CEIDC FINISHED

By Greg Ritchie

Messenger Reporter

CROCKETT – Crockett Economic and Industrial Development Corporation (CEIDC) voted itself out of existence during its final meeting Monday, Feb. 3, in a joint meeting with Crockett city council. After city voters overwhelmingly approved the dissolution in the Nov. 2024 elections, the plan was to have CEIDC end and the city assume its debts, incentive plans and other financial responsibilities. As has been common with matters regarding CEIDC, all did not go to plan.

While CEIDC is indeed no more, Council members Darrell Jones, NaTrenia Hicks and Elbert Johnson, in their roles as part of city council, to not accept the closure of CEIDC. The surprising move left city officials stunned, with no one quite understanding what this now means for the city.

CEIDC’s debts and obligations are now literally in limbo, with the city unable to pay even the simplest of bills, since CEIDC cannot meet to approve any payments, and the city does not have the official vote to take over those payments. 

The Messenger immediately reached out to investigate what this actually means and can report the following.

After the financial scandals, all CEIDC accounts were taken over by the city, who had been paying their bills, after a series of scandals left former CEIDC Executive Director James Gentry without the trust to run the day-to-day financials of the corporation. There had been a rumor former CEIDC employees might still have some access to CEIDC financials during this time of uncertainty, but we can confirm this is not the case. The Messenger learned CEIDC offices have been shut and locks changed for some time, although the exact cause for this was not immediately clear. 

The Messenger sent Crockett City Administrator John Angerstein a series of questions regarding the situation:

1. What is the exact status of CEIDC?
2. What is the current status of CEIDC’s employees?
3. What happens to any incentives already offered to existing business by CEIDC?
4. What happens to pending bills such as utilities for CEIDC properties/obligations?
5. What is the current status of Workforce Solutions’ lease agreement?
6. How much in advance was information regarding the lease given to council members for their review?
7. What is the next step for the city to assume CEIDC’s financial obligations?
8. What is the status of CEIDC’s office? We have information the locks were changed a few weeks ago. Can you confirm or deny this and why this step was taken?
9. To confirm, when was/is/will be the last official day for CEIDC employees?

Angerstein, after a long council meeting and a presumably hectic day conferring with legal counsel was only able to send the following statement:

“I will respond in the capacity of what I am able to but much of this is being reviewed for legal opinion and I have not received that yet, so I will not be able to answer those specifics until that is received and presented to council. In short, a resolution to terminate the corporation, transfer its assets and the management of its obligations to the City was approved. However, the resolution by the City to assume the CEIDC assets and to manage its obligations did not pass. As I understand it, this effectively shut down the CEIDC. I am awaiting legal opinion on how its programs and obligations will be met since the City did not approve the resolution.”

The Messenger was in contact with several local residents who were already consulting with attorneys about a possible lawsuit against the city, given that council did not vote to accept CEIDC’s financial responsibilities, given the measure was approved by a majority of voters in the city. 

Sources said a council meeting will be held “soon” to rectify the issue, but questions remain. 

Why would the same group of people vote to terminate CEIDC in one instance, then immediately change their vote? Was this part of some greater plan or just an attempt to harm the process?

What happens until this can be resolved? Will ongoing CEIDC bills, from utilities to debt repayment even be able to be paid? Will any existing incentives for new businesses be terminated or postponed? Will any of the newly announced businesses be affected by the strange turn of events causing the city to lose those badly needed jobs?

Many quietly admitted to The Messenger the dissolution of CEIDC was not going to be easy or straightforward, but no one seemingly expected this turn of events, leading some to wonder what the council members intended by abruptly changing their votes?  

Did they intend to sabotage the new jobs set to come into the city? 

None of the three council members were available for comment or clarification. 

Greg Ritchie can be reached at [email protected]