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December 22, 2006 SCHERTZ EC'ONOMIC' DEVELOPI~:IENT CORPORATION Bob Andre~s-s Conference Room December 22, 200; Minutes SCHERTZ ECONOMIC DEVELOPMENT CITY STAFF CORPORATION Amy Madison, Community Development Director Steve White, Vice President Juan Santoya, Finance Director Johnie McDow, Secretary Reine Guillemette, Recording Secretary Joseph Brown Ramon Cook Mark Roberts Carl Douglas, City Council Liaison DIRECTORS ABSENT OTHERS PRESENT None Mr. Juan Barrera, Blue Clover Mr. Jason Cronlcite, Blue Clover Ms. Kim Turner, Universal City ED Director Mr. Robert Statzer Mr. Klaus Weiswurm Mr. Roy Richard, Jr. Mr. Robert Hunt 1. Call to Order: Vice President Steve White Vice-President White called the meeting to order at 11:32 a.m. and announced that the City Council did not have a quorum on their December 21, 2005 regular city council meeting. New appointments and reappointments to the Schertz EDC could not be made. However, Mr. White stated that the SEDC had a quorum with current members Brown, Cook, McDow, Roberts and himself. He invited those waiting on appointments to participate in the discussion, but that they would not be able to vote on agenda items. 2. Introduction of New Board Members & Guests At Mr. White's request, Ms. Madison introduced everyone in the room. 3. OLD BUSINESS a. Approval of Minutes: 15 September 2005 Regular Meeting Mr. McDow moved to approve the minutes of the 15 September 2005 Economic Development Corporation meeting. Mr. Brown seconded the motion. Motion carried. Vote unanimous. b. Election of Officers Vice-President White stated that, although the board had not elected officers in two years, he would like to postpone the election until the next meeting. He explained that by then, City Council would have met and confirmed all appointments and that there would be a full board to vote for officers. A consensus was reached to move this item to the next board meeting. No further discussion, no action taken. c. Accountant Report Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page I of 6 Mr. Juan Santoya reviewed the revenue and expense report for October and November. He reported $856,000 in the investment pool and a substantial increase in revenues over last year. In October, revenues were up 34 percent and approximately 47 percent in November. December revenues came in at $114,739 that was SS percent over last year. Ms. Madison commented that the efforts to bring retail over the past two years were reflected in the increase. In particular, she noted that Wal-Mart had made the biggest contribution to this increase. Mr. White requested that the report have page numbers in the future so that it is easier referenced. Mr. Cook asked if the fund had to have a mandatory balance under statutory provisions. Mr. Santoya stated that the board had to meet their debt service of $547,886. Ms. Madison stated that the minimum balance requirement had not changed with any later legislation. No action was taken on the financial report. d. Update on West Dietz Creek Watershed Improvement Project Ms. Madison presented a large visual display of the area being considered for a Public Improvement District (PID). She explained that the West Dietz Creek Watershed extended from Garden Ridge into Schertz, back through Garden Ridge and ended up at Maske Road. She noted that the City of Schertz had recently completed a $1 million improvement on Maske Road and a $4.5 million FEMA project from Maske to FM 78 / Cibolo Creek that brings a large area of the city out of the flood plain. The remaining portion of West Dietz Creek Watershed improvements are in the property that Cross & Company, Trammel Crow and Mr. Robert Hunt, Verde Realty are working on for a new industrial park. Ms. Madison explained that the city was looking at working with the owners to finish the improvements through a PID. She also updated the board on conversations with both Selma and Garden Ridge officials regarding their participation in the plan. By bringing in the other cities, Ms. Madison said that the cost of the project could be spread across more landowners. In addition, a new road called Enterprise Drive, would be constructed in both Schertz and Selma that would require an interlocal agreement between the cities. Ms. Madison said that the SEDC had agreed to help pay for the engineering and legal fees for this project in the last meeting, however, the board may be asked to help participate in funding the City's portion of the project. She stated that a strategic planning session was scheduled for January 7, 2005 and that this project was one of the projects going forward for consideration. She explained that the developers were extending Associates Drive to Lookout and that Mr. Hunt was extending a new road, Mid-Cities Boulevard, from Associates back to U35. These roads and improvements would be made at the developers cost and were not included in the drainage project. Mr. Cook asked if Texas Department of Transportation (TXDOT) had been contacted. Ms. Madison stated that they were not that far along in the project, but that she would make sure they were contacted. Mr. Weiswurm asked if the city was planning to improve Doeer Road with this project and improve the drainage issues on the west side of Doerr. Ms. Madison said that Doerr was one of the streets slated for consideration by council in the street improvements but that she did not think it was part of the West Dietz Creek Drainage project. Mr. White asked what the timeframe was for the project. Ms. Madison stated that she hoped to have the legal work completed on the PID in the next 60-90 days, and that Mr. Hunt's timeframe was to close on his contract as quickly as possible. Mr. Weiswurm asked if the work on Associates Drive would be additional drainage work not currently being