The Johnston Economic Development Corp. (JEDCO) announced today that it has started the legal process of dissolving as an organization.

Board members for the public-private economic development partnership with the city of Johnston voted unanimously during their Nov. 19 meeting to end the investor-based not-for-profit after a survey of its membership that found 76% of the respondents supported a decision to discontinue the organization, according to a news release.

“Our JEDCO membership has existed to partner with the city of Johnston to strengthen our local economy and retain and attract business. As economic development evolves in Central Iowa, Johnston must adapt to remain competitive,” Grant Taylor, JEDCO board president, said in the release.

According to its website, JEDCO has 37 member companies, including financial institutions, development, real estate and consulting firms, contractors and MidAmerican Energy.

Taylor, who is also a partner and vice president at the Hansen Co., told the Business Record that the decision to dissolve was reached as economic development projects in Johnston and in the market generally have become more complex in their scope and pace, which requires “a more sophisticated and nuanced response.”

“Cities are moving to in-house economic development. In doing so, I think it’s the natural evolution for groups like ours that started out decades ago with the best intentions, aren’t as relevant as they used to be,” Taylor said.

The city of Johnston’s economic development department has been led by Director Josh Laraby since late 2023.

Taylor said the city has expressed interest in pursuing a different forum to stay connected with business leaders in Johnson and the surrounding region. The JEDCO board felt like this could be done without the organization’s investor-based model, he said. “The thought was, ‘Could we still provide value and connection with the city without trying to duplicate efforts?’”

According to Taylor, about half of JEDCO’s funding is contributed by the city, while the other 50% is provided by its member companies.

A city spokesperson told the Business Record that the city is exploring an alternative to JEDCO and intends to continue JEDCO’s two main annual events, an economic development bus tour and an economic development forum.

“While many details are yet to be determined, the first order of business is ceasing operations as an investor-based entity,” Taylor said in the release.