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Commission approves $850,000 settlement and mutual release with Country 2, Inc.
Summary
The Pampa City Commission approved a mutual-release agreement allowing Country 2, Inc. to settle a prior PEDC funding commitment for $850,000 after the PEDC board negotiated the amount; staff said the payment will be delivered about two weeks after final signatures.
The Pampa City Commission approved a mutual release and settlement that ends an earlier economic-development agreement between the Pampa Economic Development Corporation (PEDC) and Country 2, Inc., under which the PEDC originally committed $1.2 million in 2018. Ryan Bradley, PEDC executive director, told the commission both parties negotiated a revised settlement amount of $850,000 and that the PEDC board unanimously recommended the settlement after an open-session discussion at a July 17 meeting that Country 2’s president John Johnson attended.
Why it matters: The settlement restores access to $850,000 in PEDC resources that staff said will be reallocated for other development initiatives. Bradley described the change as a pragmatic resolution to an agreement that was originally structured as a forgivable loan tied to employment targets; pandemic-related market changes and employment shortfalls affected the forgiveness schedule, staff said.
Details and timing: Bradley said the original $1.2 million commitment was tied to facilitating a transfer of ownership and included forgiveness tied to employment. He said the PEDC and Country 2 agreed to the $850,000 settlement and that, "when we approve this, when will you get the check? 14 days. K. From the date everything is signed," meaning staff expected receipt in about two weeks after final signatures. The PEDC board voted unanimously in favor of the settlement at its public meeting.
Action: The commission voted in favor of the mutual-release agreement on the record and the item carried. Staff said the contract review between parties has been completed and closing steps were procedural.
Ending: The settlement returns funds to the PEDC for redeployment in local development projects; staff said they will report back as the recovered funds are allocated.
