Forney EDC Discusses Funding for Hospital and Possible Kaufman County Day Surprise

Don Purdum
Post Editor

November 21, 2008

On Thursday evening, the Forney Economic Development Corporation (EDC) Board of Directors gathered in a regularly scheduled meeting. The directors were updated on several issues of economic development including the funding issues surrounding Cirrus hospital and a controversy surrounding Kaufman County Day.

In general, the purpose of an EDC is for the promotion and development of new and expanded business enterprises to provide and encourage employment, and is created by local governments. The Forney EDC Board of Directors are appointed by the Forney City Council.

EDC Executive Director Fran Owens provided an update on several issues the EDC has been working on, or involved with, over the last month.

One interest to Forney citizens has been the status of the Forney Regional Medical Center, which would be a hospital owned and operated by the Cirrus Network.

The Forney Economic Development Corporation did purchase a one percent share, or $25,000, in the Forney Regional Medical Center to show support for the project.

In January of 2008, Cirrus officially purchased the land on FM 548, across the street from Fox Hollow and adjacent to the new Justice Center which is currently under construction.

The projects viability has been under speculation for a number of months now.

In July 2008, in a phone interview with Kathleen Munger, Cirrus Health Physician Relations Specialist, she said, "We have a lot of projects getting funding at this time throughout the DFW area and nationally. Like anyone getting funding in the market, we have felt the impact.”

According to Munger, at the time, they had expected a groundbreaking this fall or winter.

However, though there were questions before about Cirrus’ ability to raise the needed capital in July, the current financial crisis has only deepened the concern.

In Owens report last night, he stated, “I have had several telephone conference calls with Becky Kuban, Cirrus Director of Capital projects regarding the status of Cirrus’s efforts to secure financing in this most difficult financial environment.”

According to a printed report to EDC Board of Directors, “Ms. Kuban indicated that she has had ongoing discussions with four local community banks,” in hopes that they can help provide some of the much needed capital.

Owens reported that “discussions with one or two of those banks is ongoing.”

Another option for Cirrus, according to Owens, is the United States Department of Agriculture (USDA).

Owens said, “Cirrus is also working with the local USDA office on a loan guarantee program that came out as a consequence of our bankers profit luncheon.”

He further said, “It (USDA option) has turned out to be a very positive development. They have taken the first steps in helping acquire the money. It is one of the most underutilized programs, and they have a lot of money.”

Owens stated that there is still interest in the market and that a tour had been given to a doctor involved in an investment group, and they hoped to speak with a local doctor soon.

Kaufman County Day Discussion Leads to Some Controversy

Each year in March, Kaufman County officials, along with city officials from all over the county, attend what is known as Kaufman County Day in Austin. Kaufman County Day is a time for the county and cities to meet with legislators to discuss the unique needs of the county.

After introducing the topic, Owens said to board member Darren Rozell, “I understand there is some discussion about the city’s thoughts relative to Kaufman County Day historically. The EDC has participated financially as well as sending folks down.”

Rozell spent several minutes explaining why Forney ought to consider a Forney Day, and in 2011 back out of Kaufman County Day.

He stated, “At our council retreat this summer (Rozell is also a member of the Forney City Council) we questioned the benefit of Kaufman County Day relative to what we spend?”

Rozell went on to comment that “We (Forney) are large enough in a booming enough area of the county. When you look at it proportionally, the county benefits more from us than sometimes we do from the county, because we are the growing spot in the county.”

Rozell’s suggestion, “Maybe we would be benefited by having a Forney Day.”

In order to accomplish it, “we would need to pull it off with the city, the EDC, the school district, and the Chamber (of Commerce). We need more participation from the Chamber.”

Rozell did emphasize that the intent is not to do something like Forney Day to the “detriment of the county.”

It is projected that the total cost to attend Kaufman County Day is $4,000. That is $1,500 less than Terrell, which pays $5,500 to participate.

For Forney representatives to attend, money is divided among contributions from the city, EDC, school district, and Chamber of Commerce. With the two larger institutions (City of Forney and Forney ISD) paying more.

Rozell stated, “We are committed to going this year, and it would benefit us. But, if we considered pulling out (this year) the right thing to have done would have been to say something beforehand so that the cost could have been spared.”

“It’s one of those things that is uncomfortable to think about, but it’s one of those things we do at our retreats,” Rozell said in reference to City Council retreats.

Some discussion followed and it was stated by Board Member Tyler Moore, “I would really hate to see us going down a path that we set ourselves apart from Kaufman County Day. I believe there is a benefit in off-sharing (the expenses).”

Rozell was open to ideas and said, “Maybe next year we budget a little extra and try to have a separate Forney Day. Forney and its development for the next eight to ten years is going to have a separate agenda from the county. We are in a unique development cycle.”

After more discussion, Board President Bill Cates said, “One of the things we did last year (at Kaufman County Day) is we included some additional things. We took advantage of the fact we were in Austin to do some Forney business while we were representing the county.”

Cates further stated, “Using that opportunity, we can show we do want to be a part of the county. If we have been complaining in the past about being left out and being excluded from the county, and then when we had the opportunity to be involved with the county and we say, ‘Oh, we don’t want to be involved after all,’ that sends the wrong message.”

Cates felt “that if the city participates fully in the future, and adds half a day of events for Forney, without taking away from the county, we can represent Forney.”

Rozell suggested an idea that several board members might be in support of, “Maybe we continue to fully support Kaufman County Day fully. But, maybe we as a city think of Austin more than once a year, and we get a small group of people for half a day to go to Austin, or call them once every three or more months to express our needs, and ask them what can we do for them.”

“We need to do a better job of putting our (the city’s) needs out there,” Rozell said. “You (the EDC) needs to know some of things the council is thinking of.”