Brownwood City Council took the first step in converting the Brownwood Economic Development Corporation from a type A to a Municipal Development District (MDD) at Tuesday’s city council meeting.
Council voted unanimously to order a special election in the City of Brownwood, to be held on May 7, 2016, for the purpose of submitting a proposition to qualified voters in the city to terminate the Brownwood Economic Development Corporation (Type A) and the abolition of its sales and use tax (used for promotion and development of new and expanded business enterprises) currently at the rate of one-half percent, and concurrently authorizing the creation of the City of Brownwood Municipal Development District with the imposition of a sales and use tax within the incorporated city limits at the rate of one-half percent for the purpose of financing development projects beneficial to the district.
According to City Manager Emily Crawford, conversion of the BEDC from a Type A to a MDD has been discussed for several years by the EDC Board of Directors, staff and mayor. It also is included in the BEDC’s strategic plan. At their January 19th meeting, the BEDC Board recommended to the city council to call a city election to transition from the type A economic development corporation to either a type B economic development organization or a municipal development district, determined by the council.
City staff and the mayor have studied both options and recommended an MDD, which provides the most options for economic development projects and which can be administered very similarly to the existing type A. An MDD can fund all the projects that a type A EDC can fund (primarily the creation or retention of primary jobs related to industrial and manufacturing), plus all the projects that a type B EDC can fund, which is all type A projects plus certain community projects, such as parks convention facilities, affordable housing, and etc. along with retail projects and a civic center hotel.Crawford stated that the plant managers of major industrial companies in Brownwood, 3M, Kohler, and Superior Cable were all in support of this change and were familiar with such development districts, having business in larger metropolitan cities which have these districts in place.
Crawford explained, “Guy (Andrews) and I have spoken to the major employers in the industrial area, Superior, Kohler and 3M and the plant managers were very supportive of the conversion. We wanted to make sure that they knew this would not be watering down the industrial application of economic development in the city of Brownwood. They did understand that and felt strongly that the additional opportunities that would be provided to us through the MDD would benefit them as employers through the recruitment of employees, through providing additional amenities which would benefit their employees and their families, they felt that those were very important to them as major employers and that the city continues to grow in many diverse ways.”
Mayor Stephen Haynes stated that he spoke of this conversion at the State of the City address last week as well as at a local Kiwanis meeting and that he had not had any negative feedback. He wanted to clarify that the conversion would take place on the passing of the proposition which would be simultaneous and that there would not be a new tax created by the conversion. It is the same amount collected as the MDD as it was with the EDC and no more. The type A EDC was developed in the 1990s.
Councilman Larry Mathis commented that this is a good move to convert the EDC.
“In the session that I went to regarding this very thing, both cities large and small that had made this transition were extremely satisfied. Some of those cities became this when it first became an option and have been under it, and are so complimentary of the difference it had made in the communities and businesses infrastructure of those communities. So I think there is no question that this is clearly the right move for our community.”
Mayor Haynes clarified that no conversion had taken place with this vote, that his was the first step in the process.
“I point out for the benefit of everyone, that this is only the first step in the process that obviously, it is something that the voters have to approve,” explained Haynes. “It is our job to put it out there for the voters to consider.”
In other matters on Tuesday’s agenda:
*Council discussed the Hazard Mitigation Plan
*Council awarded a 218 acre agricultural lease at 202 FM 45 West, also known as the Bartholomew property to Jody Kate. The lease was awarded after sealed bids were requested and Kate’s bid was the only one received at $10/acre, $2185.27/year. The lease will be a 2 year term, ending on January 31, 2018, to coincide with the hunting lease on the same property in order to better manage the property.
*Council approved a three-month agreement with Wayne Clark to trap and remove hogs from the Pecan Station Property. According to city officials, Clark is in the process of contracting with the USDA to remove wild hogs from their adjacent property. Evidence of and damage caused by these wild hogs has been seen at the Pecan Station and neighboring tree farm. Clark will hunt without dogs or guns and will not charge a fee. The agreement will run through April 30, 2016.
*Council approved a revision to the economic development incentive agreement between the BEDC and Leeco Energy & investments, Inc. (Formerly Leeco Properties, Inc.) to increase the cumulative minimum taxable sales for the three (3) year period from $11,500,000 to $12,000,000. This incentive increase is due to the increased cost of construction following site plan finalization, Leeco is asking for an additional $40,000 to cover the increase in utility infrastructure. The site is the Shoppes at Pecan Bayou, which will include the Cotton Patch Restaurant and McAllister’s Deli.
*Council ratified Mayor Haynes’ appointment of Glenn Williamson to the Building and Standards Commission to fill a vacancy left by Jerry Don McSwain. Williamson currently serves as the Administrator and Facilities manager at Coggin Avenue Baptist Church and has since April 2011. Prior to that, he was employed at Superior Cable for 33 years as a Senior Process Engineer. Williamson is a 1968 graduate of Brownwood High School, and attended Texas Tech, graduated from Angelo State University in 1972 with a degree in Business Administration. He served on the board of directors for the First Central Credit Union since 2008 and prior to the merger, the Superior Cable Credit Union since 2001. Mr. Williamson has also taught the 10th grade boys Bible classes for 23 years. He is married to Janette Williamson, and they have three grown daughters and seven grandchildren.
