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AEDC board approves amendment to pay the remaining incentive as a discounted lump sum
The AEDC board approved an amendment to its location incentives agreement with Texas Tech University. NewsChannel10 reported that the remaining amount owed drops from $15.6 million to $13.8 million, paid in one payment at the beginning of 2026, subject to a City Council vote in January.[1][2][3]
Doug NelsonAmarillo Economic Development Corporation (AEDC)Texas Tech University System
What the sources say
- ⚠ Sources differ
Reports differ on the remaining amount owed to Texas Tech before the amendment.
- Remaining before
- $15,600,000
- Lump sum
- $13,800,000
- Savings
- $1,800,000
NewsChannel10: remaining cost lowered from $15.6 million to $13.8 million, saving $1.8 million.
Reported value 2[4]
- Remaining owed
- $5,000,000
- Period years
- 3
- Savings
- $2,000,000
KVII: interim president Doug Nelson said the university was still owed approximately $5 million over the next three years; the amendment could save nearly $2 million. No lump-sum amount stated.
Reported value 3[2]
- Remaining before
- $15,608,029
- Lump sum
- $13,653,467
- Discount rate
- 7%
AEDC board minutes, December 18, 2025: three more years totaling $15,608,029.41; one-time discounted payment of $13,653,467.33 (net present value of 7%).
- ✓ Verified
The City check register (July 2022 to May 29, 2026) lists 62 payments totaling $281,833.72 to Texas Tech University Health Sciences Center (largest single payment $22,045) and 41 payments totaling $31,970 to Texas Tech University; it contains no payment to a Texas Tech payee of the size of the AEDC installments or lump sum. The register does not tie payments to projects.[5]
- Ttuhsc total
- $281,834
- Ttuhsc payments
- 62
- Ttuhsc max payment
- $22,045
- Ttu total
- $31,970
- Ttu payments
- 41
- ✓ Verified
Doug Nelson, AEDC interim president and CEO (as recorded in minutes): The AEDC board minutes for December 18, 2025 record that interim president Doug Nelson said the original agreement would require the AEDC to pay three more years, for a total of $15,608,029.41, and that the amendment would allow a one-time payment at a discounted amount of $13,653,467.33, 'a net present value of 7%.' The board approved Amendment No. 2 by a 5-0 vote.[2]
- Remaining before
- $15,608,029
- Lump sum
- $13,653,467
- Discount rate
- 7%
- ⚠ Sources differ
Sources give the lump-sum amount differently.
- Lump sum
- $13,800,000
About $13.8 million, as reported by KFDA and the Amarillo Globe-News ('approximately $13.8 million').
- ✓ Verified
Arithmetic from the board minutes: $15,608,029.41 minus $13,653,467.33 is $1,954,562.08. News reports gave the savings as $1.8 million (KFDA, Globe-News) or 'nearly $2 million' (KVII).[2][1][3][4]
- Computed difference
- $1,954,562
- ✓ Verified
Doug Nelson, AEDC interim president and CEO: The Amarillo Globe-News reported that the AEDC negotiated a 'net present value discount of about 7%,' that the payment would come from the AEDC's project fund reserves, and that it required City Council approval expected in January. Interim president Doug Nelson said, 'We have the cash to be able to do the upfront payment, and so we will achieve some savings for our community,' and 'Ultimately, we're trying to be good stewards of taxpayer money.'[3]