20221027 Minutes SEDC Board Reg MtgECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, October 27, 2022
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a
Regular Monthly Meeting on Thursday, October 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. 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 6:00 p.m. Mr.
Macaluso welcomed everyone in attendance.
Board of Directors present:
Paul Macaluso, -Board President
Sammi Morrill -Board Secretary
William Dixon
Mark Moody
Roy Richard
Bryan Snowden
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
Allison Heyward, City of Schertz Council member
Sheila Edmondson, Interim City Secretary
2. SEDC Board Member Oath of Office for members appointed/reappointed by City Council
on 9/27/2022 for a term of two years ending on 9/30/2024. (S. Edmondson IS. Coumey)
a. Appointment: William "Bill" Dixon
b. Reappointments: Jesse Hamilton, Paul Macaluso, and Sammi Morrill
Ms. Edmondson administered the oath of office to all new and reappointed Board Members.
3. Election of Schertz Economic Development Corporation officers. (P. Macaluso)
President Macaluso opened the position of Board President for discussion and asked for
nominations. Mr. Macaluso was nominated by Mr. Roy Richard to continue to serve as
President of the Board. Mr. Macaluso accepted the nomination. No other nominations were
received.
A motion to reelect Mr. Paul Macaluso as Board President was made by Mr. Roy Richard.
Seconded by Mr. Jesse Hamilton. Motion passed unanimously.
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President Macaluso opened the position of Board Vice President for discussion and asked
for nominations. Mr. Jesse Hamilton was nominated by Mr. Roy Richard to continue to
serve as Vice President of the Board. Mr. Hamilton accepted the nomination. No other
nominations were received.
A motion to reelect Mr. Jesse Hamilton as Board Vice President was made by Mr. Roy
Richard. Seconded by Mr. Paul Macaluso. Motion passed unanimously.
President Macaluso opened the position of Board Secretary for discussion and asked for
nominations. Ms. Sammi Morrill was nominated by Mr. Bryan Snowden to continue to serve
as Secretary of the Board. Ms. Morrill accepted the nomination. No other nominations were
received.
A motion to reelect Ms. Sammi Morrill as Board Secretary was made by Mr. Bryan
Snowden. Seconded by Mr. Jesse Hamilton. Motion passed unanimously.
President Macaluso opened the position of Board Treasurer for discussion and asked for
nominations. Mr. William Dixon was nominated by Mr. Roy Richard. Mr. Dixon declined
the nomination. Mr. Bryan Snowden was nominated by Mr. Jesse Hamilton. Mr. Snowden
accepted the nomination. No other nominations were received.
A motion to elect Mr. Bryan Snowden as Board Treasurer was made by Mr. Jesse
Hamilton. Seconded by Mr. Roy Richard. Motion passed unanimously.
Hearing of residents
4. 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 were present. No comments were made.
Minutes
5. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, September 29, 2022. (A. Perez/S. Courney)
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held
Thursday, September 29, 2022, was made by Mr. Bryan Snowden and seconded by Mr.
Roy Richard. Motion passed unanimously.
Presentations
6. Staff briefing on SEDC Financial statements for the months of September 2022 . (J. Walters
I A. Perez)
Mr. Walters provided the following summary and overview of the SEDC Financial
Statement for the month of September:
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Total revenues for September were $531,788. Sales taxes grew by $15.9% for the month
over September 2021. 12-month rolling average was 12.6% continuing an upward trend.
Major expenditures for September include the transfer of $1.2 million to finish Tri County
Parkway project, consultant fees to The Retail Coach and GIS WebTech, and annual
membership fee to the greater:SATX Regional Partnership.
Capital, cash, and investments are at $24.9 million.
7. Presentation by The Retail Coach on status update on Stakeholder Interviews and retail
development incentive structures. (A. Farmer)
Mr. Farmer provided the findings of the stakeholder interviews. One of the last key pieces
of the research was to learn what the community stakeholders envisioned for the future.
