11-15-2010 Special Called Meeting MinutesSS<c~H~~~~RZ~r~
ECONOMIC DEVELOPMENT
MINUTES
CITY OF SCHERTZ
ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTOR5' MEETING
Special Called Meeting
November 15, 201.0
The City of Scliertz Ecoizomic Development Corporation (EDC} met for a Special Called Meeting on
Monday, November 15, 2010 at 5:30 pm, in the City Co~~ucil Chambers, 1400 5chertz Parkjvay, Scliettz, Texas.
Roll CaII
Board of Directors:
Ilarr3+ \~(tlutney, President
Angelina Kiser, Vice President
Tun Brown, Secretary/Treasurer
Roy Richard, Esq.
Roselnar}r Scatt
Holly 1~rlcBrearty
Staff:
Don Ta}'lor, Interim EDC Director
A~Ir. Juan Santoya, Fuialice Director
Erin Iblatloclr, EDC Specialist
Pattl* Horan, Administxatlve Assistant
Absent:
Board Men~ber It~farvin `Thomas was absent duc to a previous corrtl~~itment.
Others Present;
Hal Baldwin- 11~faj*or Jitn Fowler -- City Couc~cihnan
Davis Harris- rl.ssistant CitS~ i4lanager Robert Brockman-Resident
Bob Calrtzi -Assistant to City 11~fanager
Call to order
President called 113e meeting to order at approiimately 5:34 p,m.
2. Public comment
President proceeded to read Resolution No. 10-R-72 as follows:
"A RESOLUTION BY THE CITY COr1NCIL OF THE CITY OF SCHERTZ, TEXAS` ACITIIORIZWG fi
DEYELOPri1ENT AGRE'EhIENT T J'ITH CITY OF SCIIERTZ ECONOh1IC DEYELOPftiIENT CORPORATION
AND CATERPILLAR I11'C., AND OTHER 131ATTER.S' INCOA'NECTIONTHERETf'ITII
Jd'HERE~IS, the City slaff oftFre City of Sc{rertz (tire "City') Iras reconuue)uled that the City of Sche)•!z Econouric Development
Corporation (the "SEDC') enter into a Develapn:e)rt rJgree»re)rt with Caterpillar Irrc. ("Caterpillar') relatblg to develop»re)rt
ofrr nra)lufactra•ing facility in lire City; nrrd
Ti~HEI2Er1S, the City COrUlCll Iras dC1C1'I)1!)1e11 drat It 1S Irr the best interest of the SEDC City to contract ~s'ith Caterpillar
prll:Srla)!t t0 t{re Developl)relltAgleer)re)tt attaClted 11e)'et0 aS ~i{r7blt !~ (the "~Igree))terrt'}.
BE IT RESOI, I'L'O B}' THE CIT}' COUAfCIL OF THL CIT}' OF SCHF.'RTZ, T~YAS THAT.•
SCCIIOn 1. The City Colnlcil Ire)•eby authorizes the City ltlanager to erecrrte and delive)• the rlgr•eernerlt
wit{r the SIs'DC and Caterpillar in substantially the form set forth on Fx{dbitA.
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SEDC So:+rcl Special Cklled Mtg. Minutes 1111512at0
SeetiOrt 2. The recitals cotrtairred itr the preamble hereof are hereby= forrrrd to be tt•tre, attd strclt r-ecitnls
are hereby made a part of !Iris Resolrrtiort fot• all purposes arrcl are adopted as a part of the judgment attd ftttdirtgs of the City
Cotrrtcil.
~Ct:tlOll 3. rill resohrtiotts, or parts !hereof, trhiclt are in cor flit! ot• incotrsislettt with ratty provision of
!Iris Resolution are hereby repealed to t{re extent of suc/r conflict, mul tJte provisions of this Resolution shall 6e and remain
controlling as to the ntatler•s resolved Itet•eltt.
SeCtlOil ~. This Resolrr7iort sJtall be consfrrred acrd et:forcerl in accordance with the lotus of the State of
Texas attd the United States of America.
Section 5. If arry provision of !Iris Resolution or the application 1{tereof to mry persar or circumstance
shall 6e 6teld to be irrvalirl, tJre rentaitrder of this Resaltrtiott mrd the application of strcdt provisionr to other persons artd
circrnrrstarrces shall nevertheless 6e valid and the City= Cotrrtcil hereby declares that this Resolttion trordd have been
enacted tvithout such hrvalid provision.
