Karla Clark
Jacksonville Daily Progress
JACKSONVILLE —
Jacksonville city officials have provided little oversight of the Jacksonville Economic Development Corporation's handling of roughly $1 million annually in taxpayer money.
JEDCO's failure to get city council approval before awarding economic development grants to local businesses appears to violate state law.
On Monday, JEDCO President Darrell Prcin said in an interview that development projects must go through a three-step process before getting final approval.
First, clients go to the Economic Advisory Council (EAC), provide information about their business and make a formal request, he said.
“The EAC goes through their vetting process and in turn makes a recommendation to JEDCO,” he said.
“JEDCO can then approve, deny or amend the recommendation. From there the decision is turned over the city council, which can approve or disapprove the expenditure.”
However, current and former city officials said until now, that process has not been followed.
A review of the past three years of city council agendas has shown that JEDCO has only sporadically sought council approval before awarding funds to lure or keep businesses in the area.
Mayor Kenneth Melvin said he believes the corporation has brought project expenditures of more than $10,000 before the council in the past, but not with regularity.
City Manager Mo Raissi and Financial Director Freddie Thomas said they do not recollect JEDCO bringing such projects to the council for approval in the past.
“There's no record that approved and funded economic development projects have been finally approved by the city council to my knowledge,” former mayor Robert Haberle said.
Raissi said he believes JEDCO has not brought projects to the council for approval because those serving on the board believed once the council approved their yearly budget, they were free to decide how to spend the funds.
On Friday, when asked about the process, Prcin said, “All the projects are now going before the council.”
Although JEDCO is responsible for facilitating local growth, Texas law states that development projects proposed by Type B economic development corporations exceeding $10,000 must be approved by a city council.
“Yes, Type B cities have to go to the council. If they're spending $10,000 or more, the city council has to approve it by resolution,” Tom Kelley with the Texas Attorney General's office said.
He said if the corporation is not doing so, it is in violation of the Texas legal code.
In 1995, the citizens of Jacksonville passed the half-cent sales tax to found JEDCO, a Type B economic development corporation, which is comprised of a seven-member board charged with using the money to spur local economic growth. Since then, the corporation has pledged over $13 million in cash, infrastructure or land grants to businesses, according to JEDCO's website.
The seven-member board is not elected and is accountable to the city council, according to JEDCO's founding documents.
The council is responsible for appointing members to the board and has the authority to remove members as well as reorganize or dissolve the corporation.
The Jacksonville Daily Progress asked five current and former city officials why the city has not fulfilled its obligation to ensure JEDCO follows state law, but none would answer on the record.
According to Prcin, who is a paid employee of JEDCO, those who serve on the JEDCO board are dedicated volunteers.
“These folks are volunteers from the business community, from the financial community, from the banks and from all walks of life in Jacksonville who are volunteering their time and their knowledge and their expertise to serve on these committees as leaders of this community,” Prcin said. “Every time you see these folks on the streets you need to thank them for their service.”