Various members of the City Management, City Council and SEDC Board Members were
interviewed. Findings included the acceptance of mixed-use development although the comp
plan, zoning and ordinances are not conducive to it. Constituents want more sit-down casual
restaurants and traditional retail. Development opportunities exist along I-35 and in southern
Schertz.
Mr. Farmer also provided the results of his research on incentive packages around the State
of Texas that used Type B funding and other economic development tools for Mixed
Use/Entertainment Districts. Incentive packages used by the cities of Kyle and League City
were presented.
Board requested next steps and identification oflocations for projects. Mr. Perez stated that
staff would be better equipped to provide next steps and indicated there are a few possible
primary sites, but more research is required to address infrastructure. EVO site identified as
a primary location for initial development with a keen eye on southern Schertz as more
residents occupy the area. Mr. Farmer added that Southern Schertz is expected to be more of
a phased development approach. Schertz needs to identify development that will be unique
to the area.
8. Staff briefing SEDC project authority under Texas Local Government Code 505.152 and
application of such authority in support of Main Street and City of Schertz Neighborhood
Empowerment Zones and other related efforts. (A. Perez)
Mr. Perez explained the Texas Local Government Code Sec. 505.152 and its potential impact
on future short-and long-term projects, such as the Main Street Redevelopment Project and
upcoming entertainment/retail/parks integration opportunities, Texas Local Government
Code Sec. 505.152 provides the needed flexibility for land, buildings, equipment, facilities,
and improvements. Projects under the authority of 505.152 must be found suitable by the
Board and may be professional/amateur sports including children sports, athletic
entertainment, tourism, convention, public park purposes and events, including stadiums,
ball parks, auditoriums, amphitheaters, concert halls, arks and park facilities, open space
improvements, museums, exhibition facilities, restaurants, retail, and related improvements.
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Mr. Perez then provided a recap of the Main Street Redevelopment Project. Previous
discussion around the project focused on the risks surrounding investment into an area in a
flood plain. There is a need to look at it as a catalytic project outside of a straight cost benefit
analysis because communities are not static, and properties are either in a state of decline or
redevelopment. This is an area due for redevelopment and investment. Concerns were voiced
about the cost of doing business in a flood plain and how to recruit businesses to the area.
Mr. Perez explained that the City has adopted Neighborhood Empowerment Zone to help
alleviate some of these costs. Unfortunately, the City does not have the power to waive all
fees.
For short-term use, EDC staff is considering a short-term project working with City staff and
EDC attorney to amend the existing incentive guidelines to support targeted development
costs providing grants from existing budgeted funds to retail, office, entertainment,
restaurants, and other compatible uses.
For mid-term use, focus will be on Main Street now that we have clear direction based on
City Council action. EDC will work on incentive policy updates and funding agreements for
these businesses.
Long-term use focus will be on 5-year cycle. Using the Comprehensive Plan and Parks
Master plan, the EDC can develop a strategic plan with a vision on deployment of capital.
Working with residents to ensure there is a real understanding of opportunities. EDC Policy
around deployment of the long-term use include having perfected the MOU with the City so
EDC has performance and funding agreements with the City for all projects.
DISCUSSION ITEMS
9. Public hearing, briefing, and possible action on SEDC Resolution No. 2022-9 authorizing
an economic development performance agreement between the City of Schertz Economic
Development Corporation and 3009 OAC Investments, LLC; and other matters in
connection therewith. (A. Perez)
Mr. Perez stated that this performance agreement would provide an incentive up to $50,000
over 10 years to support continued retail/office development along Roy Richard Drive and
secure a 9,900 sq. ft. office building valued at $2,000,000.
Mr. Perez explained that SEDC Resolution 2022-9 recommends Schertz City Council
approve funding for Chapter 380 economic development performance agreement. The
agreement provides for a public infrastructure reimbursement grant in an amount up to
$25,000, paid on an annual basis in a maximum annual amount of fifty percent (50%) of the
annual ad valorem taxes paid for the Property to the City.
