20230928 Minutes SEDC Board Reg MtgSCHIERTZ
ECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, September 28, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly Meeting on Thursday,
September 28, 2023. 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.
Call to Order
Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and public participation.
Board President Paul Macaluso presided over the meeting and called it to order at 6:00 p.m.
Board of Directors Present:
Paul Macaluso, Board President
Jesse Hamilton, Board Vice President
Sammi Morrill, Board Secretary/Treasurer
Roy Richard, Board Member
Bill Dixon, Board Member
Eryn McElroy, Board Member
Staff Present:
Scott Wayman, Executive Director
Holly Malish, Deputy Director
Ashley Ritchey, Business Engagement Manager
Tracy Miller, Administrative Assistant
Steve Williams, City Manager
Board of Directors Absent: Others Present:
Mark Moody, Board Member Allison Heyward, Councilmember, City Council Liaison
Sheila Edmondson, City Secretary
William Bates, Caterpillar Corporation
Evan Horn, Ernst Young
Troy Reed, Ernst Young
Henry Hayes, Schertz Citizen
2. SEDC Board Member Oath of Office for member appointed by City Council on 09/05/2023 for a term of two years ending on
09/30/2025. (S. Edmondson)
• Appointment: Eryn McElroy
Sheila Edmondson, City Secretary administered the oath of office to the new Board Member.
Board President Paul Macaluso welcomed her and ask Board Member Eryn McElroy to give an introduction. Ms. McElroy gave a
brief introduction of her background.
Hearing of Residents
3. 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 resident signed up to speak. No commits were made.
Minutes
4. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on Thursday, August 24, 2023. (T. Miller)
Board President Paul Macaluso asked for a motion to approve the Minutes of the Board of Directors Regular Monthly Meeting
held Thursday, August 24, 2023.
Moved by Board Member Roy Richard, seconded by Vice President Jesse Hamilton.
AYE: Board President Paul Macaluso, Vice President Jesse Hamilton, Board Secretary/Treasurer Sammi Morrill
Board Member Roy Richard, Board Member Bill Dixon, Board Member Eryn McElroy.
Presentations
5. Staff briefing on SEDC monthly financial statement for the month of August 2023. (S. Wayman)
Scott Wayman, Executive Director provided a summary and overview on the SEDC Financials for the month of August, 2023.
August, 2023 sales tax received was $596,424, a 1.9% decrease over the year prior. The 12 -month rolling average is 8.9% still
trending up. Expenditures for August was small with only 2 vendors invoicing over $1,000 Community Impact and Scenic Texas.
Total Cash & Investments figure at the end of August was 31.1 million.
6. Presentation by Applicant regarding Caterpillar Projects.
Scott Wayman, Executive Director introduced Evan Hom, Senior Manager and Troy Reed, Senior Tax Manager with Ernst Young
LLP. Mr. Horn introduced Bill Bates, Business Resources Manager with Caterpillar.
Mr. Bates gave an update on Project Hydra and Project Aquos.
The Schertz facility makes cylinder heads and a few cylinder blocks that go into engines in their plant in Seguin for Project
Hydra. Since 2022 Project Hydra is making 27L/32L cylinder heads and blocks for engines. Production will be starting 1st
quarter in 2024. The Hyrda Incentive Agreement commits to 24 new jobs with $50,000 annual salary and 22 million in capital.
Project Aquos currently makes 13L cylinder blocks and head machining operations to support newly announced C13D engine.
The Cl 31) will replace existing 11 L, 13L, 15L and some 18L products. The Project Aquos will create over 25 new jobs with
$43,000 annual salary and 70 million in capital.
Mr. Horn gave a summary of the Project Hydra proposed amendment for the annual compliance for both the City and Caterpillar.
Mr. Reed gave a summary of the Project Aquos proposed amendment for the annual compliance.
Public Hearing
7. Resolution 2023 -13 - An amendment to Economic Development Performance Agreement between Caterpillar Project Hydra and
the City of Schertz Economic Development Corporation. (S.Wayman)
8. Resolution 2023 -14 - An Economic Development Performance Agreement between Caterpillar Project Aquos and the City of
Schertz Economic Development Corporation.
Board President Paul Macaluso opened the public hearing for Items 7 & 8 at 6:25 pm.
1. Mr. Henry Hayes, Schertz Citizen - Inquired about permits or variances and any long term adjustments that may be a
challenge to the city.
Board Present Paul Macaluso closed the public hearing for Items 7 & 8 at 6:26 pm.
Closed Session
9. 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) the deliberate the offer of a financial or other
incentive to a business prospect.
• E -92 • E -88 • E -91
• E -81 • E -86
Start time: 6:28 p.m.
End time: 7:40 p.m.
Board President Paul Maculso reconvened to open session at 7:41 p.m.
Reconvene to Regular Session
10. Take any actions based on discussion held in closed session under Agenda Item No. 9.
No action taken based on discussion in closed session.
11. Resolution 2023 -13 - Approval of an amendment to Economic Development Performance Agreement between Caterpillar Project
Hydra and the City of Schertz Economic Development Corporation. (S. Wayman)
Motioned by Board Vice President Jesse Hamilton, seconded by Board Member Bill Dixon.
AYE: Board President Paul Macaluso, Vice President Jesse Hamilton, Board Secretary/Treasurer Sammi Morrill
Board Member Roy Richard, Board Member Bill Dixon, Board Member Eryn McElroy.
12. Resolution 2023 -14 - Approval of an Economic Development Performance Agreement between Caterpillar Project Aquos and the
City of Schertz Economic Development Corporation. (S. Wayman)
Board President Paul Macaluso read the following caption into record and asked for a motion:
Resolution 2023 -14 - Approval of an Economic Development Performance Agreement between Caterpillar Project
Aquos and the City of Schertz Economic Development Corporation.
Moved by Board Member Bill Dixon, seconded by Board Secretary /Treasurer Sammi Morrill.
AYE: Board President Paul Macaluso, Vice President Jesse Hamilton, Board Secretary /Treasurer Sammi Morrill
Board Member Roy Richard, Board Member Bill Dixon, Board Member Eryn McElroy
Requests and Announcements
Announcements by staff:
• Orientation Book for Board Members
• Office closed for Columbus Day October 9, 2023
• Next Board Meeting - October 26, 2023
• Lauren Shrum, Parks and Recreation Director, will present November 2023
• Goals and Mission Statement discussion will be presented in November 2023
• Ribbon cutting for Schertz/Cibolo /Selma Chamber October 26, 2023
• Recognition for Roy Richard at City Council Meeting October 17, 2023
• Establishing a Holiday Dinner Date
Requests by Board Members to place items on a future SEDC Board Meeting agenda.
• No requests by Board Members to place items on a future SEDC Board Meeting agenda.
Adjournment
Board President Paul Macaluso adjourned meeting at 7:46 p.m.
MINUTES PASSED :%,,ND APPROVED THIS DAY 2023.
Paul Macaluso Sammi Morrill
Board President Board Secretary