Amarillo City Councilmember Les Simpson expressed surprise at the decision to have the council’s attorney, George Hyde, to amend the articles of incorporation for the Amarillo Economic Development Corporation.
Simpson mentioned that this decision had not been previously discussed and that he had specifically requested to discuss the AEDC budget during the regular city council meeting on September 25th, knowing he would not be able to attend a special meeting on September 30th.
“What surprised me was what I’m hearing is a request to have this outside legal counsel from Austin rewrite the Articles of Incorporation for the AEDC and that we’re spending money to do that. That had not been discussed before,” Simpson told the Amarillo Tribune.
During the Amarillo City Council's most recent regular meeting, Mayor Cole Stanley indicated that the council wanted to have a discussion with Simpson present before voting on the AEDC budget. City Manager Grayson Path outlined three options for the council regarding the AEDC’s proposed 2024/2025 budget: approve it, not approve it, or approve it with conditions.
Despite Simpson’s absence, the council proceeded with the special meeting, leading to the decision to amend the AEDC’s articles of incorporation.
Here’s a brief summary of the situation:
Recommendation by Hyde: Hyde recommended adding provisions to the AEDC’s articles of incorporation to ensure that all expenditures are pre-approved by the city council. This would involve identifying and approving specific budget line items.
Council’s Directive: During a recent meeting, the council members present (Josh Craft, Don Tipps, and Tom Scherlen) agreed to give Hyde the task of amending the articles of incorporation. This directive was given without a formal motion, as Hyde is already serving as legal counsel.
Simpson’s Concerns: Councilmember Simpson expressed concerns about the process, noting that the decision to amend the articles and allocate up to $10,000 for this task was not on the meeting agenda. He questioned the transparency and consistency of this action compared to the scrutiny being applied to the AEDC.
Simpson has requested that the directive be placed on a future city council meeting agenda for a vote.
“The Articles of Incorporation have served us well for 35 years. Why is it all of a sudden, we feel a need to change it? And is this going to be a new thing where every council changes their articles of incorporation to see what they want?” Simpson told the Amarillo Tribune. “Yes, we had issues here. I think everybody agreed that there are policies that we can put into place that were really not there, that were absent, that can [take care of] that. But my concern is, and who’s running this? Is it an attorney from Austin that’s now running the city and what we’re supposed to be doing with the AEDC?”
Simpson’s concerns about the council’s directive to spend up to $10,000 on creating these articles without it being a budgeted item highlight the need for consistency in the approval process. He points out that the council is holding the Amarillo Economic Development Corporation (AEDC) to a strict approval process, and he believes the council should adhere to the same standards.
The council’s decision to appoint Hyde as special counsel, with a budget not to exceed $95,000, is also noteworthy. This move is intended to provide the council with unbiased legal advice, separate from the city attorneys who represent the entire organization. Hyde’s letter outlines potential funding options for this expenditure, suggesting that existing funds in the legal budget or line-item transfers could cover the costs.
Stanley mentioned that Hyde has been instrumental in helping the council understand the proposed Sanctuary City for the Unborn ordinance. Stanley emphasized that Hyde’s services will only be used as needed to avoid unnecessary expenses.
The AEDC is undergoing a financial audit for the past three years, conducted by the City of Amarillo’s internal auditor, U’Neill Gerber. This audit was prompted by a $750,000 wire transfer in January 2023 to the Amarillo Global Food Hub (formerly known as The Range). The audit findings are expected to be released on Friday.
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