20220428 Minutes SEDC Board Reg MtgECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, April 28, 2022
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a
Regular Monthly Meeting on Thursday, April 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
Jesse Hamilton -Board Vice President
Sammi Morrill -Board Secretary
Jesse Carrasco -Board Treasurer
Mark Moody
Roy Richard
Board of Directors absent:
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
Chamber Leadership Core representatives: Sarah Gonzalez, Diana Gonzalez,
Tiffanie Shirley, Patrick Carreon, and Sharon Medellin.
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.
Chamber Leadership Core representative introduced themselves and identified their
affiliation. No other public comments were made.
Minutes
3. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, March 10, 2022. (A. Perez/S. Coumey)
SEDC Minutes 04/28/2022 Page 1of5
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held
Thursday, March 10, 2022, was made by Mr. Jesse Carrasco and seconded by Mr. Jesse
Hamilton. Motion passed unanimously.
Presentations
4. Staff briefing on SEDC Financial statements for the months of February and March 2022.
(J. Walters I A. Perez)
Mr. Walters provided the following summary and overview of the SEDC Financial
Statement for the month of February:
February 2022 saw sales tax increase 5% over February 2021. Total revenues for February
were $552,153. Expenditures were low for the month, highest being marketing at $10,000
and Sales Force CRM at $3,720. Capital, cash, and investments are at $22.9 million.
The 12-month rolling average was 15.5%, continuing an upward trend. Long-term average
6% which includes the last recession. Retail trade generating 38% or a little over one-third
of our sales tax revenue. Sales tax is collected two months in arrears, so February sales tax
revenue was collected in December.
Mr. Walters provided the following summary and overview of the SEDC Financial
Statement for the month of March:
March 2022 saw sales tax increase 8.2% over March 2021. Total revenues for March were
$420,311. Expenditures were $36,625 for the month, highest being marketing at $25,000 and
Professional Organization memberships at $11,625. Capital, cash, and investments are at
$23.3 million.
The 12-month rolling average was 18.3%, continuing an upward trend. Long-term average
6% which includes the last recession. Retail trade generating 38% or a little over one-third
of our sales tax revenue.
Industry breakdown shows Wholesale Trade, Retail Trade, and Manufacturing continue to
be the primary providers of sales tax revenue for Schertz.
5. Tri-County construction update and scope updates. (C. Moeller)
Ms. Moeller provided an update on the Tri-County construction which began April 11,
2022. The Tri County Reconstruction Project (The Project) is a $5.6M SEDC funded
project originally designed to reconstruct Tri County Parkway from Corridor Parkway to
FM 3009. It will also reconstruct Lookout Road from Tri County Parkway to Doerr Lane.
Finally, it will include the replacement of sewer lines along Tri County Parkway from FM
3009 to Lookout Road replacement and upsize of sewer from Tri County Parkway along
Lookout Road to Doerr Lane.
Leading up to project kick-off the SEDC executed the following outreach:
• Direct contact either by phone or email with over 80 employers
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• 19 in-person visits to address any concerns
• Approximately 15 consultations with our project engineer, John Nowak
• Two rounds of every door direct mail sent out
• Newsletter sent to over 200 recipients, approximately 80% of which are Tri-County
employers
Since project implementation, concerns with the change in traffic flow, drivers cutting
through parking lots, and vehicles barreling down the wrong way, were received and
addressed. Additionally, SEDC engaged with Schertz Police Department traffic control
officer and has requested increased signage.
6. Presentation on initial retail analysis developed by the Retail Coach. (Aaron Farmer, the
Retail Coach/H. Malish)
Ms. Malish provided background information on the 18-month agreement SEDC entered
into with The Retail Coach, the nation's premier retail recruitment, market analysis and
development firm. The 18-month plan was divided into phases, beginning with analyzing
the Schertz community and unique retail trade area. This included analyzing the trade area
population served, demographic profile of consumers in the trade area and road systems.
More than 152,000 will be in our trade area by the year 2027 and our trade area runs more
east/west rather than north/south.
Marketing and Branding was the next step and Phase three of the package. The Retail
Coach helped develop a market profile tailored to the specific needs of essential site
selection and location criteria, include trade area, traffic count map, demographic profile
summary and location map. Ms. Malish then introduced Aaron Farmer, President, The
Retail Coach to speak to this phase.
