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Lubbock council approves $152,000 reimbursement grant for TTX project in Slaton amid debate over out-of-city incentives
Summary
The Lubbock City Council approved a $152,000 performance-based reimbursement grant administered through the Lubbock Economic Development Alliance to support a gas-line extension for a TTX railcar facility in Slaton. Some council members urged prioritizing in-city businesses; staff said the project yields a community payback of about 0.7 years.
The Lubbock City Council on July 14 approved, as part of its consent agenda, a $152,000 reimbursement grant administered by the Lubbock Economic Development Alliance (LEDA) to support a gas-line extension for a TTX railcar repair, maintenance and scrapping operation located in Slaton, outside the Lubbock city limits.
Mayor Mark Bridal said he was concerned about using city‑funded incentive dollars for projects outside Lubbock. “I’d rather see it spent here in Lubbock than outside the city,” Mayor Mark Bridal said, noting the funds ultimately come from Lubbock taxpayers.
Councilwoman Martinez Garcia asked staff to provide context for the decision. Chris, a LEDA representative who answered council questions, said LEDA is funded in part by city sales tax and that projects in Lubbock County often generate local economic activity — people who work in county facilities may shop, buy equipment and live in the city. “That impact analysis had a payback to our community entities as a whole… 0.7 for this particular grant,” Chris said, adding the project is structured as a reimbursement paid after the company proves completion of the work.
A council member pressed LEDA for additional figures on the return to the community. Staff replied the project is projected to produce about $22,000,000 in direct wages over the next 10 years and an additional roughly $15,800,000 in induced wages over the same period, with the community payback estimated at about 0.7 years.
Councilmember Rose cautioned the council to avoid a pattern of awarding incentives outside the city when the money could “be spent in Lubbock,” while Mister Collins emphasized regional shopping and sales-tax receipts that benefit the city even when projects are located in nearby towns.
Chris confirmed the grant is a $152,000 reimbursement to extend a gas line and described it as narrowly targeted and performance-based: by state law, sales-tax-funded economic development agreements require performance contracts with clawback provisions so payment only occurs if the company meets the agreed conditions.
The consent agenda, which included the TTX grant resolution (agenda item 5.18), was approved by the council without recorded opposition.
Next steps: because the resolution was handled on the consent agenda, no separate ordinance hearing was scheduled at the meeting; the reimbursement will be paid only after the company documents completion and meets the performance terms of the agreement.
