Plug & Play Agreement - College Station Special Session

7,108 Views | 66 Replies | Last: 12 days ago by Brian Alg
Brian Alg
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I just saw that there is a special meeting today regarding an agreement with a group called Plug & Play LLC. As far as I can tell, it was still not listed on the city's calendar or in "Upcoming Events" on the main site as late as 10:30 AM on the day of the meeting. It does appear to have been listed since I started writing this. I happened to bump into it on the Channel 19 page. Though this meeting is flying under the radar. I think there is cause for concern for taxpayers. Below is the link with all the information from the city I can find.

https://collegestationtx.portal.civicclerk.com/event/3818/files/agenda/4993

I do not know the details of the agreement. I haven't been able to find the agreement yet. But judging by an agreement made with the City of Sugar Land a week ago, this is likely to be a multimillion dollar giveaway.

It is important to know that these agreements have proven to be poor decisions in the past. Though the Council was different, folks still currently on staff (City Manager, City Attorney, and others) showed an inability to provide basic oversight in these kinds of agreements. Specifically in the Viasat events.

City staff, including specifically those in the Economic Development Dept. showed an inability or unwillingness to investigate Viasat's fraudulent behavior when I let them know what I had found. It was only after I approached the City Auditor's office that staff began an investigation and verified that the fraud had occurred.

Then, in 2023, the City Attorney and City Managers Offices convinced the City Council to waive $50k in reimbursements due to College Station taxpayers by cancelling the Viasat agreement in anticipation of Viasat's officially leaving town.

In ideal circumstances and with proper oversight, these types of agreements are already going to be ineffective wastes of money. If we wanted to spur growth locally, the biggest impact is to make the city's regulatory burdens easier to manage.

But in our particular case, the City of College Station has shown they are not able to provide adequate oversight for these agreements. The city should not be entering these agreements in under-the-radar special sessions without allowing citizen oversight and input.
Brian Alg

Brazos Coalition for Responsible Government and Moderator Restraint
Brian Alg
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They provided an outline of the agreement to be negotiated. Didn't take public comment.

Technically they are going to put it toward a later council to ratify. But the possibility that the city will scuttle the deal after Texas A&M has signed off on it is 0%.

This is happening. It shouldn't. I could comment on the details of it later. But the upshot of what I heard (I was wrangling kids during the meeting) - the city is locked into spending $250k per year for 3 years in order to pay for 4 employees to bring forward more deals that College Station taxpayers (along with Bryan and TAMU) are likely going to have to shell out more for.

None of this drives development that wasn't going to happen anyway.
Brian Alg

Brazos Coalition for Responsible Government and Moderator Restraint
EBrazosAg
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O P M! Nichols selling it on KBTX. Same age as Biden.
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Chrundle the Great
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One of the conditions of the sugarland deal was they had to lease space within the city limits. I suppose for the "innovators and entrepreneurs" to share while they brainstorm.

Maybe they found their Macy's tenant.
EBrazosAg
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I think they are counting on county and CoB participation… wonder how that all works.
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Stucco
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Nothing to see here. Just bureaucrats spending other people's hard-earned dollars on things that don't benefit them at all because other cities are doing it too. Business as usual in CoCS.
EliteElectric
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Stucco said:

Nothing to see here. Just bureaucrats spending other people's hard-earned dollars on things that don't benefit them at all because other cities are doing it too. Business as usual in CoCS.
100%
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maroon barchetta
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Stucco said:

Nothing to see here. Just bureaucrats spending other people's hard-earned dollars on things that don't benefit them at all because other cities are doing it too. Business as usual in CoCS.


Someone isn't going to be able to blame this on past councils.
whoop1995
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maroon barchetta said:

Stucco said:

Nothing to see here. Just bureaucrats spending other people's hard-earned dollars on things that don't benefit them at all because other cities are doing it too. Business as usual in CoCS.


Someone isn't going to be able to blame this on past councils.
They say they want to get away from these deals and make it transparent and then they do this crap over and over again. Non business people acting like they know business.

