4 Jan 2023 Type A boards were established many years ago to promote economic development with the primary focus on manufacturing and industrial projects. Type B boards were added in the 80s with a more varied economic project listing and with some different administrative regulations.
5 Jan 2023 Over the past several years, the A board has conveyed property to entities without either an economic development plan or a right of reversion, or both.
In one case there appears to have been an economic plan. The board purchased a property on behalf of the plan and sold, at a loss, to the economic development. Without a right of reversion, when the developer did not fulfill his plan, he was able to keep possession of the property. Although the purpose of the EDC does not include placing properties back on the ad valorem tax role, it is a minimum benefit to the citizens. This case did obtain that.
In another case the board sold a property and a facility(ies) to a non-profit. Not only were no jobs created, no economic development planned and consequently no right of reversion; the property is no longer on the tax roll. The project was neither industrial or manufacturing and maybe contrary to the purpose of the A board according to Local Government Code Chapter 504. I cannot verify if the property sale complied with Local Government Code Chapters 253 or 272.
The third case involves the sale of a property and building with no economic plan and no right of reversion. The property previously had an investor that inquired, proposed an economic plan and made an offer. He was rejected. Less than 12 months later the property was sold to another entity for less, without a plan or a right of reversion. I cannot verify if the property sale complied with Local Government Code Chapters 253 or 272. In the several months since its sale, the only apparent economic action has been to reduce the tax value of the property approximately 40% of its sale price.