Special to
El Rrun-RrunFollowed by release of a damning audit of the Greater Brownsville Incentives Corporation (GBIC) and on the eve of one of the Brownsville Community Improvement Corporation (BCIC) that is expected to reveal glaring mismanagement of public funds, the city commission is expected to approve a May 4 election to eliminate the two boards and replace then with the Greater Brownsville Municipal
Development District.
The city's voters will be asked to do away with both entities and establish the district which will be funded by the combined one-quarter cent share of sales tax given each board annually and pass on the combined one-half cent revenue which amounts to some $11 to $12 million in projected sale-tax revenue.
The staff memo recommends that the district be created "within the City and extraterritorial jurisdiction of the City. A municipal development district is a special-purpose district created for the purpose of generating economic development and growth opportunities within the boundaries of the district, including quality-of-life projects and provide funds for a variety of economic development activities including certain infrastructure improvement projects, certain recreational or community facilities, projects related to business enterprises that create or retain primary jobs, projects that promote new or expanded business development, or convention center facilities and related improvements. In addition, proceeds may also be used to hire necessary staff.
"Essentially, the Greater Brownsville Municipal Development District will accomplish what GBIC and BCIC currently do."
The Section 4A sales tax primarily targets manufacturing and industrial development. Type A revenue can be used to fund land, facilities, targeted structures and improvements for projects. Examples of Type A projects include: infrastructure improvements that promote or develop business enterprises, maintenance and operating costs associated with projects and job training classes. Type A sales taxes are mostly restricted to spending for economic development purposes.
The Section 4B sales tax may encompass any project under Type A rules, along with other project types including quality of life improvement projects. Examples of Type B EDCs include: professional and amateur sports and athletics facilities, tourism and entertainment facilities, affordable housing projects, water and sewage facilities and parking and transportation facilities.
This latest wrinkle of doing away with the Section 4a (GBIC) to promote and Section 4b (BCIC) comes as the city's audits reveal disturbing trends in board management and performance of both boards. At times, the two boards have overlapped their functions.
The city's audit of the GBIC uncovered embarrassing disclosures on the performance of the GBIC related to space-related business that included lax oversight of the bona fides of three companies that cost the city some $750,000 or more due to the performance by then-GBIC director Helen Ramirez, now the COB's city manager.
(At right, a photo of J. Brant Arseneau, Chief Executive Officer of 9Point8 Capital, from left, speaks to the media along with Interim City Manager Helen Ramirez and then-Brownsville Mayor Trey Mendez during a Greater Brownsville Incentives Corporation (GBIC) and the City of Brownsville press conference. (Miguel Roberts/The Brownsville Herald)
The city is now attempting to recover those funds
News reports indicate that "the audit report...said that hundreds of pages of documentation retrieved by GBIC and reviewed by auditors contained no evidence of an application and screening process for 9Point8 prior to it receiving incentive grant money, or a method of confirming the company’s ongoing compliance with terms of the performance agreement.
GBIC’s then executive director and CEO, Helen Ramirez, now Brownsville city manager, and GBIC staff did accept notarized statements from grant recipients “as evidence of compliance,” apparently in conflict with the agreement’s provision requiring quarterly reports from the company to verify compliance, according to the audit report.
“Before July 27, 2022, GBIC had not clearly documented what the application and screening process should have included at the time of the signing of the 9Point8 Capital agreement,” the report reads, noting that GBIC had application forms on hand though 9Point8 was not required to submit one.
“Internal controls were inadequate because of the lack of policies and procedures and reliance on grantee self-reporting for compliance,” concluded the report.
The GBIC debacle under Ramirez started when Cowen and former city commissioner Nurith Galonsky disagreed with the rest of the board over the selection of Mario Lozoya, the former head of Toyota USA for workforce and economic development. They filed a case in district court to remove him, and, failing there, maneuvered to buy out his contract and installed Ramirez as acting GBIC CEO with orders to spend some $13 million of development incentive funds to give themselves "quick wins."
Ramirez was under pressure by now-mayor John Cowen to pay lip service to do due diligence on prospective firms to achieve "quick wins" to the point of allowing the self-reporting by applicants and to miss the slight detail that the companies were not registered to do business in Texas.
