Screenshot from records obtained from AEDC, highlights by The Amarillo Pioneer
The Amarillo Economic Development Corporation is facing scrutiny after it was revealed they had paid $750,000 to the RANGE Foundation. Key to the controversy are two points: First, AEDC President and CEO Kevin Carter is also on the board of the RANGE Foundation. Second, the amount budgeted for the transaction was only $100,000.
The transaction was brought to light by Craig Gualtiere, a former AEDC board member and vocal critic of Carter. Gualtiere provided The Amarillo Pioneer with AEDC records he obtained through an open records request pertaining to the transaction. We also filed our own request and received records confirming the wire transfer took place.
According to the records, the $750,000 includes a $250,000 membership payment fee for 2023, as well as pre-payment for 2024 and 2025. A receipt for the transaction is dated January 20, 2023.
The AEDC procured a legal memo from Underwood Law firm regarding the transaction. The memo, which has been obtained by The Amarillo Pioneer, offers the following defenses for the two points of controversy:
First, regarding Carter’s association with the RANGE Foundation, the memo states that Carter is a good fit for the role, as both the AEDC and RANGE have economic development as a goal. Further, the memo states that Carter does not receive compensation for his role. Carter himself has also claimed he does not receive compensation. At this time, we cannot independently verify this claim.
Second, regarding the fact that the transfer was above the budgeted amount allocated, the memo states that the AEDC stayed within its overall budget and utilized savings from underspending in other line items to fund the remainder. While Amarillo City Council sets the AEDC’s budget and did not approve the change, the memo points to policies allowing this. Additionally, the memo points to the fact that the city, as the fiduciary agent of the AEDC, must approve all expenses made by the AEDC. According to records obtained by The Amarillo Pioneer, Carter emailed City of Amarillo Assistant Director of Finance Blair Snow and City of Amarillo CFO Laura Storrs asking for the transfer to be made on January 20th, 2023, with the transfer being completed later that day.
The City of Amarillo has stated that it is investigating the matter.
This isn’t the first time Gualtiere has criticized the AEDC. Recently, he has run billboards taking aim at the organization and Carter. He has also spoken during city council meetings questioning the organization’s transparency.
The full memo can be downloaded below.