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07-11-2011 MinutesSScc~H~~~~Ri~r~ ECONOMIC DEVEI~OpMENT MINUTES CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION BOARD DF DIRECTORS Special Called Meeting July 11~~, 2011 Tl-e City of Scberiz Ecoii<omic Development Corporation {EDC) met for a Special Called Meeting on Monday July 11a~ , 2011 at 5:00 pin. in the City Council Cbambets,1~400 Schettz Patktivay, Scl;ertz, Texas, 1, Call to order President called the meeting to order at approximately 5:01 para. 2. RoII Call Board of Directors: Har>-~~ ~~~l~itney, President Angelina Kiser, PhD - ~~ice President Tim Brown, Treasurer/Secretary Roy Richard, Excl. I~'I:trviil T110I11a5 Holly I1icBxeart5~ Absent: Rosemary Scott -Board Member Staff: Jolin Kessel, Interim Executive Director David i-iarris, Assistant City Manager Aiichael Spain -Cite Attorney/Corporate Attorney Juan Santoya, Finance Director Erin l~iatlock, EDC Specialist II Patty i-Iaran, Administrative Assistant Others Present: Jun Fowler -Councilman Robert i3rockman -- Resident Steve ~~~l~ite -Resident Chuck 11IeCullough -- Schertz Talez l~lagazitie/Public Affairs 3. Public cammeut None President postponed Agenda Iterrt No. 4 till after tlae discussion of the maid reason For calling this Special Called \iecting: SP~r ~rentures' Loan Agreement. 5. PUBLIC HEARING - Presentation, discussiott, and public input regarding a proposed expenditttre of trp to $200,000 in sales tax fiends wbicli are required or suitable for iikfrastnictiire necessary to promote of develop ne~v or expanded businesses in the City, by participating in a public private partnership ~dth SPV Page 1 of 4 SEBC t3oard Keg. Mtg. Minutes 07/11/201 I Venhrres, LLC ("$PV") for fire construction of public n=stet lines and related appurtenances in connection with five new medical office buildings to be located in the City (the "SPV Project"). President recognized lbir. John Kessel and asked loin to provide a brief sttn~tnai~= on SPV Ventures' request for financial assistance of X200,©ODAO from die EDC. lblr. Kessel explained that this project consists of seven or eight medical offices buildings located off of Scltertz Parkwa}~. 'I1tey are in the process of begiccning the nest phase and have requested some assistance related to water run improvements on and off property*, the vast majority of it, is off property. hir. Kessel provided some details on the re-pay*ment plan schedule and conditions for the loan. He put emphasis on ltow this project meets and satisfies fife goals and objectives of the Strategic Plan for fire City= and also clarified that this is not a Grant but a repayable loan, Ifrotn a Staff's perspective, he considers this project to be a fairlyr low risk and the offices currently operating in fife existing facilities have already= experienced success and there are several oilier practices seeking to moving in. Along with 11~1r. Spain, he stated drat fire additional water line will be property= of the City and, in tune, it will benefit other businesses in the area. President opened die discussion for public comment. I1~Ir, 11~lute asked 1-lr, Santoya ltow much of the previous loan provided to SPV a couple of years ago for the amount of ~150,OOOAO have been paid back? 1•-Ir. Santoya did not have the exact figure readily available and requested to be given die trine to provide die information as soon as lie could go back to his office and check financial records. i1~lr. Brockman requested a recap on the re-payment fee schedule and conditions of the loan. I1~Ir. Spain provided details on re-payment and fees and conditions of die loan. The Board entertained other questions related to fuh-re business opportunities in close proximity of that location. I~ir. Kessel mentioned drat dux item vas presented to City'Council along with die SEDC's Articles of Fornjation and Bylaws durutg the past session. The Council conditionally approved these action items subject to the Board's approval during this meeting. There were fro other questions of connnents. 1blr. 1\~lutney proceeded to read the Resolution related to public hearing acrd asked for a vote. A nt.otion to approve the proposed expeirdltute of up to $200,000 in sales tai fitnds which are required or suitable for infrastrttctttre necessary to promote or develop nets or expanded businesses in the City, by participating in a public private partnership tvidt SPV Ventures, L i..C ("SPV") lot rite constntction of public water lines and related appurtenances in connection with five new medical office btuldings to be located ut the City (the "SPAT Project") was made by Ms. A. Kiser. Seconded by Mr. M, Thomas. Motion passed by majority= of vote (5) for and (1) abstention from nlr, ft. Richard. 