“It’s (GBIC) is sitting on $13 million in the bank and we’re not really getting a return on our investment," Cowen said when Ramirez was named interim GBIC director. "We were kind of spinning our wheels over there and it kind of needed to be refreshed, and I think we’re all very excited with Helen at the helm. She’s proven herself at the city to be a very effective economic developer and I think we’ll see some quick wins in the short term.”
Interestingly, an agenda item to be discussed in executive session includes an evaluation of Ramirez's performance as city manager that states: Discussion and possible ACTION, if any, related to the annual performance evaluation for the City Manager, Helen Ramirez, as allowed under the existing City Manager’s Agreement. (City Commission)
The soon-to-be-released audit on the BCIC is also expected to reveal its board members' and administration's brazen self-dealing, bending the rules of incentive grants to favor city officials and relatives and/or individuals and LLCs. In some cases, those LLCs and businesses had close links to city officials and BCIC board members and their relatives.
A section of the report is said to contain documented instances where board chair Cori Peña and other board members claimed ignorance of the procurement process, the arms-length requirements of doing business with companies and individuals, and of ignoring the BCIC's own rules on awarding grants to public officials and their families.
The city's move to establish the new district is an apparent move to prevent the type of activities revealed in the audit reports.
23 comments:
What a joke of the city manager of Brownsville and especially the mayor of Brownsville for giving positive credit to the stupid idiot Ramirez? The only thing she does right is bend over to everyone to get some goods. 4A and 4B monies went to commissioners and their friends and families and especially to the bike and hike trails mess. Brownsville residents will always get shit for their taxes.
Is the Sports Park administration ever going to be in the city agenda to be removed? No lights at night in the trail, basketball courts uneven rims cracked, restrooms disgusting, no security and the list goes on....
Why do citizens of Brownsville need either BCIC or GBIC? What have they done other than ruin our environment? Democrats favor more government and that's what occurs when too much money is taken from tax payers to line the purses of those select few.
Wonder is economic development achieved by giving money away.
Prefer this money be invested into improving mass transit.
Juan so lets do away with the 4A and 4B boards and make a MDD, did you know that the MDD does not have to answer to the public, post meetings etc and they can do what they want with these sales tax monies? Are they not doing that now? Another thing so how do you handle any debt issuance by these 2 boards in the past? 4A and 4B? just asking how this merry go round will end up as? So Helen Ramirez and the city commission you prefer a MDD so that way no one will ask any questions? I hope the public and voters can see where this is headed. OTRO O MAS ROBO, CHON the taxpayer
Es la misma gata can't hide corruption can't eliminate it either. What to do? Split the pie and everybody is happy. One for you, one for me, two for you three for me, etc etc etc.....
Nothing will change, pura pinche rata de dos patas en Brownsville politics.
All this committee did was abuse and exploit the tax citizens of Brownsville. The board members should face some sort of consequence. The new organization they are creating now is the same horse with a different saddle.
May whatever is good in our universe hold this thieves accountable.
Stupid is stupid does.
I agree with this …. Merge them, during my time on BCIC all they ever did was economic development. That was technically GBIC’s job. I don’t see any wrong in this, I almost question as to why they even split them from the get-go. Great job guys for planning ahead.
The gravy train of collecting grant monies for thirty-five years of stealing Royality monies belonging to the Hiers, now owners and grantees to the Cameron County land grants has finally come to an end. These corrupt entities were created by our corrupt political leaders and former and present governors to hide and steal from the TRUST FUND SETUP for heirs in 1985 by the gas and oil companies in the CASE # 85-C-3335 GETTY SETTLEMENT. Governor Ann Richards and atty. general Jim Mattox. The gas and oil companies put $50 million dollars plus every three years 25% of escheated monies from the oil and gas to be put in this Trust Fund. That's 35 years of stealing from the owners of Trust Fund. These thieves sit there like royal shit, knowing what they were doing all the time. Life is a bitch when you and your so-called Rata leaders get caught. The Historical Impeachment of Ken Paxton started off with the Mitti Charitable organization. Entities and Charitable organizations were created to hide and steal the monies from the 1986 Getty Settlement Trust Fund. This is my opinion.
