7-25-2013 Minutes SEDC Board Reg Mtg-OR IFZ
-01 11
S E]
CI A
ECONOMIC DEVELOPMENT
The City of Schertz Economic Development Corporation (SEDC Board of Directors met for a Regular
Meeting on Thursday, July 25th, 2013 at 6:00 p.m. in the City Council Chainbets, 1400 Schertz Parkway,
Schertz, Texas.
President Brown called the meeting to order -at 6:00 p-rn- and welcomed everyone in attendance.
2. ® call and recognition of visitors.
Board of Directors:
Staff:
Tim Brown - President
John . Kes s el —
City Manager
Angelina Kiser - Vice President
David Gwin —
SEDC Executive Director
Rosemary Scott - Secretary /Treasurer
Juan Santoya —
Finance Director
Roy Richard
James Walters
— Finance Analyst
Marvin Thomas
josh Schneuker — ED Specialist
Matthew Duke
Patty Doran —
Adniinistrative Assistant
Grady Mortis
Others present:
Councilrraetnberjitn Fowler
Robert Btocktnan
111111111
Mr. Brockman inquired about the change of name of Texas Machining to Caterpillar. Mr. Gwin stated
that Texas Machining had notified us that they will be officially opetating under the name of
Caterpillar.
lq
4. Consider/Dis cuss/ ct on approval o f t he Minutes forte Board Regular Monthly Meeting
held on Thursday, May 23rc9 2013.
Page 1 of 4 Schertz EDC Minutes 7- 25-2013
A Motion to approve the Minutes for Board Regular Monthly Meeting held on Thursday, May 23 rd,
2013 was made by Mt. Richard. Seconded by r® Thomas. Mot-ton passed unanimously.
I
5. Review of May and June 2013 SEDC Monthly -Financial, Reports. (f. Walters — Finance
Analyst)
Mt. Walters provided an overview of the SEDC Monthly Financial Statement Reports for the months
of May and June 2013.
® Consider/D iscuss/Act on a budget adjustment request for additional funds to close out the
SEDC's financial obligation to Gateway Planning Group for consulting services provided for
the North, South, Sedona-, FM 78 and Main Street Revitalization Project. (D. Gwin —
Executive Director)
Mr. Gwin provided a brief sun-unary of the Gateway Project and the commitment the SEDC made as
part of the agreement to fund 70% percent of the total cost not to exceed $586,826.80. Mr. Gunn
requested an approval to make a budget adjustment to bring this project expenses to a total cost of
$90.,909.10 and not $40.,000 as originally estimated in the current year-s budget. Including the amount
requested, the SEDC will pay a final total of $446,793.78 for the com pletion of this project. As soon
as full payment is made to Gateway Planning, the project will be considered closed out.
A Motion to approve a budaet adjustment -request for additional funds of $50 909-10 to close out
the SEDC's financial obligation to Gateway Planning Group for consulting services pt
ovided for the
North, South., Sedona, FM 78 and Main Street Re-vitalization Project was made by Mr. R. • Richard.
Seconded by s® R. Scott. Motion passed unanimously.
Directors Matthew Duke and Grady Morris joined the r rris neeting at 6:09 p.na.
7. Consider/Dis cuss /Act on a request for a Change of Name Amendment application form for
the followinLy entities: Lone Star Pet Supply, LLP to Lo e Star Pet 'Supply LLC, Prologis
Development Services., Inc. to Prologis Texas I ' - LLC, Sysco San Antonio, Inc. to Sysco
Central Texas, Inc. (D. Gwin — Executive Director)
Mr. Gwin recalled the approval by City Council of the Change of Name Amendment Fotin M' April
2013. The form is to be used anytime a company that holds an active development agreement with
the SEDC makes a change in their legal name. This process allows the SEDC to Maintain valid and
up-to-date information on all active agreements. There is no fiscal impact associated with these
change of name amendments.
A Motion to approve a request fora Change of Name Amendment application or for the
following entities: Lone Star Pet Supply, LTD, LLP to Lone Star Pet Supply LLC, Prologs
Development Services, Inc. to P-tologis Texas 1, LLC, Sys co San Antonio, Inc. to Sysco Central Texas,
Inc. was made by Mr. M. Duke. Seconded by s® A. Kiser. Motion passed unanimously.
Page 2 of 4 Schertz EDC Minutes 7- 25-2013
Mr. Gwin provided a presentation that recapped the background and cut-tent status of the Caterpillar
Development Incentive Agreement. In the first year of the first phase of the Agreement, Caterpillar
was compliant with all the terms of the Agreement; however, Caterpillar only :reported $19,449,711
personal property ad valorem. taxes. The contract stated that Caterpillar must report at least
$20,000,000 in order to receive the incentive outlined in the Agreement. Mt. Gwin further
explained that Caterpillar. had not only exceeded the terms of the agreement -related to p ayroll but had
also allowed the City to capture a significant amount of -revenue in real and personal ad valorem. taxes.
Mr. Gwin added that Caterpillar will continue to be a significant asset for business and commercial
activity in Schertz. In consideration of Caterpillar's investment, Mt. Gwin proposed a one-time offer
to allow Caterpillar to -realize all or part of the first year of phase one incentive in the second year of
the Agreement. The amended incentive would be -received by adding the personal property value
above $25,000,000 in year two of phase one to first year of the first phase reported value. Mr. Kessel.,
City Manager, expressed that he agreed with the proposed strategy and said that the amendment
would teq=' e Caterpillar to over -petfotin the best case scenario which would bring more value to the
City.
9. Director's Reporl
Mr. Gwin provided highlights on the following projects and events:
Updates on existing projects:
1. Arnazon.com
Job postings to fulfill all available positions in Schertz are coming online.
2. HEB Expansion
Schertz HEB is one of the most successful stores in the San Antonio tegion. Presented
the new footprint plan for the store renovation of about 100,000 sq.ft. Staff is
assisting with moving forward with expansion plans commencing in December 2013.
3. Enterprise Avenue Name Change Update
Name changed was approved to Schertz Parkway.
Mr. Gwin participated on all -regional building activities as listed below:
0 Updates on events attended and to be attended:
1. NAFTA — Governors Office —Mexican Delegation Workshop — 5/29/2013
Page 3 of 4 Schertz EDC Minutes 7- 25-2013
2. SCOC —Small Business Forum. — 6/6/2013
3. Northeast Partnership Monthly Meeting — 6/13/2013
4. TexasOne — CT-NY Business Recruitment Mission, NY — 6/16-19/2013
5. 1-35 Corridor Planning r-- 6/26/2013
6. Randolph JLUS — Converse — 7/8/2013
7. Northeast Partnership Monthly Meeting — 7/11/2013
8. SCOC — Monthly Luncheon — 7/16/2013
10. Requests by Board Members to Director for informatioi
No -requests were made.
® EXECUTIVE SESSION ® Called in accordance with Section 551-087 of the Texas Government
Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The
governmental body is not -required to conduct an open meeting (1) to discuss or delibetate regarding
con-iinetcial or financial information that the Rovernmental. body has received from. a business
prospect that the governmental body seeks to have locate or expand in or near the territory Of
the governmental body and with which the governmental body is c*onductin economic development evelopment
negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect.
Start time: 7:10 p.m..
End time: 7:34 p.m..
President Brown reconvened into -regular session at 7:35 p.m..
12. Discussion and appropriate action deemed necessary as discussed during Executive Scsslon®
No action was taken
President Brown adjourned the meeting at 7:35 P .m..
PASSED AND APPROVED THIS 13ffi DAY OF NOVEMBER 2013.
T • B/r
nn ow'�—j President
Rosemary Scott ® Secretaty/Treasurer
Page 4 of 4 Schertz EDC Minutes 7- 25-2013