When does the city give hundreds of thousands to winter wonderland this year as I am sure it is coming up? On the hush of course.

If there is so much money to giveaway then that is tax dollars that could be reduced for the people (which would bring more people or business) or money to pay down the debt.
I collect ticket stubs! looking for a 1944 orange bowl and 1981 independence bowl ticket stub as well as Aggie vs tu stubs - 1926 and below, 1935-1937, 1939-1944, 1946-1948, 1950-1951, 1953, 1956-1957, 1959, 1960, 1963-1966, 1969-1970, 1972-1974, 1980, 1984, 1990, 2004, 2008, 2010
maroon barchetta
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https://www.kbtx.com/2024/11/13/texas-am-hosts-innovation-conference-announces-partnership-with-silicon-valleys-plug-play/
Hornbeck
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maroon barchetta said:

https://www.kbtx.com/2024/11/13/texas-am-hosts-innovation-conference-announces-partnership-with-silicon-valleys-plug-play/


I read 2-3 lines, laughed out loud and stopped. Mr. Sharp has lost his mind. "One of the things we're announcing today is that Plug and Play, which is a company that in a lot of respects built Silicon Valley, is going to be here in Bryan-College Station."

VC company that was founded in 2006 most certainly did not build Silicon Valley. Companies like Intel, Apple, Sun Microsystems, Oracle, Yahoo, EBay, Cisco, etc. did. Silicon Valley was going strong way before 2006. I know because I was there.

This is very much like the ViaSat deal. VC company is making money from naive politicos. That's what's actually happening. Elon Musk, Tesla, X, SpaceX, and The Boring Compsny aren't moving in next week.
EliteElectric
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www.elitellp.net/

EBrazosAg
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Good news is …. It probably can't be a bad a waste of money as many of the deals done by the cities have been !
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duff el pud
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As a final treat for the night a drone show was held inside Kyle Field where attendees could witness cutting-edge technology take flight over Aggieland.

"This electrifying drone demonstration brings innovation to life as hundreds of synchronized drones light up the sky above Kyle Field," An A&M statement read. "Watch as they create breathtaking visuals, transforming the night with dynamic patterns, bold Texas A&M imagery, and a spectacular showcase of the power and potential of drone technology. Don't just hear about the futuresee it in action!"

Reminds me of the city's new 3D printer episode on Portlandia.
Brian Alg
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I want to dig into it more. Hopefully the docs are not shielded from Open Records Requests. But I strongly suspect this one is much worse than others we've seen. Not only the deal itself but also what it is signaling for the future.

Maloney (who was there to vote "aye" along with Wright, Yancy, Nichols, and Smith) indicated that this firm bills itself as a marriage broker. It sounds to me like their job is to broker deals between the city and businesses for incentive payments, fee waivers, discount property, etc.

If that's right, this is a signal to any startup intending to do business in College Station they should wait to go through Plug & Play's system and see what freebies the government will offer.

It would also send a stronger signal to major companies that only suckers don't get taxpayer funds when they do business here. To the extent extra bureaucratic involvement in business is a terrible idea and putting private businesses on the dole is bad, I suspect this is going to be one of the worst "economic development" agreements yet.
Brian Alg

Brazos Coalition for Responsible Government and Moderator Restraint
Stucco
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Is the city going to use HOT money for this?
Hornbeck
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EliteElectric said:




Help! Help! I'm being repressed!
EliteElectric
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Hornbeck said:

EliteElectric said:




Help! Help! I'm being repressed!
Listen, strange women lyin' in ponds distributin' swords is no basis for a system of government. Supreme executive power derives from a mandate from the masses, not from some farcical aquatic ceremony.
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Tailgate88
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Hornbeck said:

EliteElectric said:




Help! Help! I'm being repressed!
Bloody Peasant!
woodometer
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The most interesting thing I saw in this story yesterday was the appearance of Rick Perry on the stage. Did someone say there is a job opening with the system.
maroon barchetta
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woodometer said:

The most interesting thing I saw in this story yesterday was the appearance of Rick Perry on the stage. Did someone say there is a job opening with the system.


I'm sure there will be a nationwide search for a new leader.
One Louder
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Stucco said:

Is the city going to use HOT money for this?


HOT money is very restricted for tourism use, so no.
BCS-Ag
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Got some info from a friend in the know. I think Plug & Play could be a winner for the community. A&M paid for half and the two cities split the other half.

The idea is to support small business in Ag, aerospace & defense that are either based on A&M research or want to partner with A&M. Sounds like it is intended to bring money and jobs to the area and generally do good things coming out of the brains of the smart people at the big school. This video explains their successes in an automotive focused location that would be awesome to replicate here.

taxpreparer
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I do not know anything about Plug & Play, but A&M pays half and the cities pay half, translates to taxpayers pay all.
BClem
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https://www.plugandplaytechcenter.com/locations/china

https://www.chinadaily.com.cn/a/202111/04/WS61833ed8a310cdd39bc7345a.html

"China is going through an incredible growth speed, and innovation, entrepreneurship and digital transformation is in the center of all their growth," (said) Saeed Amidi, CEO of Plug and Play.

"We feel the China opportunity is incredible, and we want to connect all of our corporate partners, all the startups and entrepreneurs and all the universities in the same platform to create incredible momentum," he said.

Saeed's brother Rahim is cofounder of Plug and Play -- leading some of their efforts in China (and Russia), as recently as 2023 and this year. What gives?

https://stcsm.sh.gov.cn/english/News/20230926/d292879065124029afbf9e36fe10358d.html

http://qingdao.chinadaily.com.cn/2020-05/22/c_491590.htm

Cozying up to communists started a few years before taking funding from the Chinese government.

https://russoft.org/en/news/x5-group-teams-up-with-plug-and-play-to-bring-more-sustainability-to-russian-retail/

https://www.rbth.com/articles/2012/07/04/plug_and_play_launches_accelerator_in_russia_16105.html

https://www.rt.com/business/plug-play-dagestan-university-131/

Our taxes are supporting the international buildup of technology and industry with a country that we are supposedly in a digital war with at the expense of local economic development and research efforts, by two brothers who claim to be wealthy from their early tech investments in Silicon Valley? If true, why aren't THEY paying our university for access to highly educated tech talent (25,000 student engineers) and research technologies developed in federally funded labs? Pepsi doesn't get exclusive rights to campus access, any more than Barnes & Noble Bookstores did. Seems like a dangerous precedent for A&M. If we sole source a $4.5 MILLION tax-funded contract under the radar with international investors in China and Russia, shouldn't taxpayers have input or at least knowledge of what their representatives are committing funds to?

This isn't the same as Frisco, Clear Lake and McKinney. Even Houston. This is a Tier One research institution with a tech and innovation campus that builds sensitive capabilities like nuclear reactors and mile-long lasers. If this is such a good deal for the Brazos Valley and Texas A&M University, why were other tech accelerators shut down to make room for Plug and Play? Seems like, as one major A&M donor recently said, there is a need for more of these types of funds and facilities -- not just one because the governor is advocating for them, as Saeed supposedly told people on campus this week (according to media coverage). Help us to understand!
Chrundle the Great
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I don't feel better watching that video. It's all buzzwords and marketing.
Hornbeck
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Chrundle the Great said:

I don't feel better watching that video. It's all buzzwords and marketing.


My opinion: some Californina VC firm is getting paid by a bunch of yokels because they *think* it might bring in jobs and money. If no companies bite, well, their hands are tied.… but, they still get paid. I'm not a fan of these types of deals that are very one sided and don't have any hard guarantees. Its like a fishing trip the local politicos are taking with my money.
maroon barchetta
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Remember the promise of the BioCorridor?
Hornbeck
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maroon barchetta said:

Remember the promise of the BioCorridor?


Yep, and $harp couldn't handle a leader with a spine in any capacity under him, and he canned the guy.