6. EXECUTIVE SESSION -Called in accordance with Sec#ion 551.0$7 of the Texas Govetttment Code, Deliberation Regarding Economic Development Negotia#ioas; Closed Meeting. The governmental body is not required to conduct air open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a busittess ptospec# that the governmental body seeks to have locate, stay, or expand is or near the territory of the governmental body aad wi#li which the govetrunen#al body is conducting economic development tiegotiatlotts; of (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (I). (SPV Project) No executive session was held during dux n3eeting. RECONVENE TO REGULAR SESSION t'age 2 of ~ SEC Board Rcg. Mlg. Micaulcs 0711 [/20t 1 7. Considetatiozr and/or action approving a Resolution authorizitg an Itrftastructnre Imptovenretrt Economic Development Project related to public ~vatet utility infrastnrchare improvements; approving a X200,000 loan from the Corporation to SPV Ventures, LLC; authorizing a Loan Agreement, Deed of Trust, Promissory Note, Easement Agreement, and related docaatnents; and other matters in connection therewith. 11fir. 1C~lritne}= proceeded to read the Resolution related to public heat7thg and asked for a vote. A motion to approve the proposed e~;perrdittzre of tap to X200,000 in sales tat Rands ~vlriclt are regthired or suitable far infrastnzcttare necessar}= to protnate or develop new or espazrded businesses itz dhe Cit}=, by participating in a public private partzaersltip wilt SP~~ ~~enhares, LLC {"SPV") for tlhe constriction of public water lines and related appurtenances in connection wide five new medical office buildings to be located ith die City (the "SPV Project") was made by Ms. A. Kiser. Seconded by Mt. M. Thomas. Morton passed by tnajorit}* of ~=ore (5} fat and (1) abstention froze IVir. R. Richard. 4. Consideration and/or actiozr approving a Resolution atathotizing au Amended and Restated Certificate of Formation (previously known as Articles of Irrcorpotatiorh) atxd Azarended and Restated Bylaws of the SEDC; recauhrnendiug approval thereof by the City of Sclhertz; and other matters in connection therewith. President recognized 11rir. Spain to brief ozt this item. ilr. ~~~lhitne}' made a quick reference to the major changes, highlighting that now is a Certificate of li'ornhaton rather than a Certificate of Incorporation, i-le also made reference to the term extensions for all Board Members ~vlaich are no~v dated to November 30th on tae expiration of dheir two (2) yr, see=ice auzaivetsary. 11~Ir. Spain concurred. 11~Ir. Kesel added that other housekeeping items included making reference of die appropriate chapters and sections of the Local Government Code and explained tlae process of filing these documents as well as die waitithg petYOds with die Secretai}~ of State Office. A motion to approve Resolution authorizing an Amended and Restated Certificate of Formation (previously known as Articles of Incorporation) and riznended and Restated Bylaws of dhe SEDC; recoznznending approval thereaF by the City of Sclhertz; and outer zaaatters in cothttection therewith., n=as made by Ms. A. Kiser. Seconded by Mr. M. Thotahas. Motion passed unanimously. 8. Discussion regarding draft SEDC FY-11-12 Budget 11~Ir. Kesel and l~lr. Santoya passed around hard copies of the Vision and 1ldission Statements that are part of the EDC Budget. II~It. Santoya went over a short sttnunar}~ overview using a PowerPoint presentation of the composed Budget 2011-2012. Major lhighlights included: • Keeping current approved Staff • ~lntieipating 11% increase in healtt insurance cost • Business programs ithclude: revolving loans for small businesses, znatclting Grant funds for FII-17$ redevelopzaaentprojccts, and matclvng utilit}= Grant fiands for utilities impact fees • Charrette (3~a year) • Funding far dtc 15t yt. for dhe Entrepreneur Center in parttherslhip wide the I-10/35 ED Alliance (Ne~v BraunFels, Seguin, Sclaertz} • Last year of tae I.ibrar}= donation pa}~ments {pledged funds) • Keeping $220,000.00 to fund a ha>=~tnce replerrislh t~~Lr. Santoya forecasted positive trends for sales lases. He went over elpenses and revenues and also addressed projections. i4lr. Santoya and Nir. Kesel entertained questions from the Board. 'I'lae Board has been reviewing tlhe Budget since the montlh i41ay and will have one zarore final review on dhe nest regular sessiozh before proposizag it to Cite Council. 'I'Ihe Board expressed great satisfaction with the Budget process this }'ear. Page 3 of 4 SF.1)C Board Reg. Mtg. Minutes 07/11/2Q11 ~rTr. ~~~ltittte}~ announced the "'T'aste of Schertz" event spoztsored b}= the Chamber of Cozntnerce wluclt will be held during the July 28~h Regular I~Teetuzg. He asked for cancurrcnce to meet at 5:00 p.n~, so tEte}~ can attend and support the event, The Board concurred. 9. AD,~OURN Tzresident adjourned the meeting at approtiimatelp at 5:55 p.m. PASSED AND APPROVED THIS 28TH DAY OF JULY, 2U11, ~~. P Tim Bron=zn ecretary/Treasurer Page 4 of 4 SEDC Baard Reg. Mlg. Minutes 0 711 112 0 1 1