City Council’s Economic Development Plan

San Marcos City Council is at it again, this time trying to reinvent the wheel by assembling and implementing their own economic development team, funded by a shiny new piggy bank they have labeled the economic development supplemental fund.
“Communities can only be as great as the opportunity afforded within them to their citizens. This is true in San Marcos, and its particularly true because quality of life starts with a quality job, and too few in San Marcos are afforded that opportunity to better provide for their family through companies that maintain a presence in San Marcos.
Quality job creation is the work of Greater San Marcos Partnership and its president Adriana Cruz. And boy did they have a terrific year- 350 jobs announced in February due to the arrival of Epic Piping. And then, in August, 1,000 jobs announced associated with the Amazon Distribution Center.
We’ve done the research, and there have been more jobs announced, with Adriana and the Partnerships hard work, over the last 12 months than have been announced over the last 12 years.
Adriana is one of the best economic developers in the country-previously helping to lead the efforts of both the Austin Chamber and the Governor’s Office of Economic development.
We are so fortunate to have her here in San Marcos, and in celebration of the many accomplishments of the Greater San Marcos Partnership during the past year, we are proud to award her the Community Inspiration for 2015.” – quoted from Brian Bondy President of the San Marcos Chamber of Commerce, at the 2015 annual Chamber Gala.
So, why, why, why does our newly elected city council members think it is a good idea to let Adriana Cruz and our proven successful GSMP go?
First thought for most would be cost. Is GSMP too expensive? $360,000 annually to retain “the best economic developer in the country” and all of Greater San Marcos Partnerships services exclusive to the city.
The City’s Economic Development Policy, passed in 2013, purpose and objectives is a copy of what GSMP does now, “promotion of quality development in all parts of the city and improving the quality of life for its citizens, stimulate economic development, provide incentives to attract business and growth to San Marcos”.
Follow The Money
September 30th 2014, GSMP was 100% funded through the city’s electric utility fund. Funding GSMP means the Partnership focuses its work on San Marcos in lieu of the entire region or another city. For example, if Mrs. Cruz and her team of economic development professionals were not exclusively dedicated to San Marcos those 1,000 jobs coming our way through Amazon may have ended up in New Braunfels or elsewhere.
When the city’s new budget took effect next day, October 1 2014, GSMP’s funding split 3 ways receiving 1/3 from the city’s General Fund, 1/3 from the city’s Wastewater & Water Fund, and 1/3 from the Electric Fund. This was to spread out the cost of $360,000 annually for GSMP’s dedicated presence here in San Marcos, between other city funds alleviating any financial stress on one fund alone.
October 1 2014 GSMP’s contract with the city of San Marcos came due and the city council did not sign on the dotted line. The contract was postponed until March 2015 with an end date of September 30th 2016.
Furthermore, our city council keeps handing out one year contracts to our most valuable assets such as in the case of Greater San Marcos Partnership, the San Marcos airport and Convention Visitors Bureau, who handles tourism to San Marcos.
December 1st 2015, city councils’ agenda included consideration and the approval of a policy regarding use of the City’s Economic Development Supplemental Fund and declaring an effective date.
With most council member’s eager to access the new supplemental fund, called “War Chest” by Steve Parker, Assistant City Manager, council members Gregson and Hughson were seemingly uncertain of this endeavor, requested more time to review and prioritize items before definitively deciding on this new proposed policy.
A sub-committee comprised of council members John Thomaides, Scott Gregson, and Jane Hughson have been set to the task of careful review of proposed policy changes before, potentially getting in over their heads.
For three consecutive years, San Marcos, Texas has been the fastest growing city in the country. Hays County population expectations are set to nearly double by 2050. This comes as no surprise as Austin’s overflowing population seeps south.
If San Marcos does not continue to build a large pyramidal base centered along the corridor, and continue to grow economically; able to support the projected population increase, with quality jobs, San Marcos may soon see a stagnant future, and end up a suburb of Austin Metro rather than a strong independent city of it’s own.

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