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 there is no transfer of property and “other than that, there is no other financial consideration in this agreement between PEDC and the TSRA.”

On a related land matter, the council approved a general warranty deed conveying a four‑acre tract to the Texas A&M University System for use in staging equipment to support emergency management activities, including controlled burns. Teresa Ware (staff member) briefed the council on deed language that keeps the city’s mineral rights on paper but limits the city’s ability to exercise those rights while the property is used by Texas A&M. Ware said the deed preserves a reversionary interest, meaning the tract would revert to the city if Texas A&M ceases the agreed public use for a consecutive period (the staff discussion referenced roughly six months as the reversion trigger).

The council also adopted two ordinances to place propositions on a May 3, 2025 special election ballot. One ordinance calls a special election to reauthorize a local sales and use tax at the rate of one‑fourth of 1 percent to continue funding maintenance and repairs of municipal streets. City Secretary Jackson said the election would be held “in conjunction with the general election.”

The other ordinance calls a special election to submit multiple proposed amendments to the Palestine city charter. City Secretary Jackson told council members an updated packet was provided during recess; it added a new Proposition R to change section 6.1 of the charter by removing the term “chief executive officer” from the city manager title to reduce role confusion with the mayor. She also described a rewording of Proposition T to allow the city manager permissible absences from council meetings and the appointment of a qualified designee, and described Proposition X as an amendment to sections 8.1 and 8.2 to change annual compensation language. (The packet text for Proposition X in the meeting record included a numeric phrasing that appeared inconsistent with the stated intent to “increase” compensation; the updated proposition copy was supplied to council for review.)

Votes at a glance - Resolution: Approve project of the Palestine Economic Development Corporation expanding the community development grant program. Motion moved by Councilman Kenneth Davidson; second by Councilman Smith. Outcome: approved (voice vote). - Resolution: Approve project of the Palestine Economic Development Corporation and economic development grant to Palestine Mall Redevelopment LLC (mall redevelopment incentive). Motion moved by Councilman Dixon; second by Councilman Smith. Outcome: approved (voice vote). - Interlocal agreement: Approve interlocal agreement between the Palestine Economic Development Corporation and the Texas State Railroad Authority for rail infrastructure (TSRA investment of $1,300,000 over two fiscal years; TSRA granted exclusive transload rights; no conveyance of property). Motion moved by Councilman Kenneth Davidson; second by Mayor Mitchell Jordan. Outcome: approved (voice vote). - Deed: Approve general warranty deed conveying a four‑acre tract to the Texas A&M University System (deed preserves city reversionary interest; the city retains mineral rights on paper but foregoes the right to drill while the property is in use). Motion moved by Councilman Connor; second by Councilman Gibbs. Outcome: approved (voice vote). - Ordinance: Call special election on May 3, 2025, to reauthorize one‑fourth of 1 percent local sales and use tax for street maintenance and repairs. Motion moved by Councilman Gibbs; second by Councilman Davis. Outcome: approved (voice vote). - Ordinance: Call special election on May 3, 2025, to submit proposed charter amendments (including new Proposition R; revised Proposition T; Proposition X on compensation). Motion moved by Councilman Gills; second by Councilman Hunter. Outcome: approved (voice vote).

Discussion vs. decisions: most items advanced on second reading or as routine approvals with limited debate. The interlocal agreement generated council commentary about long‑term economic benefits; Director Christophe emphasized the TSRA board’s independent approval. The deed item drew staff explanation about mineral rights and the city’s reversionary interest; staff said there was no current intention to drill and the city “really don't lose anything by giving that up” while remembering it retains a reversion clause. The charter amendments and election ordinances were advanced after staff presented updated proposition language and confirmed the election date.

What’s next: implementation steps for the interlocal agreement and the PEDC projects will depend on TSRA and PEDC actions; the special elections are scheduled for May 3, 2025, and will require the city secretary to publish official ballot language and election notices. Council did not record roll‑call tallies in the public record; each motion was approved by voice vote with the chair declaring the motion carried.

Ending: The council closed the regular session and moved into a closed session to discuss economic‑development negotiations and pending or contemplated litigation related to the municipal airport.