Eastern Oregon University has shuttered its business center that was considered important to creating new companies and jobs in rural Oregon, sending some of the work to Ontario. The Small Business Development Center in LaGrande until recently was managed by Greg Smith, Republican state legislator from Heppner and self-described business expert.  Officials said the work of coaching entrepreneurs, providing public trainings and helping arrange business financing is being shifted to similar business centers at Treasure Valley Community College in Ontario and Blue Mountain Community College in Pendleton. The closure, which came without any public announcement by the university, follows a months-long investigation by the Enterprise into Smith’s operation of the center. His company was under contract at $138,936 a year to do so. EOU officials terminated that contract as of Oct. 15 in a decision “not made lightly,” they told Smith. The business center in recent months was run mostly by student interns paid by the university. It closed Oct. 31, its website removed and its phone disconnected, university officials confirmed. Smith’s team had been reporting the center was far from reaching goals for people served, jobs created and business financing placed. University officials praised Smith’s work even as they ushered him out the door. “The training, resources, and personalized guidance provided to aspiring entrepreneurs and established business owners alike have been of the highest quality,” according to an Aug. 2 letter to Smith. Officials in charge of the program provided little explanation for ending Smith’s operation, in place for 20 years. “The region’s service map is inefficient in delivering resources, and discussions indicated the need for revision to better serve small businesses,” according to an email on Tuesday, Nov. 12, from Justin Montgomery, EOU’s communications manager. Montgomery said university officials and the state office that oversees the business centers “decided it would be best to look at a regional model” for business help, using the Ontario and Pendleton community colleges. “With discussions completed and plans in place to move forward, a news release is going out this week,” Montgomery said. Eastern Oregon University until recently had been recruiting a new director for its center, intending that leader to be an employee instead of a contractor. University officials for months have resisted or ignored inquiries from the Enterprise regarding the business center and Smith’s performance. Last month, Union County District Attorney Kelsie McDaniel issued five separate orders to the university to turn over public records it was withholding from the newspaper. University President Kelly Ryan and Scott McConnell, Business College dean who supervised the business center, declined interview requests and didn’t respond to written questions. Mark Gregory, director of the Oregon Small Business Development Center Network, more than a week ago said he would answer written questions but hasn’t. He said by email on Thursday, Nov. 7, that he would issue a press statement “at the end of this week” explaining developments but he didn’t. The business center is one of 20 that operate out of community colleges and universities around Oregon. They are jointly funded by the U.S. Small Business Administration, Business Oregon and the host school. The collapse of the LaGrande center is the latest debacle in government programs managed by Smith. For years, he served under contract as Malheur County’s economic development director. He quit that role in 2022 over questions about his performance and then walked away from managing the Treasure Valley Reload Center. That project subsequently was brought to a halt by state officials because of excessive spending and an uncertain business plan. Smith also serves as full-time executive director of the Columbia Development Authority in Boardman. The authority is in charge of turning a former Army military base into industrial base for local employment. His service there recently has been questioned, and the board he reports to in September stripped him of a $66,000 increase to his $129,000 salary. The board members moving for the reduction said Smith misled the board earlier to get the raise. Kelly Ryan, president of Eastern Oregon University, speaks to her board in Baker City on Monday, Aug. 13, 2024. She declines to answer questions about the university’s unusual relationship with a state legislator. (LES ZAITZ/The Enterprise) CONTACT: Editor Les Zaitz – [email protected]. STORY TIP OR IDEA? Send an email to Salem Reporter’s news team: [email protected]. A MOMENT MORE, PLEASE– If you found this story useful, consider subscribing to Salem Reporter if you don’t already. 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