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07-26-2012 Reg Mtg MinutesSSCCIH[lC1RZ~['7L ECONOMIC DEVELOPMENT MINUTES CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS Regular Meeting July 26, 2012 The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Meeting on Thursday, July 2G~h, 2012 at G:00 prn. in the City Council Chambers, 1400 Schertz Parkway, Schertz, Texas. 1. Call to order President called the meeting to order at 6:00 p.m. and welcomed everyone in attendance. 2. Roll Call Board of Directors: Harry Whitney, President Angelina Kiser, Vice President Tim Brown, Treasurer/Secretary Roy Richard Marvin Thomas Rosemary Scott -Arrived at 6:05 p.m. Matthew Duke Staff: John Kessel, City Manager David Gwin, SEDC Executive Director Juan Santoya -Finance Director James Walters, Finance Analyst Kyle Kinateder, EDC Analyst Josh Schneuker, ED Specialist Patty Horan, Administrative Assistant Others Present: Jim Fowler - Councilmember John Bierschwale -Executive Director, Operation David Covington -Fire Chief 3. Public comment None. ITEMS FOR INDIVIDUAL CONSIDERATION: 4. Consider/Discuss/Act on approval of the Minutes for the Regular Meeting held on June 28tE1, 2012. A motion to approve the Minutes for the Regular Meeting held on June 28, 2012 was made by Mr. Brown. Seconded by Mr. Thomas. Motion passed unanimously. 5. Update on June 2012 Monthly Financial Reports. (James Walters/Finance Analyst) Mr. Walters, Finance Analyst, provided a briefing on the SEDC Monthly Financial Revenue and Expense Reports for the Month of June 2012. Page 1 of 4 SIJDC Reg. Mtg. Minutes 07/26/2012 6. Consider/Discuss/Act on the City's fire protection situation. and the need to replace certain emergency response vehicles. (John I~essel/City Manager and John Bierschwale/Executive Director) Mr. Kesel, along with other City Management Staff, was in attendance to propose a joint project with the EDC for the purchase of a new quint-style ladder and tanker fire engine. The new fire engine would replace one of the three aging engines. Mr. Kesel described the Fire Department's taskfarce crew, dispatching procedures, response times, area of operation, and the current condition of the firefighting fleet and equipment. Iie described the current fleet as extensively repaired, costly in maintenance, unreliable and inadequate to provide the best possible service and coverage fox the community. NIr. Kesel shared detail on the justification, purpose, and financial means involved in the purchase of a new engine. His financial overview of cost and funding for this project stressed heavily on City Management's demonstrated financial responsibility, as shown on the upcoming City Budget, which is much leaner, based on priorities, and focus on less spending and more strategic and effective investments, He reiterated that the purchase of this new engine is mostly for future outcome versus popularity of today. Mr. Kesel gave a summary of the potential financial breakdown for the requested grant as follows: ® $800,000 Total cost of new engine ® 8 year City's bank note ® Payments of $150,000 ($110,000/debt services and $40,000/Vehicle Replacement Fund ® $150,000 split partnership grant: 1/16 of the total cost -potentially open for a second shared request President of the Board opened the agenda item for discussion. Mr. Richard asked if this project was a permissible expense under the EDC's statute. Mr. Kesel assured the Board that the City Attorney had reviewed and confirmed this request as a legitunate use of EDC Funds. Mr. Richard also asked if there was any other project request such as this one coming up in near future. Mi. Kesel replied that presently there were no plans to approach the Board with another project request. Mr. Kesel added that the intent is to make the General Fund stand alone and be able to support City projects. He also stated that the City and the EDC share common strategic goals that would benefit the citizens and the business community. Mr. Thomas asked the Fire Chief, Mr. Covington, if the purchasing of this new engine would suffice the needs for his department. Chief Covington stated that this new fire apparatus will help tremendously to better meet and alleviate some immediate needs. Ms. Scott stated that she needed more time to consider the request. Mr. Duke stated that he recognized the need for a new fire engine, but struggled with the repeated requesting of EDC funds for these types of situations. He would have liked to be presented wide other options that provide awin-win solution for the City and the EDC to meet mutual goals. The Board took a vote for consensus purposes only to give Mr. Kesel some direction on how to proceed. Board consensus was to move forward with the fire engine, with Ms. Scott and Mr. Duke dissenting. Mr. Kesel thanked the Board and gave a nine month timeline to revisit on this request. No action was taken. 7. Update on SEDC Cost Saving Measures and Controls - To Date. (David Gavin/SEDC Executive Director) Mr. Gavin re-introduced the SEDC Cost Saving Measures and Controls Report reflecting up to date cost associated with existing operational policies, procedures and systems. To date, highlighted operational improvements and cost controls have been implemented by SEDC Staff with an estimated cumulative annual savings to the City and SEDC of $148,980. These estimated savings include both productivity and operating expenses that have been eliminated and most will be enjoyed by the organization for many years to come. The Board praised the outstanding work of the EDC Staff in their accomplishment. 