Sault overhauls economic development corporation: Sault EDC boss Tom Dodds resigns following restructuring.

• Author: Ross, Ian
• Position: NEWS

Trying economic times in Sault Ste. Marie has led to a shakeup in the northeastern Ontario city's approach to economic development.

A day after council decided that the city's model for the Economic Development Corp. (EDC), and the Innovation Centre needed restructuring, with more than $440,000 in annual funding steered elsewhere, Tom Dodds, the economic development CEO, resigned on Aug. 1.

"We're taking this moment to take a comprehensive look at what we do, how do it, what we can do better and differently," explained Rob Reid, president and chair of the EDC's board of directors.

"Anything we can do to revitalize things and get moving in a more positive way, that's all good for the community."

With Essar Steel Algoma--the lynchpin to the city's economy--still under creditor protection and the company's ownership situation far from certain, there has been an ongoing community discussion to create a more diversified economic base beyond steelmaking.

The city is owed $26 million by the cash-strapped company, about a quarter of the annual tax levy.

"At the end of the day, the city has a lot of challenges and we need to find ways to address those and we need to get the economy rolling," said Reid.

City council initiated an economic development review process more than a year ago.

Involving the CAO's office and an outside consultant, the marching orders were to determine if the city was getting the best results from its economic and community development dollars.

The city annually contributes $277,890 to the Innovation Centre and $1.7 million to the EDC, along with providing $500,000 annually to an economic development fund.

Reid said Dodds' departure wasn't the result of a performance appraisal or any shortcoming with the corporation but rather an outcome of the review process.

"(Dodds' resignation) announcement is part of that process but not a direct result of that."

A July 31 report to council from deputy CAO Tom Vair, of the city's Community Development and Enterprise Services, identified duplication between the EDC and the Innovation Centre, and a need for more efficiency, and a clear vision on roles within economic development.

"Step change is required and we need to act with urgency" said the report's analysis in pressing for immediate change.

A city news release said the EDC CEO's position will not be filled. EDC staff will report directly to the board of directors.

Dodds, with a 30-year career in economic development, was appointed to...