The Amarillo Economic Development Corporation (AEDC) has approved an amendment to its long-standing location incentives agreement with Texas Tech University, reducing the remaining financial commitment for the university’s School of Veterinary Medicine and clearing the way for a lump-sum payment in 2026.
The original agreement, established in 2018, helped secure Texas Tech’s decision to build its School of Veterinary Medicine in Amarillo—an effort aimed at boosting regional workforce development and supporting the agricultural economy. The school officially began operations in 2021 and has since become a cornerstone of the area’s higher-education and research infrastructure.
Under the revised terms approved by AEDC board members this week, the remaining cost the corporation owes Texas Tech will drop from $15.6 million to $13.8 million. AEDC now plans to make that $13.8 million payment in a single installment at the beginning of 2026, rather than through the gradual structure originally outlined.
AEDC interim president and CEO Doug Nelson said the adjustment will free up funds for other local economic development efforts. “We have the cash to be able to do the upfront payment and so we will achieve some savings for our community. So that’s the primary thing. That $1.8 million that we’ll save can then be used to do other projects and bring more jobs and capital investment to our community,” said Nelson.
The proposed amendment is not yet final. Amarillo City Council must vote on the revised agreement in January, a procedural step required before the payment structure can officially change.
Supporters of the incentive package say the School of Veterinary Medicine continues to play a key role in training veterinarians for rural and agricultural regions, a long-identified statewide need. With the amended agreement poised for review by city leadership in early 2026, AEDC officials emphasize that the cost savings will expand the city’s capacity to pursue additional economic opportunities.
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