The Amarillo Economic Development Corporation on Thursday, Dec. 18 approved an amendment to its incentive agreement with Texas Tech University that accelerates the final payments owed for the university’s School of Veterinary Medicine, reducing the total cost to local taxpayers.
The AEDC originally planned to pay the remaining $15.6 million owed to Texas Tech over the next three years. Under the amendment, the corporation will instead make a lump-sum payment of approximately $13.8 million after Amarillo City Council approval, expected in January. Texas Tech would receive the full amount early in 2026.
Interim AEDC president and CEO Doug Nelson said the corporation initiated the discussion with Texas Tech as part of a broader evaluation of opportunities to reduce long-term obligations. AEDC negotiated a net present value discount of about 7%.
“We have the cash to be able to do the upfront payment, and so we will achieve some savings for our community,” Nelson said in a phone interview. “That $1.8 million that we’ll save can then be used to do other projects and bring more jobs and capital investment to our community.”
In this file photo, Amarillo Economic Development Corporation interim CEO Doug Nelson gives an update to the Amarillo City Council during a meeting in July, as Mayor Cole Stanley and Councilmember David Prescott look on.
Nelson said the upfront payment will be drawn from AEDC’s project fund reserves. Accelerating the payout frees future-year dollars that would otherwise have remained committed under the 2018 incentive agreement and allows AEDC to redirect more of its annual budget capacity toward emerging projects.
The AEDC originally approved an incentive agreement of up to $69 million in 2018, according to Globe-News archives.
The original agreement supported construction and program development for Texas Tech’s veterinary school, which opened in 2021 to address a shortage of large-animal veterinarians serving the agriculture industry in the Texas Panhandle. Nelson said the workforce and payroll commitments tied to the incentives remain in place.
More than 100 people now work at the school, and four cohorts of between 90 and 120 students are enrolled annually.
“That activity is already here in Amarillo,” Nelson said. “Those students and staff members are contributing to the economy.”
The amendment drew no opposition Thursday. Nelson said public commenters in attendance were speaking on a separate topic involving proposed “gateway” entry signs into Amarillo. That item was discussed for feedback only, and staff anticipate returning with additional information in the coming months.
In other business, Nelson gave an update on the search for a permanent AEDC president and CEO. A search consultant has posted the position, and applications are open until Jan. 2. Nelson said during the meeting that the target remains to select a finalist by the end of February.
Nelson said the amendment and leadership timeline reflect AEDC’s focus on long-term fiscal stewardship and continuity.
“Ultimately, we’re trying to be good stewards of taxpayer money,” Nelson said. “This was a negotiated discount that benefits both Texas Tech and Amarillo, and everyone should walk away satisfied.”
The accelerated payment remains contingent on Amarillo City Council approval.
This article originally appeared on Amarillo Globe-News: AEDC accelerates incentive payment to Texas Tech veterinary school