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MEDC board weighs renegotiating 99‑year MOU that commits 90% of sales tax; hears childcare study pitch
Summary
Board members discussed the long‑standing MOU that commits 90% of MEDC sales tax to the city for a 160‑acre municipal complex and explored options to renegotiate terms, hire an economic development director, and proactively pursue RFPs; Next Move Group presented a childcare‑capacity study approach estimated at about $5,000.
The Manvel Economic Development Corporation used substantial meeting time to discuss long‑term strategy, including whether to revisit a 99‑year memorandum of understanding (MOU) that directs 90% of MEDC sales‑tax revenues to the city to develop a 160‑acre municipal complex (project 2020‑02).
Board members described the MOU as longstanding and "inherited." A board speaker summarized the termination mechanics: either the MEDC or the city may terminate the agreement with one year’s written notice, but pledged funds already committed to bonds or other obligations remain payable until those obligations mature. "Once funds have been pledged to a bond or other obligation, that's got to continue until it's paid off," a board member said.
Several members said the current arrangement limits MEDC’s ability to fund smaller projects or hire staff. The chair said he would like to see the MEDC hire a director to lead proactive recruitment, attend conferences and manage outreach; other board members agreed that a dedicated staffer could track RFPs and site‑selection leads, and work with property owners and the regional alliance to place Manvel on site‑selection lists.
Board members discussed possible renegotiation approaches: capping the annual amount remitted to the city, retaining a larger share for EDC operations, or using a portion of incremental growth for MEDC programs. Board members acknowledged constraints: the project was posted and approved previously as a MEDC project and any change could require re‑listing the project and reapproving terms.
Earlier in the meeting Next Move Group (Chad and Ali Watson) presented a childcare‑capacity study framework that measures seat shortages and ties findings to workforce impacts. Chad cited examples in other communities where studies showed significant seat deficits and estimated a community study for Manvel would likely cost about $5,000. Presenters described possible strategies that follow a study: partnerships with senior‑living facilities, provider incentives to expand capacity, or employer‑sponsored childcare.
No formal action was taken on renegotiation during the meeting. Board members agreed to pursue staff and council conversations to explore options and gather data before any formal renegotiation or project‑relisting.
Next steps: staff to meet with city council and report back; no MOU changes were approved at the meeting.
