see through to fruition two “very sizable” projects. Hood would neither give details nor answer speculation that the projects were big-box national retailers.

She did say discussions should find resolution this year. If the two projects are successful, Hood said, she expects the town of about 4,200 people and 240 businesses to explode with growth.

“A lot of times, it just takes one or two things to happen,” Hood said. “I really feel like Mount Vernon is on the verge. I really feel like it’s the next Ozark or Republic.”

The EDC’s George was a little bolder with his projections.

Wal-Mart has been a prime target for Mount Vernon for some time. Though George said Wal-Mart’s not slated to build in his town, he did confirm that discussions have been ongoing with the retail giant.

“One day Mount Vernon will have a Wal-Mart,” he said.