Voters to decide fate of Brownsville’s two economic development organizations

Rio Grande Guardian
BY ANTONIO VINDELL 
JANUARY 19, 2024

BROWNSVILLE, Texas – Two of Brownsville economic development entities are scheduled to be terminated as the city is recommending the creation of another entity in an effort to consolidate operations into a single one.

But it would be up to the voters to decide the fate of the Brownsville Community Improvement Corp. and the Greater Brownsville Incentives Corp. during a May 4 election that is yet to be approved by the City Commission.

The administrative body held a public hearing during its Tuesday, January 18, meeting and approved a first reading ordering the special election.

No one spoke for or against at the meeting so the commission approved the action.

Mayor John Cowen said current projects being implemented by the two corporations should continue until otherwise informed.

If voters cast their ballots in favor of the termination, a new corporation will be created under the name of the Greater Brownsville Municipal Development District.

Such district will be part of the city and its extraterritorial jurisdiction and it’s a special-purpose district in charge of generating economic development and growth opportunities, including quality of life projects, within its boundaries.

If the consolidation is approved, GBMDD will accomplish what GBIC and BCIC do today.

Currently, funding for the two entities comes from the retailers of taxable goods.

According to a summary of the recommendation prepared by the city staff, “retailers of taxable goods or services in Texas must collect 6.25 percent state sales or use tax and the appropriate local sales or use tax. The local sales and use tax due cannot be more than 2 percent, so the most tax these retailers can collect is 8.25 percent. Currently, the City collects a sales and use tax within the City’s corporate limits of 1 percent for the general fund, 0.50 percent for property tax relief, 0.25 percent for Greater Brownsville Incentives Corporation (GBIC), and 0.25 percent for Brownsville Community Improvement Corporation (BCIC)”.

City Attorney Will Treviño said that by consolidating the two corporations, the city will also expand its territory.

He said the two corporations get about $14 million a year, while the city can pull in an additional $400,000 in sale taxes collections in the extraterritorial jurisdiction.

Bret Gardella, the GBIC executive director and CEO, said what the city is trying to do simply is to consolidate the two entities into one.

He called the action a good thing and it’s for the best interest of the city.

Gardella sees no reason for having two or more entities working on a single topic, which is on economic development.

“I think this is something positive,” said the corporation chief, who came on board about six month ago. 

Cori Peña, the BCIC director and CEO, could not be reached for comment for this story.