Archives > Plano Star-courier > News
Print
E-mail
Comment
Rate
RSS
Share
Business negotiations remain confidential
By Stephanie Flemmons, Staff Writer
Some local residents are concerned why the Plano Economic Development Board (PEDB) meetings are closed to the public, when tax payer dollars and city money are main sources contributing to the success of the organization.
Plano resident Sonja Hammar said surrounding cities post their agendas online, so Plano should do the same.
“This is government,” Hammar said. “They use public tax dollars, so why shouldn’t it be open?”
“They are not funded exclusively through the city of Plano,” Gilliam said. “They are a separate entity. The city has a contract with PEDB, and we provide some staffing and some funding. All the economic development funds are controlled by city council.”
For fiscal year 2007-08 the Plano City Council approved $830,639 for staff salaries and wages. The residents and the city will also contribute $4.6 million from property taxes and $1.4 million from an existing fund balance in the general fund, which is used to promote businesses and give incentives. Other funds are generated through fundraising and sponsorships.
According to Sally Bane, PEDB’s executive director, the donations the board receives ranges between $10,000-$15,000 and are used primarily to host events, which are designed to showcase Plano.
She said surrounding cities are required by statute to host public meetings because their board collects and disperses public money.
“The meetings are the business of the board, not the business of the city,” Bane said. “The board has a variety of initiatives that are their concern.”
Bane said two board members meet with the Plano Economic Development staff about prospective companies coming to Plano. She said the companies want all negotiations to be kept private and they provide staff with business information.
“When we know that prospective companies have feedback, then city council deliberates that in executive session,” Bane said. “Sometimes companies have specific requests for incentives.”
She said council members review what their hot buttons are in order to make a decision.
“They decide what the recommended incentives can be, and then they take it into a public forum,” Bane said. “There is every opportunity for the public to comment.”
Hammar said the city may have public hearings, but information isn’t available to the public about where funds are used.
“It is important to remember that executive session is not required. That is by choice,” Hammar said. “What they put in there is somewhat restricted, but nonetheless it is by choice. They have had economic development on the executive session agenda the last two meetings.
“You have to give information to the public for them to make an educated decision,” Hammar said. “If other cities can tell their citizens what’s going on with their dollars, why doesn’t Plano city council want us to know?”
Jim Young, a McKinney’s Economic Development board member who previously worked for PEDB, said the basic distinction between Plano and McKinney’s economic development boards is McKinney does not contribute to DART, therefore they use the 4A and 4B sales and use tax, which allows cities to promote economic development.
“Since we are formed as 4A Corporation, under state law we have to post agendas and have to let the public in,” Young said. “However certain things we discuss are in private. Not everything is a part of public record.”
He said the city of McKinney received $8 million last year and that figure continues to increase with the city’s population growth. He said McKinney’s EDB does not go to their city council and the funds do not appear on the city budget.
“We are autonomous,” he said. “What we decide is final. As far as distributing money, we have more power.”
The cities of Allen, Frisco and McKinney contribute one cent of 4A/4B sales tax, which is governed by the state of Texas. Plano contributes that one cent to DART.
Last year, the Plano city council approved a 2-cent property tax increase to be dedicated to the PEDB along with the $3 million which was approved this year out of the city’s general fund.
“The raise was necessary so we could compete with other cities around us and attract development and redevelopment,” said Mayor Pat Evans. “The other cities around us are not members of DART. They keep that penny and contribute it to their economic development fund.”
She said before the increase, the surrounding cities were buying business away from Plano.
“We could give a few tax incentives, but nothing that could compete with what we were facing,” Evans said. “When we did this the results were great after one year.”
Hammar said she is not opposed to the 2-cent increase, rather how the funds are used.
Council member Shep Stahel said he is all for economic development but said the 2-cent increase creates a temptation fund.
“I prefer to be more cautious,” Stahel said. “I’m for funding PEDB after the fact and not before the fact. We should use the money out of the general fund at first, then borrow from an internal savings fund.”
Stahel added he is against holding public meetings for the PEDB.
“If you go into detail, the minutes of the PEDB are available to the public as it relates to projects that involve city funds,” Stahel said. “The minutes are not available on transactions.”
Bane said Plano would not be what it has evolved to today without the PEDB.
“We are bringing in projects that are adding to the tax base and adding jobs,” Bane said. “Things don’t just land in Plano. The city needs the board.”
Bane said Plano City Council has authorized eight projects for fiscal year 2007-08, which are available for public record. She said there are another 15 projects that are currently in the negotiation process.
Contact Stephanie Flemmons sflemmons@acnpapers.com
The following are comments from the readers.
In no way do they represent the view of Starlocalnews.com
In no way do they represent the view of Starlocalnews.com
You must register with a valid email to post comments.
Only your Member ID will be posted with the comments.
Only your Member ID will be posted with the comments.
Registered users sign in here:
Become a Registered User
- Return to: News «
- Home «
- Top of Page ^
