The Greater Akron Chamber, the Stark Development Board and three other economic development groups are in line for a total of $2 million in state money to work together to help businesses keep and create jobs in the region.
The $2 million will come out of a one-year, $4.1 million state Third Frontier grant awarded this year to Team NEO, a nonprofit group headquartered in Cleveland.
Team NEO, created several years ago by the private sector to bring jobs to the region, got the state grant to fund its expanded role as the area’s arm of the state’s new JobsOhio development initiative.
Team NEO said Wednesday that six job creation/retention proposals — including one jointly submitted by the Greater Akron Chamber, Stark Development Board and partners — have received preliminary approval for a total of $2.95 million from the state grant.
“Our objective was to move the needle further to bolster the region’s economic development strength,” said Ward J. “Tim” Timken Jr., chairman of Team NEO and chairman of steel and bearing maker Timken Co. in Canton in a news release.
The Greater Akron Chamber and the Stark Development Board submitted a proposal with Team Lorain County, the Cleveland area chamber (called the Greater Cleveland Partnership) and the Youngstown/Warren Regional Chamber.
Rick Rebadow, the Greater Akron Chamber’s executive vice president, said the groups want to “strengthen collaborative partnerships, hopefully providing a quicker, more efficient response throughout the region and uncovering investment opportunities.”
He said the partners plan to use the money to provide regionwide services to companies, such as a business-to-business database that would make it easier for companies to do business with each other.
Also planned is an outreach program, in which staff members would meet with company representatives throughout the region, sniffing out opportunities for expansion and addressing business concerns.
“It’s really a proactive measure,” Rebadow said, “to go out and actively seek input from the companies.”
Money also would go for a program that would link companies with state and local resources.
Also slated to receive a portion of the state grant are the Wayne Economic Development Council, JumpStart and Richland County’s Community Development Group.
The Wayne Economic Development Group would receive $150,000 for a program aimed at expanding the region’s industry combining agriculture and biological science and $125,000 to attract foreign investment.
JumpStart, which invests in startup companies throughout Northeast Ohio, would get $125,000. Richland Community Development Group would get $100,000.
Team NEO itself would get $475,000 for efforts to attract companies in high-growth sectors.
Team NEO was formed in 2003 by area chambers, including the Greater Akron Chamber, seeking to bolster their business-attraction efforts.
Team NEO has said the money cannot be used in financial incentive packages in economic development deals.
In August, Team NEO and five other regional economic development groups forming the JobsOhio Network received $14.8 million from the state’s Third Frontier program. Team NEO got the largest share — $4.1 million.
Some have raised concerns about Third Frontier state research and development money going to nonprofit groups.
As JobsOhio Network members, Team NEO and the other organizations assumed the job-creation and retention duties of regional economic development offices throughout the state.
Members of the network are liaisons with JobsOhio, the initiative by Gov. John Kasich that seeks to be more responsive in job creation/retention efforts. It is taking over many of the duties of the state’s Department of Development.
Team NEO’s chief executive, Tom Waltermire, said in August that much of the $4.1 million would be allocated to other economic development groups that would work with Team NEO on job-creation/retention initiatives. He said a focus would be expanding existing companies.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.
