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Economic Development developments in Tama County

Ollendieck hired to lead new Toledo focused organization

Since 2019, Katherine Ollendieck has served as Executive Director of Tama County Economic Development, leading many initiatives in business development, housing, infrastructure, and tourism. Under her direction, the county secured more than two dozen business recovery grants, played a key role in the $650 million Iowa Premium Beef expansion, oversaw the redevelopment of the former Iowa Juvenile Home into a future middle school and housing site, and hosted a day of RAGBRAI in 2023. On Monday, she was approved and hired for a position with the newly created Toledo Economic Development department. PHOTO BY MICHAEL D. DAVIS AND JONATHAN MEYER

Economic Development has been a touchy subject in Tama County in 2025. Earlier this year, the Tama County Board of Supervisors approved a drastic cut to the department’s budget. Another change came when longtime director Katherine Ollendieck resigned from her position. With little funding, Tama County Economic Development functionally shut down at the end of June.

Tama County Supervisor David Turner stated that they are not currently looking for a new director, but they are looking toward the future. In a statement provided to the paper, the supervisors stated, “David and Heather are reaching out to the surrounding Economic Development and Chamber of Commerce organizations to gather information on what works well for them and their approach at Economic Development. We will also reach out to other surrounding Boards of Supervisors to gather feedback. We have engaged the University of Northern Iowa’s Institute for Decision Making in Business and Community Services to help us through understanding what Economic Development should look like and help us put a path forward with the community needs and representatives. We will share more as we get further in the process. We are excited to get a plan in place to benefit everyone!”

Offering a continuation of the supervisors official statement, Supervisor Heather Knebel, in a July 3 column, addressed the topic of economic development in Tama County.

“Economic Development is still an ongoing topic with the Director resigning effective June 30. I am committed to finding a solution for economic development in Tama County and will be meeting with the Iowa Workforce Development and several other counties to find the best solution as we move forward. Please let me know if anyone has specific ideas or would like to take a leadership role in this area. I will be reaching out to business leaders for further discussion and their assistance in helping pave the way for the future of this department,” she wrote.

The Tama County Economic Development Board had its last meeting on June 24. At the meeting, all but one of the longtime board members, who represented different areas of Tama County, decided to resign from the board.

Toledo Mayor and Tama County Economic Development Commissioner Brian Sokol signs his resignation letter alongside Commission President Nathan Wrage of Gladbrook. In the end, five of the six commissioners resigned: Sarah Gingrich of Dysart, Phyllis Konicek of Garwin, Wrage, Sokol and Carrie Holst of Traer. PHOTO BY MICHAEL D. DAVIS AND JONATHAN MEYER

Alongside the resignations, Ollendieck offered her final report as Tama County Economic Development Director.

“At this point, I don’t want to do this organization any harm. I have absolutely loved the last six years, and I’m disappointed to be walking away. 
I’m disappointed to see what’s happened to this organization and I will not do it any harm,” she said.

Additionally in her report, Ollendieck spoke about the remaining funding TCED had left and how that would impact her agreed severance package. Agreeing to six months of pay, the remaining funds after paying all bills would leave the budget around $10,000 short along with no further funding to pay out her personal and comp time. In keeping with the same sentiment as her prior statement, Ollendieck was okay with walking away with less than the agreement.

In the statement from the supervisors, they acknowledged this action, stating, “The board members decided to resign from their positions in writing. Their lawyer had drafted the resignation format.”

Toledo Mayor Brian Sokol, the city’s representative on the Tama County Economic Development Board, spoke about his reasoning for signing the resignation.

“Unfortunately, TCED was a well-ran machine with every community in the county participating and receiving the same representation regardless of population. That’s the reason the TCED commission did not vote to unwind the 28E agreement; it simply worked,” he said. “My resignation was not for lack of trying to keep the commission going; it was simply not attainable without county funding. It’s in the hands of the county; I hope they do the right thing. I can’t control what the county does with their funding, I’d rather use the connections we’ve made and put them to work for Toledo.”

In response to the all but ceasing function of Tama County Economic Development, the city of Toledo decided to start its own Economic Development department.

“Unfortunately, when the Tama County BOS cut funding for Tama County Economic Development, the city realized we needed to react. I’ve been involved with TCED for over 15 years, and the last few years have proven the right economic development director can get things done. During that time Toledo has secured over $5 million in development funds, the largest task being the (former Iowa Juvenile Home) project,” Sokol said. “Initially, our focus will be to continue to solve the housing need in the community which includes finishing up 134 E. High and marketing the Woodlawn Addition. In the future, the city may consider utilizing this department in other communities, but our main focus will be Toledo. The creation of this department is a long term investment for the city. I see a lot of potential ahead.”

At the Monday, July 29 Toledo City council meeting, Ollendieck was approved for the position in the newly created department. In a statement to the paper, Mayor Sokol said, “I am excited to announce the city hired Katherine as Toledo’s Economic Development (specialist). I’ve experienced firsthand what she has accomplished for the county over the past 6 years, I have no doubt she’ll do the same for Toledo.”

Turner also offered his thoughts on the situation.

“Mayor Sokol and their board are looking at what will work best for Toledo. I wish them well. We are looking at a county approach if cities or business owners would like to be a part of it as well,” he said.