Nominee for Rhode Island economic development agency brings deep ties to state

Nominee for RI econ agency brings deep state roots

MIDDLETOWN, R.I. — Keith Stokes traces his family’s presence in Rhode Island to 1769, centuries before microlending, wind power and biotechnology became buzzwords of economic progress.

Now, as the governor’s choice to lead the state’s economic development agency, Stokes faces decidedly modern problems: helping reverse the tide in this financially depressed state, where the unemployment rate is among the nation’s highest, massive budget deficits are the norm, and cities and towns are bracing for drastic cuts in state aid.

Stokes, 51, was selected last week to a one-year term as executive director of the Economic Development Corporation after the chosen head declined the job for personal reasons. The well-connected executive director of the Newport County Chamber of Commerce, Stokes brings to the position local roots, access to top government leaders — he attended high school with the state Senate president, for instance — and a career spent promoting Rhode Island’s small businesses.

“The advantage of having someone like Keith is that he can hit the ground running. He knows the business community, he knows the federal delegation and knows the members and leadership of the General Assembly,” said Senate President M. Teresa Paiva-Weed, who predicted a smooth Senate confirmation process for Stokes.

The job won’t be easy. The state’s been clobbered by the recession and credit crisis, with an unemployment rate hovering near 13 percent and huge losses in the manufacturing, business services and construction sectors. Stokes says no one should expect him to fix the economy, though he’s maintaining an optimistic front.

“This is the best time for change — when you’re in recessions and depressions, when you’ve been knocked off your feet,” said Stokes, who before last week’s nomination had served as treasurer of the Economic Development Corporation. “This is the best time cause we have nowhere to go in Rhode Island but forward.”

Stokes advocates lowering Rhode Island’s tax burden to make it more business-friendly; the state’s 9 percent corporate income tax, for instance, is among the highest in the nation, and Republican Gov. Don Carcieri intends to submit tax reform legislation this year, his spokeswoman said. Stokes also says the state should look into regionalizing services — such as utilities, public safety and education — to achieve efficiency and must do more to invest in small businesses

Stokes’ ties to Newport run deep.

He is a descendant of some of the region’s earliest African American and Jewish families, including some of the original benefactors of the Touro Synagogue — the oldest existing Jewish house of worship in America. Along with his wife, he is an expert and lecturer on the history of both cultures in colonial America.

His great-great uncle was the first black elected to the state legislature, and his home is decorated with centuries-old records, portraits and photos that document his multiracial ancestry. Among his possessions is a small cloth doll depicting the likeness of a young slave girl, an item passed down through his family since the early 19th century.

Stokes is taking a leave of absence from the chamber, which he has led for 15 years while championing the improvement of the visitor experience in an area of the state reliant on tourism.

“He has literally lifted that organization from one that was almost operating like a visitors bureau to one that businesses will go to for advice,” said Newport Mayor Jeanne-Marie Napolitano. “I mean, he makes business applicable.”

He was a driving force behind the Newport Bristol Heritage Passage, a project linking historic sites in both communities. He has pushed hospitality training for merchants and advocates a street car system to alleviate traffic. And he played a pivotal role in preserving Naval Station Newport during the Base Realignment and Closure process, even as other military bases in New England were ordered closed.

He’s taking over a quasi-government agency that’s been in turmoil. The prior head, Saul Kaplan, abruptly resigned in December 2008. A group impaneled by the governor said in a report last April that state political leaders had failed to create a consistent economic strategy and even suggested that the board that runs the Economic Development Corporation be overhauled.

Then, Ioanna Morfessis, the nominee selected after a lengthy national search, declined the job last month, citing a relative’s illness.

Stokes agreed to run the agency for a year and says what happens next will be up to the governor.

In his job at the chamber, he has sought inspiration from other cities he considers comparable to Newport — such as Charleston, S.C. — and plans to do similar research in his new position.

“We don’t have to reinvent the wheel. We don’t have the time, energy or resources.”