The City of Levelland City Council approved a memorandum of understanding between the group and the Levelland Economic Development Corporation during the Monday, June 5, regular meeting.
The memorandum details the transfer and reimbursement of funds related to the Texas Department of Agriculture Texas Capital Fund grant received for the Enviro Tech Rail Park.
The LEDC’s 2019 Texas Capital Fund grant under national objective criteria mandated the corporation to create 25 low-tomoderate income (LMI) jobs with Enviro Tech Chemical Services, an Arxada company. However, TDA discovered only 10 out of 29 jobs were LMI compliant. Since HUD governs the national objectives, a project must meet the criteria or be rejected. As a result, the LEDC agreed to repay TDA for the grant funds.
As the city is the authorized entity responsible for applying for TDA grant funds, the city will reimburse TDA. In turn, the LEDC will reimburse the city the funds necessary.
LEDC Director Justin Balderas explained the LEDC is a committed to be an exemplary partner. Speaking to the council, Balderas felt that the situation with the company has been resolved and the funds should be returned to the LEDC in the future.
Balderas added that the memorandum was brought to the LEDC board for approval and agreed upon in efforts to provide the council and city staff a clear plan on resolving the issue. The council unanimously agreed to approve the memorandum.