EDC examines VARCO agreement and grant guidelines


The San Benito EDC Board of Directors discussed the VARCO agreement and changes to its grant guidelines during a regular board meeting on Monday, Nov. 1.
VARCO Agreement
The EDC Board discussed changes to the agreement between the San Benito EDC and VARCO.
Board member Deborah Morales questioned if a penalty could be imposed on VARCO for being late on their payments.
San Benito City Attorney Mark Sossi mentioned that penalties typically are not added if it is not part of the original agreement.
“Usually, instead of a penalty you would do interest loans at a certain rate until paid, that would be typical, but again you have to make that part of the original agreement,” he said.
San Benito EDC Board President Julian Rios suggested adding a payment due date. According to Sossi, they don’t have to agree with a due date because it is not part of the contract, but it might encourage them to work with the EDC.
EDC Board member and City Commissioner Rene Garcia agreed with a due date suggestion.
“We have to work with them, we can’t chase anybody off,” Garcia said. “Hopefully, they’ll be back with another project, maybe on the other side of town, but we don’t want to burn a bridge over a due date or like a say penalize them.

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