ECONOMIC DEVELOPMENT
"The truth is...not every deal is a good deal. Under previous administrations there was little oversight. We threw everything plus the kitchen sink at every deal."
Brian Kennedy
The Economic Development Department currently administers ninety performance-based incentive 380 agreements across multiple programs.The truth is...not every deal is a good deal. Under previous administrations there was little oversight. We threw everything plus the kitchen sink at every deal. Nobody batted an eye. Was it good for our friendly neighborhood owners and developers? Oh, yeah! And nothing's wrong with that...incentives will always play an important role in attracting investment in our community... but our first responsibility is to you.
Did you ever just know you paid too much for something? It's like that.
THE GOOD NEWS
We are seeing promising activity in the commercial sector with higher paying jobs and investment in our community. And we are making smarter deals.
*In case you were wondering, a 380 agreement is named after Local Government Code. These agreements authorize municipalities to offer incentives designed to promote economic development and memorialize the terms that make it a benefit to the public (that's you and me).
2023 Highlights
Agreement with Grupo Bafar, a Mexican food production company, for a $21million expansion project for a new operations center, will result in the retention of 155 full time jobs and the creation of 120 new jobs. This agreement incorporates incentive bonuses for hiring within specific census tracts to help close the wage gap in historically disadvantaged neighborhoods.
Performance-based 380 agreement approved for the expansion of Schneider Electric, making El Paso its largest manufacturing footprint in the U.S. and securing a more than $17 million investment, 370 new jobs, and retention of 1,130 existing jobs.
Agreement with PROD Design & Analysis Inc. builder of manufacturing machinery for items in the medical sector. Expansion project create 56 new jobs, retains 110 at a median wage of $27.83 per hour.
Meta Platforms will build an $800M Phase 1 of 5 Hyperscale Data Center. Construction will generate hundreds of temporary jobs. Operational roles offer high value-added employment for residents as technicians and engineers. Over the next 25 years, Meta will construct an additional 4 phases and replenishment of equipment will lead to a total investment of over $4 billion.
Of 529 applicants nationwide, the City of El Paso was one of 21 regional coalitions selected by the EDA for a $40 million grant through the Build Back Better Regional Challenge to grow a regional advanced manufacturing industry cluster with an emphasis on aerospace and defense manufacturing.
2024 Highlights
Approval of 380 agreement for $70M expansion by Eaton Corporation to create 575 new jobs and retain 300 jobs, with annual salaries of $50M+ and indirectly generating an additional 960+ jobs representing $48k in average annual salaries per job.
Public Private Partnership with Notes Live Inc. for the development of an $80-million, world-class outdoor amphitheater to rekindle the Cohen Entertainment District Master Plan. The company will build a 12,500-capacity amphitheater in Northeast El Paso, overlooking the Franklin Mountains and secure a national operator for 40 events per year. Incentives do not cost taxpayers a dime. Rebates are self-generated. This project is expected to have a $5.4 Billion impact for the El Paso community.
In 2023, as Chair of the Financial Oversight and Advisory Committee, Brian Kennedy asked for a complete audit of all performance based agreements because he had become aware that the previous administration was allowing some modifications of contracts rather than requiring companies to adhere to the original terms of their agreements. The final audit, returned in 2024, revealed a number of inconsistencies which has led to new internal procedures that create the required checks and balances to make sure that our contractual partners are doing their part and we are doing ours.
That's why it's important to have someone at the table that's committed to growth, understands compromise, looks for creative solutions and NEVER FORGETS they are there to represent your interest.