8. Consider/Discuss/Act on Ordinance No. 12-T-15 City of Schertz Development Incentive Agreement Policy. (David Gavin/SEDC Executive Director) NIr. Gavin reminded the Board that this item had been considered at last month's regular meeting. He decided to re- introduce it as a follow up on Ms. Scott's inquiry on what was new in the policy. A red-line draft was included this time in the Board Packet for their convenience to quickly identify the minor changes made from die previous policy. Mr. Wlitney requested the Staff to review Pg. 3 -Section No 2 fox clarity. A motion to approve on Ordinance No. 12-T-15 City of Schertz Development Incentive Agreement Policy was made by Mr. Richard. Seconded by Ms. Scott. Motion passed unanimously, Page 2 of 4 SEDC Reg. Mtg. Minutes 07/26/2012 9. Consider/Discuss/Act on Development Agreement with 702 Group LLC for retail development of an approximately 1.951 acre tract property located in the City of Schertz, Guadalupe County. (David Groin/SEDC Executive Director) Mr. Groin briefed the Board on the progress of Phase I of the retail shopping center being built by the 702 Group LLC, located on FM 78 at FM 3009. He informed the Board that dze developer has agreed to the terms in the proposed Development Agreement. The City would be agreeing to allow the developer to defer completion of the parking/landscape requirements until Phase II can be implemented on. The developer agreed to provide a surety to the City in the form of a "Performance Bond" for the amount of X18,483.75, which is 125% of the anticipated cost of completion. The Bond will not expire until at least two years after the effective date of die agreement. A motion to approve a Development Agreement with 702 Group LLC for retail development of an approximately 1.951 acre tract property located in the City of Schertz, Guadalupe County was made by Mr. Duke. Seconded by Mr. Thomas. Motion passed unanimously. 10. Consider/Discuss/Act on. purchasing of a tract of land for future development purposes located at the Freeway Manor Subdivision, Lot 1, Block 16 of approximately 7,100 sq. for the amount of $1,350. (David Groin/SEDC Executive Director) Mr. Groin provided a summary on history of the Freeway Manor Subdivision located off of FM 1103 and Wiederstein Rd. The subdivision consists of 247 individual lots and was subdivided in 1958. Infrastructure was not built. Property was annexed by the City in 1990 and rezoned to general business in 2004. To try to remedy this problem, the City over time has been buying individual lots as they become available. To date, 51 lots are owned by the City and were purchased with SEDC Funds. A Motion to approve purchasing of a tract of land for future development purposes located at the Freeway Manor Subdivision, Lot 1, Block 16 of approximately 7,100 sq. for the amount of X1,350 was made by Mr. Richard. Seconded by Mr. Brown. Motion passed unanimously. 11. Director's Report: Mr. Groin provided brief updates on the following: • 10/35 ED Alliance -Dissolution of Joint Marketing Agreement notice letter was mailed out • The Centel for Entrepreneurship -Discontinuing next year's program funding notice letter was mailed out • Reclassification Request of PT Specialist Position to Full-Time status -Request for reclassification has been presented to City Manager's Office • TexasOne Membership -Tier 2 -Membership in the TexasOne Program at the Tier 2 Level has been processed Updates on existing projects: • Caterpillar Expansion -Phase II is progressing nicely • Baptist Emex-us Hospital -Foundation has been poured. Project is moving along as projected Updates on events attended and to be attended: 1. Office of the Governor: Roundtable Meeting - IED- San Antonio - 7/3/2012 -Met with all EDC's representatives in the San Antonio region at UTSA Campus Downtown 2. First Voice Luncheon - Schertz - 7/10/2012 -Through Mr. Brown's connection to the First Voice Group, we were able to host about 70 local Commercial Real Estate Brokers to learn of ongoing development in die community 3. Northeast Partnership Monthly Meeting -Universal City - 7/12/2012 -Ongoing participation on sub-committees to help develop strategic plan for the Metrocom area Page 3 of 4 SEDC Reg. Mtg. Minutes 07/26/2012 4. Schertz Chamber of Commerce -Monthly Luncheon - 7/17/2012 -Participated -Ongoing monthly meeting 5. TexasOne Business Recruitment Mission -San Francisco - 7/23-24/2012 -Attended to represent Schertz -Made good connections 12. Requests by Board Members to Director for information. None. 13. EXECUTIVE SESSION -Called in accordance with Section 551.087 of the Texas Government Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting, The governmental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision. • Project Future Start Time: 7:40 p.m. End Time: 7:55 p.m. RECONVENE TO REGULAR SESSION 14. Discussion and appropriate action deemed necessary as discussed during Executive Session. No action was taken. 15. ADJOURN. President adjourned the meeting at 7:56 p.m. PASSED AND APPROVED THIS 23rd DAY OF AUGUST, 2012. H rry Whit y -President ~ ..~._ ,° ~,f= Ti~Brown -Secretary/Treasurer Page 4 of 4 SEDC Reg. Mtg. Minutes 07/26/2012