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Joint City Council /PEDC Meeting September 15, 2014 Page 6 did not have to be paid back, but prohibit future impermissible expenditures as a remedy. Council Member Lancaster inquired what would happen to the assets of that particular entity. Mr. Moore wanted to know which entity and Council Member Lancaster told him R3BI. Mr. Moore said it depended on what she was talking about and Council Member Lancaster referenced property and monies. Mr. Moore said he could not address how that should be disposed. Council Member Lancaster wanted to know if it would go back to the PEDC or the City and Mr. Moore inquired if PEDC had a lien. Council Member Lancaster said it was purchased by the tax payer money. Mr. Moore said if there was a lien, they could get repayment. Council Member Lancaster also asked about the existing monies in the bank accounts. Mr. Moore said a lawsuit could be filed to potentially recover monies that were owed under a contract. Council Member Lancaster reminded Mr. Moore there was no contract. Mr. Wilson asked if the contract was signed, to which Council Member Lancaster replied no. Mr. Wilson asked about a remedy for an unsigned contract and how much money was expended. Mr. Moore explained there may be some applicable arguments or detrimental reliance arguments that could be raised if they had a contract. He said they were getting into equitable issues to raise, but obviously it was better to have a signed contract. Mr. Wilson again asked how much money was given to R3BI and wanted to know what it was used for. Council Member Lancaster told Mr. Wilson it was used for everything, such as Hank Betke's salary although he was a contract employee of PEDC. She said it was used for bail -outs and most of the first year it looked like it was just feathering their nest. Mr. Moore reiterated they need to have written contracts. Council Member Lancaster said absolutely and because there was no written contract, there was no oversight. She said this was a severe waste of tax payer monies. Mr. Brockman inquired if the monies were approved by the Board and the City Council and Council Member Lancaster said they were not approved by the Board. Mrs. Clifford asked if she could answer that question. Mrs. Clifford reported that over the three (3) year period approximately $400,000 was given to R3BI. She said part of that was put into a line item on the budget for a certain amount, but a lot of it was in excess of what they paid in advertisement for the grand opening, and used for just about anything. Mrs. Clifford explained from the accounting part if you look at the line item budget for that account, you would see there were other expenses placed in that account line item budget. She further explained if you go through and look at R3BI and review the exact line item, there were much more throughout the budget. She also said some expenses may be under new industry, it may be under existing industry, it may be under global recruiting, rural innovations, just anywhere they needed to stick the money. Mrs. Clifford said if you look back through it, you could say those were fraudulent, because it wasn't the line item those expenses should have been put in. Mrs. Clifford told Mr. Moore that was one way of looking at it and referenced attended the training he conducted in 2013. Mrs. Clifford said at that time she asked the question, could you give money to another organization and Mr. Moore's answer was no. She said she guessed that was what he was saying now too. Mrs. Clifford brought up the AG Opinion that he talked during that training regarding that the City of Pampa could not give money to the Junior College. Mrs. Clifford wanted to know what would happen if Pampa would have just gone and done it. Mr. Moore said if they would have done it, the Attorney General would have told them they need a written contract because you cannot gift public monies, and that there needs to be a written contract. He also said at the same time there was not a criminal provision. Mrs. Clifford inquired why you