City renews GSMP contract, shoots down increase
The city of San Marcos has approved a three-year contract with the Greater San Marcos Partnership (GSMP) and might even give the economic development organization more funds, depending on its needs in the midst of some special circumstances.
During discussion of the contract, under which the city will pay GSMP $375,000 per year for three years, Mayor John Thomaides proposed an amendment that would see the city give GSMP an additional $25,000 over the three-year period.
“There’s a couple of issues that the Greater San Marcos Partnership is dealing with right now,” Thomaides said, that he felt would warrant extra funding.
First, he said, the Army Futures Command has chosen Austin for its headquarters. Futures Command leaders have said it will need 5,000 new businesses to service and supply the new command.
“Obviously, we’re hoping that a lot of those may come here into San Marcos,” Thomaides said.
Second, Thomaides said, “We have a gentleman on the Greater San Marcos Partnership that is contracted with the firm that is the dean of economic development in Austin … as well was one of the key reasons why Army Futures Command chose Austin.”
The gentleman in question is Pike Powers, whose accomplishments include making the high-tech boom in Austin possible.
GSMP President Adriana Cruz, explained that the GSMP has an existing contract with Powers, but had lowered the amount he would be paid in the GSMP’s most recent budget. Additional funding would help the GSMP bring the amount up to what it was before.
“I personally feel it should be increased, in a minor way,” Thomaides said of the city’s payment to GSMP, “and I would propose that the contract would be increased over three years to an additional $25,000.”
Thomaides proposed that the city pay an additional $15,000 for the first year of the contract, then an additional $5,000 the second year and another $5,000 for the third year.
Council member Melissa Derrick asked what the increase would be used for, and Mayor Pro Tem Lisa Prewitt requested a presentation on the Army Futures Command and what kind of resources GSMP would need to take advantage of that.
“I’m not opposed to additional funding at all,” Prewitt said. “... I’m not questioning it, but this is the first I’ve heard of it. … I’m not prepared this evening to increase this contract without having some type of a presentation about this program and what this $25,000 actually means.”
Cruz said that the GSMP has not asked for any increases from any public-sector partners, but Thomaides pointed out that the county has increased its payments to GSMP. Cruz said Hays County increased its payment by $100,000, to $250,000; Caldwell, the city of Kyle and the university have also increased payments to the GSMP. Cruz said the last increase from the city of San Marcos was when GSMP moved its offices downtown.
Council member Scott Gregson said that the private sector also contributes heavily to the GSMP, and that for private-sector investments to continue, it is important to have a show of support from the public sector.
“This is a relatively nominal amount as a percentage over the course of three years to at least give that indication of support,” Gregson said.
Council member Ed Mihalkanin said he wished the council had known about GSMP’s efforts to attract businesses related to the Army Futures Command and keep Powers’ contract amount the same before the city’s budget process.
“We could have talked about this when we talked about the budget,” he said.
“I’m not opposed to the increase,” council member Jane Hughson said, but she expressed similar concerns about the proposed funding increase coming up so suddenly.
“I just wish this would have been put on the message board so we would have known about this before we got to the meeting,” she said. “... I think we should have known about this more than 10 minutes ago.”
Prewitt said that if the GSMP gives a presentation on what it needs, the city could end up giving more than the increase that Thomaides proposed.
“You might want more than $15,000. I don’t know,” she said. “I don’t know what the Army Futures program is. It sounds exciting.”
Hughson agreed with Prewitt.
“It might be more money that you need,” she said.
Prewitt did urge Cruz to come back in two to four weeks with a presentation.
Thomaides’ amendment to give GSMP an additional $25,000 failed 2-5, with Thomaides and Gregson as the only aye votes. Hughson proposed a minor amendment equiring the GSMP nominating committee to meet not less than three times each fiscal year. Currently, the committee meets annually. Hughson’s amendment passed 7-0, as did the three-year contract with GSMP.
