Palestine council approves economic development incentives, interlocal rail deal, conveys 4 acres to Texas A&M and orders two special elections

The Palestine City Council on Monday approved a package of economic-development measures, a rail-infrastructure interlocal agreement, a four‑acre land conveyance to the Texas A&M University System and ordinances ordering two special elections to appear on the May 3, 2025 ballot.

The council approved second‑reading resolutions authorizing projects of the Palestine Economic Development Corporation (a Type B economic development corporation) to expand the city’s community development grant program and to provide an economic development grant to Palestine Mall Redevelopment LLC for a mall redevelopment incentive. Director Christophe described the community development item as “the second reading of the first that was bid in 1 word session for expansion of our community development grant program in the current fiscal year.” Director Trahan described the mall redevelopment item as a second reading for “the incentive project with Palestine Mall Redevelopment…for the relocation of the home space.”

Why it matters: the actions formalize the PEDC’s support for local redevelopment projects and preserve the city’s ability to provide incentives tied to Type B sales tax revenues used for economic development.

Council also approved an interlocal agreement with the Texas State Railroad Authority to support construction of rail infrastructure intended to serve a business park on property the city purchased. Director Christophe said the agreement “outlines the first 1,300,000.0 dollar investment to be made on behalf of the TSRA over 2 of their fiscal years to construct that rail infrastructure,” and gives the authority exclusive rights to transload and conduct cargo rail activities on the property. He said…