Trickle Down: Elections, Projects & Jobs (?)

Commerce Secretary Howard Lutnick said bitcoin miners would locate above natural gas fields, using the flared gas to generate power.  He also said government needed to assist in the development of such infrastructure (buildings and associated power plant).    

Lutnik's son Howard has a major role in a new bitcoin company, while the Trump boys AI venture switched over to bitcoin mining, American Bitcoin.   The Sons of Monarchy expect concierge service.

Both the City of San Angelo and Tom Green County have been very accommodating to new energy sources (solar, battery storage) and I expect the same to happen with Skybox Data Centers.  So far, the city and county have given significant tax breaks to projects providing zero to just a few jobs.  That likely will continue.

So who would facilitate development in our region?  It would have to be someone with access to resources.  That usually means a municipality, given the sparseness of county government in our region.  City managers and Mayors have development staff, resources and budgets.  

The City of San Angelo holds elections next week for the Mayor slot and three City Council seats. 

Current City Councilman Tom Thompson is running for Mayor on economic development.  His website states:

Economic development encompasses housing, commercial growth, and public-private partnerships, all aimed at sustainable tax base expansion. 

We must prioritize welcoming new opportunities and streamlining development processes. Collaborative efforts with the Chamber of Commerce and Direct Marketing Organization are underway, and over $40 million in permitted commercial expansions and improvements are scheduled. We will pursue public-private partnerships to accelerate economic development and ensure tangible benefits for our community.

Thompson did not mention Council's strange conflict with the Chamber of Commerce's Walt Koenig or their heavy handed treatment of John Bariou, who did much for the Economic Development Board during his multiple stints.  Bariou is running for City Council District #2 (Thompson's current seat).

Candidate Thompson pulled a page from former Mayor Alvin New's playbook in targeting area nonprofits as non-taxpayers.  He should recognize the city fits that bill, as does his prior employer for ten years, the San Angelo Rodeo Association.

Council left millions on the tax table (Peregrine Energy Battery Storage Farm) before foisting two new health insurance co-pays on city retirees, many struggling on a miniscule fixed income.  

Thompson said "economic development is crucial for maintaining and lowering tax rates."  How about applying those rates to new commercial entities, especially those of the jobless variety.

Tom Thompson's Public Safety Push: Animals Not Included

San Angelo Mayoral Candidate and current Council member Tom Thompson is focused on public safety, at least the departments that don't involve stray animals.  Police and Fire need to expand to serve the community as it grows.  The power vested in the Mayor is chairing City Council meetings and hiring the City Manager.  Should Thompson win, he would need the majority of Council to direct staff to prioritize the development of Police and Fire Departments.  

Animal Services is the third wheel in public safety.  I suggested in June 2022 that City Council consider Animal Services in their strategic planning sessions, providing Council members data from public information requests.  That did not happen, even though the suggestion fit with Thompson's "need to keep pace" public safety vision.

Just days ago, Animal Shelter contractor Concho Valley PAWS sponsored an animal focused candidate forum which Thompson could not attend due to prior commitments.  He did however send a written statement.  

PAWS served as the shelter's adoption coordinator and veterinary services provider for at least seven years.  PAWS has been there for the various crises, including the roach infestation/horrific hoarding conditions (September 2022).   Tom Thompson instructed staff in its aftermath to implement a hard cap on shelter capacity (November 2022).  He did so during a City Council meeting informational agenda item, one that required no vote.  

Thompson's letter cited funds set aside for Animal Shelter renovations, which Council clearly stated just gets the existing building to a functional state and does not take into account people or pet population growth.  

Should a candidate be proud of approving borrowing $1.6 million in early 2023 for a project that is yet to be bid over two years later?  

The city already had a $345,000 capital budget for shelter improvements when Council approved the first short term debt borrowing.  That makes up the majority of Thompson's "$400,000 in sales tax" money for the project.  

Tom Thompson has a record on public safety.  He's lucky animals can't vote.  

Update 4-29-25:

Leadership grounded in facts, absolutely.

Shelter Renovations: Projected Completion February 2026

City staff updated the Animal Shelter Advisory Committee on the status of shelter renovations.  San Angelo City Council approved borrowing $2 million in early 2023 as the need for the project was urgent.  

Shelter Chief Morgan Chegwidden referenced that borrowing in her ASAC presentation.  Does that mean the city paid interest over the last two years for a project that is still in the engineering phase?

Morgan shared there would no commercial laundry equipment as the city had difficulty arranging maintenance of those washers and dryers.  She said there would be a cost associated with additional electric service due to AEP's need to add capacity to ensure the new HVAC system could operate properly.

