Here we are again, with the second part of our series “Ask a Municipality.” This week, we answer some questions and address some concerns raised over the local Menard Industrial Development Corporation (MIDC). There is LOT of information to convey and digest, so this subject will be broken up into more palatable parts over the next couple or three weeks.
As far as the MIDC goes— Why are they a thing? What is their place? Who are they? Where do they get their money? What do they do with that money and how come they haven’t fixed our city streets with it? Why don’t they let a Quiznos or a Sonic come to town? Following, you will find the answers to those inquiries and more.
First, in full disclosure: The current president of the MIDC Board of Directors is my husband, Tyler Wright. I did not consult him on this piece; I had plenty of sources within and outside the MIDC that his input was not necessary. He probably doesn’t even know I wrote this. You’ll learn more about the Board and their terms below. Special thanks to Executive Director Cherry Swindall and office assistant Kyra Ramon for all the paperwork, answers, explanations, and time spent dealing with me.
Also- we will have PART I and all subsequent parts of this MIDC piece accessible for free on menard- news.com.
What is the MIDC’s role? What is their place in the community?
Our MIDC is not a unique organization. Every big city and most small towns in Texas like Menard have some form of economic development entity in place. They may have differing names—Industrial Board, Economic Development Committee—along those lines.And a small one like ours differs greatly from a big city’s group. In Junction, they have their Economic Development Corporation. I spoke with Vanetta Sanders, the Executive Director of Junction EDC and she confirmed their source of funding is the same as our MIDC and most others. For every standard of operation that I gave her as far as the MIDC runs, she confirmed that’s how Junction’s and the other Texas EDCs function.
All of these groups are under the umbrella of the Texas Economic Development Council. They are all structured and operate almost exactly the same. Those groups, along with our local MIDC exist to support businesses, new and old, within the city limits.
The Texas EDC notes that support sometimes means helping with the opening of a business—for example, when the NAPA store downtown reopened with new owners, MIDC assisted with obtaining inventory to fill their shelves.
Other times, helping a local business is in the construction/infrastructure phase of said business. Currently, MIDC is assisting the soon-to-be Abuelo’s Café in construction of their building.
Well, what does that mean? It means after hearing the owner’s business plans, reviewing alternate secured financing and other information, MIDC approved to provide a monetary loan with low interest and under terms agreeable to both sides.
The Corp. also has a current business support project that will become more public in the near future. That assistance is not a secret though, you can go by and ask them. I just don’t think it’s my place to put it here until things are finalized. *Hint-check the City Council Minutes in this issue.
“I can’t think of a single [reputable/legal] business that the MIDC organization, or any other local entity, would discourage from establishing itself in Menard,” said past MIDC Director Jason Bannowsky. “We want there to be jobs and industry here.”
Side note, because we all hear- “If ‘they’d’ let us have a Taco Bell (for example), things would brighten up in this town!”
The Industrial Corp. does not open new businesses. They are here to assist and support business.
If you want a Dairy Queen or a Sonic, or a Starbucks (please)… that is on individual entrepreneurs. No one person or governing body in Menard is responsible for directly delivering a new business establishment to Menard wrapped in shiny paper with a bow.
Back to it— Other ways MIDC assists is by helping with the purchase of land in order to build a business. A somewhat recent example is J.M. Farm & Ranch Construction. MIDC provided a portion of the financial backing for that business owner to purchase the property for their business.
Although the Board has several ways to help, they do usually require that an interested party look into other financing options.
The Board typically does not loan money without a supplementing financing source or two involved with the borrower. In plain English: I have found that they do not give out money willynilly. The group is not in the business of uneducated loan decisions that may result in losing taxpayer money, although it does happen. They require collateral, a business plan, financial statements… they will not just hand over money without witnessing a borrower’s commitment to the project. Basically, all the info a bank wants, but you probably have better odds with MIDC. But do have your stuff together and ready to present.
Also, once the MIDC Board does agree to lend money, the Council of the City of Menard must also approve it. They have the final say on almost everything. More on that later.
New businesses are great, but MIDC also strives to retain economic activity already present. During COVID relief times, MIDC received $5,000 in federal assistance. Those funds were fully distributed to businesses who accepted it. Some declined the offer, stating they were still in a good financial place, so even more of that went to the places who really needed it.
Seems the MIDC has plenty of money to dole out. Where do they get their money?
The Menard Industrial Corporation is an entity which receives tax money. They collect a half cent sales tax. For every dollar spent on anything taxable within the city limits of Menard, MIDC receives half a cent. For example, if you roll in to Tres Amigos and buy a corndog and a Coke, that $3 you pay provides the MIDC with one-and-a-half-cents.
That cut of taxes will generally add up to around $4,000- $7,000 per month for MIDC, said Swindall. It will be more during hunting season with more people in town spending money. And the opening of Bowie’s—who’s owners purchased their lots from MIDC— has also really upped the amount of taxable goods sold.
Another side note- This is exactly why we always preach to KEEP IT LOCAL! The more money you spend here, the more money that’s stays here!
Anyway, the MIDC budget is approved each year, in September, by the City Council. If at the end of the fiscal year they are over budget, the MIDC is required to present that discrepancy to City Council, which will result in an amended budget.
Like anyone, the Board strives to stay within budget. However, if it is a year that there are multiple loans or grants given, sometimes they do go over. To alleviate this, they typically have monies in reserve— meaning in excess of the budget— to cover any loans that do go over budget.
Reserve money happens when they do not spend the full amount of revenue in that fiscal year. When that happens, that extra money is carried over to the next fiscal year. Much like finding a $20 bill in last year’s coat pocket. But probably on a much larger scale…
Specifically, WHO are the members of MIDC?
The MIDC is made up of 5 members. They must have a quorum to meet, which is majority. So, at least 3 have to be present in person or available by phone to conduct any business.
Officers as of March 2022 are: Tyler Wright, President; Christy Eggleston, Vice President; Dean Mayhew, Director; Mikki Hand, Director. The Corp. is currently seeking a 5th Board member.
Board members are sometimes considered by the recommendation of other Board members (someone they think would be a good fit). Occasionally someone will ask to serve. Other times a member of the community will recommend someone. The City Council typically appoints at least one Board member from the City Council so one of their reps has an in-depth knowledge of MIDC activity beyond monthly reports.
If a person agrees to serve on the Board, they are voted in by the MIDC Board and then they must be approved by the City Council as well. They can attend MIDC meetings but cannot vote until they are approved by City Council.
MIDC Board member terms are 2 years and cannot exceed 6 years. After 6 years they must step down for a year minimum before they could come back on if they so desired. Apparently, that is usually not a problem, very few retain the desire to return after they have served their time. It seems 6 years has been plenty for most willing to give their time and endure the public comment that come with the job. I will not be signing up!
If you are interested in being considered for the position, you can contact the Chamber/MIDC office at 395-2365.
Mayor Barbara Hooten attends al of the MIDC meetings and is the Ex-Officio, meaning she cannot vote, but can discuss and voice her opinion on matters. She also gives a City update at regular meetings.
Next week, this dump of information continues, and will address: Who oversees the MIDC and keeps them in check? How do I know how our half-cent is being spent appropriately? What else does the MIDC do for us? How can I apply for funding?