BEDC, MARTINEZ: WE'VE SEEN THE PROMISED LAND

By Juan Montoya

If we are to believe the press releases by the City of Brownsville, the Brownsville Economic Development Council, Da Mayor Tony Martinez and the various embellishers from the University of Texas at Brownsville, Sen. Eddie Lucio Jr., State Rep. Rene Oliveira and assorted underlings, the Promised Land is just over that multimillion dollar debt mountain. 

Oliveira and Lucio dangle a medical school and a "Super-Duper" university which will finally be funded by millions from the Permanent University Fund. Left unsaid, of course, is the bite that it will take from local taxpayers when they find themselves included in a Super-Duper taxing entity to pay for the medical school.

Martinez, basically single-handedly, has taken it upon himself to indebt the city taxpayers into the dim future by having the rest of the rubber-stamp commission approve various issues of Certificates of Obligation in his effort to keep the UT System's new UT Brownsville campus in the moribund downtown.

He has also had the city and the Public Utility Board – where he is an ex-oficio member – obligate itself to construct a steam-powered, gas-fired plant to generate more energy for Brownsville than would be necessary to service another 350,000 residents (100,000 homes times 3.5 persons), three times as many as exist today. What Tenaska will do with other 600 megawatts is not known. Who will they sell it to? The grid?

The following new media descriptions of the actions of our far-seeing visionaries indicate the depth and breadth of their vision: 

The city-owned utility company signed a development-and-purchase agreement with Tenaska Inc., an independent energy company based in Omaha, Neb., to buy an ownership interest in an 800-megawatt, natural gas-fired power plant that Tenaska plans to develop on 270 acres at FM 511 and Old Alice Road.
BPUB’s ownership interest would entitle it to 200 megawatts of capacity from the Tenaska Brownsville Generating Station, enough to meet the electricity needs of roughly 100,000 Brownsville area homes, officials said. The plant would use water — converted into steam to drive turbines — from BPUB’s Robindale wastewater treatment plant.
Under the agreement, BPUB is responsible for building a water pipeline from the wastewater plant to the power plant, a distance of roughly five miles, as well as a gas pipeline from Edinburg — about 50 miles — to supply the power plant with fuel. There is no mention of the anticipated costs or the hoops the city faces to acquire the Right-Of-Way or environmental permits to accomplish this Herculean feat in the two-year period they tells us it will take before construction begins.
The generating station, when and if it becomes operational, would become Cameron County’s largest taxpayer, surpassing the 2012 taxable value of the county’s top five taxpayers, according to a BEDC report prepared before the proposed deal was even announced. The construction phase of the project — 22 to 26 months — would generate an estimated $820,000 in property taxes, $770,000 in local sales taxes and $2.4 million in state sales tax revenue, according to the study.
The BEDC Sunshine Boys report says that construction would also create 790 direct, indirect and “induced” jobs (the multiplier effect of direct and indirect jobs), $126 million in economic activity and $40.8 million in construction-related payroll plus benefits.

Post-construction, the plant would provide an estimated 150 direct, indirect and induced jobs, $75,000 average annual salary plus benefits for plant operator jobs, $282 million in economic activity in its first year of operation, $7.4 million to $9.4 million in annual payroll during the first 10 years of operation, and $460 million in ad valorem taxes to jurisdictions in the county over 35 years, according to the study.

With this kind of income, why not abolish the ad valorem taxes paid by residents? But there is more.

We understand that SpaceX's Elon Musk – fresh from being offered $20 million in Florida – made some positive noises about Texas (and Boca Chica) when he met with the money boys in Austin seeking to squeeze the state for more "incentives" than our Florida competitors.

 The carrot?

To begin with, a SpaceX: $80 million capital investment with promises of 600 direct jobs at a $55,000 minimum annual salary (100 percent above avg. Cameron County wages, $26,312., a $50 million in annual payroll,400 indirect, induced jobs, a $70-plus million annual economic impact, and a tourist draw of 10,000-13,000 visitors per launch on a monthly basis.

Not to be outdone, the Port of Brownsville Port announced during a visit by David Matsuda, maritime administrator for the U.S. Department of Transportation, that on its fourth try it had been awarded a $12 million TIGER grant awarded to the port for construction of a second marine dock. Port officials said the new, 600-foot-long dock (The perennial Dock 16) will enable the port to significantly boost its freight volume, making it more competitive with domestic and Mexican ports on the Gulf.

Brownsville’s $12 million is part of $500 million in TIGER grants announced in June. The port was passed over for TIGER funds three times before but succeeded with its fourth application. It will contribute $14 million of its own funds for the dock project, which Port Director Campirano said should start this June and take 18 months to complete.

According to Campirano, the port generates $2 billion in economic activity annually for the state and 11,000 direct and indirect jobs that impact the local and regional economy. Pray tell, where is it, Eddie?

Well, if we are to believe the presentations of their economic prowess by these fine gentlemen, all our economic troubles are over, aren't they?

Funny thing is, many of us are like the folks from Missouri: You have to show us. 

Show us that it's not just hokum to provide job security to the elected officials and their business and social cronies. Show us how it makes a difference on the ground, where our fellow citizens suffer double-digit unemployment, our poverty level is tops in the nation and the pool of young, potential leaders have moved on after trying to crack this closed social and economic ceiling reserved for your political and socially-connected cronies.

Until then, dream on.