Rosenberg Development Corporation presents FY2024 annual report to council

Rosenberg Development Corporation representative Joe Esch presented the RDC's annual report for fiscal year ending Sept. 30, 2024, outlining the corporation's activities, incentives and planned projects.

Esch told the council the report is divided into sections covering the RDC itself, sources and uses of funds, performance agreements and outstanding incentives. He said there are presently seven tax abatements (one expired in 2024; others expire in 2026, 2027, 2030 and 2031) and five performance agreements, two of which expire this year. He noted a performance agreement with a railroad museum that is close to completion and will have a ribbon-cutting on Thursday; Esch estimated the museum agreement would expire next year under its two-year window.

Esch said the RDC has two active chapter 380 incentive agreements both with Builders First Source, which he said "creates, I think, about 40% of our revenue from sales tax that is." The annual report, Esch said, also summarizes the RDC strategic plan adopted last March, funded projects and the CIP projects the RDC helps fund for the city.

The RDC board approved the annual report at its December meeting and forwarded it to council for consideration and potential action. Council members and the mayor discussed the board-to-council process for incentives and grant recommendations: Esch and the mayor said board recommendations go to the council for final certification and council budgetary approval. The council did not record a formal vote during the meeting on the report; staff indicated recommendations from Thursday's RDC meeting would be returned to the council if they involve incentives or budgetary use requiring council certification.

Esch answered council questions about the ribbon-cutting time (9 a.m.), grant-program suggestions and the timeline for expiring agreements. Council members who serve on the RDC board were invited to provide input during board deliberations.