Additionally, SEDC shall provide a public infrastructure reimburse grant in an amount of
up to $25,000 for public infrastructure expenditures within the Project. The Infrastructure
Grant will be paid within sixty ( 60) days after receipt of a copy of the Certificate of
Occupancy.
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Board President Macaluso opened the public hearing at 6:58 pm.
No public were present. No public comment was made.
Board President Macaluso closed the public hearing at 6:58 pm.
A motion to approve SEDC Resolution 2022-9 authorizing an economic development
performance agreement between the City of Schertz Economic Development Corporation
and 3009 OAC Investments, LLC; and other matters in connection therewith was made by
Mr. Bryan Snowden and seconded by Mr. William Dixon. Motion passed unanimously.
10. Public hearing, briefing, and possible action on SEDC Resolution No. 2022-8 authorizing
an economic development performance agreement between the City of Schertz Economic
Development Corporation and Schertz RE Company, LLC; and other matters in connection
therewith. (A. Perez)
Mr. Perez stated that this performance agreement with Schertz RE Company, LLC., is a
companion agreement with 3009 OAC Investments, LLC. Total incentive value of $50,000
over 10 years to support continued retail/office development along Roy Richard Drive and
secure 6,900 sq. ft. office building.
Mr. Perez explained that SEDC Resolution 2022-8 recommends Schertz City Council
approve funding for Chapter 3 80 economic development performance agreement. The
agreement provides for a public infrastructure reimbursement grant in an amount up to
$25,000, paid on an annual basis in a maximum annual amount of fifty percent (50%) of the
annual ad valorem taxes paid for the Property to the City.
Additionally, SEDC shall provide a public infrastructure reimburse grant in an amount of
up to $25,000 for public infrastructure expenditures within the Project. The Infrastructure
Grant will be paid within sixty ( 60) days after receipt of a copy of the Certificate of
Occupancy.
Board President Macaluso opened the public hearing at 7 :02 p.m.
No public was present. No public comment was made.
Board President Macaluso closed the public hearing at 7:02 p.m.
A motion to approve SEDC Resolution 2022-8 authorizing an economic development
performance agreement between the City of Schertz Economic Development Corporation
and Schertz RE Company, LLC; and other matters in connection therewith was made by
Ms. Sammi Morrill and seconded by Mr. Mark Moody. Motion passed unanimously.
Board President Paul Macaluso recessed the meeting to closed session at 7:03 p.m.
CLOSED SESSION
11. The SEDC Board will meet 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
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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-66
Project E-80
Project E-86
Project E-71
Project E-84
Project E-87
Project E-79
Project E-85
Project E-88
Start time: 7:07 p.m.
End time: 8:06 p.m.
Board President Paul Macaluso reconvened to regular session at 8:07 p .m.
RECONVENE TO REGULAR SESSION
12. Take any actions based on discussion held in closed session under Agenda Item No. 11.
No action was taken based on discussion held in closed session.
REQUESTS AND ANNOUNCEMENTS
13. Announcements by Staff
a. Next Board Meeting-November 10, 2022
b. Board Meeting scheduled for November 17, 2022 -Cancelled
c. Office closed for Veterans' Day Holiday -November 11, 2022
d. Office closed for Thanksgiving Holiday -November 24-25, 2022
e. Holiday Dinner -Tentative date December 15, 2022
14. Requests by Board Members to place items on a future SEDC Board Meeting agenda.
No requests were made by Board Members.
Adjournment
Board President adjourned the meeting at 8:08 p.m.
MINUTES PASSED AND APPROVED TIDS 8th DAY DECEMBER 2022.
p tt.fil M aciluso
Board President
SEDC Minutes 10/27 /2022
,
~ti&(~d
Sammi Morrill
Board Secretary
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