EDC 12-14-2000
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SCHBRTZ ECONOMIC DEVELOPMBNT COMMISSION
MINUTES
14 DECBMBER 2000
SCHBRTZ MUN1CIPAL COMPLEX
ITBM '1 CALL TO ORDBR
Mr. Barrett called the meeting to order at 7:12 p.m.
THOSE PRESENT:
Arnold Barrett. Vice-Chairman
Harry Richburg
Dinah Heilmann
Ben Davis
Bob Vallance, Sr.
Tony Moreno, P&Z Ex Officio
Staff
Mark Marquez
Donna Dykes, Rec. Sec
Guests
Mr. Robert Hunt
ITBM #2 APPROVAL OF MINUTES (21 Sep 2000) Mr. Moreno made a motion
to approve the minutes as written. The motion was seconded by Ms. Heilmann
and carried unanimously.
ITBM #3 REVlBW/DISCUSSION/ACTION ON TAX ABATBMBNT REQUEST
FROM BMBREY PARTNERS
Since Mr. Hunt was a guest at this meeting, the board decided to reverse the
order of Embrey Partners and Technos review and discussion on the agenda.
Embrey Partners plans to build two buildings, which will primarily be for
distribution. The abatement percentages are straightforward. The abatement
was initially assessed for 7 years at 90% and 8 years at 400k. However, since this
package did not meet the ratio requirements, some adjustments were made to
make it work. Thus the recommendations are slightly different. To get to the
required 1.5 to 1 ratio, the 90% portion was lowered to 76% for the first 7 years
and then 40% again for the 8th year. Another option would be to offer an
abatement at 67% for 10 years. Depending on Mr. Hunt's and the Commission's
view. Thus, basically two options under consideration are 76% for 8 years or 67%
for 10 years.
Mr. Richburg pointed out that the city would make approximately $20,000 more
on the 8 year abatement than on the 10 year option. Mr. Hunt said that due to
general leasing practice a 10 year abatement would be more desirable. He
suggested a 10 year abatement with an adjustment to make the return to the city
the same as for the 8 year abatement. The board discussed the various options.
Mr. Richburg made a motion to approve the 10 year abatement with adjustments
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to make the return on investment to the city equal to the same return as the 8
year abatement. The motion was seconded by Mr. Moreno and carried
unanimously. Mr. Marquez said that he would make the adjustments.
ITEM '4 REVIEW/DISCUSSION/ACTION ON TAX ABATEMENT REQUEST
FROM TECHNOS..
This is an expansion and their second abatement. The 4 year accelerated rate is
preferred. With this abatement changes were made to recognize the importance
of expansion to operations and another 25% was added which resulted in 66.4%
over the course of 5 years. Mr. Moreno made a motion to accept the accelerated
spreadsheet as submitted by Technos. The motion was seconded by Mr. Vallance
and carried unanimously. Mr. Marquez advised the board that Technos will be a
little different than other tax abatements as a re-investment zone will need to be
created before the tax abatement can be created. There will be a public hearing,
as required by law, in order to create the new zone.
ITEM =1#5 COMMENTS FROM COMMISSIONERS
Mr. Vallance asked about the development on 1518 behind Public Works. The
board discussed various developments in the area.
ITEM #6 COMMENTS FROM STAFF
. Mr. Marquez commented that he appreciated those who attended the Business
Appreciation Dinner (BAD). The Board expressed appreciation for the work on
the BAD done by Ms. Petra Marquez.
Mr. Marquez advised the board that the abatement package expires 31 Dec 00.
The question is, are there any adjustments for changes to the current program?
Mr. Barrett reminded the board that they had previously discussed having some
kind of cap for larger investors. The board agreed that this subject may be an
agenda item for the next meeting.
ITEM '7 COMMENTS FROM THE CHAIRMAN
None.
ITEM '8 SET NEXT MEETING DATE
The next meeting is scheduled for 18 January 2001. A copy of the By-Laws will
be provided to the board at this meeting.
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ITEM 19 ADJOURN
Mr. Vallance moved to adjourn. The motion was seconded by Mr. Moreno and
carried unanimously.
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Donna Dykes, Recording Secretary
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