07-28-2011 MinutesSScc~H~~~~RZ~r~
ECONOMIC D~VELOPMlaNT
MINUTES
CITY OF SCHERTZ
ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTORS
RegzzIar Meeting
Jury zs~h, aou
The City of Schertz Economic Development Corporation (EDC) met for a Regular Meeting on
Tlzursday, July 28's, 20I1 at 5:00 pm, in the City Council Chambers, I.400 Scliertz Parkway,
Schertz, Texas.
1. Call to order
President called the meeting to order at approximately 5;02 p,tn.
2, Roll Call
Board of Directors:
Hait_y Whitney, President
Angelina Kiser, PhD -- Vice President
Tim Brown, Treasiuer/Secretary
Rosemary Scott
Holly 11~IcBreart5=
Staff
John Kessel, Interim Executive Director
David Harris, Assistant City Manager
Juan Santoya, Finance Director
George Logan, Parks and Rec. Director
Erin Matlack, EDC Specialist II
Patty Horan, AdtEiiistrative Assistant
Absent:
Board ll~letnbers: Roy Richard and IVIai~-in Thomas were absent.
Others Present:
Roh3ert 13rockman -Resident
Regie Neff -EDC Consultant
3. Public comment
None
4. Approval of Meeting Minutes dated as foIIows:
IVIa~= 12tIa, 2011 Regular Arleeting
June 1G, 2011 Special Called Meeting
June 30, 2011 Regular Meeting
July 11, 2011 Special Called Meeting
A motion to approve the l1~Iinutes for the Regular IVleeting held on May 12`", 2011 was made by
Ms. A. Kiser, Seconded by Ms, H, McBrearty, l~iotion passed unatumously.
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SEI)C Reg. Mtg. Minutes 7/28/2011
A motion to approve the 1l~linutes for dte Special Called Meeting held on June 1Ga', 2011 vas
made by Ms. H. Brearry, Seconded by Ms. A. Kiser, i1~Iotion passed utianimausly.
There here no lblinutes to be approved for the Regular Meeting held on June 30a', 2011. 1l~leeting
vas cancelled due to no quorum.
A motion to approve the Mutates for the Special Called Meeting held on July 11`'', 2011 Yvas anode
by Mr, T. Brown. Seconded by Ms. Rosemary Scott. Mokion passed unattirnously.
5. Update on June 2411 Monthly Financial Report (Juan Santoya/Finance Director).
1~~Ir. Santoya briefed the Board on the Revenue and Expense Report as of June 30a', 2011, Payable
Report, and listing of General Obligation and Refunding Bonds. He stated that the EDC is tracping
vezy good and highlighted the follo~vittg:
• Biggest expense for this tnatidt was on professional se~.vices: X12,177 Gateway Planning
• Sales tax is up 17% from the same period last year
• Investment earnings are .1 G%
® EDC has 2.G miilron dollars in dte bank invested in cd's and 1bIBIA Investments
G. Consider/Discuss/Act on a contract far a Professional Services Agreement to conduct a
three-part shady and authorize the expenditure to trot exceed $30,000 far Northcliffe Golf
Course Study (John Kessel/Interim EDC Director)
1tilr, Kessel introduced this item by refreshing everybody's mind on points made on this subject
during a previous meeting discussion where it vas apparent that the Board had a positive reaction
on the concept of looping at dte Northcliffe Golf Course from a broader perspective conducting a
Fiscal and Physical Analysis of the properr3T as well as looping at opportunities For public/private or
pure private investments. He also stated that he had presented the concept during the City Council
June Worpshap. At that meeting, City Council felt the need to expedite dte process and took a vote
authorizing the City Manager to spend up to X30,000 dallaxs from the General Fund contingent
upon the EDC Board approval of EDC's monies to fund dis project and replenish dte account.
I1~Ir. Kessel clarified drat tlis project meets dte criteria for a professional services contract and that
State La~v prohibits the bidding of such se~.vices. He explained die contract selection process iri
detail. He also mentioned that in the event that an agreement could not be reached with the selected
firm, an RFQ could have been made, but dte time element on this project seemed significant to get
it started, A~Ianagement found a qualified fu_tn with extensi~cre experience to perform services so they
went ahead and negotiated far a fair contract and selected them. Ownership of dte Golf Course is
in the midst of cltangittg from current owner to the investors. Mr. Kessel introduced the Director
of Parps and Recreation, l~Lr. George Logan, ~vho confirmed that they have met wi.tlt repxesentatives
of this estate as well as with the architects and alter subject matter experts to review and discuss
options far revitalization. Mr. Logan stated chat public development options and values of this
property will be available next mondt. He briefed the Board on many discrepancies, overlapping
structtu:es in regards to governance (Corral/Guadalupe County) and allocation of ownership of
responsibilities for dte respective parties involved. i1~1r. Logan seemed enthusiastic for die possibility
o£ recreational opportunities, progress and development of that area. The Board interacted by
asking questions regarding intangibles and ramifications of the option of ownership of this estate.
