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20250724 SEDC Board Reg MtgSC]HI]EIR IF7Z ECONOMIC DEVELOPMENT CORPORATION MINUTES Thursday, July 24, 2025 The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly Meeting on Thursday, July 24, 2025. at 6:00 p.m. at the Hal Baldwin Municipal Complex, Council Chambers Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This was an open meeting, subject to the open meeting laws of the State of Texas. In accordance with provisions of the Texas Open Meetings Act, Chapter 551, Texas Government Code notice is hereby given that a Possible Quorum of the governing body of the City of Schertz, Texas may take place at this meeting. Call to Order 1. Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and public participation. Board Vice President Bill Dixon presided over the meeting and called it to order at 6:00 p.m. Board of Directors Present: Staff Present: William 'Bill" Dixon, Board Vice President Scott Wayman, Executive Director Mark Moody, Board Treasurer Reynaldo 'Ray" Chavez, Board Member Sharon Denson, Board Member Board of Directors Absent: Eryn McElroy, Board Secretary Hearing of Residents Amy Madison, Deputy Director Ashley Ritchey, Business Engagement Manager Brian James, Deputy City Manager Others Present: Jessica Dycus, Assistant Finance Director Matt Clingo, Schertz Resident 2. This time is set aside for any person who wishes to address the Board. Presentations should he limited to no more than 3 minutes. The presiding officer will call on those persons who have signed up to speak. No residents signed up to speak. No comments were made. Minutes 3. Approval of the minutes for the Board of Directors Regular Monthly Meeting held Thursday, June 26, 2025. (S.Wayman/T.Miller) Board Vice President Bill Dixon asked for a motion to approve the Minutes of the Board of Directors Regular Monthly Meeting held Thursday, July 24, 2025. Moved by Board Member Ray Chavez, seconded by Board Member Bryan Jones. Unanimous affirmative vote - Motion carries. Presentations 4. Staff briefing on SEDC monthly financial statement for the month of June 2025 and Reserve Funding. (S.Wayman) Scott Wayman, Executive Director gave a brief overview of the SEDC Financial Statement for June 2025. June 2025 sales tax received was $600,437.19, expenses were $14,196.52, a 2% increase over the prior year. The 12 -month rolling average is 19.8% and still trending up. Notable expenditures include funding for GIS WEBTECH LLC for $6,515.45. Total Cash and Investments at the end of June was $36,772,737.43. Mr. Wayman also gave a brief overview of the Reserve Fund Model. Discussion Items 5. Resolution 2025 -3 - Briefing, public hearing and possible action on recommending approval by the City Council for the proposed Schertz Economic Development Corporation FY 2025 -26 Budget and Reserves. (S.Wayman) Vice President Bill Dixon opened the Public Hearing at 6:IOpm and requested a presentation from Mr. Wayman regarding the 2025 -26 Budget and Reserves as proposed. Mr. Wayman reviewed the SEDC payments made in FY25 on eight incentive agreements and one city project totaling approximately $9.3MM. In FY26, the SEDC is budgeting $9,648,050 to fund eight incentive projects and $12,755,500 to fund three city projects for a total project budget of $22,403,550 in FY26. Wayman explained that contracts and agreements are subject to compliance and timing issues and payments may vary, but to be consistent with best practice, they are included as being paid in the FY26 budget. All unspent funds each year go into reserves for the following year. Sales Tax Revenue is estimated to increase by 1.2 %, bringing the total projected revenues to $9,143,000. There are no increases year- over -year in interest income budgeted at $1,260,000 or operational expenditures budgeted at $760,660. Personnel, rent, internal services and fleet increase by 5.4% totaling $33,165.66 to accommodate salary and merit adjustments for a total budget of $642,245.76. The FY26 Fiscal Year Reserve is estimated at $23,340,443 after revenues and expenses for the year which meets the current reserve policy to maintain $12,000,000 in reserves set by the Board. Vice President Bill Dixon called for public comments on the 2025 -26 Budget and Reserves. There being no response, he closed the public hearing at 6:19pm. Mr. Dixon requested a motion from the board. Bryan Jones moved to approve the FY26 SEDC Budget. Mark Moody seconded the motion. Unanimous affirmative vote, motion carries. 6. Resolution 2025 -4 - Discussion, public hearing and possible action on authorizing the Executive Director of the Schertz Economic Development Corporation to enter into a contract regarding a feasibility study for possible local hotel and amenities. (S.Wayman/A.Madison) Vice President Bill Dixon opened the Public Hearing at 6:20 pm and requested a presentation from Mr. Wayman regarding a feasibility study for possible local hotel and amenities. Wayman discussed SEDC recruitment efforts for hotel expansion, including discussions with land developers and hoteliers at retail conferences during the year. In preparation for the discussions, staff developed an inventory of land sites that met the required square footage for most hotels with amenities along the I -35 Corridor, but the staff lacked the information needed by most prospects regarding the marketplace. Wayman noted that the evaluation of the sites for an upgraded hotel was complex, and required industry- specific information. A feasibility study would be required to provide direction for recruitment efforts and future projects. He added that the request to fund a study would not exceed $17,000 and that the study was not in anticipation of funding a future project, but rather to assist in providing information to developers and hoteliers about our area for hotel amenities. He discussed the cost and professional capabilities of three consultants, including DPC (David Parker Consultants) , CBRE Hotels Advisory, and H &LA Advisors and explained the reason for selecting a contract with DPC should the board approve the resolution. Discussion from that board included questions about meeting space and occupancy rates. They also discussed the sites, locations, amenities and commented on the selection process for the consultant. Wayman requested that Matt Clingo, a guest at the meeting and future board member, provide comments on hotel locations in Schertz. Clingo provided insights on hotel requirements and key factors in site selections. Vice President Bill Dixon called for further public comment. Hearing none, Dixon closed the public hearing at 6:37 pm. Dixon called for a motion on Resolution 2025 -4. Ray Chavez moved to approve and Mark Moody seconded. Unanimous affirmative vote - Motion carries. Vice President Bill Dixon recessed Open Session to Closed Session at 6:40 pm. Closed Session 7. 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 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 -107 • Project - E -110 Start time: 6:40pm End time: 7:09pm Vice President Bill Dixon reconvened to Open Session at 7:09pm Reconvene to Regular Session 8. Take any actions based on discussion held in closed session under Agenda Item No. 7. No action was taken. Requests and Announcements • Announcements by staff: • Next SEDC Regular Board Meeting - August 28, 2025 • Requests by Board Members to place items on a future SEDC Board Meeting agenda. Adjournment Board Vice President Bill Dixon adjourned the meeting at 7:11 pm. MINUTES PASSED AND APPROVED THIQa DAY he 2025. William Dix Eryl -r` McElroy Board Vice Pre dent Board Secretary