Saturday, August 18, 2012

MedHab's Back on City Council Agenda

San Angelo's City Council will consider executing an economic development agreement worth $2.8 million in cash to MedHab LLC.  This is follow up to Council's initial action which approved a $3.6 million total package.  The $800,000 dollar difference is in noncash subsidies, a substantial benefit that does not require the city to cut a check, but still costs taxpayers...

Two leaders, Mayor Alvin New and City Manager Harold Dominguez were absent when City Council took up economic development incentives for MedHab LLC in early January.  Mayor New was in Australia, while Harold dreamed of the Colorado Rockies, even though he was physically present.

With his mind fogged by high altitude visions, Harold allowed city staffers to misrepresent the Mayor's Board of Director position with MedHab as purely advisory.  Board members have a much higher fiduciary duty than mere advising.

In addition Harold failed to produce signed affidavits spelling out the Mayor's declared conflict of interest. Council quickly covered New's investment backside by changing conflict of interest standards such that MedHab could garner economic development money without New having to shed his MedHab stake or resign his Mayoral role.

That brings us to August 21, when Council will consider the $2.8 million nondebt, nonequity capital injection, courtesy of San Angelo taxpayers.  Time may show how these funds help the Mayor's investment.  Then again, it may not

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