Is this a ploy just to pacify the natives??. Creating a new entity to replace those two other ones will serve ABSOLUTELY NO purpose if they continue to be run by the same KIND of people or the SAME individuals. . Rabies can not be eliminated unless you get rid of the dog. As reported in countless stories on this blog , corruption runs rampant and is a cancer that has spread throughout these entities( BCIC ,GBIC ,COB ,BISD ,PUB ,MR AMIGO , SOMBRERO FEST. Etc). That said, my friend says that creating a new “Entity “ will serve no positive purpose for the city of Brownsville if its created and administered by the same people that created this mess in the first place. He guarantees that any “ new” rules and policies will be circumvented to benefit only the chosen and well connected!! It always has!! Is this another smoke and mirrors shenanigan ?? Now, going back to the possibility of the elimination of GBIC AND BCIC, are the people involved in the alleged wrongdoings going to be held accountable??? Will there be an investigation of everything that happened on their watch?? Were any laws broken?? These are questions that need to be answered!! Or will these individuals be rewarded with new positions, promotions and perks, as it has always been the case in this town. We shall have to wait and see what happens on this new” venture “ being thought of by our hapless “ leaders”.
Browntown is a joke. The rest of the valley laughs at you all. Even san Benito is laughing!!!
January 16, 2024 at 7:45 AM
You mean bend backwards she's a vieja
It is the opportunity of a lifetime: make a fortune with the permission of the City's leaders and put the fortune to work in your benefit and make it part of your legacy for your children. WOO HOO
Money makes the world go round.
Juan the city of Brownsville and EDC's 4A and 4BB receives more or less about $5 Million every month in sales tax money divided in half thats 2.5 million divide by 2 for 4A and 4B so each one gets about $1.25 million, info dfrom texas state comptollers office, i am not making this up. anyway so now they will create this MDD and use $2.5 million for their pet projects every month an dthey dont have to report to the public what happen to those funds, gee whiz Helen Ramirez, you are a genius.NO POS WOW. City taxpayers you have been warned so WAKE UP. CHON.>
Ok all you are saying mayor , you are going to give Helen in bed a pay raise÷
City should have DA issue a warrant for the arrest of J. Brant Arseneau for fraud etc.
Get real jobs mofos
Anonymous Anonymous said...
The gravy train of collecting grant monies for thirty-five years of stealing Royality monies belonging to the Hiers, now owners and grantees to the Cameron County land grants has finally come to an end. These corrupt entities were created by our corrupt political leaders and former and present governors to hide and steal from the TRUST FUND SETUP for heirs in 1985 by the gas and oil companies in the CASE # 85-C-3335 GETTY SETTLEMENT. Governor Ann Richards and atty. general Jim Mattox. The gas and oil companies put $50 million dollars plus every three years 25% of escheated monies from the oil and gas to be put in this Trust Fund. That's 35 years of stealing from the owners of Trust Fund. These thieves sit there like royal shit, knowing what they were doing all the time. Life is a bitch when you and your so-called Rata leaders get caught. The Historical Impeachment of Ken Paxton started off with the Mitti Charitable organization. Entities and Charitable organizations were created to hide and steal the monies from the 1986 Getty Settlement Trust Fund. This is my opinion.
January 16, 2024 at 1:08 PM
👆
This person knows what they are talking about. Case in point made very clear. Damn, these mitti fuckers have been using Our (citizens) taxes to fund their personal life. I think theirs a commissioner and one person on their board. They clearly represent the mittis interests and their owns. Fuck these people! Who ever you are thank you for pointing this out. Keep slaying!!
👆
The more money he takes from the taxpayers here the more tilting of his skull. He's at 58% tilt, he wants a tilt of at least 90%, das a lot of feria.
You really look stupid idiota!
Mitte (German: [ˈmɪtə] ⓘ) is the first and most central borough of Berlin (in east berlin).
It is one of the two boroughs (the other being Friedrichshain-Kreuzberg) which were formerly divided between East Berlin and West Berlin. Mitte encompasses Berlin's historic core which were in former East Berlin and during the second World War was the center for nazis.
Somebody did a real con job on this city commission to name an area here a german neighborhood where, presumably, nazi germans lived and create a foundation that contiuousely begs for funding, TAXPAYERS FUNDS. WOW
They addressed the city commission to beg for funding like to remodel old warehouses, hummmmm I wonder, does the city keep tabs on where all the taxpayers funds are being spent by this honest foundation, of course not we trust them hahahaha REALLY???
January 17, 2024 at 4:03 PM
Hey tilt head quitate de mamar pinche maricon pidiche. Pay your taxes lambiscon.
Post a Comment