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City Council Unanimous: End Ocean Spray Tax Abatement

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City Council Unanimous: End Ocean Spray Tax Abatement Vol. 141 | No. 71 ssnewstelegram.com NETEX City councilSaturday, June 8, 2019 unanimous: End |approves Legislature Ocean| Industry Spray tax abatement By TAYLOR NYE Niewiadomski said, the city could cancel quested amount of reduction was 9%, ac- legal rep [email protected] legally the company’s tax break. cording to Niewiadomski. A letter from Stephen Brewer, plant con- At the May 7 city council meeting, the The city decided to end the tax abate- troller in Sulphur Springs, attributed the council resolved to table discussion until ment given to Ocean Spray Cranberries, loss of jobs to a “complete reorganization they could speak to representatives from the for lawsuit Inc. per a unanimous vote at the June 3 reg- throughout all levels of the company.” Economic Development Corporation ular session of the city council. “The reorganization ultimately caused (EDC). The local Ocean Spray was required by our inability to currently meet the employ- Speaking on behalf of the EDC, Roger the city to maintain 143 employees and a ment requirements,” Brewer said. Feagley, executive director, appeared before payroll of $8.1 million in order to keep their Ocean Spray proposed a pro rata abate- the city council on June 3. tax abatement, according to community de- ment reduction, or that the company pay an “I would like to caution you a little bit,” velopment director Tory Niewiadomski. amount of taxes proportional to the num- ber of employees at their facility. The re- Due to the breach in this agreement, City, See page 4A Northeast Texas Farmer’s Co-Op general manager Brad Johnson reads a no confi- dence resolution in front of NETEX while Economic Development Corporation ex- ecutive director Roger Feagley listens. Staff photo by Taylor Nye Rail board discusses transparency after farming co-op declaration By TAYLOR NYE [email protected] Dairy Festival Board of Directors President Carolyn McKinney (left) waits as the crew inflates their hot air balloon for the 2019 Media The Northeast Texas Rural Rail Trans- Glow. Due to windy conditions, it was deemed unsafe for flight to take place. Thirty-five balloons were invited to fly during festival portation District gathered for their regular events. June 6 meeting to discuss several items of Staff photo by Tammy Vinson business. The meeting began with an executive session from 1:30 p.m. to 2:15 p.m. The public session lasted from 2:17 p.m. to 2:31 p.m. After opening the session and approving News-Telegram online sports new design the previous month’s meeting minutes, the executive committee unanimously ap- By JILLIAN SMITH tions and easier access for our readers proved Wolf law firm to represent NETEX [email protected] and advertisers. We have thousands of in an upcoming lawsuit concerning Black- readers, and Hopkins County residents lands Railroad. | Business can count on us on breaking news 24/7 The Blacklands Railroad, owned and op- In the most recent updates since the from our team of journalists.” erated out of Sulphur Springs, filed the Sulphur Springs News-Telegram was While the website developers are still lawsuit on April 22 for greater than or purchased by Hopkins County Publish- equal to a million dollars against NETEX ing, LLC in May, the newspaper has for breach of contract and business dispar- launched a new website with a fresh agement, the suit alleges. Web, “In or about May 2018 NETEX breached look and more features for its readers. “We are excited to bring ssnews the operating agreement” by taking mar- The Sulphur Springs News-Telegram keting and operating decisions away from telegram.com to our readers,” said News- launched a redesign of its website Blacklands, the suit alleges. Telegram publisher Don Moore. “It is See Thursday.page 2A The board then unanimously approved easier to use and offers readers more op- File a measure to explore “investigation of al- ternative and emergency services and pos- sible termination of emergency services.” This was previously discussed in the exec- utive session, according to the agenda. The board unanimously voted to au- This week’s online poll thorize the NETEX board to deal with the Wolf law firm in regards to the Blacklands lawsuit, specifically regarding attorney- client privilege. How reliable is your cur- During the citizen recognition portion of rent residential internet the meeting, Brad Johnson, representing the Northeast Texas Farmers Co-op, appeared service? to express “no confidence and lack of trans- parency in the current NETEX board struc- 60 years of Dairy Festival parade Page 1B See the results, NETEX, Page 5A See page 2A TODAY’S WEATHER INDEX FOLLOW Mostly Sunny See the High: 90 °F forecast, page 4A ssnewstelegram.com For the Record........3A Obituaries ................9A Opinion......................5A Cartoons.................10A Sports.........................6A Classifieds ................3B $1.25 Page 2A LOCAL The Sulphur Springs News-Telegram of the property,” as stated in ices so you can get a replace- the agenda. ment contractor…we ask Elected Saturday, June 8, 2019 Defebaugh delivered the other railroads that can confidential report and dis- ContinuedNETEX from Pg. 1A reach us if they would pro- Commissioners cussed the state of the tracks vide emergency services in Officials vis a vis the recent uptick in the transition period,” ture and leadership.” precipitation. The council Davila said. “Brad Johnson Court to address Johnson, speaking on be- acknowledged receipt of the U.S. Sen. John Cornyn had it right, that is NETEX’s half of the group called for documents. 