Jamestown Local Development Corporation meeting (March 15, 2023)
The Jamestown Local Development Corporation has released American Rescue Plan funding it had been holding back for two businesses pending counsel on whether the appropriation of those funds had violated federal law.
The JLDC Board had approved a $64,000 Building Expansion & Business Acquisition program grant for It’s Your Day wedding planning service. The owner of that business is the wife of JLDC Board Member Jeff Russell, who also serves on Jamestown City Council.
The other grant is $15,000 from the Downtown Small Business Evolution program for Jamestown Skate Products. That business is owned by JLDC Board Member Pete Scheira.
In these instances, the board members in question either recused themselves or did not attend the voting session. However, the JLDC by-laws state that no funding will be awarded to any business where a board member owns a material interest.
There was a question of whether the awards violated State conflict of interest rules for municipal officers or federal rules.
Jamestown Mayor Eddie Sundquist said his administration had reached out to the U.S. Treasury Department on the matter for guidance, but they had disbanded their Help Desk, so they then reached out to Congressman Nick Langworthy‘s office, “And (they) confirmed that the use of those funds is appropriate. You know, we did it in good faith in order to support these businesses, using funds that were technically not JLDC’s funds. They’re separate federal funds being given for a recovery purpose. And so those funds have been completed and have been given out. We’ve gotten the permission, or the consultation, from his office that those are appropriate uses of those funds.”
Prior to receiving that information, the JLDC board had declined to make any motion to revoke the funding in question.
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