20220310 Minutes SEDC Board Reg Mtg§(]HllElRllCl
ECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, March 10, 2022
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a
Regular Monthly Meeting on Thursday, March 10, 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
Jesse Hamilton -Board Vice President
Sammi Morrill -Board Secretary
Jesse Carrasco -Board Treasurer
Mark Moody
Roy Richard
Bryan Snowden
Others present:
Clayton Rogers, Pattillo, Brown & Hill, LLP
Staff present:
Adrian Perez -Executive Director
Holly Malish -Deputy Director
Dr. Mark Browne -City Manager
Brian James -Assistant City Manager
Charles Kelm -Assistant City Manager
James Walters -Finance Director
Casey Moeller -Business Engagement Manager
Sheree Courney -Administrative Assistant
2. Introduction of new SEDC staff: Holly Malish, Deputy Director
Mr. Perez introduced Ms. Malish. Holly previously worked in New Braunfels where she
served within their Chamber for the past 15 years. She is a known regional economic
development player and has also worked with the greater:SATX and New Braunfels EDC.
The board welcomed her.
Hearing of residents
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.
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Minutes
4. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, January 27, 2022. (A. Perez/S. Courney)
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held
Thursday, January 27, 2022, was made by Mr. Roy Richard and seconded by Mr. Jesse
Hamilton. Motion passed unanimously.
Presentations
5. Staff briefing on SEDC Financial statement for January 2022. (J.Walters/A.Perez)
Mr. Walters provided the following summary and overview of the SEDC Financial Statement
for January 2022:
January 2022 saw sales tax increase 20.9% over January 2021. Total revenues for January
were $463,000. Expenditures were low for the month, highest being marketing at $10,000
and auditing services at $5,000. Capital, cash, and investments are at $22.3 million.
The 12-month rolling average was 16%, continuing an upward trend. Long-term average
over 6% which includes the last recession. Question from the Board was addressed regarding
sales tax revenue forecasting with new businesses opening in Cibolo. Mr. Walters indicated
they will continue to monitor the HEB planned expansion in Cibolo and adjusting sales tax
revenue projections based on completion of that project. Projections will be lowered for the
year the HEB opens. In years following, adjustments will be based on expected sales and
population growth.
Industrybreakdown shows Wholesale Trade, Retail Trade, and Manufacturing continue to
be the primary providers of sales tax revenue for Schertz.
6. Staffbriefing on Main Street project and planning oftheMain Street Committee. (B.James)
Mr. James provided an update on the Main Street project and identified members of the Main
Street Committee. Members include the Mayor, Councilman Davis, Councilman Brown,
and Councilwoman Heywood. The Main Street Committee is working with the Historic
Preservation Committee on the next phase of improvements to Main Street, including
enhanced paving areas, pedestrian-scaled street lighting, and festoon lighting.
Mr. James stated that Kimley-Hom has been retained to plan and design the Main Street
project. Two plans have been presented by Kimley-Hom and City staff to the Main Street
Committee. Estimated cost is $6.61M for option 1 or $10.28M for option 2.
Estimates do not include costs to underground overhead utilities estimated at $883,000. Staff
is also evaluating the potential for waterline replacement prior to starting the Main Street
project. These costs have not been finalized.
Current funding options for these improvements discussed by City staff are a combination
of City Bond dollars, Hotel Occupancy Tax (HOTax) funds, and additional SEDC
contributions. The Main Street Committee plans to select a path forward after City staff
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advance a plan to fund the preferred options and seek Council approval of funding in April
or May.
Discussion Items
7. Briefing and possible action on SEDC Resolution No. 2022-2 for the approval of the
Independent Auditor's Report for the SEDC Annual Financial Report for the Year Ended
September 30, 2021. (Clayton Rogers, Auditor Partner of Pattillo, Brown and Hill, LLP/J.
Walters)
Mr. Rogers presented the financial perf onnance and financial health of the SEDC for fiscal
year ending September 30, 2021. EDC Management and City are responsible for fairly
presenting financial statements and the auditors are responsible for planning and performing
an audit to render an opinion on whether the financial statements are materially right. The
audit ensures that SEDC funds are managed in accordance with the highest professional
standards.
The auditors gather external infonnation to ensure accuracy of the infonnation provided by
EDC management and the City. In this audit, they obtained confinnation from the bank that
cash and investments were accurately stated and from the Texas Comptroller to ensure the
account receivable balance for sales tax revenue was fairly stated. The auditors found no
evidence of incorrect, misstated, or omitted infonnation that would affect the decision
making of the individuals that use the statements, and thus, concluded there were no
significant control issues or deficiencies evident. As a result, they offered a "clean" opinion,
no findings, which is the highest level of assurance that the financial statements are
materially correct.
The following caption was read into the record:
SEDC RESOLUTION NO. 2022-2
A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION ("SEDC") BOARD OF DIRECTORS
("THE BOARD") AUTHORIZING THE APPROVAL OF THE
INDEPENDENT AUDITOR'S REPORT FOR THE SEDC ANNUAL
FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021,
AND OTHER MATTERS IN CONNECTION THEREWITH
A motion to approve SEDC Resolution 2022-2 authorizing the approval of the Independent
Auditor's Report for the SEDC Annual Financial Report for the Year Ended September 30,
2021, was made by Mr. Roy Richard. Seconded by Mr. Bryan Snowden. Motion passed
unanimously.
Board President Paul Macaluso recessed the meeting to closed session at 6:47 p.m.
Closed Session
8. 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
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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-69 • Project E-79 • Project E-80
• Project E-81
Start time: 6:48 p.m.
End time: 7:28 p .m.
• Project E-82
Board President Paul Macaluso 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. February 2022 City View and Tri-County Construction Update
b . SEDC/City of Schertz Growth Infrastructure Investment Partnership Update
11. Announcements by Staff
• Next Board Meeting -April 7, 2022, in Bob Andrews Conference Room, Bldg. 1
12. Requests by Board Members to place items on a future SEDC Board Meeting agenda
include:
• Status of EVO and development of property surrounding
Adjournment
Board President adjourned the meeting at 7:33 p.m.
""'"' MINUTES PAS ED AND APPROVED TIDS 28th DAY OF APRIL 2022. /'
SEDC Minutes 03/10/2022
Sammi Morrill
Board Secret ary
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