Friday, February 02, 2018

Development Corporation: Available Funds Balloon for 2018

San Angelo's Development Corporation received a windfall in its January meeting.  First, TimeClock Plus returned $326,000 in incentives in return for the city cancelling the economic development agreement.

Second, COSADC's board approved adding $650,000 in improved sales tax revenue expected this fiscal year to the budget.  This move eliminated the odd discord in sales tax projections between the City and Development Corporation.

Improved sales tax and the TimeClock Plus refund means COSADC has nearly $1 million in extra funding to mobilize.

Third, MedHab's $3.6 million economic development agreement will expire August 2018.  The Development Corporation projected MedHab would use $796,250 to ramp up Steprite production.  That hasn't happened in the last five and a half years.

Nearly $1.8 million in Development Corporation funds could be re-purposed this year.  That makes the January 5, 2018 COSADC board strategic planning meeting more important.  Unfortunately, this meeting was not recorded for the public to view.  City Staff wrote:

The meeting for 1-5-18 was a workshop that was held at the BRC, it was not a meeting recorded by our Public Information team.
PIO Anthony Wilson created an expectation that new video equipment would enable the city to record meetings held outside Council Chambers in August 2015.  At the time Public Information staff estimated equipment cost at "up to $325,000."

Wilson sold Council by saying the new system would allow them to video meetings in rooms outside council chambers.
The city has the capability to keep the public informed of board strategic planning discussions.  It chose not to do so for the Development Corporation which looks to have roughly $2 million in extra funding.

Update 2-3-18:  TimeClockPlus announced an executive change.  Ernie Nabors replaced Jordy Moorman as President of the company.  Moorman served in that role for the last three years.

Update 2-11-18:  Economic Development Director Roland Pena resigned his position effective at the end of February.

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