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Josephine CDC approves $5,000 matching payment for website/AI project with reporting; declines $17,000 GSLI portal package

Josephine Community Development Corporation · August 26, 2024
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Summary

After discussion about compliance with Texas Comptroller rules on marketing versus project spending, the JCDC approved a $5,000 matching reimbursement for a website/AI project framed as a project with required performance measures and a 3-month update. The board voted not to approve a separate $17,000 package from Global Site Location Industries amid concerns about cost, legal/privacy questions and prior spending.

The Josephine Community Development Corporation voted to provide a $5,000 matching payment for a project described as website, video and AI services to be provided via a partnership with the Association of Rural Communities in Texas and Global Site Location Industries (GSLI). The board conditioned the approval on clarifying the work as a project (not promotional marketing) and requested a project update within approximately three months.

Pam and other presenters flagged guidance from the Texas Attorney General and the Comptroller that development corporations cannot use funds for pure marketing or promotion; one board member asked that the scope be written to emphasize deliverables, timelines and performance measures rather than advertising. Pam recommended wording the request to fund the website-improvement and AI-exploration elements as a project and to avoid out-of-state marketing activity to remain compliant with state guidance.

The motion to fund $5,000 for the website/AI project passed with three votes in favor and one opposed. The board asked for a short project report in three months and documentation that the funded work meets the "project" criteria specified by the Comptroller.

Separately, board members reviewed a previously approved $17,000 bundled package from Global Site Location Industries for a retail portal and AI "Lighthouse" service. Several members questioned the value for cost, noted claims that similar data was available at far lower prices, and raised privacy/legal concerns about some AI uses. One board member said: "I don't particularly want to be spending money on something that's potentially illegal because it is an invasion of privacy using data from our cell phones," a point that contributed to the board's decision.

A motion not to approve the $17,000 GSLI package passed; board members noted that funds associated with the $17,000 item appeared to have already been disbursed by others and that the JCDC would not ratify the expense.

Next steps: the $5,000 project funding will proceed with the requested project wording and reporting; the board will document its concerns about the larger GSLI package in minutes and seek clarity on any prior disbursements.