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Section A: General News


FEDC board OKs $2.1M loan for sports complex


FEDC board OKs $2.1M loan for sports complex
Tara Chumley (standing) of Government Capital Corp. answers a question July 23 posed by Floresville Economic Development Corp. board member Juan Ortiz (center) as attorney Chris Hugg of the Law Offices of Louis T. Rosenberg looks on.


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Wilson County News
August 1, 2012
3,987 views
29 comments

FLORESVILLE -- While final terms and other specifics are still in the works, the Floresville Economic Development Corp. (FEDC) voted July 23 to borrow a total of $2,311,374 from Government Capital Corp.

The sum includes $211,374 that would help the corporation refinance the balance of a Wells Fargo bank loan that paid for the El Rancho Grande Industrial Park property in 2001. FEDC Executive Director Jesse Perez said the corporation’s balance on the loan, on which the FEDC pays variable-rate interest that currently is at 4.6 percent, is $297,374. Refinancing the loan at 2.823 percent would save as much as $13,000.

Payoff on the $211,000 loan would be in four years, according to Tara Chumley of Government Capital Corp., who was present for the meeting.

The remaining $2.1 million relates to the Floresville City Council’s June 21 action in which it voted for the FEDC and City Manager Andy Joslin to develop an alternative way to fund parks improvements and expansion. This was on the heels of a citizen-led petition in which voters requested that a proposal to issue certificates of obligation to fund a sports complex be put to a vote in November. Despite receiving more than the required number of signatures on the petition, the council still has not voted to order an election.

The sports complex project has taken on many manifestations in conversations both on Facebook and within Floresville City Council meetings. But aside from concept drawings created by consultant John Longoria, no formal plans have been created or approved for the complex or for any park improvements.

Perez told the board, “What I can’t give you right now is what the project will look like, because I don’t know.”

Both loans will be repaid from proceeds of the FEDC’s half-cent sales tax, as referenced in the approval of a formalized sales-tax remittance agreement that documents the city’s obligation to remit the corporation’s share of reimbursed funds it receives from the state comptroller’s office.

The final decision on the loan package rests with the Floresville City Council, as Section 21 of the Development Corporation Act of 1979 requires the council to approve “all programs and expenditures of the corporation and annually review any financial statements of the [FEDC].

Also in the act, Section 4B, subsection 3 indicates that the FEDC cannot undertake a project requiring an expenditure of more than $10,000 until the council “adopts a resolution authorizing the project after giving the resolution at least two separate readings.”

But the actions taken during the FEDC’s July 23 meeting are voidable under the Texas Open Meetings Act. Section 551.056 of the act requires economic development corporations that maintain websites to post meeting notices online at least 72 hours before the meeting is set to begin. While the city of Floresville posted an agenda on its site for the July 23 meeting, the FEDC did not.

Therefore, under Section 551.141 of the Texas Open Meetings Act, “An action taken by a governmental body in violation of this chapter is voidable.”

For more on the FEDC’s violation of the Open Meetings Act, see related article, page 3A.

Floresville Economic Development Corp. (FEDC)

July 23 special meeting

In attendance: FEDC board members Sarah Mendoza, Fred Gonzales, Becky Silva, Freddy Amaro, David Longoria, Juan Ortiz, and Dino Cantu; Executive Director Jesse Perez, Attorney Dominic Carvajal; Floresville City Manager Andy Joslin, Mayor Daniel Tejada, Councilman Sherry Martinez Castillo, and Attorney Chris Hugg of the Law Offices of Louis T. Rosenberg.

 

Your Opinions and Comments

 
Small Town Girl  
Floresville  
August 8, 2012 10:23am
 
Down town resident; I thought you had turned over a new lease on life? How wrong I was. You are back to your old self. But that's ok, your mayoral candidate will not win and you will be out of the FEDC. Someday it will ... More ›

 
Connect the Dots  
Floresville  
August 8, 2012 7:51am
 
The chair of the FEDC. How very very cute! We could tell it wasn't Fred, because ther were no poorly- used big words being thrown around! So we have one with no grasp of the English language, but places the Word of the Day ... More ›

 
Duvall rewind  
overdue,Tx.  
August 7, 2012 9:36pm
 
DTR or SM you need to stop before you get in over your head. The people whose pot your stirring know who you are.

 
Down town resident  
Floresville  
August 7, 2012 8:32pm
 
You haters are so full of distorted facts and state outright lies,like Tyra said and now she says that that FEDC is in cahoots with her also. With all the mistruths you haters spew out when something you do say is true no one ... More ›

 
LarryJohn  
La Vernia  
August 7, 2012 8:13pm
 
Tyra, How has that worked for you ?

 
Tyra  
FloTown  
August 7, 2012 6:33pm
 
Larry John, we have given solutions. Here it is... no sports complex and fix what needs to be fixed in our town. Streets, sewage, water plant, water tower, internet; the list goes on and on. What more do we need to do? This ... More ›

 
Be Careful  
Floresville, TX  
August 7, 2012 4:45pm
 
FEDC collected the most ever at $456,442 in sales tax for FY11. The total expenditures was $927,696 in FY11; $705k in FY10; $650k in FY09; and $435k in FY08 (plus $1.5M loan), and $477k in 2007. Both Economic Development Corporations ... More ›

 
LarryJohn  
La Vernia  
August 7, 2012 3:17pm
 
One Voice NO

 
One Voice  
Floresville  
August 7, 2012 2:58pm
 
Larry - you are kidding-right??

 
LarryJohn  
La Vernia  
August 7, 2012 1:32pm
 
Excellent comments and complaints. BUT -- I have not heard any ideas or suggestions on how to fix the problems.

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