Construction Manager Al Torres indicated the engineers need three months to finish the updated electrical and he expects City Council to approve the project in their first meeting in August with construction starting that month.  If that schedule holds, it would be two years since the City paid back the first bond intended to fund this project.  

Torres expects shelter renovations to be complete in February 2026, three full years after City Council approved funding this urgently needed project.

Staff indicated there have been issues with the temporary shelter and getting that building ready.  Torres shared that the temporary facility would be finished in August, just in time for renovations to start on the existing shelter building.  He is working with a Buyboard contractor on the temporary shelter plans.  

Morgan stated that shelter staff is not sufficient to do enrichment (supervise play yards) at the main shelter and did not see availability to add enrichment at the temporary shelter site.  Later, Morgan revealed that shelter pets "do not go outside" under current facility operations.

It remains to be seen what comes before City Council as the main shelter renovation planning continues and the temporary shelter is made ready.  Many Council positions will change after the May election is concluded.  Departing Council members heard repeated missed timelines.  Hopefully, that won't be the case for newly installed officials.

City of San Angelo to Subsidize Railport Outside City Limits

City Council will consider a two step move to facilitate the further development of the San Angelo Railport.  Step one is to sell city land to the Development Corporation for $1.4 million.  Step two is for Wisener Holdings, LLC dba South Plains Lamesa Rail Road, to pay $1 million in cash and for the remaining $400,000 subject to repayment under an economic development agreement.  

Council's background packet states:

COSADC will carry a loan for $400,000 payable over 5 years at $80,000 per year. Loan payments will be offset at a rate of 50% for capital investment in infrastructure improvements to the property.

If the Railport owner spends $160,000 per year on capital improvements over the next five years the city would forgive the $400,000 loan.   What are Weisner Holding's plans regarding capital improvements?  Surely, they have a budget for such.

The Railport is outside City limits so there are no taxes received by the City of San Angelo for the project.  City staff's background information makes no projections as the number of jobs added, a key goal of the Development Corporation.

This could be the second major subsidy for a capital project that provides no discernable direct jobs.  Council approved an 85% three year tax break worth $2.2 million to Zeppelin Battery Storage.  At least that project is within City limits.  

The item is included in the Consent Agenda, which means a member of Council needs to request it be moved to the Regular Agenda for the public to receive a staff presentation.  Even with such a request, a presentation is not assured.  

Hopefully, an astute member of City Council will pull the item to clarify who is actually paying closing costs.  The following is stated in one place:

The purchase price from the City will be the approximate appraised value of $1,400,000 plus closing costs. The sale price to SPLRR will be $1,400,000 plus closing costs.

Later the packet states:

Net cost is $400,000 plus closing costs.

In the end, who is paying those closing costs?

Why should the public be concerned?  Because not long ago Council required City retirees to pay an additional $500 annual deductible and an additional $250 co-pay for outpatient surgery.  

Two weeks later Council approved the initial tax abatement request from Peregrine Energy for the Zeppelin project.  That abatement was finalized last meeting.

West Texas is front and center for energy and projects requiring energy.  Council approved a letter of intent to sell land close to the Railport to Skybox Data Centers.  A new data center has the potential to create jobs.

The three new projects, Battery Port, Rail Port (expansion) and Data Port are in close proximity.  It remains to be seen how much citizens will subsidize Skybox's data center, but the first two total $2.6 million.  City retirees may be concerned about giveaways that could have been used to keep their coverage stable with no increases in insurance costs.

Update 3-31-25:  The Development Corporation approved the Railport land subsidy and indicated the operator "will spend alot more than $400,000 on improvements."  That left the impression that the interest free loan will be forgiven in total.

Update 4-1-25:  The $400,000 subsidy passed alongside other items in the Consent Agenda.

Update 4-17-25:  City Council approved a budget amendment of $1.4 million for the Development Corporation to purchase the land from the city.

Bite Investigations Continue to Rise

The Animal Shelter Advisory Committee met today and shared statistics for the first two months of 2025.  Bite investigations are included on a slide relative to Animal Control cases (not in the background packet).  I went back to the January 2025 video and added statistics for the last three months of 2024.  Animal Control Officer Floyd Bias was attacked by dogs in early November of last year and recently returned to work.

Animal to Human bites rose significantly last fiscal year.  

The number of bites since the 2024 fiscal year end is 180 (over a five month period) or 36 bites per month.  Annualized that number would be 432 and would be off the chart pictured above.

Public safety has been a concern in other communities that have shut off shelter intake under Best Friends Animal Society & American Pets Alive policies.  "Let them roam unaltered" has been the result from implementing BFAS and APA practices.  

