Jim Sánchez/ Conexión San Ángelo

SAN ANGELO – The San Angelo City Council conducted Tuesday’s business as usual meeting, albeit at a different location—the consideration to ratifying COSADC's Board approval of up to $190,000 in economic development incentives and authorization of the COSADC Board President to negotiate and execute an Economic Development Performance Agreement for Netco Energy Products, Inc.

The City Council held their meeting in the east mezzanine of City Hall, due to the McNease Convention Center suffering water damage.

Roland Peña, Director of Economic Development for the City of San Angelo, stated in his remarks that the business agreement originated from their successful business retention and expansion program that was started two years ago.

“This agreement has to do with Netco Energy Products, a wholesale oilfield supply company with locations and personnel throughout West Texas, providing oilfield materials and equipment.”

Netco’s plans are two-fold; first purchase the Terrell Manufacturing Property located at 2816 Martin Luther King Drive. Second, Netco also plans to demolish the existing main building and construct a new 14,000 square foot building which will cost between $800,000 and $1,200,000.

Dir. Peña informed the Council that Netco could have looked elsewhere such as in the Permian Basin, but liked San Angelo enough to want to invest in and expand here.

“The company will provide $6.6 million dollar economic output resulting in a gross area product of $5.1 million dollars annually,” he said. 

Peña reminded the Council and the public that this is a performance agreement, meaning that Netco must perform to receive the incentives. The purchase of the property is also another performance requirement. 

Peña concluded his remarks, saying that the location at MLK is a good one that needs community re-investment.

After the presentation, the Council voted 7-0 in favor.