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lVlr. Kessel indicated that tae study ~vidi a range of optio~rs will be presented at next month's
rneetixrg perhaps during executive session.
A motion to approve the a cataract for a Professional Seri=ices Agreement to conduct a tl2ree-part
study and autrorize the expenditure to not exceed X30,000 £or Northcliffe Golf Course Sturdy was
made by Mr. T. Brown. Seconded by Ms. R. Scott, lbiotion passed unanimously.
7. Consider/Discuss/Act on SEDC FY-11-12 Budget Quan Santaya/Finance Director)
1bL:. Kessel touched base on this item by referencing to its introduckion to the Board during dre last
hvo meetings and pointed out that it's essenkially die same Budget, Staff wanted to make certaui
that tze Board had enough tune to examine the Budget so drat there will be zto surprises at tie time
of requesting its approval. IVIr. Kessel mentioned that be felt confident that iris Budget reflects the
priorities and policies set by the Board to the greatest degree possible widen fiscal restraints. He
also indicated that the only minor changes to the Budget consisted on a decrease on the personnel
cost of living proposed increase originally estimated at 2% (hvo percent) and no~v down to 1% (ogre
percent), die other change was in reference to the cost of txe charrette tvhuch was estimated at
X165,000 but drifted da~vx~t to X145,000. lair. Santoya concurred. The Board held a discussion and
thanked l~I>•. Kessel for introducing an easy to comprehend Budget this year.
A motion to approve the SEDC FY--11--12 Budget vas made by Ms. A. Kiser, Seconded by Mr.
T. Brown. 112otion passed unanimously.
8. Consider/Discuss Draft for Strategic Plan dated 2010
l1~Ir, Kessel introduced tlis item stating that it tvas not clear wbet~er or not the Board bad previously
approved die Strategic Plan presented to them back in Nlay 2010. He would like for ire Board to
take a feral snapshot of tze current plan for approval and altiougb there may not be any changes to
the substance of tis living document, there are some corrections to be made in regards to
demographic information recently released by tie Census. 1~Zs. Scott proposed to establish
accountability= b~~ setting up time guidelines for accomplishment of the listed goals and to assign
Board il~Iembers to work on these goals and re-visit teem if not quarteily at least twice a year, lvir.
Whitney suggested drat each Board Member should come to next meeting ready to take ownership
of the segments of the Strategic Plan drat they would like to be associated to work with, tl~tr. Kessel
offered to bring back lair. Yamazaki from TlP Strategies to brief die new Board on tie process of
establishing a Strategic Plan.
No action vas taken.
9. Director's Report
112x. Kessel provided tie following projects updates:
Project Sysco: Distribution center at the facility's site located at 1260 Sehwab Road in Schertz on a
50 acre site. The eonstructton will consist of a new 635,000 square foot facility as part of a move to
consolidate its existing San Antonio and Round Rock facilities.
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The company mill move 300 personnel from its San Antotio facility and an additional 300 from its
Round Rock facilit~T to Schertz when tlae facility opens in January 2012, Per our Ciry Engineer and
Chief Inspector the Sysco project is on schedule and set to open according to schedule,
Project Caterpillar; DBA Texas llrlaclaining Enterprises (TNIE) is a leading supplier of precision
machined componetats and sub-assemblies to tlae heavy truck, marine, agricultural, off-road heavy
equipment, power generation, defense industry, ligla performance engixae builders, and automotive
after market iaadustries. The plans include a 250,000-300,000 square foot Facility. The Company will
employ 60-90 people at an average annual salary of ~~-5,000 plus benefits. I'he Company is making
an investment of behveen X69,000,000-X101,000,000 over a four year period. The project is
scheduled for completion by early September-,
Project Schertz Parktivay {SPV}: Tlis is the first public-private partnership to create a medical
professional office park on 7.2 acres to consist of S medical professional afftce suites located at 5000
Schertz Parkway. Current tenants include: Northeast OB/GYN, Nordaeast Pediatrics, Northeast
Endocrinology, Orthopedic Group and Pediatric Dentist. Phase I was completed November 2010.
Please II is comprise of 40,OOOsf in b additional buildings sclaeduhed to begin construction before
year end 2011. SPV new loan agreement ryas signed eta the EDC office on July 21, 2011 by 1~It.