done. Ms. Madison stated that they would have to go through Ford Engineering and that the early discussion was to have them do their improvements as they developed and that portion be deducted from their participation when the PID was established. Mr. Weiswurm commented that he just didn't want to have to go back in and tear up the improvements to meet a new standard. Mr. White asked if there was anything the board could do to move this along. Ms. Madison stated that the City Council Strategic Workshop was coming up and that they could listen to the presentations and then express their comments to City Council members. She also suggested that the Council Liaison was Mr. Carl Douglas and they could make additional comments to him. Mr. Hunt commented that the 200+ acres would yield about 3 million square feet and about 3,000 jobs in the area. He estimated that annual revenue would be about $2 million. Mr. Hunt stated that he was delighted to do business in Schertz and that everyone was helpful, unlike the experience he encountered in San Antonio. He Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page 2 of 6 said that his partner, Verde Realty, is a real estate development company formed by Ron Blankenship and Bill Sanders who were founders of Security Capital and ProLogis. No further discussion, no action taken. e. Discuss and take appropriate action on 2006 meeting calendar and set next meeting date Ms. Madison explained that the new calendar is on a rotation of every fourth Thursday and that it follows the Schertz ED Commission meetings that meet every 2"d Thursday. Mr. McDow moved to approve the Schertz EDC calendar as presented by staff. Mr. Cook seconded the motion. Motion carried. Vote unanimous. 4. NEW BUSINESS a. Discuss and take appropriate action on Art Symbol and Tag line for the Schertz Economic Development Corporation: Jason Cronkite, Blue Clover Jason Kronkite stated that the first logo, an engine, represents the history of Schertz and was the first economic impact in the city. He stated that the engine portrayed power and forward motion and would stand apart from other cities. Suggested tag lines were: Hop on, pull ahead or City of Schertz, your engine for growth. The second logo, a star of Texas, was made to represent a fresh look at a city in Texas. The three stripes in the star reference the military community, and the objective was to portray elegance and visionary type of community going after high tech industries. Suggested tag lines were: opportunity in motion. The third logo is amilitary-looking star to tie us to Randolph. Discussion followed regarding the art symbols and tag lines. Mr. White stated that the forward motion star seemed to be the favored symbol at the steering committee and asked for input from the board and other participants. Mr. Richards stated that the engine was most unique and new, and he liked the engine for growth as a tag line. Ms. Madison suggested that the board review the symbols according to what our intended audience might see them. She stated that it was not for inside, but for outside the community. Ms. Madison asked that the board members select their favorite symbol and only vote one time. The forward motion star received one vote, the military star received one vote, and the train received four votes. Mr. Weiswurm suggested that the engine needed to be modernized. He suggested that we add a jet in the smoke of the train and make it more progressive. Mr. White stated that the majority seemed to like the train, but that Blue Clover needed to make it more modern and perhaps combine the tag line "opportunity in motion." Mr. White asked that Mr. Kronkite get the revised logos to Ms. Madison and that the board would respond by email or phone on their choice. No further discussion. No action taken. b. Special Guest Presentation on organizational structure of Industrial Development Corporation in Universal City: Kim Turner, Executive Director Ms. Turner presented the history of the Industrial Development Corporation (IDC) in Universal City and detailed the way the Architectural Review Board and IDC work together to determine retail niche and business compatibility. Mr. White thanked her for participating in the meeting. No further discussion. No action taken. c. Discussion and appropriate action on TIP Strategies Technical Memo regarding realignment and tax abatement Mr. White commented that the technical memo has been a real heartache for the city. He stated that it looked to be a rehash, a compilation of a lot of other things without much thought and put together in a hurry. Mr. White asked Ms. Madison what kind of feedback she was getting from the city folks. Ms. Madison commented that the document had only been circulated to the commission and the steering committee. She requested feedback from the steering committee and received none, but the commission reviewed it during their meeting on 12.14.05. Ms. Madison stated that the document was dated 11.5.05, but that it was not received until Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page 3 of 6 11.28.05. Due to other city obligations including the Festival of Angels and other planned meetings for TIP Strategies, she had not been able to review the document until early December prior to the ED Commission meeting December 08. She also stated that, at the same time, the staff was working with Blue Clover on the marketing photos and the website mapping. She said that before taking any action, she wanted the corporation to review the memo. Ms. Madison recommended that she contact Tom Stillman, principal with TIP, and ask that he meet with the Schertz EDC, the commission and the foundation members and let those groups make a recommendation on realignment. She stated that she was surprised Mr. Garretson, author of the memo, did not request a session with these groups prior