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Four NEDC board members resign, three this week, as future remains unclear

Oct 27, 2016 | 5:51 PM

NANAIMO — Three members of the Nanaimo Economic Development Corporation’s (NEDC) board of directors have resigned this week.

NEDC board vice chair Doug Kalcsics confirms AJ Hustins, Signy Madden and Carla Smith resigned on Monday. Kalcsics says Charlie Parker stepped down from the board a few weeks ago as well. The resignations come at a tumultuous time for the corporation. On Oct. 17 the city of Nanaimo announced they would be removing tourism from NEDC’s mandate at the end of the year. On Tuesday, the board fired CEO John Hankins just 10 months after they hired him. His dismissal came one day after Hankins published an op-ed piece critical of the tourism decision.

“There’s natural turnover, that usually happens at the end of terms,” said Kalcsics. “These particular resignations obviously are mid-term. These are personal decisions on the part of the individuals. I respect their decision to resign, I’m not going to comment necessarily on the reasons because it’s really up to them, not me.”

Kalcsics, who is in his fifth year on the board, says there have always been mid-term resignations for various reasons. He says typically the board is replaced every April or May at the annual general meeting. He says the articles of incorporation are such that every board member steps down and then a new board is reappointed, including those that are wishing to return. The board had been at its maximum allowable size of 17 members, but is now down to 13, according to Kalcsics.

“This board is committed to its job. It’s got a mandate, it’s got a mission,” said Kalcsics. “We have to prove ourselves by delivering those (economic development) services and then hopefully whoever is being critical in the business community will see the benefit and the successes we can achieve.”

There are many unanswered questions about the future of the corporation, as well as how economic development and tourism services will be handled in the city. Nanaimo city staff have said at this point it’s unclear what the future model of tourism and marketing will look like. Kalcsics says the process for replacing Hankins has not been laid out yet. He says it’s likely someone will serve in an acting capacity. Kalcsics also says their funding level from the city will likely drop, since they’re not providing tourism anymore.

“Clearly we’re in transition…although the board hasn’t met on this, we are anxious to follow through on a permanent leader for the organization,” said Kalcsics. “But on the other hand the bundle of services being provided by NEDC has changed a bit so we should probably rethink the job description (for CEO).”

Kalcsics says the fact they are continuing to work on a new partnering agreement and relationship with the city will go a long way towards recruiting a strong candidate to replace Hankins.

Meanwhile, Hankins says his former staff are anxious about their future without a clear picture of what the model of the corporation will be.

“I can tell you that as a result of me being fired the team is obviously concerned on what that means,” said Hankins. “We were moving really, really fast on lots of different things…that’s now on hold. They’re a strong team but at the same time there’s a lot of uncertainty out there. To announce something is changing but not know what it’s going to be, to me, it just seems a very strange decision to make.”

Hankins also disclosed that he was sent an email from Valkyrie Law Group, legal counsel for the city of Nanaimo, on Wednesday. The letter warns Hankins that any disclosure of information to discredit the city or NEDC will result in the city seeking legal recourse.

“I’m rather shocked that taxpayer’s money is being used to now hire a lawyer, makes it sound as though they’re trying to intimidate me,” said Hankins. “My question back would be, ‘what is the harm in releasing the information from the Oct. 3 in-camera meeting?’ If it was so compelling…I’d just like to see it.”

NanaimoNewsNOW has reached out to the four board members that have resigned. So far, no one has offered comment.