Friday, November 23, 2018

City's Agreement with MedHab Nears Expiration

The City of San Angelo's economic development agreement with MedHab LLC will expire January 1, 2019.  City Council approved the $3.6 million incentive package on January 3, 2012 and the approved the contract seven months later.  The city had high hopes for significant job creation which can be seen in estimated impact of 75 new jobs (with up to 227 total).

The City projected an annual economic impact of $9.9 million.

The 2014 Annual Report for the Development Corporation stated:

Under that agreement, MedHab LLC will locate its production operation in San Angelo, create between 75 and 227 full-time qualifying positions, and relocate its offices to the Incubator Annex at 2009 W. Beauregard Ave., which was accomplished in December 2012.
To date MedHab has not had the projected impact on San Angelo employment.  The company accepted three years of free rent but has not accessed any other incentive provided in the contract.

Several months ago both the Development Corporation and City Council took up MedHab in executive session.  City officials shared nothing in regard to those discussions.  What happens on January 1, 2019?  Does MedHab, with its promising fall detection device for seniors, walk away from the City of San Angelo? 

No comments: