Conroe tightens economic incentive oversight

**Conroe Tightens Grip on Economic Incentives After Blackfin Misstep**

**Conroe, TX –** Conroe city officials are pledging a significantly more rigorous approach to future economic development incentive agreements, following a recent procedural tangle involving Blackfin, a company that failed to meet key deadlines on its incentive package. The incident has spurred the city to implement enhanced oversight measures, aiming to protect taxpayer investments and ensure greater accountability from businesses receiving public funds.

The core issue originated from Blackfin’s inability to fulfill specific job creation and capital investment benchmarks tied to a substantial $1.5 million economic development grant and a 10-year, 100% tax abatement, both approved by the Conroe Industrial Development Corporation (CIDC). While the specific benchmarks were not publicly detailed, such incentives are typically designed to foster significant local employment and infrastructure growth.

A procedural misstep by the CIDC initially compounded the problem. On **May 2, 2023**, the CIDC approved a 90-day extension for Blackfin. However, this action raised immediate concerns because the original deadlines for Blackfin’s obligations had already passed, effectively making the extension retroactive.

This critical oversight was brought to light at the **May 10, 2023, Conroe City Council meeting** by Councilman Harry Hardman. Hardman vocally questioned the legality and appropriateness of granting an extension for conditions that had already expired, likening it to receiving an extension on homework after the due date. He emphasized concerns that such a precedent could expose the city to potential legal challenges or undermine the integrity of future incentive agreements.

To rectify the situation and ensure legal compliance, the CIDC reconvened on **May 24, 2023**. During this meeting, the corporation formally rescinded its previous resolution and approved a new one. This updated resolution again granted Blackfin a 90-day extension, but this time with a clear, prospective start date, ensuring that the extension applied to future compliance rather than past failures. This corrected resolution was subsequently presented to the City Council on **May 25, 2023**.

Looking ahead, City Administrator Kelly Wolf and Economic Development Director Danielle Scheiner have committed to implementing more rigorous oversight for all current and future incentive packages. These new procedures will include enhanced tracking of compliance, with clear deadlines, detailed documentation requirements, and proactive monitoring.

Scheiner indicated that a new system will be put in place, requiring a quarterly report to be presented to the City Council. This report will detail the status of all active incentive agreements, providing transparency and ensuring that companies are consistently meeting their obligations for job creation and capital investment as stipulated in their contracts.

Conroe Mayor Jody Czajkoski echoed these sentiments, stressing the importance of protecting taxpayer money and upholding accountability from any company receiving city incentives. “Our residents deserve to know that their investments are being used wisely and that companies are held to their promises,” Czajkoski stated. “This new oversight will ensure we are delivering on that commitment.”

The incident with Blackfin serves as a catalyst for Conroe to solidify its framework for economic development, aiming for greater transparency and stricter enforcement of agreements that are vital to the city’s growth and prosperity. The new measures are expected to be fully implemented in the coming months, providing a clearer roadmap for businesses seeking incentives and greater assurance for Conroe’s taxpayers.

For more information on Conroe’s economic development initiatives, visit the City of Conroe website at [www.cityofconroe.org/economic-development](http://www.cityofconroe.org/economic-development).