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20220127 Minutes SEDC Board Reg MtgECONOMIC DEVELOPMENT CORPORATION MINUTES Thursday~ January 27, 2022 The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly Meeting on Thursday, January 27, 2022, at 6:00 p.m. in the Hal Baldwin Municipal Complex, Council Chambers Board Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. Tilis is an open meeting, subject to the open meeting laws of the State of Texas. Call to order 1. Roll call and recognition of visitors Secretary Sammi Morrill presided over the meeting and called it to order at 6:00 p.m. Ms. Monill confirmed a quorum was present. Board of Directors present: Sammi Morrill -Board Secretary Jesse Carrasco -Board Treasurer Mark Moody Roy Richard Bryan Snowden Board of Directors Absent: Paul Macaluso-Board President Jesse Hamilton -Board Vice President Others present: None Staff present: Adrian Perez-Executive Director Dr. Mark Browne, City Manager Casey Moeller, Business Engagement Manager Sheree Coumey, Administrative Assistant James Walters, Finance Director 2. Introduction of new SEDC staff: Casey Moeller, Business Engagement Manager Mr. Perez introduced Ms. Moeller, who provided her profossional background information. Casey brings several years of marketing experience, and community engagement to her role, providing education and support to the businesses of Schertz. She previously spent five years in the nonprofit healthcare industry, where she built and maintained community relationships and facilitated communications with the board of directors. Casey's educational background consists of a Bachelor of Business Administration with an emphasis on Marketing from Cameron University-Lawton, Oklahoma, and a Master's Degree in Public Administration from Lamar University-Beaumont, Texas. SEDC Minutes 01/27 /2022 Page 1 of s Mr. Perez stated that Ms. Moeller began her employment with the Schertz EDC and municipal govenunent in December. In her first 30 days~ she had been proactive with City staff to familiarize herself with people and processes. The board welcomed her. Hearing of 1·esidents 3. Public comment -This time is set aside for any person who wishes to address the board. Presentations should be limited to no more than J. minutes. The presiding officer will call on those persons who have signed up to speak. No public was present. No comments were made. Minutes 4. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on Thursday, December 9, 2021. (A. Perez/S. Counley) A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held on Thursday, December 9, 2021, was made by Mr. Jesse Carrasco and seconded by Mr. Bryan Snowden. Motion passed unanimously. Presentations 5. Staff briefing on SEDC Financial statement for November and December 2021. (J.Walters/A.Perez) Mr. Walters provided the following summary and overview of the SEDC Financial Statement for November 2021: November 2021 saw sales tax increase 23.4% over last November. 5% of that growth was related to late sales tax payments from prior months, resulting in high growth. The 12-month rolling average was 16.2%, continuing an upward trend. Although not sustainable, it is not cause for grave concern. Industry breakdown shows Wholesale Trade, Retail Trade, and Manufacturing are the primary providers of sales tax revenue for Schertz. Total revenues for November were $551,907. Expenditures were low for the month, allowing for a $552,525 increase in cash and investments. Mr. Walters provided the following summary and overview of the SEDC Financial Statement for December 2021 : December 2021 had a sales tax increase of 7.5% over last December. Net growth for the month was 9% due to a negative audit adjustment of $27,000 by the Comptroller. However, the 12 month rolling average at 16.3% was still trending up. Wholesale trade, retail trade, manufacturing, and accommodation & food are the primary providers of sales tax revenue for Schertz. Distribution is why Schertz is a little more insulate<l from economic downturns. SEDC Minutes Ol/27 /2022 Page 2 of S Total revenues for December were $413,467. Notable expenditures include engaging Creative Civilization, Inc for marketing services at $10,000. Cash and investments at $21,931.785. 6. Staff briefing on SEDC retail development strategy and contract with Retail Coach; (A.Perez) Mr. Perez presented the following SEDC retail development strategy and contract with Retail Coash summary: Mr. Perez stated that the SEDC will enter into an 18-Month, $48,000 agreement with Retail Coach to provide data and marketing services to execute a Mixed-Use Development Analysis and Strategy consisting of 7 Phases. • Phase I is a market analysis that will evaluate competing areas, establish trade areas, and establish current and projected demographic and psychographic profiles of the community. • Phase 2 will include the determination of retail opportunities through retail gap analysis and other analyses. • Phase 3 will include marketing and branding, which includes developing a market profile and feasibility packages and site profiles for developable sites. Phase 3 also includes the development of real estate developer opportunity packages for sites that have been validated for development and redevelopment. • Phase 4 will include economic and fiscal impact analysis on the construction and on-going operation of expected retail activity. • Phase 5 will include overall strategic recommendations for the oommunity going into year two of the project. • Phase 6 includes the identification of developer prospects that fit the oommunity's goals. • Phase 7 begins the recruitment of retailers and developers through the second half of the contract. Discussion Items 7. Public hearing, briefing, and possible action on SEDC Resolution No. 2022-1 authorizing an economic development performance agreement between the City of Sche1tz Economic Development Corporation and Sysco Corporation, and other matters in connection therewith. (A.Perez) Ms. Morrill opened the Public Hearing at 6:41 pm. No public were present, so Ms. Morrill closed the Public Hearing at 6:41pm. Mr. Perez informed the board that the impact of the resolution is that the SEDC will fund a 50% incremental tax rebate of up to $25,000 over three years and a State Enterprise Project Nomination. Project must invest no less than $ l 2.6M and maintain 450 full time employees with a minimum annual payroll of $24)800,000 and create an additional 40 jobs totaling 490 jobs and a minimum annual payroll of$27,400,000. SEDC Minutes 01/27/2022 Page 3of 5 The following caption was read into the record: SEDC RESOLUTION NO. 2022-01 A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, TEXAS AUTHORIZING AN ECONOMIC DEVELOPMENT PERFORMANCES AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AND SYSCO CORPORATION; AND OTHER MATTERS IN CONNECTION THEREWITH A motion to approve SEDC Resolution 2022-01 authorizing an agreement between the City of Schertz Economic Development Corporation and Sysco Corporation was made by Mr. Roy Richard. Seconded by Mi-. Mark Moody Motion passed unanimously. Board Secretary Monill recessed the meeting to closed session at 6:42 p.m. Closed Session 8. The SEDC Board met in closed session in accordance with Section 551.087 of the Texas Govenunent Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The govenunental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect. • Project E-79 Start time: 6:43 p.m. End time: 7:29 p.m. • Project E-69 Board Secretary Morrill reconvened to regular session at 7:29 p.m. Reconvene to regular session 9. Take any actions based on discussion held in closed session under Agenda Item No. 8. No action was taken. REQUESTS AND ANNOUNCEMENTS 10. Informational Memo a. Gateway Monument/TXDo T Prutnership update b. SEDC EDA Infrastructure Grant Initiative c. SEDC/City of Schertz CityView Software update 11. Announcements by Staff SEDC Minutes 01/27/2022 Page 4 of s • Office Closed for Presidents Day -February 21, 2022 • Next Board Meeting-February 24, 2022 • Volunteer Appreciation Banquet-February 24, 2022 12. There were no requests by Board Members to place items on a future SEDC Board Meeting agenda. Adjournment Board Secretary Morrill adjowned the meeting at 7:40 p.m. ED AND APPROVED THIS 10th DAY OF MARCH 2022. Paul Macaluso Board President SEDC Minutes 01/27/2022 Sanuni Mon-ill Board Secretary Page Sof S