By Karen Gleason
The 830 Times
City council members unanimously approved an agreement between the city’s economic development corporation and a marketing firm, even though one council member pointed out that the initial agreement had violated state law.
The council during its most recent meeting unanimously approved a resolution “to authorize funding by the Del Rio Economic Development Corporation (DREDC) to support marketing efforts by approving a professional services agreement between the DREDC and The Retail Coach.”
After City Secretary Mari Acosta read the heading of the agenda item, Mayor Al Arreola called for a motion. Councilman Jesus Lopez Jr. made the motion to approve the resolution, and Councilwoman Ernestina “Tina” Martinez gave the second.
According to an informational memo in the council’s packet prepared by City Manager Shawna Burkhart, “The Retail Coach, LLC, is a retail consulting company, a market research and development firm that combines strategy, technology, and creative expertise to develop and deliver high-impact retail recruitment and development strategies to local governments, chambers of commerce and economic development organizations.”
Burkhart in her memo noted a section of the Texas Local Government Code allows Type B economic development corporations like Del Rio’s “to expend sales tax proceeds for specific services suitable to promote or develop new or expanded business enterprises that create or retain jobs. . .”
Also in her memo, the city manager wrote in November 2024, the DREDC board of directors approved the expenditure of $37,000 in first-year funding for The Retail Coach to use its proprietary Retail360 ® process “to analyze the strengths and weaknesses of the community to help attract retail investment, while also highlighting Del Rio’s competitive advantages over neighboring cities” and authorized the EDC board president to execute an agreement with the company.
In the council meeting, Arreola recognized Mayor Pro-tem Jim DeReus after asking if there were any questions or concerns for Burkhart.
DeReus said, “A comment. I already talked with Shawna about this item today because I don’t know, and this is a semi-rhetorical question for the city attorney. I didn’t have a chance to talk to her before the meeting, but do we need to notify the state that we violated state procedure by paying this without it coming to city council first?”
City Attorney Ana Markowski Smith replied, “That decision, in the city, has been made before.”
“But, EDC (economic development corporation) funds are not supposed to be expended unless they’re approved by city council, is that correct?” DeReus asked.
“That’s correct,” Smith replied.
“And that is state law?” DeReus asked.
“That’s correct,” Smith replied.
“So, I mean, we’re trying to make it right. I am going to assume that this is going to be approved, but, as Ms. Burkhart and I were talking, this can’t happen again,” DeReus said.
“Right,” Burkhart said.
“Because this is going to get us in trouble, and we talked about how it happened and the, you know, confluence of events that led to this, but we really got to be careful, so, that’s all I got,” DeReus said.
Arreola said, “Any other comments, questions, concerns? If not, we have a first and second, all in favor?”
All six of the council members present then voted in favor of the motion to approve the resolution.
The writer can be reached at delriomagnoliafan@gmail.com .
