Port Authority: A partnership for economic growth in North Iowa

By Terry Durby
Winnebago county supervisor
Over the past couple of months, there have been a number of news reports, articles and social media posts involving the North Central Iowa Regional Economic and Port Authority (Port Authority). While the accuracy and merit of some of those accounts can be debated, the intent in the pieces is important because it underscores a desire for our communities to prosper economically.
Since we began two years ago, that has also been the goal of the Port Authority—to create a partnership for economic growth in North Iowa. To better illustrate that, we felt it important to provide Northern Iowans with a more thorough understanding of who we are, how we came about and our vision for the future.
Iowa Code Guides Our Formation
The North Central Iowa Regional Economic and Port Authority, which consists of four member counties (Cerro Gordo, Mitchell, Winnebago and Worth), was created for regional economic development. In 2015, multiple state agencies were consulted to address the need for natural gas expansion in North Iowa for both business opportunities and residents. The group’s recommendation was to create a Port Authority, which would serve as a solution and a model for other areas of Iowa to implement.
The North Central Iowa Regional Economic and Port Authority was subsequently formed in early 2016 through County Resolutions passed by each of the four County Board of Supervisors. These elected supervisors recognized the opportunity to solve economic development challenges in their counties through Port Authority legally allowed parameters.
The Iowa Code grants Port Authorities many powers of a municipality, with the exception of independent eminent domain powers and taxing authority. The Authority by-laws state that each member county shall have their Board of Supervisors appoint one board member and one individual from their county who is the economic development director or has economic development experience to serve in the Authority. While the Authority can bond for project financing, each member county will provide financing to the Authority for projects in their respective counties, so as not to obligate debt to each project’s non-participating counties. Therefore, any revenue received by the Authority from a project is also allocated to the project’s participating counties.
Recently there have been inquiries about the Port Authority’s meeting policy. First and foremost, we have an unwavering commitment to transparency. Since the beginning, all meeting agendas have been publicly posted in each county’s respective courthouse. While not legally required by Iowa Code to post notice for meetings, the member counties and every Port Authority board member believe it is a civic obligation to provide public notice of each meeting. Additionally, all meeting minutes are on file in the Mitchell County Economic Development Commission’s office located at 212 S. 5th St., Osage, Iowa and are available for anyone to review. An annual report by the Authority is also filed on, or prior to, April 1 with the Iowa Economic Development Authority.
Port Authority’s Purpose
The key issue that drove the organization’s formation was natural gas. The availability of natural gas in North Iowa is a consideration for every economic development project in our four-county region. Every county supervisor, business leader and economic development director in our region has firsthand knowledge of how the constraints in our local gas system have hindered economic growth. Natural gas limitations resulted in high dollar investments, including high skill and high wage careers, not being awarded to our member counties. Many communities that currently have access to natural gas are still limited by supply capacity while other communities have no access to natural gas. Simply put, we have missed opportunities and lost jobs—leaving our region at an economic competitive disadvantage.
What we learned over the years is that expanding access to natural gas supplies is a complex task, laden with regulatory hurdles. Traditional utility providers who supply natural gas are bound by federal regulations which hinder their ability to build additional capacity into supply systems. Therefore, as each new development is constructed, the new natural gas supply only meets the needs of that new company at the date of startup, and does not include additional potential supply needed for future expansion or adjacent new development.
Thankfully, a Port Authority is not bound by those same federal regulatory issues. And that is why, after years of seeking a solution for this obstacle to economic development and consulting with multiple state agencies, our counties formed the North Central Iowa Regional and Economic Port Authority.
Researching Our Options
The Authority is currently awaiting a detailed natural gas engineering study that we commissioned earlier this year. This feasibility report will examine the viability of a proposed natural gas line between Worth and Mitchell Counties. This comprehensive study (which will be completed in late 2018 or early 2019) will tell us if such a natural gas line can be constructed, where and at what cost—as well as the economic impact this expansion may have in North Iowa. The fact that we are conducting a feasibility study does not mean decisions have been made and a deal is complete – far from it. Instead, this pending report will be a vital tool for the Port Authority to make informed decisions for our region, our economy and our constituents.
Our Promise to Constituents
None of the member counties of the Port Authority entered into this agreement without long, deliberate thought and consideration. We have been just as thoughtful and careful in our actions every step of the way since then. We have consulted leading attorneys at county and state levels to ensure the Authority, its member counties and individuals involved were proceeding properly and to the letter of the law with every action taken. We will continue to do so as it is prudent and proper procedure for all decisions regarding economic development. The North Central Iowa Regional Economic and Port Authority exists to help build up North Iowa as a whole, and to state anything less is simply not true.
Terry Durby is a Winnebago County Supervisor and Vice Chairperson of the North Central Iowa Regional Economic and Port Authority.