In a move that took the business community completely by surprise, Zoltan Szigethy, executive director of the Kitsap Regional Economic Development Council, announced he will not renew his contract with the organization when it expires in August. The announcement was made at the organization’s annual meeting, which took place on March 27. The KREDC board was notified informally of his decision at its February meeting and officially in a letter distributed at the March board meeting.

Szigethy, a Bainbridge Island resident, cited personal reasons culminating with his mother’s recent death after a long illness for his decision. Her ill health is what motivated him to turn down a senior management position with a major banking chain and accept the KREDC job because it meant he could remain close to her during her illness. Szigethy was temped not to renew his agreement when it expired last August, but did so to remain close to his parents.

In his letter, addressed to KREDC chair Linda Niebanck, Szigethy cited the fact he believes he accomplished much of what has originally hired to do — orchestrate a shift in the organization’s focus from asset building to marketing, public awareness and appreciation of primary jobs, as well as expanding investor-membership and local funding, as partial reasons for his decision. He also pointed to new internal management and financial systems and high quality staff support as additional accomplishments.

Szigethy was succinct in his comments about his decision to leave, saying only, “My view is that much of what I set out to do when I joined the KREDC in mid-2000 had been achieved by mid-2002. I obviously have been pleased that I could contribute to Kitsap’s economic diversification. I want a new challenge, am looking forward to yet another interesting chapter in my life, and am gratified by the value in which I am held by members of our Board, committees and staff.”

Szigethy’s aloof manner has made him a bit of a lightening rod for controversy as well as a whipping boy over the KREDC’s performance during his tenure. However, much of his time was spent repositioning the group for future success, with a lot accomplished behind the scenes. That includes critical information gathering about exactly what assets the county has to market to businesses from out of the area and solid information about the employment and workforce situation locally.

He has also been aggressive in working within the comprehensive plan’s guidelines to assure land availability for future business expansion, including the South Kitsap Industrial Area and expansion of existing Urban Growth Areas.

Under Szigethy’s reign, the KREDC also established its regional telecom committee, which has met with a great deal of success in expanding the reach of broadband technology to local businesses as well as homes, and in solving the “last mile” challenge. Because of that, Kitsap County is now one of the most “wired” counties in the state, with a “take rate” on available broadband that is among the highest in the nation.

Szigethy isn’t the only one leaving the KREDC. Longtime board member Tim Arnold has also stepped down, as has Commissioner Chris Endresen. Endresen will be replaced by Commissioner Jan Angel. Three other board seats were recently filled as well by immediate past president of the Homebuilders Association, Poulsbo builder David Smith, Kitsap Business Journal Editor and Publisher Lary Coppola, and Olympic College President Dr. David C. Mitchell.

KREDC Board Member Ed Stern, who also heads up the telecom committee, believes the changes present some opportunities for the organization, saying, “Along with Mr. Szigehty’s leaving, there is also a very big turnover in Board membership — probably the biggest in my memory, which goes back to 1987 in EDC terms. I really believe this kind of change opens many doors. I have great hope to see a more inclusive, pro-active Board.”

“Without a doubt, ‘marketing’ will be a major emphasis of a new Director, and ‘high-technology’ companies that could help provide family-wage, community-based jobs right here in the West Sound will be a target. Heaven knows we don’t need to encourage any more commuting to the ‘east-side’, with its financial, environmental and social costs, if we can help it.”

It’s hard to convey how much people have missed about this warm, witty articulate man,” said outgoing board chair Linda Niebanck, an unabashed admirer.

“He came with no personal agenda except to give back to community. We believed that Zoltan could take the KREDC to a new level as a professional economic development organization. It appears we were correct.”

Niebanck went on to say that she believes Szigethy has helped the community build an organization that can say, “These are the things we do to support economic development and grow jobs in Kitsap, and we do them well.”

She also commented on his extraordinary work ethic, and the fact that she believes he has nurtured a cohesive and participatory staff.

“Zoltan has supported the Board to act from facts and with discipline,” she said with conviction. “He has developed transparent and sound financial planning, helped secure extensive community financial investment, and, he has helped make it fun. He is witty, clever, articulate, erudite, humorous, wise and not a little full of insight into what economic development is in Kitsap, but how it can evolve.”

Niebanck also praised Szigethy’s expertise in organizational development. “He has done that for the KREDC, so that the staff, Board and future Executive Director can move forward with confidence. He has treated us all to just a little bit of his life, and we have benefited from it.”.