Monday, October 03, 2016

Council to Take Up Development Corporation Items

San Angelo's City Council will consider three items from its Development Corporation in the consent agenda for its October 4, 2016 meeting.

First, the City of San Angelo must spend $2.4 million to make $1.2 million off an Industrial Park land sale.  City Council documents state:

On Wednesday September 28th with a vote of 5-0 the COSADC Board accepted AEP Texas North Company's offer for 52+/- acres of land in Phase 2 of the Industrial Park at a purchase price of $1,196,000 or approximately $23,000 per acre and authorizing the Board President to negotiate and execute a real estate sales contract in substantially the same form as attached.

The proposed sales contract will require that COSADC provide all utilities to the property line and jointly with the buyer address all City of San Angelo storm water requirements to allow development of the property. The preliminary engineer’s cost estimate is approximately $2.4 M to minimally extend Gateway to a new cul de sac, minimally extend utilities to serve the project and provide all storm-water improvements for Phase 2 of the Park.
Second, Council will consider approving the agreement between the city and the development corporation for staff services:

Consider ratifying COSADC's approval of the City of San Angelo Agreement for Provision of Administrative Services for FY 2016 and FY 2017 in the amount of $471,273.59 for FY 2016 and $513,677 for FY 2017
Oddly the agreement never mentions a critical COSADC bylaw requirement, the production of an annual report.  The city's website does not host an annual report from any year for the development corporation.  One exits for 2011.  The 2012 report was given in October 2013.

The city conducted a compliance audit for fiscal year 2013.  That arrived in November 2014 but the city refused to post the document.  However, it is available here.  It paid local accounting firm Armstrong Backus $1,175 for a contract compliance audit.  The COSADC board approved the disbursement in its February 2016 meeting.

There's been no presentation of an annual report or compliance audit since 2014.  In February 2015 City Councilwoman Charlotte Farmer asked the Sales Tax compliance audit be made public, possibly at a future meeting.  

Third, COSADC will recommend to City Council concerns air service marketing.  The Development Corporation approved the hiring of KSA Engineers for up to $63,000 for air service marketing and recruitment services.   KSA's website had this to say about an earlier effort to add an airline at Mathis Field.

Over the past few years, the San Angelo Regional Airport has undergone significant improvements and more are on the way, including efforts to attract additional airline services and major renovations of the terminal. We are currently working to address a number of air service issues, such as the lack of jet service, need for airline choice and passenger frustration over canceled or delayed flights. These issues are prompting some people to drive to their destination or to other cities’ airports, and that is a serious concern for us and the community as a whole.  June 2, 2011
In August 2014 San Angelo Live reported on KSA's involvement in airport service development for nearly $80,000.  That was in the midst of the oil boom. 

Anyone wanting to watch how the Development Corporation handled these items can do so here.  I found it interesting that several items were taken from public presentation to executive session, meaning the public did not get to hear staff recommendations or hear officials questions, concerns or discussion on the items.  We'll see if this is a one time event or becomes a pattern.

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