More details are continuing to emerge about a new public-private nonprofit taking the lead on economic development in Louisville, as its board members met for the first time Wednesday.
The Louisville Economic Development Alliance, or LEDA, was formally established this month but has been in the works since late last year, growing out of a recommendation from the city's economic plan, Growing Louisville Together , released in December.
Louisville Mayor Craig Greenberg has cited a need for greater collaboration on economic development topics and more nimbleness in the city's business attraction and expansion processes and said he believes LEDA will fill that need.
However, LEDA has already drawn some controversy as the subject of an ethics complaint filed against the mayor, along with two members of his administration.
The nonprofit's board met at the downtown office of one of its members, Humana, where it largely discussed organizational and procedural issues as the new entity got off the ground.
Greenberg said he thinks it is important that “the board itself help answer all of the unanswered questions” about the new organization and stressed the flexible nature of the organization as it finds its footing.
"There is a plan, but there’s a lot left to fill in,” Greenberg said at the Wednesday meeting. “There’s a lot of room for input, for ideas, for direction…”
While much has yet to be defined, here’s what we’ve learned about the new entity.
Board picks interim CEO, approves national search
Wednesday's meeting marked the first gathering of the 55-member board of directors.
Deputy Mayor for Economic Development Pat Mulloy was approved to serve as interim CEO until a permanent leader is selected later this year. As interim CEO, Mulloy is empowered to create a bank account for LEDA, file documents, and explore office locations, among other duties.
Mulloy was poised to negotiate fiscal agreements with the Louisville Metro Government as part of his CEO duties, but Louisville Metro Council President Markus Winkler questioned this arrangement, given Mulloy’s role as a city employee.
Board members agreed to amend the duties to empower the board’s vice chair, Kim Halbauer, regional president of Fifth Third Bank, to negotiate those agreements instead.
“When you're playing a dual role, there's a bit of a challenge there,” Winkler told The Courier Journal after the vote. “And just making sure that we're setting things up to be successful and be transparent, and don't have any sort of questions of conflicts of interests later on.”
Winkler believes transferring those duties to Halbauer “makes sense.”
Another member, Heine Brothers co-founder and CEO Mike Mays questioned the age diversity of the board, which skews middle-aged and older. Greenberg said the group would be mindful of age as well as other forms of diversity.
A national CEO search was also approved Wednesday. The board will hire a firm to conduct that search, which is anticipated to wrap by autumn.
The search committee is composed of eight members: Greenberg, Steve Trager of Republic Bank, John Crockett III of LG&E, Susan Diamond of Humana, Evon Smith of OneWest, Kim Schatzel of the University of Louisville, Jennifer Hancock of Volunteers of America, and Tom Miller of UofL Health Now.
LEDA board comprised mostly of private-sector figures
LEDA is a public-private partnership, with the vast majority of its board of directors coming from outside of government.
Board membership includes leaders from several large private companies, including Churchill Downs, Ford, GE Appliances, Humana, Kroger, and UPS.
Bankers, developers, lawyers and leaders from various nonprofit, health care and educational institutions are also on the board, which can have up to 60 members.
A smaller executive committee of 17 people from the larger board is empowered to meet and carry out LEDA business outside of full board meetings.
Winkler, Democratic Councilwoman Paula McCraney, and a Republican council member will be on the board as non-voting members alongside Todd Dunn of the Greater Louisville Central Labor Council and Greater Louisville Inc. 's Sarah Davasher-Wisdom.
Initially, Greenberg will chair the board, though he told The Courier Journal he will eventually have a smaller role in the organization, likely after a CEO search is completed. Greenberg — and whoever becomes mayor after him — will remain a voting member.
No standing meeting schedule has been determined, though LEDA bylaws require the board to meet at least twice each year. With a majority of its funding coming from public dollars, LEDA is subject to Kentucky’s open records and open meetings law.
Funding is largely public dollars – for now
The private-public partnership proposed in the Growing Louisville Together plan contemplated a $6 million budget. LEDA’s estimated budget is close to that figure, at just over $5.6 million.
Most of that first-year budget comes from taxpayer dollars.
Greenberg successfully sought $1.5 million in upstart costs from the Louisville Metro Council, which approved that funding in June , despite one council member voting against the budget after raising concerns about LEDA.
Approximately 20 positions within Louisville Metro Government’s Cabinet for Economic Development will be leased to LEDA, accounting for about $2 million in already existing taxpayer-funded salaries.
A third stream of funding comes from board member dues. A precise dues structure will be figured out by the board, though Greenberg said some members currently aren’t paying while others are paying up to $100,000.