Hellums eta doe amount of X200,000 to offset cost related to water line improvements. Tlae past
agreement in die amount of X150,000 ryas to offset the cost of some additional infrast~-~tcture drat
was needed at the site. SPV has re--paid X29,920 from die Fast loan. Per h~It, Birmingham, dre site
work is 70% complete rvida Building #300 and #600 to be completed first. Per Roy Richard, Frost
Bank has paid off the original loan associated rvitEa Schertz Bank & Trust and SPV Ventures. The
City of Schertz iaorv Bolds the second lien.
Texas One LA Trip Report: The Texas One Los Angeles Recruitrnerit Iblission April 6 and &,
2011. During each session, members from doe Texas One delegation were in attendance including
Texas Secretary of State Hope Andrade, members from doe Governor's Office-Larry IVIcIl4anus,
A~Iatt Jensen, and Tess Hernandez, a representative from Entergy and representative the following
cities: Belton, Cedar Park, Greenville, 11lansfield, Irving, Kilgore, l~ileen, Desoto, Celina, Longview,
Plano, Allen, and die 10/35 ED Alltance represented by Schertz. Because o£ doe number of
participating corntxaunities, the format was different than other trips. Rather Haan communities
trying to sell themselves, it was more of a Q&A session with questions fiom tlae Texas team rvlich
focused on trends in doe market.
Calendar of events for the I-10/35 ED Alliance:
l~~iay 1, 2011 -Texas One l~Iission to New York (Testy Trerritio/Sequin)
August 15-17, 2011 -Texas One Business Recruitment il~iission to Chicago, IL (IVIr. Kessel/Schertz)
TBD - lUlissioia to Canada (1Vlichael l~Ieek/1\Terv Braunfels)
B azxton;
Buxton is a business leader iti assisting business leaders to make inform decisions based on the best
of class analytics. Buxton is primarily known for the assistance provided to communties seeking to
enhance their retail shopping environments, but lass also assisted communities in doe areas of library
optimization, parks and recreation planning, new mover impacts, BRAC analysis, emergency services
planning, and other key areas where access to household level data provides signiFrcant insights to
doe changing populations of the municipality.
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This is a joint venture wide the Northeast Partnersl>ip participating members: Converse, Live Oak,
Schertz and Uiuversal City. Fox budgeting purposes die four cities together would pay a total o£
~48,OOOAO. Each city will be responsible for X12,000.00 {if done individually the annual Fee will be
X21,000.00 p/city). Staff only projected X4,000.00 for tlae 2011-2012 FY Budget. One possible
option to fund dris program tivould 6e to use the $8,000.00 dollars corrrtnitted to Schertz Fest.
Gatetivay North/South Schertz Charette Update: The Charrette is a process to create the vision
that die City Council, Plaiuiing & Zoning Cotninission and Economic Development Corporation
have far our city's Future. The Charrette focused on the northern part of Schertz, especially the area
fxozn FIVI 3009 to Friesezahahn Road and began on January 30, 2011- Febi~rar~ 2, 2011.
Tl~e South Schertz Charette will be held Sunday through Wednesday, August 28 - 31st, this meeting
of comnaunitlr stakeholders, residents, city officials, land owners, etc. to explore development and
growth options in South Schertz/I-10 corridor area. "The Charrette is an economic development
initiative to create predictability for future growth ixz Schertz and to attract investment for drat
giowdi from inside and outside the community," said Scott Polikov of Gateway Planning Group.
Main Street: TBG was working on this project; however, TBG is no longer in business. The Bond
of 2010 was passed to make improvements to Fl1~I 78 and Main Sheet for one million dollars for
impraveznents to jun~pstart downtown revitalization on or near Fm 7$ and Main Street. There is a
planaung study looking at 11~l-ainstreet and FM 78 area. Will Reed is working with CitST Staff to finish
the project.
Business Retention and Expansion Report {BRE): The ED Staff visited with three companies:
~ Discount Tire (Expanding the current building to include a regional office)
® Quality Custom Distribution (Supplies to all Starbucks in die San Antonio-San Marcos area)
® Bracken Plumbing (Received a Huge job in the Buc-ee's Project in New Braunfels)
Other:
City Council joint meeting tentatively scheduled for August 30t}' has been cancelled.
10. Requests by Board members that items are placed on a fixture SEDC agenda
No iterr~s requested.
11. Requests by Board xnernbers to Director and Staff far information,
No items requested.
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12, Adjourn,
Presidea~t adjourned ~1ie ineet~ng at a~proxitnately 6:16 p.m,
PASSED AND APPROVED THIS 25'~H DAY OF AUGUST, 2011,
f~
/!
r
Tim o~vfi -Secretary/Treasurer
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