So, let's move in a failing satellite internet company that's getting destroyed by Starlink. Then, lets act all surprised when they fail to live up to their agreements, and the local governments have to be chided into investigating it by Brian.

Much ballyhooing about the "biocorridor" more like a bio break.
Bob Yancy
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BCS-Ag said:

Got some info from a friend in the know. I think Plug & Play could be a winner for the community. A&M paid for half and the two cities split the other half.

The idea is to support small business in Ag, aerospace & defense that are either based on A&M research or want to partner with A&M. Sounds like it is intended to bring money and jobs to the area and generally do good things coming out of the brains of the smart people at the big school. This video explains their successes in an automotive focused location that would be awesome to replicate here.




Thank you. I ensured we had an out clause in the agreement. It does not require us to spend a penny more. No incentives from taxpayers for startups required. I witnessed the first startup Aggie owned business receive seed funding from a third party investor. I believe I'll be able to announce a successful "assist" of a new business locating in Bryan close to Rellis through this program after I referred a friend and former military associate.

I'm hopeful this will work.

Respectfully,

Yancy
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
Brian Alg
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Mr. Yancy,

I am going to do an Open Records Request about this. What are the docs I should make sure to ask for to understand why y'all are moving forward with getting the city involved? Was it a particular report, or presentation, or email? I will try to be broad in my request. But I do not want to miss something you and the rest on council found particularly persuasive.

Thanks

[For others reading this: I would do an ORR not because I think the city needs to be forced to hand it over. In my discussions with the city manager, I learned that city staff would prefer to release anything not already public through that process so there are records of it being released or something like that.]
Brian Alg

Brazos Coalition for Responsible Government and Moderator Restraint
Bob Yancy
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Brian Alg said:

Mr. Yancy,

I am going to do an Open Records Request about this. What are the docs I should make sure to ask for to understand why y'all are moving forward with getting the city involved? Was it a particular report, or presentation, or email? I will try to be broad in my request. But I do not want to miss something you and the rest on council found particularly persuasive.

Thanks

[For others reading this: I would do an ORR not because I think the city needs to be forced to hand it over. In my discussions with the city manager, I learned that city staff would prefer to release anything not already public through that process so there are records of it being released or something like that.]


You could contact the Greater Brazos Partnership. They'd probably just give it to you. We received a presentation at the Economic Development Committee meeting last week. The search term should be Plug and Play if you still want to go the ORR route. We reviewed the contract between them and the GBP, but have yet to receive our agreement between us and GBP which is how it will be handled. City of Bryan does or will have one. Tamu does or will have one. Tamu pays 3x what cities and GBP pay.

There you go! Respectfully,

Yancy
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
Chrundle the Great
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Can you speak to what specifically plug/play will do that entities like Greater Brazos Partnership don't already do for recruiting entrepreneurs?

If the resources at Rellis and TAMU are the selling point, it's not clear what role Plug/Play provides.
spike427
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My understanding is that bringing Plug and Play here is an example of what GBP does - they are using it as a tool to enhance the local economic landscape. Instead of trying to assemble P&P's "rolodex" of investors, companies in need of solutions, and startups, they're tapping into P&P's existing network. Instead of trying to start from scratch identifying the optimal process and structure for negotiating these deals, they'll let P&P show them how to do it (do it for them?). That's just what I've gleaned from various posts lately.

GBP has visited multiple P&P locations (domestic and international) over the last several months.
Bob Yancy
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spike427 said:

My understanding is that bringing Plug and Play here is an example of what GBP does - they are using it as a tool to enhance the local economic landscape. Instead of trying to assemble P&P's "rolodex" of investors, companies in need of solutions, and startups, they're tapping into P&P's existing network. Instead of trying to start from scratch identifying the optimal process and structure for negotiating these deals, they'll let P&P show them how to do it (do it for them?). That's just what I've gleaned from various posts lately.

GBP has visited multiple P&P locations (domestic and international) over the last several months.


Good synopsis here.

Respectfully

Yancy
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