Tuesday, September 19, 2023

City Council Funds $2 million for One Nonprofit, Rejects $69,000 for Another, Opens $25,000 Door for Third


San Angelo City Council approved $2 million in  Development Corporation funds for Angelo State University but denied a $69,000 request for TIRZ funding for a north-side nonprofit.  In closed session Council opened the door for the Railway Museum, another local nonprofit, to receive $25,000 in Hotel Occupancy Tax funds.  The Railway Museum's board chair is Suzanna Valenzuela, wife of San Angelo City Manager Daniel Valenzuela.


In the presentation Assistant City Manager Michael Dane referred to Angelo State University as "not a traditional taxpaying entity."  The $2 million in Development Corporation funds would go toward facilities for ASU's Pilot Training Program.  


TIRZ Board Chair Jon Mark Hogg regretted rising to speak on behalf of the Martin Luther King Avenue nonprofit, Gethsemane Missionary Baptist Church.   He felt he inadvertently hurt the applicant's chances of approval.  Mayor Gunter raised her concern of the TIRZ board not endorsing Chadbourne Street "street-scaping" North of the freeway.  Council Tom Thompson raised the specter of nonprofits coming out of the woodwork to apply for TIRZ funds should this one be approved.  Thompson voted no for this reason.  Neither the Mayor's or Thompson's concern dealt with the merits of the project as submitted by the applicant.

Over the last year this City Council has gotten cross-ways with the Development Corporation Board and TIRZ board.  Several years ago Council put the Railway Museum Board in its place.  One could view it as progress that two out of three received Council approval today. 

The City Attorney almost directed City Manager Daniel Valenzuela to work out an agreement with the Railway Museum where his wife is Board Chair.  She corrected herself and steered the job to Assistant City Manager Michael Dane.  Dane is taking on multiple roles as Interim Economic Development Director as the search to date has been unsuccessful.

Two nonprofits went at least one step forward, while one received its second rejection from this City Council.  The TIRZ board and development staff want "qualified organizations" to apply for funding.  A minority of City Council members are not helping them.

Update 9-26-23:  The Development Corporation will consider a $29,700 economic development incentive for Lip Chip LLC.  Their facility will be outside San Angelo city limits.

Update 9-28-23:  The Development Corporation approved the $29,700 incentive for Lip Chip LLC and the item will go to City Council for approval.

Update 10-3-23:  City Council approved $50,000 in hotel occupancy tax funds for the San Angelo Museum of Fine Arts.

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