Kerrville Economic Improvement Corporation Meeting - August 17, 2026

The Kerrville Economic Improvement Corporation (EIC) met on August 17, 2026, from 4:00 PM to 5:53 PM at City Hall, with President Celeste Hamman presiding. The meeting included updates on economic development projects, flood recovery efforts via Kerr Together, EIC capital project statuses, the monthly financial report, and action on a Habitat for Humanity lien release.

Consent Calendar

• Approval of Minutes: The Board unanimously approved the minutes from the regular EIC meeting held July 20, 2026, and the special-called EIC meeting held August 10, 2026.

Public Comments & Testimony

• No members of the public signed up to speak. President Celeste Hamman introduced Wanima Martinez as the new Economic Development Manager, who comes to the city from Mesquite, Texas, and brings approximately ten years of experience in economic development.

Discussion Items

• Kerrville Economic Development Corporation (KEDC) Update (Todd Bock, KEDC President):
  • Projects: Project Wolf Creek was postponed but remains active. Project Save, a local family-owned medical technology firm, received an infusion of investor capital and is hiring. Project K2, a local manufacturer, is pursuing an expansion and has contracted site development work. KEDC also assisted in the relocation of WetWRX, a military tactical equipment manufacturer, to Kerr County.
  • Kerr Together: The organization received its formation letter from the Secretary of State and is pursuing 501c3 status, which will phase out EDC's role as fiscal sponsor. Grant funding for 2026 flood recovery is significantly constrained compared to 2025. For example, OneStar Rebuild Texas provided over $1 million to Kerr Together for the 2025 flood but only raised $150,000 total across all impacted regions in 2026.
  • Flood Impact (ISTAT): As of August 12, the ISTAT database showed 953 verified residential forms (223 with major damage or destroyed) and 122 business forms (25 with major damage or destroyed). This was reported as the highest volume of intake TDEM had seen in a seven-day post-disaster window. The FEMA disaster declaration request has been submitted to the White House.
• EIC Project Status Update (Michael Hornes, Assistant City Manager):
  • Olympic Pool Renovations: On track for a mid-September completion.
  • Calli Theater: Awaiting final fire marshal approval; nearly complete.
  • Travis Street Pump Station: 330-day timeline projects completion by August 2027.
  • A.C. Schreiner House: Completed and fully operational.
  • Schreiner University CTWD & Edington Gym: Enrollment has grown to 1,800 students. A presentation to the EIC is anticipated in October.
  • James Avery Traffic Signal: Awaiting final review from TxDOT.
  • Quinlan Creek Interceptor: The preliminary engineering report is complete, and the federal grant application has been submitted; a decision is expected in October.
• Small Business Grant Initiative (Michael Hornes & Staff): Staff determined that EIC (4B) funds cannot legally be used for broad small business grants for flood relief due to strict state law restrictions on job codes. Michael Hornes stated, "we were trying to figure out a way to a yes," but confirmed the planned public hearing has been cancelled. As an alternative, the Tax Increment Reinvestment Zone (TIRZ) is increasing its facade and parking lot improvement grants from $150,000 to $250,000 for downtown businesses. Staff will recommend that the EIC ask the legislature to amend the relevant state laws.
• Granger McDonald Park (Michael Hornes): The project has been officially delayed for six months. The original property owners have requested the city return the property. City Council will consider the request. If the property is returned, the remaining $1.8 million in bond funds could potentially be repurposed for river trail repairs. The EIC has already met the required 85% bond spending threshold.
• Monthly Financial Report (Julie filling in for Trina Rodriguez):
  • Bond Funds: $7.5 million remaining. Total interest earned on bond funds is $2 million.
  • Operations: July sales tax revenue was $425,000 (a 1.5% increase year-over-year). Unofficial August data shows a 14% increase. The rolling 12-month average sales tax growth rate is 3.75%.
  • Cash Flow: Cash and investments total $7.4 million. A $1 million commercial paper investment was rolled into a U.S. Treasury note yielding 4.07%.
• Habitat for Humanity Lien Release (Habitat for Humanity Representative): The EIC provided an economic development grant for the Mariposa Subdivision. All 11 income-qualified homes are complete and closed. Homes sold for $225,000 each, below appraised value, ensuring long-term affordability through deed restrictions. The subdivision performed well during the 2026 flood, holding up to a 100-year event despite being designed for a 20-year event.

Key Outcomes

• Vote on Lien Release: The Board unanimously approved a motion authorizing the recording of a partial release of the deed of trust lien for Lots 6 through 15 and Lot 17 in Block 1 of the Mariposa Subdivision.
• Cancellation of Public Hearing: The public hearing for the proposed small business grant program was formally cancelled due to state law restrictions.
• Legislative Recommendation: Staff will recommend to the city's legislative boards that they seek amendments to the Texas Local Government Code to allow 4B corporations to fund small business disaster relief in the future.
• Next Steps for Granger McDonald: The property return request will be discussed at the next City Council meeting for a formal decision.