Friday, May 08, 2015

Hirschfeld Wants Out of Economic Development Deal

Hirschfeld Energy informed the City of San Angelo Development Corporation it wanted out of the economic development deal reached in 2009.  Hirschfeld officials requested termination of the agreement and negotiation of a settlement via e-mail on September 30, 2014. 

City Council met a number of times on this subject.  On March 11, 2015 the City announced it would take legal action against Hirschfeld regarding the agreement.  It hired Cowles & Thompson, a Dallas law firm with an initial retainer of $5,000.  City leaders signed the contract with the law firm on February 2, 2015.

Internal documents show the City and Development Corporation asked for

1.  Job creation and retention repayment for failing to grow jobs and retain them for three years.  Hirschfeld Energy lost jobs in 2011 and 2012.  The City seeks roughly $365,000.

2.  Repayment of tax rebates provided by the City of San Angelo in the approximate amount of $266,000.

3. Both the City and the Development Corporation provided Hirschfeld funds for land, buildings and infrastructure.  COSADC seeks $1.5 million, while the City of San Angelo requests roughly $280,000.

These requests total $2.4 million.  A contract is as good as someone's word.

Hirschfeld's website states:

We stand behind our work and what we do.
 We shall see.

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