The Brownsville City Commission met in executive session Tuesday night to discuss financial information that it has received from business prospects.
Brownsville City Manager Noel Bernal told The Rider Wednesday morning that he could not discuss “Project Founder,” “Project Hotel” and “Project Riverfront TIRZ” until public action is taken.
According to Section 551.087 of the Texas Government Code, the chapter does not require governmental body to conduct an open meeting “to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations.”
On Dec. 3 the commission approved a downtown reinvestment zone (Tax Increment Reinvestment Zone) of about 440 acres in the downtown area.
The primary purpose of a TIRZ is to promote development or redevelopment of the designated area by using the method of tax increment financing, according to a memo from Bernal to Rick Vasquez, director of Planning and Redevelopment.
Terms for “Project Hotel” will be read publicly and voted on during the Feb. 18 city commission meeting, according to Bernal.
He said the commission previously voted on the terms for a 380-development agreement. Chapter 380 of the Local Government Code authorizes “municipalities to offer incentives designed to promote economic development such as commercial and retail projects,” according to comptroller.texas.gov website.
“Those terms were read out loud at that time where the city offered a Hotel Occupancy Tax Reimbursement and Infrastructure cost, also a rebate towards supporting the project at the time,” he said.
Up to $8 million in rebates were awarded for a UTRGV Hospitality and Tourism Program including for infrastructure improvements.
Bernal said the numbers for that project have not been finalized.
“There were other leases and agreements that needed to be finalized, which basically has taken all of last year,” he said. “We will basically be taking a two-step approach. One, updating the commission, and then bringing it back on the 18th for whatever action they’re going to take towards revising.”
“Project Founder” is new and no information can be disclosed until formal action is taken. Bernal said more due diligence is needed.
The city manager said government code protects confidentiality.
“These projects are sensitive,” Bernal said. “They involve investment decisions by private developers that … many times, they’ll request financial support from the city … which is why confidentiality is preserved. Many times, these parties are looking at multiple sites. It could be a variety of reasons, so the government code provides for the preservation of confidentiality.”
