THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, June 12, 1996 TAG: 9606120540
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: 54 lines
Virginia moved one step closer Tuesday to privatizing its economic development efforts.
The Virginia Economic Development Partnership, the public-private authority envisioned as the agency to ensure continuous progress through different political administrations, named the state's chief corporate recruiter, Wayne L. Sterling, as its executive director.
Sterling has committed to serving the partnership for three years, said Edward H. Bersoff, chairman of the VEDP.
``This is a major change in the way (economic development) operates,'' Bersoff said. ``The partnership is a good way for him (Sterling) to spread his wings even further. We're very pleased that he's chosen to stay with us.''
On July 1, Sterling, director of the Virginia Department of Economic Development, will assume his duties as executive director of the newly formed partnership. The partnership, in turn, will assume the duties of the Virginia Department of Economic Development on the state level. The state department will effectively cease to exist.
The transition of the economic development department into an authority, according to state officials, will allow Virginia to compete with other states and countries more effectively because it ensures continuity of projects, staff, board of directors, investment and policy. That was the intent behind it when the General Assembly created the partnership in 1995 from recommendations out of Opportunity Virginia, the state's first strategic plan for economic development.
``Virginia's done well over the years but it's subject to fits and starts'' with administration changes, said Bersoff, president and CEO of BTG Inc. in Vienna. ``The notion of the partnership is to remove it from the political process and have extended board participation in overlapping gubernatorial terms.'' Privatizing the economic development authority also gives it numerous advantages, Bersoff said.
It can move quickly on decisions because it will not be inhibited by state procurement policies, which often slow down selection processes. The staff will be rewarded based on its performance. The partnership will also be allowed to accept private sector contributions because of its new structure.
``Getting this to be more of a business than a government agency is very favorable,'' Bersoff said. ``We have great expectations.''
The Virginia Department of Economic Development will transfer five divisions to the VEDP: national business development, international business development, tourism, research and advertising and public relations. The three remaining divisions - the business call program (serving existing businesses), work-force training and the small-business financing authority - will be transferred to the new Virginia Department of Business Assistance.
The VEDP's budget is approximately $30 million, according to a state spokesman. ILLUSTRATION: Wayne Sterling by CNB