11-29-2018 Minutes SEDC Board Special Called MtgSC][ []L*]RZ�rz
ECONOMIC DEVELOPMENT CORPORATION
MINUTES
THURSDAY, NOVEMBER 29, 2018
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Special
Called Meeting on Thursday, November 29, 2018 at 6:00 p.m. in the City of Schertz Municipal Complex,
Administration Building No. 2, Administration Conference Room, 1400 Schertz Parkway, Schertz, Texas.
This is an open meeting, subject to the open meeting laws of the State of Texas.
CALL TO ORDER
1. Roll call and recognition of visitors.
Vice President Macaluso called the meeting to order at 6:01 p.m. and welcomed everyone in
attendance.
The following being present and in attendance:
Board of Directors:
Paul Macaluso VP /Treasurer- Secretary
Roy Richard
Mark Tew
Jesse Hamilton
Sammi Morrill
Daniel Ortega
Staff:
Kyle Kinateder — SEDC Executive Director
Patty Horan — ED Executive Assistant
Drew Vincent — ED Analyst
James Walters — Finance Director
2. Consider /Discuss /Act on election of corporation officers for the President, Vice President, Secretary,
and Treasurer and other matters connected therewith. (K. Kinateder)
Mr. Kinateder referenced the information provided in the board meeting packet related to criteria for
each position according to the bylaws. The election of officers was prompted by the recent
resignation from the Board President, Tim Brown, who won his bid for the election to City Council.
The election was held for the remainder of the term ending 5/31/2019. Vice President Macaluso
opened the floor for nominations for the following Board officers' positions:
President
Mr. Richard made a motion to nominate Mr. Macaluso for the Board President position. Motion
was seconded by Mr. Ortega. Mr. Macaluso accepted the nomination and the motion passed
unanimously.
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Vice President
Mr. Richard made a motion to nominate Mr. Hamilton for the Vice President position. Motion
was seconded by Mr. Ortega. Mr. Hamilton accepted the nomination and the motion passed
unanimously.
Treasurer
Mr. Richard made a motion to nominate Mr. Ortega for the Board Treasurer position. Motion was
seconded by Mr. Tew. Mr. Ortega accepted the nomination and the motion passed unanimously.
Secretary
Mr. Richard made a motion to nominate Ms. Morrill for the Board Secretary position. Motion was
seconded by Mr. Tew. Ms. Morrill accepted the nomination and the motion passed unanimously.
3. Public comment.
This time is set aside for any person who wishes to address the Board. Each person should fill out the Citizen's to be
Heard registry form prior to the meeting. Presentations should be limited to no more than 3 minutes. The presiding
officer, during the Public Comment portion of the agenda, will call on those persons who have signed tip to speak in the
order they have registered.
No public was present.
PRESENTATIONS
4. SEDC monthly financial statements: September 2018. (J. Walters)
Mr. Walters provided a brief review of the monthly financial statements, reinstated highlights
provided on the board meeting packet related to the update on the sales tax revenue for September
continued to be strong with a 10.6% increase over last year. 40% of the increase comes from
construction related projects and new businesses which leaves more than half of the increase from
existing businesses. During September, the SEDC's largest expense was $265,000 to the General
Fund for the new permit software as its largest expense.
5. SEDC Quarterly Report Q4 FY 2017 -18. (D. Vincent)
Mr. Vincent opened this presentation by asking if there were any questions related to the report
included in the board meeting packet. He summed up the presentation by highlighting that Ace Mart
Restaurant Supply Company held a grand opening on September 24th celebrating its new 215,765
square foot Schertz distribution center. Weiderstein Ranch 1's anchor tenant, EVO Entertainment,
continued construction on their 73,000 square foot facility and erected the building's walls. Schertz'
average asking price for industrial space declined from the previous quarter by 0.5% to $5.81 NNN.
