Missouri economic development director resigns; other appointments blocked

JEFFERSON CITY, Mo. -- Missouri's economic development director resigned after failing to win Senate confirmation, and lawmakers Thursday blocked several more of Gov. Jay Nixon's appointments to university, transportation, utility and health insurance boards.

In all, the Republican-led Senate blocked three appointments -- to the University of Missouri system governing board, the Missouri Housing Development Commission and the Missouri Consolidated Health Care Plan Board -- and allowed the Democratic governor to withdraw others. The highest profile appointment to falter was for Jason Hall as the director of the Department of Economic Development.

Appointees must be confirmed by the Senate this week, or the person cannot be named to that position in state government. Senators return to the Capitol on Monday. The lifetime ban does not apply for those whose nominations were withdrawn, and it appears Hall can later be nominated economic development director because he resigned.

It became clear that Hall would not be confirmed after the Senate's Gubernatorial Appointments Committee refused to take a vote. Sen. Jason Crowell, R-Cape Girardeau, serves on the committee.

"It was the measured opinion of the Senate as a whole that Mr. Hall was not the right person for the job," Crowell said.

Crowell pointed to a 2010 audit that was critical of Missouri Technology Corp., for which Hall had previously served as executive director. The audit alleged that Hall made political threats against former Democratic auditor Susan Montee, Crowell said.

"I continued to push Mr. Hall for an explanation on that, and he couldn't provide one," Crowell said.

Crowell was also concerned that Hall presented no plan to add more layers of transparency to the department. Crowell said he questioned Hall about two high-profile department problems in recent years -- the Watch Me Smile development in Cape Girardeau and Mamtek in Moberly, Mo.

"The DED offered $3 million to a convicted felon," Crowell said of Watch Me Smile. "I asked him if he had a plan to address these concerns, and he couldn't offer one."

In 2010, Watch Me Smile had plans to locate a $10 million health care cooperative in Cape Girardeau and create 135 jobs and had applied for quality jobs funds. But the state withdrew authorization of the funds after an investigation found the company's then-president, Weaver Dickerson, provided false statements on an application.

Defaulting on bonds

Mamtek U.S. Inc. was touted by Nixon to create up to 612 jobs at an artificial sweetener factory in Moberly. Although no state incentives ever were paid, the city said it will default on $39 million in bonds issued for the facility after Mamtek missed its payment, laid off employees and halted work on the plant last fall.

"I had serious questions that needed to be answered that weren't properly answered," Crowell said.

Hall has served as director since his Dec. 30 appointment. Nixon said Thursday that Hall will be a "senior member" of his administration. Nixon praised Hall's "strong professional background and extensive experience in helping Missouri business create jobs." The nomination was endorsed by the Missouri Chamber of Commerce and Industry and other business groups.

Nixon appointed Chris Pieper the acting department director while a search for a permanent director is conducted. Pieper, 33, has served as the department's general counsel from June 2010 until Jan. 18, when he joined Nixon's office as its deputy general counsel. Pieper is the fourth economic development director since Nixon took office in 2009.

Other appointments to stall Thursday were for Columbia lawyer Craig Van Matre to the University of Missouri system Board of Curators, former Social Services director Ron Levy to a state employee health insurance board and Stephen Sauter to the Missouri Housing Development Commission. None will be eligible for those boards.

Staff writer Scott Moyers contributed to this report.