to writing the document. Mr. White stated that Ms. Madison's suggestion was a good one. Regarding the tax abatement, Mr. White suggested that he felt the board was looking for something a little more definitive. Ms. Madison stated that she was disappointed with the final outcome. She had hoped to receive a comparison of what other cities were doing and more detail on structure of the ordinance. She stated that most of the recommendations are those that she had said the EDC was already considering. She also said that she wanted Mr. Stillman to review the tax abatement program per our original arrangement with TIPS. She said she wasn't sure that he had reviewed it, and wanted his recommendation and comments. Ms. Madison stated that in fairness to Mr. Garretson, he suggested that this type of evaluation is completed at the end of the strategic plan. She stated that she told him the city's need is now because the abatement was going to sunset and the city wanted the recommendation before the rewrite. She stated that if he has not met with the ED groups, then he is at a deficit in making a recommendation on either subject. Mr. White stated that Ms. Madison was to "make it happen" and that this meeting was the best way. Ms. Madison stated that for the minutes she wanted to be clear that the board was directing her to go back to TIP Strategies to visit with Mr. Stillman to come to town to do a comprehensive focus group with the three ED groups to resolve both issues in the memorandum. Mr. White said, "Correct." d. Discuss and take appropriate action on TIP Strategies Contract Progress Mr. White stated that he wasn't sure the City was getting what they asked for in the contract. Mr. Cook said, "Exactly." Mr. White stated that the set up cost $80,000 and we are still paying $10,000 per month for this contract. He stated that the initial timeline was February and the board extended that. Ms. Madison stated that we asked for an extension, but we ended up working through the holiday season anyway. Mr. White said he thought we were looking at April. Discussion followed regarding the total payment made to TIP Strategies in the amount of $40,158.60. Ms. Madison reviewed the process by which the board engaged the contract and referenced an executive summary of a meeting with TIP on August 18`h. The memo to the board was a summary of the questions and responses by all participants that included representatives from both TIP and Blue Clover. Ms. Madison further explained that the summary details a lot of the issues that were the core of everyone's concerns. She suggested that the original evaluation sheet used in determining whom to select for the contract would be a good instrument to use in evaluating where we currently are in the contract. She stated that we don't fell we are 70 percent complete, and that the main issues were timeline and public involvement in the process. Ms. Madison stated that all of these concerns were addressed in the August 18`h meeting, yet the issues still surfaced in the process. She noted that she met with the commission and the board to get their feedback before proceeding. Mr. White stated that he did not think we should withhold payment. He added that Ms. Madison should approach the owner of TIP with the checklist just like she suggested and say this is what we have so far and when is the rest coming. He added that he didn't think anyone could put together where we are in the contract right now based on the checklist used to sign the contract. Mr. Weiswurm said that Ms. Madison should be very clear in letting him know that we're feeling he has not met expectations. He added that he was one of the ones interviewed and that two-thirds of what we discussed appears nowhere in the PowerPoint or anything else. Mr. Cook stated that the checklist included a very large number of items asking them to provide, identify and bring forth to us, and that the board did not have any recommendations nor were any specific items identified. One item, to characterize the leveraging opportunities for education provides had not been identified, much Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page 4 of 6 less shown where they are. Ms. Madison stated that he did have one visit with Dr. Reno and that he did have a meeting with SCUCISD. Mr. Cook asked where are the results of those meetings? Ms. Madison stated that the consultant requested no staff be present at most of the interviews, so she could not comment on the content or results. Mr. Cook suggested that the board still needed hard information back regardless. Ms. Madison said she would ask for names, dates, times and results of the interviews in a composite summary. Mr. Cook asked if there was consensus on making payment and all those present concurred. Ms. Madison distributed the executive summary of the meeting on August 18`h for all board members and stated that TIP was a reputable company and that Mr. Garretson was a reputable individual and outstanding consultant per other cities she had talked with prior to the contract. She added that he had been heavily involved in other contracts including one in Florida that she felt had influenced the amount of time he has spent on this one. Mr. White asked if he was working for Universal City. Ms. Madison stated yes, that he was also working for Cibolo, but that both contracts were short and very specific in comparison to our contract. She asked Ms. Turner to comment and she replied that their contract was completed on time and that they were pleased with the results. She added that it was for a retail market analysis and redevelopment plan. Ms. Madison stated that what we were asking for was hugely different. Mr. White asked Ms. Madison if she had enough direction from the board and she said. Yes. No further discussion. No action taken. e. Discuss and take appropriate