A planned career training center won’t open in Snyder after all.
The Development Corporation of Snyder (DCOS) board of directors announced today that the DCOS would not pursue the center because of its transition to a new director and the matching funds not being budgeted.
In July, board members learned the DCOS was approved for a $100,000 grant from the Texas Workforce Commission. As part of the grant application, the DCOS agreed to contribute an additional $110,000 to the center.
Representatives from Snyder and Ira ISDs met with the DCOS board at that time to hear plans for the center, which would train area students for high-demand jobs such as construction and automotive repair.
Board chairman Mark McClain said he hopes the DCOS could revisit starting the career center in the future.
“The school systems and college really want this,” he said.
During a July meeting, the board was told the career center would provide job training in several career fields, help expand Snyder’s workforce to meet future needs, enhance the area’s ability to recruit new businesses and retain local talent to help secure the area’s future.
Retired Ira ISD Superintendent Jay Waller was going to run the center, DCOS representatives announced at the time.
Also today, the board tabled action on the refinancing proposal of the Texas Leverage Fund loan it received to construct the rail park and provide an incentive to WL Plastics to build its Snyder facility.
McClain said the loan went from being classified as untaxed to taxable because only one company is using the rail spur.
City Manager Merle Taylor said he thought the loan was used entirely for incentives for WL Plastics, but board members thought otherwise.
“I was under the assumption it helped with the rail spur, from what I heard from (former executive director) Bill (Lavers),” board secretary/treasurer Michael Hoyle said.
Taylor said he remembered saying something during one meeting while trying to lure WL Plastics to Snyder.
“I told them (the DCOS board at the time) that you are ‘sinking a lot of money into this one company,’” Taylor said.
Board member Dennis Westmoreland said the rail park was built as a long-term venture in the hopes other companies would buy land and add to the rail line.
“At that time things were booming,” McClain said. “But then it started tailing off.”
The original loan was for $3.5 million over 15 years and under terms of the refinancing agreement, the DCOS will make 110 monthly payments of $25,193 on the loan, on which it still owes more than $2.4 million.
In December 2011, the board approved the incentive package for WL Plastics. According to multiple articles in the Snyder Daily News, the incentive agreement included a $1.5 million cash grant, with $500,000 each for construction start-up, occupancy of the building and for 33 full-time employees, which was to increase to 41 once the company reached full production.
The company also received the land, valued at approximately $61,945 — based on what the DCOS paid for the entire parcel — as well as the waiver of permit and inspection fees and the proceeds of the bond issuance.
According to the contract, WL Plastics would make an $11.5 million capital investment in constructing the facility and would have rail spur access at no cost, except for installation of a rail track switch to connect the sub spur to the main line.
Hoyle also announced during today’s meeting that the financial audit is progressing and should be completed by this weekend. However, auditors are waiting for information from the city’s financial department to complete the audit.
He said auditors had found no major issues with the DCOS financials.