517 Hart Senate Office | County “immediate assurance of The council unanimously responsibility.” Bldg. tax abatement continued rail service via voted to appoint Neal Concerns about trans- Washington, D.C. 20510 parency also relate to the By TAMMY VINSON NETEX infrastructure thru Barker to the Hopkins 202-224-2934 [sic] the year 2021.” Blacklands vs. NETEX law- [email protected] County open position on Johnson previously ap- the NETEX board, per a suit, Davila said. U.S. Sen. Ted Cruz peared before the Hopkins Monday’s special session of the Hopkins County Com- May 6 county commis- “We have a lot of rules as 455 Dirksen Senate Of- missioners Court has a full agenda, including tax abate- County commissioners on sioner’s court resolution. a public entity…all this fice Blvd. May 20 to read this same ment modifications, grant applications and recognition Barker was not present at changes when you’re under Washington, D.C. 20510 resolution. He stated he the meeting. for a local volunteer fire department. litigation or the threat of lit- 202-224-5922 The commissioners will consider selecting a county de- would appear before the Phil Davila, executive di- igation,” he said. “That next Hunt County commis- pository for Hopkins County public funds. rector of NETEX, spoke on started last year in July.” sioners meeting to read the the Northeast Texas Congressman They will also consider a request to modify the tax Davila said that these John Ratcliffe abatement agreement for Ocean Spray Cranberries, Inc. resolution as well. Farmer’s Co-Op’s concerns changes include “exceptions 325 Cannon HOB The local plant received a five-year tax abatement in 2018. Sulphur Springs Eco- about assured rail service nomic Development Cor- through 2021. to the open meeting act, at- Washington, D.C. 20515 As the News-Telegram reported last month, the Sulphur torney client privilege and Springs plant has lost 13 employees due to attrition, and poration executive director “Everything we do is dif- 202-225-6673 confidentiality.” management has reportedly opted not to replace them. Roger Feagley spoke during ferent now because of the As a result, the company no longer meets the employment the citizen recognition por- lawsuit,” Davila told the “Here’s the issue with Texas Sen. Bob Hall criteria outlined in the abatement agreement. tion and said, “There isn’t News-Telegram. transparency,” Davila said, P.O. Box 12068 Under the heading of resolutions and proclamations, any conflict of interest. On April 27, Blacklands “One of them is saying, ‘You Austin, Texas 78711 You’re [NETEX] not in any Railroad, through a proxy, the commissioners will consider and approve: can’t say anything, that’s 512-463-0102 • A grant management services agreement for a FEMA way imposing on us or caus- placed a two-column, 5.5- confidential…’ we’re being ing us any problems about inch ad in the News- grant; sued over stuff that wasn’t Texas Rep. Dan Flynn • A resolution to authorize submission of an applica- anything…We’d love to see Telegram stating there could even confidential, and then you stay.” be a disruption or discon- P.O. Box 2910 tion to the Texas Department of Agriculture for 2018 we’ve got the other part say- Blacklands Railroad rep- tinuation of their service Austin, Texas 78768 disaster funding through the Community Block De- ing, ‘Where’s your trans- velopment Grant program; resentative and owner due to their ongoing lawsuit 512-463-0880 Wayne Defebaugh, who is a with NETEX, their operator, parency’?” • Designating County Judge Robert Newsom to act as Members of the Mount the county’s executive officer in matters regarding the member of the suit against according to records. Gov. Greg Abbott Vernon Economic Develop- Community Block Development Grant application; NETEX, was present to de- “We have to start looking P.O. Box 12428 ment Corporation present • An order for disbursement of salaries and utility ex- liver a “financial statement for emergency services, and Austin, Texas 78711 at the meeting declined to penses in accordance with Senate Bill 354 of the 86th and summary of the physi- that is the first thing that we 512-463-2000 Legislative Session, which requires appointments to cal statistics and condition do.
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