Use of Economic Development funds studied

Carlton Schwab, president and CEO of Texas Economic Development of Texas, encouraged Leon County cities to work together on the Expo project. Sherry’s Shots Many of Leon County’s leaders were present at the meeting on Wednesday, April 7th in the Centerville Municipal Meeting Room. The meeting was called by the Leon County Economic Development Association (EDA) and featured Carlton Schwab, President and CEO of the Texas Economic Development Council (TEDC).

Those in attendance were the Leon County Judge and most of the commissioners; the mayors from Centerville, Jewett and Marquez; members from the various city Economic Development Corporations; and several council members from Leon County cities.

Ken Jones, president of the Leon County EDA, opened the meeting and introduced Schwab, who began by giving a brief history of the Texas EDC. The TEDC was instrumental in the creation of the economic development sales tax in 1989--and has been its most vocal and effective supporter for over twenty years.

The EDC’s are funded by a portion of the city sales tax and are to be used to enhance the city and attract business to the area. According to Jones, Buffalo EDC gets ¼ of one percent while Jewett, Centerville and Marquez collect ½ of one percent. Regulations are very strict about how the funds may be used. Schwab explained that it is allowable for the cities to pool their funds to support a county-wide project, such as the Expo Center.

The Leon County EDA does not collect sales tax so any funds they obtain comes from donations and membership dues. The purpose of Wednesday’s meeting was to encourage the cities of Leon County to work together and use their EDC funds to fi- nance the Expo Center.

Schwab explained that there are three ways to create wealth. The number one way is by attracting “primary employers”. He used Nucor as an example of a primary employer. This company produces products which are used in statewide, nationwide and international markets. Primary employers typically have the highest paid employees. Firms such as Wal-Mart and the Dollar Store are considered “secondary employers” and are a by-product of the “primary employer”.

The second way to create wealth in the area is through tourism and that is where the Expo Center comes into play. Judge Byron Ryder commented that Leon County is in the middle of the growth triangle which goes from Dallas to Houston to San Antonio and then back to Dallas. The general consensus at the meeting, was that the Expo will posture the county to take advantage of the inevitable growth.

The third manner in which wealth is created is through transfer checks. Those government checks mailed or deposited each month brings new funds to the county.

Someone from the audience asked how the Expo Center will be managed. Judge Ryder answered that once the Expo is complete the judge and county commissioners will be the governing body.

Judge Ryder stated, “Leon County is in a great location. Since we are in the growth triangle people will be moving here. We have so many opportunities in this area of Texas. Focus on what you want your part of Texas to look like. Our objective is to have people stay here and spend money.”