Laredo committee backs creating Chapter 3.80 subcommittee to study incentives for service providers

The City of Laredo Economic Development Committee discussed creating a subcommittee to recommend modifications to Chapter 3.80 incentive guidelines so they better cover service providers, during its May 20 meeting at City Hall.

Committee members said the current Chapter 3.80 rules are tied to large capital investment and job-creation metrics that can exclude businesses that primarily sell services rather than products. Members asked staff to work with Director Castillo and to define parameters for a separate service-provider category that would include tailored eligibility criteria.

Committee members identified brokers, freight forwarders and other service firms as example businesses that may be disadvantaged under current rules because they do not make the same level of capital investment as product-based companies. Members also noted the city already has other incentive programs with lower investment thresholds that could be compared to a new service-provider category.

Members agreed the subcommittee would need to develop clear criteria — including investment thresholds, job metrics and comparable program options — and evaluate how the category would interact with existing programs and contracts. Several members expressed willingness to serve on the subcommittee; staff was asked to coordinate the first meeting with Director Castillo and report back to the full committee.

No formal ordinance change or final vote to amend Chapter 3.80 was made during the meeting; the item was recorded as discussion with possible action and the committee asked staff to begin the subcommittee process and return with recommendations.