Letter: Texas EDC leader expresses concerns over actions involving Amarillo EDC

Carlton Schwab, President and CEO of Texas Economic Development CouncilSpecial to the Amarillo Globe-News

Editor's note: Local group Supporters of The Amarillo Economic Development Corporation (AEDC) asked Carlton Schwab, the President and CEO of the Texas Economic Development Council (TEDC), for his take on the issue involving the Amarillo City Council and Mayor Cole Stanley targeting the AEDC, and the hiring of attorney George Hyde to help the city address those issues, including a a redrafting of the AEDC's Articles of Incorporation. Four of five members of the AEDC board resigned Monday. Schwab's statement follows below.

For nearly 35 years the Amarillo Economic Development Corporation (AEDC) has been widely recognized as one of the best economic development corporations in Texas. It has been a model of strength and stability and has enjoyed wide-spread community support.

Over the course of its history, the AEDC has been responsible for the creation of thousands of jobs. As a former site location consultant, I can say without hesitation that Bell Helicopter would not be in Amarillo without the aggressive efforts of the Amarillo EDC. That project was a game changer that juiced a then lagging local economy and still today stands as a shining example of what an aggressive and well-funded EDC can accomplish in a place like Amarillo.

I have watched with interest the recent drama surrounding the AEDC.

Kevin Carter and his staff are highly-skilled professionals and respected by their peers across the state. Kevin is a leader in our organization of 1,100 members and will be the Chair of the TEDC in 2028.

The efforts to impugn Kevin’s integrity and professionalism is shameful, border-line hateful and completely unnecessary. It’s abuse, quite frankly. These attacks on his character are affecting his personal life, his family and loved ones. The city is fortunate to have him and his outstanding professional staff who are working daily to improve the lives of the citizens of Amarillo and its future.

Most distressing was the Council's recent decision to have an attorney state that all EDC expenditures must be approved by the Council on a bi-weekly or monthly basis. Their attorney states that not doing so is a violation of state law. And further implying that the EDC has been violating state law since its creation in 1990.

This contention is not only laughably false, but by virtue of this claim the overwhelming majority of the EDCs in the state would also be in violation of the governing statute. The truth of the matter is the statute cited calls for councils to simply “approve all programs and expenditures and annually review any financial statement of the corporation.” (Local Government Code 501.073). Every EDC in the state already does that. How one infers that to be bi-weekly or monthly is beyond me. Imagine if EDCs monthly publicized their expenditures so that it would be publicly revealed what corporations were being engaged in discussions with the EDC. In their interest of protecting their competitive environment, corporations would very quickly become aware that working with Amarillo would ensure that their expansion or relocation plans would be quickly disclosed to the broader marketplace. No company wouldwant to expose themselves to such potential conditions.

Another one of the assertions is that EDCs are not allowed to go over budgeted line items even if they are within their overall budget (such as spending $500 over budget in office supplies but being $500 (or more) under in rent). Again, ridiculous when this is done by most every EDC in the state, not to mention every municipality, including the City of Amarillo.

And finally, the absurd claim that EDCs are not allowed to pay bonuses because City Councils approve their budget and the Texas Constitution does not allow City Governments to give bonuses. My understanding of the Texas Constitutional prohibition is that the applicable provision applies to municipalities. EDCs are of course non-profit corporations. Also, bonuses at AEDC and many other EDCs across the state have FICA, income taxes and TMRS retirement withheld from bonus pay - effectively nullifying the contention that these are gifts. Again, bonuses are routinely given to EDC employees across the state.

Schwab has been President/CEO of the Texas Economic Development Council (TEDC) since Feb. 1, 1999.