Mr. Farmer presented a mixed-use analysis and development strategy update. The data
used for the market analysis involved patronage at some of the larger retail establishments
in Schertz, including EVO Entertainment, Walmart, and HEB. He explained how cell
phones were used to derive the data, what retailers are seeking from the data, and other
factors that retailers consider when contemplating new locations. Currently in the process
of developing good marketing materials targeted and customized to recruit developers,
tenants, restaurants, and retailers.
7. Staff pre-budget briefing reviewing two-year SEDC Reserve Fund expenditure
recommendations. (A. Perez)
Mr. Perez provided background on the SWOT analysis done by the Board in 2019, the
priorities set at that time, and progress of those priorities. Highest priority was given to
primary jobs and infrastructure, followed by medium priority to job training and
recreational/community facilities, and low priority to career center and affordable housing.
The Schertz Economic Development Corporation (SEDC) has consistently partnered with
the City of Schertz to prioritize funding for projects that fall within the scope and mission
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of the SEDC as a Type B Economic Development Corporation and that meet the priorities
set by the Board. The SEDC has worked with the City Manager's Office on projects such
as investments in Main Street ($500,000), investment in CityView software ($265,000) and
Tri County Parkway improvements ($4,050,000).
Mr. Perez has been working with the city team on a comprehensive capital improvements
project plan budget to be adopted by council in the next year or two. Currently, there are
two primary projects being considered. The first, reconstruction of Lookout from Doerr
Lane to Schertz Parkway which includes upsize of wastewater facilities to complement the
work currently underway on Tri County Parkway. This wastewater line supports phased
development between FM3009 and what will be the extension of Hal Baldwin Drive, so
that acreage in between those two roads will be more marketable to developers. Jn the past
few months SEDC has seen more billion-dollar projects which are huge water and
wastewater users than ever before. Initial commitment would be to fund the design in the
next fiscal year. Cost for the design is $400,000 -$875,000 with current estimate for the
project at $4.5M to cover the cost of the wastewater line and the reconstruction of Lookout.
Next step is to get an actual bid including the cost of design.
Second project is the Abbey Road wastewater extension. This project would allow for the
development of 300 acres, which would be the second phase of our industrial park.
Funding would be needed for the design in FY2023/24. There is greater potential to bring
in major anchor development if they see SEDC has committed $10M to these infrastructure
improvement projects. Timing of these investments have to be balanced with the city team
as well as all current projects to maximize the benefit.
The Board expressed concern with depleting the reserve should a major project present
itself but were not opposed to considering projects once project designs are complete and
funding commitments better understood.
Board President Paul Macaluso recessed the meeting to closed session at 7:27 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
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.
• ProjectE-79
Start time: 7:28 p.m.
End time: 7:49 p.m.
• Project E-80 • Project E-81
Board President Paul Macaluso reconvened to regular session at 7:50 p.m.
SEDC Minutes 04/28/2022 Page 4 of 5
Reconvene to regular session
9. Take any actions based on discussion held in c losed session under Agenda Item No. 8.
The following caption was read into the record:
SEDC RESOLUT,ON NO. 2022-3
A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC DEVELOMENT
CORPORATION, TEXAS AUTHORZING AN ECONOMIC DEVELOPMENT
PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ
ECONOMIC DEVELOPMENT CORPORATION AND CATERPILLAR INC., AND
OTHER MATTERS IN CONNECTION THEREWITH.
A motion to approve SEDC Resolution 2022 -3 approving an Economic Development
Performance agreement between the City of Schertz Economic Development Corporation
and Caterpillar Inc., was made by Mr. Roy Richard. Seconded by Mr. Mark Moody.
Motion passed unanimously.
Requests and Announcements
10. Informational Memo
a. April 2022 CityView and Main Street Update
11. Announcements by Staff
a. All B oards, Commissions, and Committee appointments due to expire May 31, 2022,
have been extended. EDC Board expirations on 5/31/2022 have been extended until
September 30, 2022 (S. Coumey).
b. Next Board Meeting -May 26, 2022. in Meeting Room 2, Schertz Library
(S.Coumey)
12. Requests by Board Members to place items on a future SEDC Board Meeting agenda
include:
No requests by Board Members to place items on a future SEDC Board Meeting agenda.
Adjournment
Board President adjourned the meeting at 7:54 p.m.
MINUTES PASSED AND APPROVED THIS 26th DAY OF M
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v. Paul Macaluso
Board President
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