Additionally, the industrial sector's vacancy rate took a slight dip to 10.2 %, down from its previous
rate of 10.7% from Quarter 3. Schertz' retail inventory saw quarterly absorption at 82,000 square
feet, with 73,000 square feet of this figure attributed to a single leased space at 17975 Interstate 35
to Stars Vipers Cheer and Tumbling. Year - over -year new residential building permits were down by
3.1 % from the same period last year. Mr. Macaluso complemented Mr. Vincent and the staff for the
quality of the presentation and the valuable information provided in the quarterly reports.
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6. SEDC Annual Report FY 2017 -18. (D. Vincent)
Mr. Vincent pointed out to the Board that the Annual Report is presented to the them at this time for
their input for any changes to be made. The final version will be presented to the City Council and
posted online for public access. Mr. Vincent summed up his presentation by providing an overview
of the report for the SEDC's fiscal year (October 1, 2017 to September 30, 2018; the business
recruitment and retention efforts; the business community data and city demographics; active
Projects and other developments in Schertz, and the SEDC's annual financial summary. The Board
asked questions related to the website traffic count and breakdown. The report was accepted as
presented and no changes were requested.
ITEMS FOR INDIVIDUAL CONSIDERATION
7. Consider /Discuss /Act on approval of the minutes for the Board of Directors Regular Monthly
Meeting held on Thursday, September 27, 2018. (P. Horan)
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, September 27, 2018 was made by Mr. Richard. Seconded by Mr. Hamilton. Motion
passed unanimously.
8. Consider/Discuss /Act on the SEDC's Development Agreement and associated Amendments with
GE Oil & Gas LLC. and other matters connected therewith. (K. Kinateder)
Mr. Kinateder provided a brief background on the history of the incentive agreement and
amendments to the agreement with the company. Mr. Kinateder stated that the Development
Agreement with GE Oil & Gas LLC fails to address a voluntary termination. To date, GE Oil & Gas
LLC has fulfilled each of its obligations according to the agreement. GE Oil & Gas LLC has repaid
the infrastructure incentive received under the development agreement with the intention of
terminating the Development Agreement. Funds will go back to the SEDC reserves. The Board
asked about the company designating the right -a -way for the thoroughfare. Mr. Kinateder explained
that the company is out of time to commence that process. He suggested to leave that option to be
negotiated with the new facility owner. Mr. Kinateder's recommendation was for the Board to
approve the Resolution No. 2018 -1 to terminate the agreement.
A motion to approve Resolution No. 2018 -1 was made by Mr. Richard. Seconded by Ms. Morrill.
Motion passed unanimously.
President Macaluso moved to skip agenda item No. 9 and to recesses into closed session at 6:32 p.m.
9. REQUESTS AND ANNOUNCEMENTS
The following announcements were provided by the staff:
A. Announcements by staff:
• Holiday party — Dec. 12, 2018
• Next Board regular monthly meeting — Dec. 13, 2018
• Office closure — Christmas Day — Dec. 24 -25, 2018
• Office closure —New Year's Eve —Dec. 31, 2018 —Jan. 1, 2019
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B. Requests by Board Members to place items on a future SEDC Board Meeting agenda.
No requests were made.
10. CLOSED 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.
• Project E -048
RECONVENE TO REGULAR SESSION
President Macaluso reconvened to open session at 7:31 p.m. and moved to agenda item No. 9.
11. Discussion and possible action to authorize the SEDC Executive Director to take the necessary and
appropriate actions to proceed with negotiations based on discussions held in Closed Session under
Agenda Item No. 10:
• Project E -048
Start time: 6:32 p.m.
End time: 7:31 p.m.
No action was taken under closed session.
ADJOURNMENT
President Macaluso adj ourned the meeting at 7:3 5 p.m.
MINUTES PASSED AND APPROVED THIS 6th DAY OF DECEMBER 2018.
P Z 1 Macalu o ammi Morrill
Board President Board Secretary
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