Tipton — The 2009 agreement between the city of Tipton and Tipton County to combine economic development efforts is in jeopardy of unraveling.
The agreement, which ends Friday, provides that the city of Tipton will pay $50,000 annually and Tipton County will contribute $65,000 to fund an economic development department.
Tipton Mayor Dan Delph has not renewed the contract and has indicated he will not commit money to a joint economic development effort as long as Gayle Van Sessen is the director.
The Tipton County Council has not appropriated money in the 2011 budget to fund operations, noting the commissioners never made the request.
As of Jan. 1, there will be no money to fund Van Sessen’s $6,833 monthly salary through the end of her contract, which is set to expire May 31, 2011.
This week Delph renewed a request with the commissioners for the return of $25,000 in city funds for a proposed Court Street renovation project.
By a 2-to-1 vote the commissioners denied Delph’s request and, on a motion by Commissioner Mike Cline and seconded by Kenny Zigler, the funds were carried over to 2011 to pay Van Sessen’s contract.
“We’re still not backing off,” Delph said. “I won’t sign another contract.”
Delph said he wants Van Sessen removed as director and for the city of Tipton to have a greater role in the decision-making process.
Delph said there is no trust between him and commissioners Cline and Zigler.
“They have to rebuild the trust,” he said.
Delph said incoming Commissioner Phil Herron will play a key role to signing a new economic development contract with the county.
Zigler was defeated by Herron and his last day in office is Friday.
“We made a mistake,” Delph said of hiring Van Sessen to be the director. “It’s time to fix the mistake and move on.”
Delph said he supports economic development, but there has to be changes made in any agreement with the county.
“The agreement is in limbo,” he said, “there may not be a new one.”
Cline said last week that a recent meeting was canceled and future talks depend on whether Delph wants to participate in the process.
He said since some of the money carried over to 2011 was from the city, Van Sessen continues to work for the city of Tipton.
Cline said he believes the commissioners will request a $65,000 appropriation from the county council in January to fund the economic development department.
“The encumbered money won’t get us through the end of [Van Sessen’s] contract,” he said. “We had to have a mechanism to pay her.”
Cline said when Delph made the request in October for the return of the $25,000, the commissioners agreed to consider it.
“We wanted specifics on what the funds would be used for,” he said. “Things have changed since October, the mayor didn’t tell us he was going to back out of the agreement.”
Cline said the county doesn’t consider the contract with Tipton to be “dead” and he’s not opposed to modifications being made.
“We need to reach an agreement that is more palpable to the city,” he said.
Commissioner Jane Harper said the agreement with the city is in limbo.
“Denying the mayor any excess funds sets a bad tone for any discussions with the city,” she said.
Harper said she would not support a request for a 2011 appropriation for economic development unless the city of Tipton is on board.
“The negotiations broke down with the city,” she said. “I believe there is no hope of an agreement being reached.”