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September 25, 2012

Nederland City approves NEDC’s airport pledge

Mary Meaux The Port Arthur News

NEDERLAND — Nederland’s portion of a minimum revenue guarantee to help lure American Airlines to the county is one step closer to fruition.

Councilmembers in Nederland approved the first of two readings of a resolution ratifying the action of the Nederland Economic Development Corporation’s participation in the MRG as requested by American Airlines to establish air service at Jack Brooks Regional Airport.

On Sept. 17, NEDC board members approved pitching in $75,000 toward the fail-safe fund. The issue was approved 5 to 1 with NEDC board member Jim McNeil casting the dissenting vote.

City Council is set to consider the second and final reading of the resolution at the Oct. 8 meeting.

American Airlines officials told officials with Jefferson County that the MRG account needs to be approximately $1.5 million. Jefferson County is kicking in $250,000 while individual donations tally in at about $70,000.

County officials are  asking for $250,000 from Beaumont, $200,000 from Port Arthur  and $100,000 from Mid-County cities. Excess funds from the MRG, if there are any, will go toward marketing or be redistributed.

Beaumont City Council approved the $250,000 revenue guarantee in September while Port Arthur approved kicking in $200,000 last Friday. Port Neches EDC made a commitment of $30,000 and Groves EDC has not discussed the issue at this time.

In other business, Nederland City Council members approved an agreement for service with the NEDC.

City Manager Chris Duque said according to a 1999 Attorney General’s Opinion, municipalities cannot offer services to economic development corporations without being reimbursed. Auditors alerted city officials to the issue around 2009-2010 and the city has worked on drafting a document since around 2011.

The City of Nederland offers a variety of services to the NEDC including auditing, accounts payable, insurance, rental of the building and mowing NEDC property. The city will be reimbursed approximately $14,060 for the services.

mmeaux@panews.com

 

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