EDC searches for direction with Stokes

Gov. Donald L. Carcieri’s decision to appoint a short-term economic-development chief has some business leaders fearful the move could cripple the state’s efforts to emerge from its economic mess. Others, however, think the governor made the best of a bad situation in his selection of Keith W. Stokes.
Carcieri last week appointed Stokes, a longtime R.I. Economic Development Corporation board member, as the EDC’s executive director for a one-year term after Ioanna Morfessis, an Arizona consultant, abruptly withdrew from the position.
By appointing Stokes, Carcieri signaled that his administration won’t attempt to search for a permanent director before the end of his final year in office.
Grafton “Cap” Willey IV, co-chairman of the local chapter of the Smaller Business Association of New England (SBANE), questions whether that is the best way to proceed.
“This will likely delay the EDC … in getting Rhode Island out of this downturn,” Willey said, adding that some of SBANE’s members share the concern.
While praising Stokes’ qualifications, Willey said he might be hampered by the short tenure. “I don’t think an interim director can make the needed changes,” Willey said. “Keith will be a temporary placeholder.”
Hasbro Inc. Chairman Alfred J. Verrecchia, who led a Carcieri-appointed panel last year that examined the EDC and recommended changes, acknowledged that postponing the director search would likely “slow things down” at the EDC, but he said other initiatives will move forward.
For instance, the Carcieri administration still is planning to restructure the EDC board soon, as the review panel recommended, Verrecchia said.
The administration and the panel had discussed starting another national search, but they figured it would take another four to six months to find a suitable candidate, meaning Carcieri would be making the appointment in the waning months of his tenure.
Verrecchia said that might scare off some candidates, even though the director could be offered a three-year contract.
For his part, Stokes said the state can’t afford to wait for another national search to be completed.
“The governor has asked me to help to continue the momentum at the EDC,” said Stokes, who is taking a leave from his job as executive director of the Newport County Chamber of Commerce. “I can hit the ground running. We can’t afford to stand pat.” Stokes, who once served as senior policy adviser to former Gov. Bruce Sundlun, said he was shocked when Carcieri called him in the final week of December to ask him to consider taking the director position. Stokes took a day to mull it over.
Stokes, 51, will be paid $185,000 a year and will resign from the EDC board. His appointment, which must be confirmed by the Senate, was applauded by numerous state leaders and others.
John Gregory, president and CEO of the Northern Rhode Island Chamber of Commerce, said Stokes’ knowledge of the Rhode Island business community will come in handy.
“I think it makes a lot of sense,” he said. “You need someone to keep the ship going until the new governor gets in.”
The appointment marks a shift in the search for new EDC leadership in just a few weeks.
It was only a few weeks ago that the administration introduced Morfessis, its first choice for EDC chief after a national search. Then state officials and business leaders were jolted by the news that Morfessis was backing out, citing a serious illness in the family.
Some saw it as yet another black eye for the Ocean State, which is already dealing with 12.7 percent unemployment and a projected $220 million state budget deficit.
“I was very distressed about it,” said Laurie White, president of the Greater Providence Chamber of Commerce.
Even though Morfessis wasn’t scheduled to begin work until this month, she and White had already developed a relationship. White called her in Arizona frequently to update her on business-related news.
The Chamber even collected 300 letters of support from its members in anticipation of the Senate confirmation hearings after Morfessis’ $250,000 salary drew some criticism.
Verrecchia said there was another candidate considered for the position, but the panel didn’t feel strongly enough about that person to make a job offer.
But White and others stressed that the state still needs an economic-development professional who has national connections and contacts.
She allowed that finding the right candidate won’t be easy, particularly with the EDC seeing dwindling state appropriations.
“It’s a very difficult, extremely challenging environment,” White said. “[The new director] is going to have to move mountains.” •