A new business improvement grant program became possible Tuesday evening after the City Council approved the second reading of an ordinance amending the Beeville Economic Improvement Corporation’s budget to allow $30,000 to fund the program during its first year.
EIC board member Jessy T. Garza was at Tuesday’s meeting to explain what he had learned concerning a question posed at the council’s Nov. 11 meeting regarding whether businesses applying for the funds would be required to sign a performance agreement.
At that meeting, Councilman Jimbo Martinez had asked whether performance agreements would be required of businesses which receive the grants.
Such agreements have been required of other businesses which have received 4B sales tax money through the EIC board to assist in establishing here. The agreements have required the applying businesses to guarantee that they will provide a certain number of primary jobs and that they will not go out of business or sell their business within a certain period of time.
City Manager Ford Patton explained that the requirement for providing primary jobs is fairly certain for economic development corporations operating in cities with populations of more than 20,000. However, the same requirement is not nearly as stringent in cities of fewer than 20,000 people.
Patton reminded councilmen that Beeville has fewer than 20,000 people.
The city manager said that parts of the legislation governing the use of 4B sales tax fund requires a performance agreement while others do not.
“I don’t think there’s any doubt that, yes, it is required,” Patton said.
Garza agreed, saying there is conflict in the way the legislation is written.
Garza, who came up with the idea of using 4B sales tax funds to assist existing businesses throughout the city, reminded the council that he had the idea reviewed by Jeffrey Moore, the North Texas attorney specializing in the use of 4B sales tax funds.
“With minor comment, he blessed it completely,” Garza said. “We need to apply provisions in a manner that’s reasonable.”
“I would concur with that,” Patton said.
“If a business doesn’t fulfill the requirements of an agreement, there must be provisions for getting the money back,” Garza said.
Garza recommended requiring any business which accepts funds through the program to remain in business for at least six months after receiving the money. If it fails before the end of the six months, it must repay the city one-half of the $6,000.
Also, any business which fails within six months to a year after signing an agreement should be required to repay 25 percent of the money.
“This is about as straightforward as I think you’re going to find,” said Mayor Kenneth Chesshir.
Mayor Pro Tem John Fulghum made a motion to approve the second reading of the ordinance and it passed unanimously.
Money for business facade improvements under the new program should become available early next year.
In other business, the council voted to:
— Deny a request for a zone change from residential to business use for 1300 E. Corpus Christi St. Owners of the property wanted to open a small flower shop there but neighbors objected to a zone change even though the owner promised to have the zoning reverted to residential use if the business closed.
City Secretary Tomas P. Saenz recommended that the owner apply for a special use permit instead of a permanent zone change.
— Accept a report from Fiesta Bee County from Manuel Segovia explaining how the organization had spent money the city had provided for its annual Diez y Seis de Septiembre Celebration. The money came from the city’s hotel and motel tax funds.
— Award a contract with Blue Cross Blue Shield for employee health insurance for the upcoming fiscal year.
— Approve a holiday schedule for city employees which will result in City Hall being closed on Dec. 24, 25 and 26.
— Heard reports from Patton on developments in upcoming utility construction projects on the city’s far west side and in the downtown area.
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