SeCttOfl 6. li is officially fotrtrrl, deternritred, oral declared that the meeting ad tvlriclt iltis Resolution is
adopted arcs opetr 1n the public and public !ratite of the time, place, and subject ttrattet• of the public" business to be
cansldered at strclt meeting, including this Resohrtion, tti~as given, all as required b}> C1lapter SSI, Tei~as Goverrrtnetrd Code,
as amended.
Section 7. This Resolution shall 6e frt force and effect fi-onr and after its ftrta! passage, acrd 11 is so
resolver! "
President recognized 3~fi. Don Taylor as the EDC IntetYttt Director to elaborate on this agenda item. l1~lr. Tai=lor
provided dte Boarcl ~vidt a brief synopsis on how Caterpillar 11~latntfactttrittg Corporate Officials carne to
overlook payment of the CitS~'s perrnittittg fees for this project. 11~fr. Taylor explained drat this development is
projected to be built in four (4) different phases. If every=dtitig goes as planned, Pltase I should be completed by
December 201 "1. Unfortunately, Caterpillar's Project Nlanagetnent Teatn had to bring ttp to City Staffs attention
that dte un-noticed permittutg fees werc not included itt their budget for Pltase I and dterefore, those unforeseen
fees will have to come out of their profit report for dte ftrst 18 months of operations. 'I1te potential problem
could arise when the Caterpillar Berard of Directors sits down to evaluate and weight in Phase I prafitabilitlr. If
Phase I does not meet dte anticipated profttabilit~= results/criteria, they may not move on to approve the
constnictiott of Phase T~vo and so on and so fords as scheduled. l1~Ir. Taylor proposed to tninittvze the chances
of jeopardizing constntction of fimtre phases of this project by offering to offset some the pertnittirtg fees cost
for Phase I through funds froth the EDC for an amount ttp to X80,000.00. I-Ie also mentioned that X50,000.00
would come froth CP5 Energy City Funds. It•Ir. ~1>Ititney alotag with ]1Ir. Satttoya, proceeded to review tltc
EDC's Financial Statements. The Board held a discussion.
3. Public Hearing attd disctrssiott relating to an expenditure of np to $80,000.00 in Sales Tax Fonds to
assist a rnannfachtring project.
The President of the Board rccognized all present and opened dte meeting for public comtncnt at approtiitnately
5:~I p.tn.
11~1r. Brockman asked for a recap of the breakdown of funds to be contributed for this project.
~~Lr. Taylor provided report and answered questions froth all present. 11~ir. Taylor further explained that die
EDC's fonds will go directly to offset paytttent for the Citj='s permitting fees. The Board held a discossion.
President closed dte Public Hearing at approximately 5:5D p.rn.
4. Discussion attd/or action approving a Resoludott No. 10-R-72 -- Development Agreement lty the City
Council of the Ciry of Schertz, Texas authorizing a Developtnettt Agreement behveett the City of
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SBDC Board Special Called Mtg. Minutes 11/I5I2010
Scl~ertz Economic Development Catpotatioti and Caterpillar Inc, and atlaer matters in connection
therewitlx (D. Taylor).
A motion to approve Resolution No. 10-R-72 -Development Agteetnent by file City Council of die Citq of
Schertz, Texas atrtl~orizing a Development ~lgreetnent behveen the City of ScE~ettz Ecanotnic Development
Corporation and Catcrpillat Inc, and other matters ui connection tliere~vidi (D. Taylor) was made vy Ms. R,
Scott. Seconded Uy Ms. H. McBrearty. I1~Iotion passed unanimously.
I1~lr. Taylor briefed the Board an the stahis of Lack's Distribution Center and die efforts made so far to fill die
vacanc}~ for die EDC Director position.
5. Ad7otirn.
President adjourned die meeting at approximately 6:00 p.~n.
PASSED AND APPROVED THIS 9T'~ DAY OF DECEMBER, 2010
rV
Harty Whitne -President
Angelin Kiser -Vic Presi n
Ti Brown -Secretary/Treasurer
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SL;DC Board Special Called Mtg, Minutes 11/1512010