A huge cut in funding for Sault Ste. Marie's economic development agency was approved by city council during a special meeting on Monday night.
In a report to council, city staff called for a cut of about $450,000 in funding to the Economic Development Corporation.
The EDC currently receives around $1.7 million a year in funding from the city.
"A consensus option was agreed upon by the organizations which will enable the City to reallocate economic development funding to support other economic development priorities including items suggested by the Community Adjustment Committee," reads a section of the report.
"It is recommended that the overall envelope of funding provided towards economic development initiatives continue and remain unchanged. However, it is proposed that there be a re-allocation of economic development funding."
Staff recommends the money cut go to helping community development in other areas.
"We need to do a better job of promoting Sault Ste. Marie and showing people what we have here to attract businesses and also immigrants to take new jobs in the community. We're also looking at growing arts and culture sector. We're looking at beefing up our community development fund to support new initiatives," explained Tom Vair, community development and enterprise services CAO.
Vair said it will be up the EDC board to decide how the funding reduction will affect plans and projects.
He said it may or may not mean job losses.
