With the formation in May of the Alliance for Economic Development of Oklahoma City, board members and the group’s executive director requested $424,000 to finish the 2010-11 fiscal year and carry it through the 2011-12 fiscal year.

The City Council approved a contract between the group and the city, but questions remain as to where those funds are coming from, and what exactly they are paying for.

Alliance Executive Director Catherine O’Connor says the money is there so the group can move forward with development opportunities as they arise. Of that amount, $56,000 was to help the alliance get established; she says the remaining $368,000 will be used for consulting services during the current fiscal year.

“In order to carry out the scope of work for the city, there are consulting services or other professional services that could be needed,” she says. “There is money in the budget to do that.”

In the designated funds, $100,000 is from the city’s general fund and is reserved for additional services City Manager Jim Couch may request from the alliance during this fiscal year.

“He may have some special project,” she says. “It isn’t all necessarily tied down right now. It gives the city some contracting authority. If something were to come up, I can go help them with it.”

The Economic Development Trust will provide $163,000, while $105,000 will come from MAPS 3 funds. The alliance will oversee the MAPS 3 efforts and those of Project 180. The initial $56,000 came from the EDT.

One of the projects O’Connor anticipates the group working on soon is the convention center hotel.

It is not unusual for the city to hire a consultant. A recent example is the contract with Populous Inc., the group hired to do the site selection for the convention center. That contract states the services fees shall not exceed $449,270.

In additional to development projects, O’Connor says the funds will allow her to travel on behalf of the alliance to view projects in other cities, attend professional events, and pay for her memberships in professional organizations that pertain to the group’s efforts. She plans to hire a secretary and an assistant or deputy director.

O’Connor says funding from various sources will pay for professional services the group will provide to the city, while bringing the Urban Renewal Authority, the Economic Development Trust, the Industrial and Cultural Facilities Trust, and the Industries Authority under one umbrella. The alliance will work with the groups, but will not have policymaking authority. O’Connor says an example is if a request for proposals is issued for the convention center hotel, it would likely be handled by one of those bodies, and not the alliance.

“The goals were to eliminate the duplication of resources in an effort to provide a more efficient, coordinated delivery of economic development services to the community,” she says.

To keep tabs on the funds, the contract states the group must provide periodic reports, and that those should include financial information.

“This is to make it clear that they have to provide a report periodically of how they have spent the public funds paid to them for their services,” says Wiley Williams, an attorney with the city.

Throughout the approval process at City Council, several members raised concerns.

Ward 2 Councilman Ed Shadid says he has concerns with how the funds will be spent, and who will keep an eye on the alliance, calling this “uncharted territory.”

“This is not an entity that provides goods and services to the public,” he says. “There is no quid pro quo in terms of ‘we pay X amount of dollars and we get this amount in return.’ We’re going to pay the salaries, the lease, the copy machine, everything, regardless of what we get in return.”

Looking ahead, O’Connor says the group will keep close tabs on the budget, and then determine what it will need to request for the 2012-13 fiscal year. She says while some have questioned what the citizens are getting for their money, the alliance will help save money by working with several entities and pooling financial resources.

“We’ve set up a nonprofit consulting firm that basically is providing professional services to all of these public entities involved in economic development,” she says.

Larry Nichols

Clay Bennett

Jim Couch

Ron Norick

Patrick Ryan

Roy Williams

Debra Hampton

Tony Tyler

Chris Turner

Michael Brooks-Jimenez

Jim Tolbert