COMMISSION OKS MAY 4 ELECTION TO ABOLISH GBIC, BCIC

By Juan Montoya

It took the City of Brownsville Commission – on a unanimous vote – 10 minutes during Tuesday's meeting to consider and approve an election May 4 to allow local voters to do away with the scandal-ridden Greater Brownsville Incentive Corporation (GBIC) and its sister Brownsville Community Improvement Corporation (BCIC) and their boards that have operated for 32 years since 1982.

The new entity – should voters approve the propositions on the May 4 ballot – would be called the Greater Brownsville Municipal Development District (BMMD) and would be funded by the combined one-quarter cent in city sales tax revenues now funding both entities, which is estimated to total about $14 million.

Type 4A (GBIC) and 4B (BCIC), both Economic Development Corporations (EDC) have revenues of approximately $7 million each annually.

The new district will not be a city department, but a self-governing district with a city commission-appointed seven-member board of directors. Upon approval by the voters, the GBIC and BCIC will be dissolved and all their assets and obligations will come under control of the appointed board of the Brownsville Municipal Development District.

The new MDD will also include the city's Extraterritorial Jurisdiction (ETJ) which stretches roughly to the from west of the city past San Pedro, north up to San Benito, around Los Fresnos and Port Isabel, around South Padre Island through South Bay, and south to the Rio Grande River. (See map)

Based on Texas Comptroller data, the ETJ could generate approximately $400,000 in additional annual BMDD revenue at a 1⁄2 cent sales tax.

According to the presentation by a city consultant, the city and ETJ are experiencing growth with activity such as SpaceX, the Port of Brownsville, and the proposed South Padre Island Second Access Point could increase taxable sales in the ETJ over the long term.

Additionally, he asserted that replacing 4A (GBIC) and 4B (BCIC) with a single MDD could serve to better coordinate and streamline the implementation of economic development strategies and quality-of-life projects within the boundaries of the MDD.

The vote comes after a city audit revealed egregious failures on the part of the GBIC to follow standard operating procedures, bend the rules to award public funds, and making funding decisions that have cost the city millions. A BCIC audit due to be released within the month is said to contain findings highly critical of its board and instances of brazen favoritism toward certain individuals and city officials including making awards to public officials, board members, and their relatives.

Typically for Brownsville and Cameron County, up to now no one has been held accountable for these alleged criminal violations.

 

Under its proposed governance, Directors appointed by the City Commission will serve staggered, two-year terms and may be removed by the City Commission at any time without cause. Qualifications for board members also include them residing in the BMDD area boundaries.

Other checks upon the BMDD is that the City Commission must approve its programs and expenditures, must annually review the BMDD's financial statements, and maintain access to the BMDD's books and records at all times

The ordinance also allows restricted funds to budget for quality-of-life projects at 50 percent, subject to exceptions, when 2/3 of BMDD Directors and City Commission agree to redirect funds to economic development.

Allowed expenditures for the proposed BMDD budget will be quality-of-life projects such as certain recreational or community facilities, required or suitable for:

1. professional and amateur sports, professional and amateur sports, including children's sports,

athletic, entertainment, tourist, convention, and public park purposes and events, including

stadiums, ball parks, auditoriums, amphitheaters, concert halls, parks and park facilities, HIKE-AND-BIKE TRAILS, open space improvements, museums, exhibition facilities, and related store, restaurant, concession, and automobile parking facilities, related area transportation facilities, and related roads, streets, and water and sewer facilities, and other related improvements

2. Certain infrastructure improvement projects

3. Projects related to business enterprises that create or retain primary jobs

4. Projects that promote new or expanded business development

5. Convention center facilities and related improvements

6. Hiring staff for the benefit of the district.

On May 4, city voters will see this on the ballot:

Proposition A: Subject to the termination of the Brownsville Community Improvement Corporation and the Greater Brownsville Incentives Corporation, authorizing the creation of the Greater Brownsville Municipal Development District and the imposition of a sales and use tax at the rate of one-half of one percent (0.50%) for the purpose of financing development projects beneficial to the district within the incorporated City limits and extraterritorial jurisdiction of the City of Brownsville, Texas, which boundaries shall automatically conform to any changes in the corporate boundaries and extraterritorial

jurisdiction of the City.

FOR [ ]

AGAINST [ ]

Proposition B: Subject to the creation of the Greater Brownsville Municipal Development District, the termination of the Brownsville Community Improvement Corporation and the Greater Brownsville Incentives Corporation.

FOR [ ]

AGAINST [ ]