Mike Preston to serve as new AEDC director (Updated)

Gov. Asa Hutchinson will turn to the Sunshine State for his new director of economic development.

Talk Business & Politics and The City Wire have learned that Mike Preston, vice president for Government Relations with Enterprise Florida, has been tapped to be the new director of the Arkansas Economic Development Commission (AEDC).

AEDC is the state's job development agency and works to recruit and retain businesses in the state. Former director Grant Tennille was not retained in the position by Gov. Hutchinson.

Preston was promoted to his position with Enterprise Florida in 2008. Enterprise Florida is a public-private partnership that serves as that state's economic recruiting arm.

UPDATE INFO: In a press conference at the state capitol on Thursday, Gov. Hutchinson confirmed that Preston was his pick to lead AEDC. Hutchinson said Preston had the “energy,” “experience” and “right vision” for Arkansas and that his selection was part of a months-long national search.

The governor said Preston was part of a team in Florida that helped create 147,000 jobs and produce $10 billion in capital investment. Some noteworthy recruits that Preston assisted with include Northrop Grumman and Navy Federal Credit Union.

Preston’s pay will be roughly $167,706 with $28,000 of it coming from the Arkansas Economic Development Foundation, a nonprofit arm that helps pay some expenses of the agency.

Preston said the most immediate action item on his agenda would be to engage local economic development organizations with a monthly conference call. He stressed that the effort would be to highlight programs that the state agency are working on, but more importantly to listen to local leaders about needs and cooperative efforts.

“I want local buy-in,” Preston said.

Specifically, he singled out different regions of the state with different assets, including the new osteopathic school slated to come online in Fort Smith.

“There is great opportunity to build synergy around that,” said Preston.

The governor and Preston answered questions regarding the Human Rights campaign, a pro-LGBT organization that advocates for equal rights. Several pieces of legislation have been debated this session with one becoming law.

Known as the Intrastate Commerce Act, it would halt local ordinances that would prohibit discrimination based on sexual orientation. Another bill would allow businesses to not do commerce with individuals or other businesses based on religious beliefs. In theory, a caterer could invoke the law to not do business with a gay couple if it was against the business owner’s religious practices.

Hutchinson said he supports the latest version of the bill, HB 1228, stating that it is “important that we balance religious freedom privileges” but adding that workplaces have to be “free from discrimination.”

“I think it’s a bill that puts a higher emphasis on religious freedom,” he said.

Preston said he had not had a chance to review the bill and did not want to offer comment on how it could impact economic development until he had time to study it.

That said, Preston said he “hasn’t heard anything [in national circles] that would hurt Arkansas’ competitiveness” regarding the state’s business climate.

FLORIDA SUCCESS
Florida is considered one of the more active states in terms of economic development. According to the Enterprise Florida website, there have been six significant announcements so far in March, with almost 500 new jobs expected from the new deals.

Also, Florida’s manufacturing sector has reported growth after bottoming out in 2010. There were an estimated 330,100 employed in the state’s manufacturing sector in January, up from 327,600 in January 2014, and well above the 308,700 in January 2010.

Like Arkansas, Florida did suffer with high unemployment rates for several years following the housing industry collapse in that state. The unemployment rate in Florida during January was 5.7%, down from 6.5% in January 2014. Arkansas’ jobless rate in January was 5.6%, down 6.6% in January 2014.