Terrell County News Leader

June 19, 2009

County eyes ‘stimulus’

SANDERSON – Terrell County Commissioners began work on the 2009-10 budget in a workshop here yesterday, June 18, and the budget could include a match for a $200,000 federal “economic development stimulus” grant.

County Judge Leo Smith said the grant has not been finalized but he said the US Department of Agriculture told him the county’s application scored “if not the highest in the state, it’s one of highest.”

The county would match the USDA grant for a $400,000 fund and could then lend money for businesses that want to start or grow in the county.

Critics said a bank or other commercial lending institution could provide the financing and if it’s a good deal for the county, it would be a good deal for the bank.

Smith said the difference would be that the county could charge interest “any way we want to,” as low as two percentage points above the federal interest rate, now about one percent.

This would allow the county to charge “two or three percent” versus what the banks charge, he said.

The county would look at a financial statement just like a bank would to determine whether to make the loan but it would be based more on the collateral than on past credit history.

“We would be more interested in loaning money on the building or the land than we would inventory, for example,” Smith said.

While inventory will be sold, bringing in revenue, the real estate is a lasting value.

“We are well on the way to getting the grant,” he said.

The requirement for a business is that it employ one person for every $20,000 in the loan.

“I’ve already been approached by two people that are interested in borrowing money, one for a grocery store and one for gifts and novelties,” Smith said. “It’s a really good deal.”

State to vote

to protect landowners

AUSTIN – When Texas voters go to the polls in November, they will be asked to vote, among other things, on a constitutional amendment that would strengthen landowner rights.

“Land ownership is an essential part of Texas’ culture and we owe it to our citizens to protect their rights as landowners and members of the community from government entities that overstep their bounds and abuse eminent domain,” Gov. Rick Perry said.

“The Legislature has moved us in the right direction with the passing of HJR 14, which will give Texans the right to vote in November to protect their homes and property from being taken by the government and given to someone else,” he said.

The amendment would place protections against abuse of eminent domain directly into the Texas Constitution.

Passage of the amendment would enhance the private property protections established in Senate Bill 7, which prohibits government acquisition of land for non-public purposes such as commercial economic development or private use.

SB 7 was passed during a special session of the 79th Legislature in 2005 after a US Supreme Court decision in Kelo v. New London ruled that government entities could use eminent domain authority for economic development projects rather than traditional public uses.

“Eminent domain is used on a regular basis without outcry when necessary for public use, but the public is rightfully outraged when that power is misused,” Rep. Frank Corte Jr. said in a voice recorded statement. “HJR 14 will finally give the citizens of Texas the opportunity to pledge their support for protecting private property at the ballot box.”

The amendment would require a two-thirds vote of all members in both houses of the Legislature for any future grants of eminent domain authority.

The bill also forbids the government from declaring an entire neighborhood as blighted without first determining that each property is blighted.

“Texas voters are the most appropriate authority on the government’s use of eminent domain,” Sen. Robert Duncan said. “This proposition gives them the final word on that authority.”

Duncan joined the governor for the signing. Corte, who is the author of the resolution, is currently in Japan serving in the US Marine Corps and was represented by his wife Valerie.

Meanwhile, the Texas and Southwestern Cattle Raisers Association urged Texans to support the amendment but also urged Perry to use a special session to address eminent domain reform that would further protect property owners.

"While the constitutional amendment is a good first step, there is more work to be done to address eminent domain law in the state of Texas," TSCRA President Dave Scott, a rancher from Richmond, said.

“Texas needs eminent domain reform that would require condemning entities to adequately compensate property owners when their land is taken,” Scott said.

“Additionally, stronger laws are needed to better compensate property owners for impairment to their property once it is condemned,” he said.