Economic development corporations under scrutiny in 2 North Side cities

Hill Country Village City Council, with newly elected Mayor Heather Chandler (center) presiding, meets May 21 to discuss a resolution to dissolve the town's economic development corporation. (Photo by Edmond Ortiz)

By Edmond Ortiz

One north San Antonio-area suburb is eliminating its economic development corporation, and residents of a neighboring town are petitioning to propose an election to dissolve their local EDC.

Hill Country Village City Council voted May 21 to pass a resolution to terminate that city’s economic development corporation.

The council vote realizes an action that the HCVEDC board recommended in June 2025 toward dissolving the local corporation, which was originally set up to help manage bond-funded projects.

But since those projects have been implemented, Hill Country Village’s EDC had essentially served and completed its purpose, according to Councilmember and EDC board member Greg Blasko.

Local officials have also acknowledged that with Hill Country Village being landlocked, there is little to any other economic development opportunities to pursue in town.

Blasko explained that it took some time for local officials to get information on what would happen to the $40,000-plus in remaining EDC money before the council could move forward on finalizing the corporation’s dissolution. 

“There was some uncertainty about what would happen to the funds and whether the funds remaining in the EDC could be used in a way that was unrestricted,” he added.

But Hill Country Village officials were reassured that, after authorizing the elimination of the local EDC, they could move the leftover corporation money into the city’s general operational fund.

Hollywood Park voters may decide the fate of their city’s economic development corporation.

More than 10 Hollywood Park residents are circulating a petition that calls for a special Nov. 3 election where local voters would be asked to authorize dissolution of the HPEDC. 

Such a ballot item, Mayor Chester Drash said at Hollywood Park’s May 19 council meeting, would contain two questions for voters: to approve eliminating the corporation, and to redirect the sales tax that funds the EDC toward the town’s street maintenance fund.

Currently, one portion of Hollywood Park’s 2% sales tax goes to fund the EDC, and an equal portion of the sales tax supports the town’s annual routine road maintenance program. Each portion generates $200,000 per year.  The HPEDC fund balance stands at nearly $1 million.

Hollywood Park’s leaders have offered multiple reasons to at least consider holding an EDC dissolution election: the city’s landlocked status, few to no opportunities where the corporation could find eligible ways to spend economic development-related funds, and a chance to reallocate the EDC sales tax and money toward street maintenance.

Councilmember Glenna Pearce said she is helping to promote the petition as a resident, not in her formal role as a city leader. She said she weighing an EDC dissolution election makes sense especially because it marks an opportunity for Hollywood Park to possibly increase money available to improve infrastructure.

“Budget constraints are always a concern for small cities. Balancing property tax rates with essential services—police, fire, street maintenance, parks, and infrastructure—requires constant reevaluation,” Pearce said. “Street maintenance, in particular, has been a consistent priority for residents since I ran for office in 2021. Given how long streets have been a top concern, reallocating the unused EDC funds toward street maintenance seems like a logical and responsive option.”

According to state law, petitioners must obtain signatures from a minimum of 10% of 2,620 registered voters living in Hollywood Park. Pearce said, as of June 2, the petitioners have collected 289 signatures, which exceed the minimum 262 voter-count threshold.  

Council has until Aug. 17 to accept the petition and call a Nov. 3 special election.

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