By Karen Gleason
The 830 Times
City council members on Tuesday voted unanimously to postpone a decision on providing $80,000 worth of economic development funding to a local restaurant.
The city council during its regular meeting was set to consider an item titled “discussion and possible action to approve entering into an economic development agreement with Molcajetes Restaurant in the amount of $80,000 pursuant to the Del Rio Code of Ordinances Chapter 31 Economic Development and Incentives.”
Two members of the council were absent from Tuesday’s meeting – Mayor Al Arreola and Mayor Pro-tem Steve Webb. Councilman Jim DeReus presided over the meeting in the mayor’s absence following approval by his colleagues.
During the agenda item “mayor/council public announcements,” DeReus noted that early voting in the city council runoff election had ended, but urged voters who had not cast their ballots to do so on Election Day, Saturday, June 15.
When DeReus asked if there were any other comments from council members, Councilman Jesus Lopez Jr. said, “I would like to postpone (agenda item) 6b.”
“We’re not there yet,” DeReus replied.
The council then went on to take up an agenda item regarding funding for Arreola to travel to Austin later this month for the Governor’s Community Achievement Awards.
Then DeReus read the heading of the item involving funding for Molcajetes Restaurant.
After reading the heading, DeReus recognized Alexandra Falcon Calderon, former council member, who was seated in the audience.
“Ms. Falcon Calderon, you had public comments that related to this item that you wanted to give,” DeReus said.
When Calderon asked if the council was still planning to proceed with the item, DeReus said he didn’t know.
“We haven’t made a decision yet, but do you want to make your comments?” DeReus asked.
Calderon approached the podium and told the council, “This item is one of the items that I was, unfortunately, not part of it, as far as now not being on council, but I did follow this item very close, and nothing against the restaurant, Molcajetes, this is just is how this came about and so, I have here my notes, and based on the previous council meeting, which was (May) 28th, it was directed to the interim city manager to negotiate an agreement for Molcajetes Restaurant.
“Four council members approved that, which really does surprise me, because there have been other items that have come across council that have been approved that (were) incomplete and that was one, which was that resolution (on the agreement).
“So there is no application. It was only a promise. And to have that on record, I have it here. I have all the documents here that it turned out to be a promise. Unfortunately, we are where we are at now that there is an agreement, presented for approval today, and if approved, why will the funds come from the (city) general fund?
“Why will those funds be transferred to the EDC (economic development corporation), and this item is going to have to be amended, because, as per today’s item (on the agenda), it says the funds will come from a general fund transfer to the economic development fund, and the budget will be included in a subsequent budget amendment.
“It was never budgeted. It’s right here. You have it on the agenda. Zero. So you all are requesting $80,000, and as my records here, the (city) financial report as of April 2024, that was presented in the EDC meeting on June 6, the EDC has $1,665,526 from sales tax from the community that now the city of Del Rio is going to have to get that to bail out the EDC. When is that going to stop? When?” Calderon finished, her time limit to speak to the council expired.
DeReus then recognized Lopez.
“I would like to postpone 6b, for more clarification on this. I’ll make a motion to postpone,” Lopez said.
Lopez further said he would like to see the item postponed until the council’s next regular meeting on June 25.
Councilman J.P. Sanchez gave the second to Lopez’s motion.
DeReus asked if there were any more questions or comments, and hearing none, he said he had several conversations with the interim city manager about the funding agreement for the restaurant.
“I have a number of concerns about this also. Some of the numbers seem like they don’t make sense, and I think that there’s a couple of things missing.
“I was planning on bringing this up anyway, but this does address Ms. Falcon Calderon’s comment. This money will not actually be coming from the EDC. It says in this agreement that it will, but it won’t, because it doesn’t qualify for EDC funds, so that is confusing,” DeReus said.
With no further questions or comments, DeReus called for the vote, and all five members of the council present voted in favor of the motion to postpone action on the item.
The writer can be reached at delriomagnoliafan@gmail.com
