The Texas Economic Development Council (TEDC) has come out strongly against recent actions taken by the Amarillo City Council and Mayor Cole Stanley, following the resignation of four out of five members of the Amarillo Economic Development Corporation (AEDC) board earlier this week. In a scathing statement, TEDC President and CEO Carlton Schwab criticized the actions of the Amarillo city leaders and voiced concern over the long-term impact on the city’s economic development efforts.
The wave of resignations, which included AEDC Chairman Andrew Hall, Vice Chairman Adrian Meander, Scott Bentley, and Helen Burton, came in response to what they described as “irreparable damage” to the city’s economic development efforts caused by actions from Mayor Stanley and several City Council members. The departing members cited a range of concerns, but central to the resignations was a growing sense that the city’s leadership was undermining the AEDC’s ability to function effectively.
Schwab Slams City Leadership
In his statement, Schwab, who has served as president and CEO of the TEDC since 1999, called the AEDC “one of the best economic development corporations in Texas,” noting that the organization had played a key role in attracting major businesses, including Bell Helicopter, to the region. Schwab argued that the AEDC's success was built on its ability to operate with autonomy, free from the day-to-day interference of the Amarillo City Council.
The TEDC CEO took aim at the actions of the City Council, particularly their decision to hire Austin-area attorney George Hyde as counsel to advise on potential changes to the AEDC and to help redraft the AEDC's Articles of Incorporation. Schwab expressed concerns about the potential for these changes to destabilize the AEDC’s operations, undermining its ability to attract new business and drive local economic growth.
Schwab also criticized recent efforts to target AEDC President and CEO Kevin Carter and the corporation’s staff, calling them “shameful, borderline hateful, and completely unnecessary. It’s abuse, quite frankly.” Schwab's statement suggested that such actions could severely damage the relationship between the city’s leadership and the AEDC, which could, in turn, harm the city’s economic development efforts.
Disagreement on EDC Expenditures and Practices
One of the main points of contention between the TEDC and the Amarillo City Council is the council’s position on how expenditures by Economic Development Corporations (EDCs) should be managed. Schwab took issue with the view held by Hyde and some members of the City Council that all EDC expenditures should be subject to approval on a bi-weekly or monthly basis. He described this idea as “laughably false,” arguing that it was an impractical and damaging approach that could discourage corporations from working with Amarillo’s EDC.
“If EDCs are required to publicize every expenditure and reveal the corporations they are engaging with, it could have a chilling effect on business,” Schwab said. “Corporations are unlikely to want to work with an EDC that is forced to disclose sensitive details of their dealings in such a public and frequent manner.”
Schwab further disagreed with the view that EDCs are not permitted to exceed their budgeted line items as long as they remain within their overall budget. He argued that it is common practice for most EDCs, as well as municipalities—including the City of Amarillo itself—to make such adjustments as needed.
Schwab also addressed the City Council’s apparent stance on bonuses for AEDC staff. The TEDC leader emphasized that EDCs, due to their distinct legal and operational structure, are not held to the same restrictions as municipalities when it comes to paying bonuses. He argued that this distinction was critical to the AEDC's ability to retain talented professionals and continue its work on behalf of Amarillo.
Temporary Appointments and Ongoing Tensions
The resignation of the four board members has left the AEDC in a precarious position. On Tuesday, during a City Council meeting, temporary board appointments were made in an attempt to fill the gap left by the resignations. Councilmembers Don Tipps and Josh Craft, former Councilmember Howard Smith, and local businessman Alex Fairly will serve on the AEDC board alongside Deepak Patel, the only remaining board member, until permanent replacements can be found.
However, the actions of the Amarillo City Council and the departure of the AEDC board members have raised questions about the future of the AEDC and its ability to continue its mission of fostering economic growth in the region. Local leaders have expressed concern that the ongoing tension between the City Council and the AEDC could hamper efforts to attract new business and investment to Amarillo.
A Divided Future?
The conflict between the Amarillo City Council and the AEDC raises fundamental questions about how economic development should be managed in the city. While Mayor Stanley and several council members argue that changes are needed to ensure more accountability and transparency, critics—including Schwab and AEDC supporters—warn that excessive interference could undermine the very success the AEDC has brought to Amarillo over the years.
