Montgomery County Privatizes Eco. Development

ROCKVILLE, MD—Montgomery County Executive Ike Leggett's proposal to privatize the county's economic development efforts has been approved by the Montgomery County Council.

The council unanimously approved the measure by a 7-0 margin on Tuesday. The bill will transfer certain duties of the current Department of Economic Development to a new privately-run Montgomery County Economic Development Corp.

County Executive Leggett says that legislation will privatize the county's Department of Economic Development and create a non-profit, private-sector corporation to lead its economic development efforts.

“Bringing the private sector in to lead our economic development will allow our county to be more nimble and adapt quickly to market changes and business community needs,” Leggett says.

While praising the Department of Economic Development, Leggett says, “Montgomery County is competitive—but we need to be more competitive in order to meet the dynamic challenges that face the Washington, DC metropolitan region. To continue moving forward, I believe it is necessary to eliminate even more barriers to remain competitive regionally, nationally and globally.

The bill will also end the tenure of the Montgomery Business Development Corporation and will create a new County Office of Agriculture. A division of the current Department of Economic Development has directed many aspects of economic agricultural concerns.

“Through this reorganization we are elevating the status of economic development in Montgomery County,” says Councilmember Nancy Floreen, who serves as chair of the planning, housing and economic development committee. “We've always been committed to ensuring our county is a major player in the region, and now we are doubling down on that commitment. Today's decision builds on the important work the Council started five years ago with the creation of MBDC. We're grateful for all the progress MBDC has made over the years, and I believe this is the natural next step.”

The bill will create an 11-member board of directors of the new corporation. The members would be appointed by the county executive and confirmed by the council, but the corporation would not be an agency of the county government. Certain duties, now performed by the Department of Economic Development, would be transferred to the Department of Finance and the new Office of Agriculture.

“Attracting jobs and investment will increase our tax base and minimize the need to increase tax rates,” says Council president George Leventhal, who also serves on the council's planning, housing and economic development committee. “The new economic development corporation will be able to respond more effectively and quickly to the challenges of the 21st century.”