Last month San Angelo City Manager Daniel Valenzuela reversed shelter "shut off" in the interest of public safety.

Hopefully, efforts can be undertaken to reduce the number of horrific dog attacks experienced by the city's most vulnerable.  

Shelter Chief Morgan Chegwidden informed the ASAC that 76% of dog to human bites result from unaltered male dogs.  

That seems like a good place to start.

Update:  Morgan said "88% of pets coming into the shelter are unaltered."  Managed intake of owned and unowned pets started in 2019.   Six years of BFAS and APA, neither of which prioritize spay/neuter, drove "let them unaltered", which turned San Angelo city streets into third world levels of loose dogs.  A better statistic to share is how many pets leave the shelter fixed, spayed-neutered. 

ASAC committee members asked about the status of shelter renovations/updates and the projected use of the temporary facility.  Funds were received in April 2023 to pay for shelter updates but the project is yet to be bid.

Near the end of the meeting Morgan said that "most bite investigations are animal to animal."  That means the last five months of data has a wider scope than the animal to human bite information in the graph.  The two are not directly comparable.

It can be a challenge monitoring a measure given staff's history of changing the measure's definition/calculation or shifting presentation content over time.  The good news is the city has the data and a strong public communications department.  It can publish results in picture format at any time for the public to view.

Zeppelin Tax Break

San Angelo City Council will consider approving an 85% tax break for three years for the Zeppelin Energy Storage project on 28th Street.  A private equity firm, Peregrine Energy, is behind the project.

The tax abatement agreement has a start date and an end date.  

“Effective Date” shall mean the day after the later of the full execution hereof by all of the Parties. 

“Expiration Date” shall mean March 1 of the calendar year following the expiration of the last of the tax abatements provided herein.

There is no ten year term with a commitment by Peregrine to pay $4.1 million for years 4-10.  Future taxes will be based on value of the asset in year four.  

The IRS allows accelerated depreciation (five years) for some energy projects: 

Owners of qualified facilities, property and energy storage technology placed into service after December 31, 2024, may be eligible for the 5-year MACRS depreciation deduction.

Council persons should recognize the projected ten year tax revenue may not materialize as they consider offering the Zeppelin Battery Storage project a massive 85% three year tax break.  

City Council may wish to consider other obligations such as retiree healthcare.  Last year Council decreased health benefits for retirees, impacting those with the least ability to pay greater "out of pocket" costs.  They may desire to reverse that change with Zeppelin tax proceeds.   

Update 3-18-25:  City Council approved the tax abatement 7-0 in today's meeting.  There was no public comment.  Mayor Brenda Gunter asked for the abatement number.  Assistant City Manager Michael Dane said it was around $2.2 million.

Best Friends Bigwig Brings Game

Best Friends Animal Society's Senior Director of National Programs Brent Toellner met with City Manager Daniel Valenzuela last week.  Their meeting occurred the day after a contentious public comment session at City Council.  Numerous Concho Valley PAWS supporters opposed the recent change to open up shelter intake in an effort to get loose dogs off city streets.  

Toellner referred to the change:

...pets won't be denied entry into the shelter and that there should be no one told to drop a dog back on the streets or to just "let them roam". 

This is all fair policy and supported by Best Friends Animal Society and proven best practice.

The problem is Best Friends has been advising the shelter all along.   In their numerous site visits and other consultations there has been no evidence that BFAS found any concerns with the shelter's actual practice, "Let them roam unaltered (and hope no one is harmed)."

Also, Toellner recommended the parties responsible for shelter management for the last seven years work on "eliminating public confusion," caused by BFAS partner Concho Valley PAWS.

The City of San Angelo can be quite recalcitrant, sticking to its dysfunctional ways long past any reasonable call for change.

The Best Friends gang brings slick talk and bags of money.  Imagine sticking to your bureaucratic guns (no service for you!) and getting a new pot of money (or the chance to jettison a significant pesky expense).  That may be in our near future.

An Animal Taskforce is working in parallel track to the Shelter-BFAS-PAWS behind the scene machinations.  The Taskforce is addressing the problems caused that very collaboration (which shut off intake, failed to enforce pet ordinances and failed to ensure citizens microchipped or spayed/neutered their pets).

This recent Best Friends contact with its "other follow up items" could be concerning. Remain aware for what city leaders do next.  Will it be an RFP, the acceptance of a proposal or a letter of intent?  Time will reveal.

Update 3-14-25:  BFAS has a playbook and the game in San Angelo is well into the second half.  For a reminder of what Best Friends did in the first half: