20220728 Minutes SEDC Board Reg Mtg§CJH[]ElRtlCl
ECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, July 28, 2022
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a
Regular Monthly Meeting on Thursday, July 28, 2022, at 6:00 p.m. in the Hal Baldwin
Municipal Complex, Council Chambers Board Room, Building No. 4, 1400 Schertz Parkway,
Schertz, Texas. This 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
Board President Macaluso presided over the meeting and called it to order at 6: 10 p.m. Mr.
Macaluso welcomed everyone in attendance.
Board of Directors present:
Paul Macaluso -Board President
Sammi Morrill -Board Secretary
Mark Moody
Roy Richard
Bryan Snowden
Board of Directors absent:
Jesse Hamilton-Board Vice President
Jesse Carrasco -Board Treasurer
Others present:
Staff present:
Adrian Perez -Executive Director
Holly Malish -Deputy Director
Dr. Mark Browne -City Manager
James Walters -Finance Director
Casey Moeller -Business Engagement Manager
Sheree Coumey -Administrative Assistant
Maggie Titterington, President, Chamber of Commerce
Tim Brown, City of Schertz Council member
Mark Davis, City of Schertz Council member
Mr. Perez provided introductory remarks for Council member Brown who will be serving as
the City Council liaison to the SEDC.
Hearing of residents
2. 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.
Ms. Titterington expressed thanks for the work being done by the SEDC to recognize and
help small businesses and for consideration of funding for the Main Street project.
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Minutes
3. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, May 26, 2022. (A. Perez/S. Coumey)
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held
Thursday, May 26, 2022, was made by Mr. Roy Richard and seconded by Mr. Mark
Moody. Motion passed unanimously.
Presentations
4. Staff briefing on SEDC Financial statements for the months of May 2022 and June 2022.
(J. Walters I A. Perez)
Mr. Walters provided the following summary and overview of the SEDC Financial
Statement for the month of May:
Sales taxes grew by 5 .0% for May 2022 from 2021. A more standard growth number closer
to the historic average of 6.5% but still the highest May in history. Expenditures were in line
with the budget and past practices.
Mr. Walters provided the following summary and overview of the SEDC Financial Statement
for the month of June:
Sales taxes grew by 10.3 % for June 2022 over June 2021. Showing strong continued growth.
While still strong the 12-month rolling average has dropped for the second month in a row
and is showing 16. 7% growth for June 2022.
Total revenues for June were $484, 720. Capital, cash, and investments are at $24,486,860.
5. Presentation vision of the Schertz Mainstreet redevelopment project and funding plan for
SEDC participation in FY 2023-2024. (A. Perez/B.James/M.Davis)
Mr. Perez provided background information including prior Board action related to the Main
Street Project and that funding consideration for this item would occur during FY 2024
budget consideration.
Mr. James provided background information on the Main Street Committee and City Council
discussions surrounding the vision for Main Street. The age of much of the existing
infrastructure and the current state of many properties have become problematic. In an effort
to overcome obstacles, the City has created new zoning districts, modified development
regulations, started holding moving on main events, highlighted businesses and progress in
Schertz Magazine, repaired sidewalks, and added to public parking. Additionally, it has
implemented a code enforcement effort, providing some fee waivers, and creating an
empowerment zone. Progress has been made by the City using historic and main street
revitalization grants with the help of The Chamber. Additionally, some local business and
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owners have invested in upgrades to their properties. However, significant infrastructure
improvements are still needed including undergrounding of utilities.
Mr. James indicated City Council would fund these improvements, however, to the degree
the SEDC could contribute to the effort it would relieve pressure on the Maintenance and
Operations budget allocations as fewer dollars would be used for debt service.
Mr. Perez ended the presentation with a discussion regarding the mission of the SEDC and
the budget reserve strategy. He reminded the Board of the three buckets (primary jobs,
workforce/quality-of-life, and growth/infrastructure). Staff asks the Board to consider
prioritization of quality-of-life investments that will advance the overall branding of Schertz.
6. Briefing and possible action on approval of SEDC Resolution 2022-4 authorizing the
adoption of the City of Schertz, Texas, Investment Policy and Strategy as approved by the
City Council on June 6, 2022. (I.Walters/A.Perez)
Mr. Perez provided an explanation of to the Texas Public Funds Investment Act ("PFIA")
outlined in the Texas Government Code Chapter 2256. Code provides for safety, liquidity,
and yield of government investment of reserve funds. The top priority with regard to
investable public funds in both the Act and the City Policy is the safety of the funds invested.
This means low risk investments that can be easily withdrawn in the event the City needs
funding.
A motion to approve SEDC Resolution 2022-4 authorizing the adoption of the City of
Schertz, Texas Investment Policy and Strategy as approved by City Council on June 7, 2022,
was made by Mr. Bryan Snowden, and seconded by Mr. Mark Moody. Motion passed
unanimously.
7. Public Hearing, briefing and possible action on SEDC Resolution No. 2022-5 recommending
approval by the City Council for the proposed Schertz Economic Development Corporation
FY 2022-23 Budget and Reserves. (A. Perez)
Mr. Perez presented a high-level summary of the fiscal year 2022-23 budget. Total revenue
estimated at $6.6 million, growth rate 6%, total project costs for EDC contractual obligations
is estimated $3 million including the $2.5 million associated with Schertz 312 phase II, these
are pending performance. $5.75 million has been allocated for Lookout Road sewer upsize
and signalization. Operational costs are budgeted at $1.3 million including $200,000 for the
Small Business Grant Fund. Overall decrease in the SEDC reserve fund of approximately
$3 .3 million. FY2022-23 ending reserve balance estimated at $22 million
Significant updates to the budget include increasing budget for marketing and promotion of
about 26% or $61,000, adding $200,000 for master planning services for the industrial park,
allocating $40,000 for NEX signage on Schertz Parkway, $19,000 remaining on the 18-
month contract with The Retail Coach, increasing recruitment budget by 45% or $11,000 to
accommodate 12 outbound excursion trips at $2,500/each, and increasing/upgrading
software licenses by 68% or $20,000.
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Board President Paul Macaluso opened the Public Hearing at 7:20 pm.
No public comment was made.
Board President Paul Macaluso closed the Public Hearing at 7:20 pm
A motion to approve SEDC Resolution 2022-5 recommending approval by the City Council
for the proposed Schertz Economic Development Corporation FY 2022-2023 Budget and
Reserves was made by Mr. Roy Richard and seconded by Ms. Sammi Morrill. Motion
passed unanimously.
8. Briefing and possible action on SEDC Resolution No. 2022-6 authorizing the Agreement for
Provisions of Professional Services Between the City of Schertz and the City of Schertz
Economic Development Corporation; and recommend approval by the City Council for the
expenditures of $542,221 as provided for in the Agreement for the 2022-2023 fiscal year.
(A. Perez)
Mr. Perez explained that the Service Agreement outlines the specific services that the City
of Schertz will provide to the SEDC. Services include personnel, financial reporting,
budgeting, office space, fleet services, IT services, etc. The Service Agreement also enables
the SEDC to receive several services at a discounted rate through the City, these include rates
for software, financial services, auditing services, etc.
A motion to approve SEDC Resolution 2022-6 authorizing the Agreement for Provisions
of Professional Services Between the City of Schertz and the City of Schertz Economic
Development Corporation was made by Ms. Sammi Morrill and seconded by Mr. Bryan
Snowden. Motion passed unanimously.
Board President Paul Macaluso recessed the meeting to closed session at 7:24 p.m.
Closed Session
9. The SEDC Board met in closed session 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 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-80
• Project E-73
Start time: 7:28 p.m.
End time: 7:52 p.m.
• Project E-79 • Project E-67
• Project E-83
Board President Paul Macaluso reconvened to regular session at 7:52 p.m.
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Reconvene to regular session
10. Take any actions based on discussion held in closed session under Agenda Item No. 9.
There were no actionable items discussed during closed session, therefore no action was
taken by the SEDC Board of Directors.
Requests and Announcements
11. Informational Memo
a. Ordinance 22-M-20 approving SEDC Board term end dates. (S.Coumey)
b. SEDC FY2020-2021 Annual Report
12. Announcements by Staff
a. Sysco Groundbreaking -August 24, 2022 (A.Perez)
b. Next Board Meeting -Meeting scheduled for August 25, 2022. (A.Perez)
13. Requests by Board Members to place items on a future SEDC Board Meeting agenda
include:
a. Board discussion Main Street Project
b. EVO and development project update
c. The Retail Coach update
d. Presentation from Schertz Parks & Recreation Department (Lauren Shrum)
Comment from Ms. Sammi Morrill thanking staff for highlighting work with Hollingsworth
and for ongoing work with local businesses related to Workplace Literacy program and TWC
Employment Engagement Grant.
Adjournment
Board President adjourned the meeting at 8:00 p.m.
MINUTES PASSED AND APPROVED THIS 25th DAY OF AUGUST 2022.
"l'f aul Macaluso "
Board President
SEDC Minutes 07/28/2022
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Sammi Morrill
Board Secretary
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