ATCOG, ETCOG file for $100 million development grant

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  • The Thermo property where the old Luminant coal mine is located was selected as a part of a concept proposal for a large federal grant that could total upwards of $100 million. If the proposal makes it past the preliminary phase, a fuller, more detailed application will be created by ATCOG. File photo
    The Thermo property where the old Luminant coal mine is located was selected as a part of a concept proposal for a large federal grant that could total upwards of $100 million. If the proposal makes it past the preliminary phase, a fuller, more detailed application will be created by ATCOG. File photo
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Funding may go toward Thermo property, local rail

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Northeast Texas’ industrial landscape and workforce could see sweeping changes if Northeast Texas Economic Development District’s (NETEDD) application for a grant totaling upwards of $100 million is approved for an award in September 2022.

However, they have to clear the first hurdle of concept proposals.

“The grant application is still being written [at the time of approval],” Ark-Texas Council of Government (ATCOG) Executive Director Chris Brown said. “We have had very little time to put this together in a total of a two-month turnaround.”

Brown said he had only learned of the grant opportunity after the last meeting in August, and it was a quick turn around to have the preliminary application out in about 60 days.

“Honestly, this is beyond our capacity at just ATCOG,” Brown said. “That’s we pulled the others [governments] together, and that’s why they hired a grant writer.”

Through NETEDD, ATCOG and the East Texas Council of Governments are partnering to apply for the grant, which is a part of the Build Back Better Regional Challenge. It is funded through the American Rescue Plan and led by the US Economic Development Administration. The application approved at the meeting is part of a preliminary phase.

After the Oct. 19 deadline for the first phase, 50-60 coalitions of regional entities will be selected to receive $500,000 to prepare fully-detailed applications complete with studies of each proposed project. The deadline for that is February 2022, and the expected award date in September 2022.

“You’re applying for $500,000 for a Phase 1,” Toni Lindsey said. “That Phase 1 will give you the ability to make sure the projects you’re applying for are the most beneficial for our regions.”

If the approved projects hold, the grant would revitalize old coal properties in the region, improve rail access, bring in new industry and create a sustainable workforce through education. Specifically mentioned were the Thermo coal mine in Sulphur Springs, the industrial park owned by the TexAmericas Center in Texarkana, and other coal properties in strung across Titus, Camp, Morris and Harrison Counties.

“The way it’s described, it wants big projects,” Brown said. “We’ve got two big infrastructure projects within the region at TexAmericas Center with 12,000 acres, and we’ve got the old Luminant mine in Sulphur Springs that’s 4,800 acres.”

Brown also pointed to the rail overseen by the Northeast Texas Rural Rail Transportation District as a possible recipient of the possible grant funds. The NETEX rail stretches from Collin to Titus County, and it maintains 65.6 miles of operable track.

“They’ve been looking for funding for years and years to try to improve that line up to a Class 2 line,” Brown said with the NETEX chairman and Titus County Judge Brian Lee in the audience.

To create a sustainable workforce, better partnerships and programs need to developed at area universities and junior colleges. Junior colleges usually had well-embedded programs, Brown said, but some of the larger 4-year universities will be brought on board as well.

“Texas A&M-Commerce is trying to start some programs. I learned about some of their programs about two months ago that they’re trying to bring into the fold,” Brown said. “But they don’t know what’s going on in this direction [east]. Then over in the East Texas region, we’ve got the University of Texas system plus three or five junior colleges down there.”

Mount Pleasant Economic Development Corporation Executive Director Nathan Tafoya claimed despite the existence of the coal properties near Mount Pleasant such as the Winfield mine, ATCOG had not approached him about bringing industry to them.

“There are two power plants and mining operations multiple times the size of Sulphur Springs in Titus County alone,” Tafoya said. “We were never approached about the grant. I made you aware, Chris, of a huge project we were working on that is pretty transformational, and we really didn’t converse about this.”

Sulphur Springs and TexAmericas already owns the land needed for redevelopment, Brown said, making them able to “turn dirt tomorrow.” However, he later acknowledged the grant could evolve if NETEDD is selected for the $500,000 needed for a full application.

“If we get it, this will develop 30-fold,” Brown said. “It’s very exciting, and it would make a huge impact if we can get it together and stay together.”