SAN BENITO — After more than two years of talks, the city is apparently close to entering into an agreement with a development firm.
But city officials are tight-lipped about the business known as VARCO.
VARCO, apparently a development company, is not affiliated with National Oilwell Varco, an international supplier of oil production equipment.
Last week, city commissioners met in closed session with City Attorney Ricardo Morado. But they took no action on a request to approve a “performance agreement” between the city’s Economic Development Corporation and the business.
According to the meeting’s agenda, commissioners were expected to consider “potential financial incentives” as well as approval of a lease agreement between the EDC and the business.
In an earlier meeting, the EDC had voted to proceed with negotiations with VARCO while seeking approval from the U.S. Economic Development Administration regarding the matter, City Manager Manuel De La Rosa stated in a text message.
The city could not disclose information about VARCO because that could jeopardize negotiations, De La Rosa stated.
“The specifics of the contract are still being filled in so that a final form agreement can be sent to the federal EDA for their review and approval,” De La Rosa stated.
The city is waiting for VARCO to provide documentation needed to consider the agreement’s approval, De La Rosa stated.
“We have not received the documents from VARCO,” De La Rosa stated. “We are waiting on the legal document that has created or will create the legal entity that we will be entering into the agreement with at this time.”