action on resource needs for corporation and its personnel Mr. White stated that the city was out of space and Ms. Madison's staff was in an office the size of a closet. He stated that she has discussed possible options with city administration, but all options discussed would split up the department in the building. In addition, he stated that there had been complaints about the reception area and had asked Ms. Madison to start looking for other options. Mr. White refereed to the packet information and the board discussed the pro and cons of each option presented. Ms Madison stated that leasing a property would be outside of the current budget. Mr. White asked that Ms. Madison bring back a solid proposal on the GVEC space for future consideration. No further discussion. No action taken. f. Discuss process for executive director evaluation Ms. Madison stated that she wanted feedback from the board on the department's efforts. She said that she works directly for the city manger and that he was a huge asset for the city and for the department. She commented that he had recently asked staff to evaluate him in much the same manner. She concluded by saying that her staff wanted to serve the board well and improve as needed. Mr. White stated that he would plan a meeting with the City Manager in the future and share his thoughts. He also said that the majority of the board would directly contact her if there were any issues. g. Discuss policy for review of all funding requests Mr. White asked the board how they wanted to proceed with other groups coming to us for money. Mr. Richard said that one way to approach this is how Universal City did it, which is budgeted. He stated that the board should set up a budget, identify the projects, fund those and maybe leave a short amount of money for non-budgeted items. Mr. White stated that the board already does that, but that outside agencies for economic development need a system. Mr. Richard asked if there was money outside the budget to fund other requests. Ms. Madison stated, yes and that the council is looking at using sales tax dollars for specific projects. She also added that departments and others come to the fund requesting money outside of the budget process. The procedure has been to come to the meeting, present to the board and the board votes, and there is no policy or procedure for those requests. She also mention that, should the city have a big project ask for incentives through the board, there was no process to review and evaluate it before it came to the board. Mr. Richard stated that the director should give us direction on this. Ms. Madison said she had outlined a preliminary process in the packet. Mr. Richard stated that he was in favor of that process. Mr. Cook said there were statutory limits on items that can be considered and it ought to be listed for the applicants. Mr. Douglas Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page 5 of 6 stated that he had spoken with Ms. Madison on a process for applicants considering funding. He said even if it is the city wanting consideration, they should follow the same process like any other entity. He added that the executive director should generate the policies and procedures. Mr. Richard said that Ms. Madison should set up the protocol, put safeguards in place, and make everyone go through the process. Mr. Douglas added that since inception, the revenue line had increased and that the process has become much more complicated. He said right now, the perception is "I want this, I just don't know how I'm going to pay for it -okay, we'll just use the 4B money." Mr. White directed Ms Madison to work up something. 5. Executive Director Report a. Written report -See attached b. City Council Strategic Workshop, January 7: Potential requests for sales tax funds Ms. Madison noted that the city council workshop might be postponed, but that she would notify the board as soon as she had the schedule. She stated that a new library, a YMCA, soccer fields, capital improvements, and the PID project were some of the things planned for discussion. Many of these items could be potential projects with sales tax. 6. Public Comment There were no comments. 7. Board Comments Mr. Cook asked if the problem with the email was corrected. Ms. Madison said yes, it was the phone email that had been the problem. Mr. Weiswurm asked about setting up covenants and restrictions in the new industrial park and whether they could be enforced by the city. Ms. Madison said that she had visited with the planning director about zoning the district with the restrictions so that it would be enforceable by the city. Mr. Weiswurm asked if that zoning district could be expanded to the current park. Ms. Madison said that the city could rezone but that all current applications in the district would be grandfathered until the ownership changed. Mr. Cook asked how using the display from Austin-San Antonio Corridor Council had worked for her. Ms. Madison said that it worked great and until the art symbol and photos for marketing were complete, that it was her best option for trade shows. She added that when the materials from Blue Clover are finished, she would be ordering a display for the department. Mr. White commented that he omitted discussion on a resource for the staff (listed in agenda item 4e). He said that Ms. Madison was requesting a car allowance in lieu of purchasing a vehicle. She said that she would be discussing this with the City Manager during her evaluation, but wanted the board to know that it would impact the budget. 8. Adjournment ' Mr. White adjourned the meeting at 1:48 p.m. and thanked everyone for attending. President Director Vice-President Director Secretary Director Treasurer Director Created by A. Madison Schertz Economic Development Corporation Meeting Minutes 12.22.06 Page 6 of 6