3-year audit approved
After seeking a willing firm for months, the Northeast Texas Rural Rail Transportation District approved Thursday an audit going back three years and also discussed an upcoming Economic Development Administration (EDA) grant and Collin County development.
Franklin County Judge Scott Lee had recommended Mike Ward Accounting and Financial Consulting at the previous meeting, and the firm had been very responsive, Titus County Judge Brian Lee said. According to Scott Lee and longtime area journalist Lillie Bush-Reeves, Mike Ward has about 25 years in auditing county and city governments.
“We [Franklin County] were behind several years, and he caught us up quick,” Scott Lee said. “He did a great job for us.”
The cost would be $15,000 total, or $5,000 for each year.
In public comments, Northeast Texas Farmers Co-op General Manager Brad Johnson asked if the board was pursuing any grants or other county funding.
Hopkins County representative and commissioner Mickey Barker answered that Hopkins had provided funds for railroad crossties to NETEX through their American Rescue Plan Act funds, and Brian Lee said NETEX might be included in a larger EDA application through the Ark-Tex Council of Governments (ATCOG) and East Texas Council of Governments (ETCOG).
The grant is the Build Back Better Regional Challenge, which has two phases. Currently, the COGs are filing an application for the first phase, which will award $500,000 to 50-60 participants to create an in-depth, detailed development plan for the second phase. The second phase has the potential to award up to $100 million for winning proposals.
At the Sept. 30 ATCOG meeting, rail improvements were mentioned as an area of development, but other projects like the Sulphur Springs Thermo property and other abandoned or closing coal properties will likely take large chunks of the funds if the COGs are recipients, Brian Lee said.
“That would be an incredible thing to get, even if we have to share with 24 other counties in the two COGs,” he added. “But let’s not count our chickens before they hatch.”
What’s more certain is the Collin County housing development by MA Partners LLC, named the Elevon development. The development is roughly 4,700 homes, according to The Farmersville Times. The Dallas Morning News reports the project to be around $2 billion. The six counties comprising NETEX have a total budget of almost $544 million.
The project is asking for three road crossings, and though NETEX has a right-of-way, there is currently no rail in place. Railway Auditing and Management Services CEO Jarrett Mankin said any agreement should include strong language to allow NETEX to install rail in the future if the opportunity arises.
“We can build language into the agreement that would allow the rail to through, an upgraded crossing to be installed with saved funds or development funds they give us upfront,” Mankin said. “We can also build into these agreements an annual fee.”
He added the entire project hinges on NETEX allowing the crossings. Brian Lee said he would rather not see the development scrapped, and Collin County representative and commissioner Cheryl Williams said negotiations should be strong-handed to ensure the appropriate fees are levied. She also suggested language include possible signage or clear boundaries to demarcate the right-of-way.
“I think the marketing is not going to inform anyone that might live in that area there is a possibility of railroad tracks being put back in,” Williams said.
Barker argued it is the board’s responsibility to preserve the right-of-way for future rail installation, and the board should take a strong stance in any negotiations in that rapidly developing area.
“We don’t have enough information, I believe, to know what the overall plan is for whole region over there,” Barker said. “Whatever decision we make with this group could follow us on down the road.”
Mankin said he could start at a one-time, upfront $500,000 in fees for each road, totaling $1.5 million. With a high cost per crossing, Elevon might chose to take one of the crossings away, he said. Barker warned it might not be enough, especially with the area expanding so quickly, and said the board might eventually be forced to give some concessions in its right-of-way.
The board approved 6-1 for Mankin and the board’s attorney to enter into negotiations, Barker being the lone dissenting vote. Any final agreement will be brought to the board in a future meeting.