The goal for LEDA is to become financially self-sustaining and not rely on the government for future cash infusions, though during budget hearings before the Metro Council in the spring, Mulloy could not guarantee he wouldn’t be back asking for more funds next fiscal year.
The alliance is a 501(c)(6) , a nonprofit that’s also referred to as a “business league,” or a group of individuals with common business interests. Common examples include chambers of commerce and real estate boards.
LEDA positioned as 'lead economic development entity'
City leaders have billed LEDA as “the lead economic development entity” for Jefferson County.
As such, it’s taking on responsibilities previously handled by the city’s Cabinet for Economic Development as well as Greater Louisville Inc. , the chamber of commerce serving 15 counties, including Jefferson.
LEDA’s primary responsibility will be to attract new businesses to Louisville and create incentives for business expansion alongside the Kentucky state government. It will also create a new city brand and collaborate with Louisville Tourism and GLI to promote it.
Business retention will be a shared responsibility between GLI and LEDA, according to a handout provided by the city. GLI will remain the lead on business education and recognition efforts “with support from LEDA as appropriate.”
GLI “will remain a complementary but distinct organization, serving its members’ business interests,” according to the handout.
Economic development cabinet employees leased to LEDA will focus on talent and economic development, business attraction and retention, research and policy, small businesses, and entrepreneurship, according to the city.
Meanwhile, the city cabinet will continue to handle planning and zoning as well as codes and regulations, among other responsibilities.
As said previously, Greenberg and Mulloy noted the new nonprofit isn’t taking away powers currently vested in the Metro Council, such as the power to approve tax incentives.
Who are LEDA's board members?
Here is the list of board of directors members provided by Louisville Metro Government after Wednesday's meeting:
- Dave Christopher, AMPED
- Carlos Sanchez, AT&T
- Jim Allen, Baird
- Lawson Whiting, Brown-Forman Corp.
- Brad Smith, Cherry Bekaert
- Bill Carstanjen, Churchill Downs Inc.
- Lance Mann, Dean Dorton
- Jeff McKenzie, Dentons
- Greg Pope, Ernst & Young
- Kim Halbauer, Fifth Third Bank
- Tony Reinhart, Ford Motor Co.
- Jennifer Barber, Frost Brown Todd
- Kevin Nolan, GE Appliances
- Todd Dunn (non-voting), Greater Louisville Central Labor Council
- Sarah Davasher-Wisdom (non-voting), Greater Louisville Inc.
- Kate Latts, Heaven Hill
- Mike Mays, Heine Brothers' Coffee
- Condrad Daniels, HJI Supply Chain Solutions
- John Hollenbach, Hollenbach-Oakley
- Susan Diamond, Humana
- Ty Handy, Jefferson Community and Technical College
- Paul Costel, JPMorgan Chase Bank
- Jake Cannon, Kroger
- Jim Lancaster, Lantech
- Lisa Dischinger, LDG Development
- John Crockett, LG&E
- Mayor Craig Greenberg, Louisville Metro Government
- Spencer Bruce, Louisville Water Company
- Kevin Attkisson, Manna Capital Partners
- Mitchel Denham, McBrayer PLLC
- Markus Winkler (non-voting), Louisville Metro Council
- Paula McCraney (non-voting), Louisville Metro Council
- Republican member (non-voting), Louisville Metro Council
- Russell Cox, Norton Healthcare
- Dennis Heishman, Old National Bank
- Tony Fluhr, NTS Development Co.
- Evon Smith, OneWest
- George Bell, ORI Louisville
- Caroline Miller Oyler, Papa John's
- Kristen Byrd, PNC Bank
- Steve Poe, Poe Development
- Larry Benz, Pro Rehab
- Steve Trager, Republic Bank
- Brian Cromer, Stites & Harbison
- Ja Hillebrand, Stock Yards Bank
- Sandra Frazier, Tandem Public Relations
- Matt Thornton, Thornton Capital
- Eli Capilouto, University of Kentucky
- Kim Schatzel, University of Louisville
- Tom Miller, UofL Health Now
- Bill Moore, UPS
- Jennifer Hancock, Volunteers of America
- Mariah Weyland Gratz, Weyland Ventures
- Franklin Jelsma, Wyatt, Tarrant & Combs LLP
- Scott Catlett, YUM Brands
Reach growth and development reporter Matthew Glowicki at mglowicki@courier-journal.com or 502-582-4000 . Reach reporter Eleanor McCrary at EMcCrary@courier-journal.com or @ellie_mccrary on X, formerly known as Twitter.
This article originally appeared on Louisville Courier Journal: Who's leading Louisville's new economic development group? Here's what we know
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