Giddings Economic Development Corporation Finalize Performance Agreement with Adam AB Assets

1 Sep 2019

Giddings, TX (Sept. 2019)- The Giddings Economic Development Corporation finalized a performance agreement with Adam AB Assets, owners of the Ford Dealership property and the adjacent property that previously housed the old nursing home.  This decision allows the board to move forward with providing the grant funds to the company.

While the application for assistance was submitted last June and a grant award of $10,000 subsequently approved by the GEDC board of directors and the Giddings City Council, the actual awarding of funds has always been contingent upon the signing of a performance agreement.  Throughout the last year, the details of the agreement have remained under negotiation as the organization awaited the demolition and removal of the nursing home and until the company decided whether it planned to sell or develop the property.

“The GEDC cannot make an award based solely on beautification or blight elimination but can include those elements in a performance agreement.  The removal of the nursing home was the basis of the application; however, we can also include elements such as the requirement that the company maintain all its properties and either begin development or take active measures to sell the properties.  It was unclear whether the company planned to sell or develop the properties, so we held off on the performance agreement and chose not to reward the funds until we knew more about the company’s plans,” stated Tonya Britton, Giddings Economic Development Director.  “We now understand that the company plans to sell, rather than develop the properties.”

“The performance agreement that was finalized at the board meeting outlined specific criteria under which funds could be awarded and included the requirement that the building and property remain on the market for sale until a buyer is identified, and that any graffiti, debris or rubble be removed or hidden from view.  The company understood the expectation that the properties be maintained and while the overall appearance has improved, there have still been concerns regarding the management of the remaining vacant building.

“We are hopeful that the board’s actions will be viewed as a good faith effort to support our client, while also ensuring that the property retains its value and is appealing and accessible to potential buyers,” stated Britton.  Once the award is made, any failure to comply with the performance agreement could result in a claw back of funds.