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HomeMy WebLinkAboutMinutes_GEDCO_01.25.2010Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, January 25, 2010 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, January 25, 2010. Members Present: I )ale Ross, Ron Shelly, Ben Oliver Members Absent: Rick Smith, Pat Berryman Staff Present: Paul Brandenburg, General Manager, Laurie Brewer, Assistant Director of Finance and Administration, Mark Thomas, Economic Development I )erector, Shirley Ruin, Executive Assistant to the City Manager, Chris Foster, Chief Finance Analyst Mark Sokolow, City Attorney Regular Meeting A. Discussion and possible action regarding the Project Progress Report, including Hope Lumber Company, Citigroup, Vista Solutions, Loading Dock, Airborn, Orthopeutics, The Beauty Escape Salon, Texas Outdoor Power Company, Fnflite, McIntosh Holdings, LLC, Antante, Quantum Logic Devices, Ringdale, Radix BioSolutions-- Mark Thomas, Economic Development Director and Paul E: Brandenburg, General Manager Thomas provided an overview of the current projects and told the Board that there were no substantive changes in the update. There was some discussion regarding the status of the McIntosh Project and the development issues that need to be resolved before the Agreement can move forward. If the deadline passes, McIntosh will need to reapply. Radix BioSolutions discussion has been removed from today's agenda due to legal review by Radix's Thomas requested that the next GEDCO meeting be held earlier in February instead of later so that Radix can move forward to Council at its first meeting in February . Discussion regarding the Return on Investment uiodeI for Radix. Thomas was instructed to run it at minimum and then again at a higher practical number to give the City a range to work with. Shelly requested that the Return on Investment reports be on record. Thomas provided a copy of a sample matrix for the Board review of types of companies that may request funding. Discussion regarding a matrix foimat that could be utilized by the City that can be utilized as a working tool that outlines whether a company may meet certain criteria for qualify for different levels of funding . Further discussion that the City needs for companies to understand that the funding is not 'free money" and that a return on investment is expected. Discussion regarding the need for guidelines and a scoring model to rank criteria to score companies competing for the same money . B. Consideration and approval of the minutes from the Regular Board Meeting held Monday, December 21, 2009--Ben Oliver, Secretary Motion by Ross second by Shelly to approve the minutes from the Regular Board Meeting held Monday, December 21, 2009. (Approved 3-0, Smith and Berryman absent) C. Consideration of the December 31, 2009 Financial Report--Micki Rundell, Finance Manager Laurie Brewer told the Board that she is going to defer sales tax discussion to coincide with next item. She told the board that there were no expenditures this month and that the Board has 52.8 is available to spend currently and anticipates S3.2M by year end. D. Presentation of sales tax information and analysis--Micki Rundell, Finance Manager Rundell introduced Chris Foster who provided a presentation regarding detailed sales tax analysis for the City of Georgetown. There are seven (7) categories, but retail entails the largest sales tax collections. He provided information about the impact of Wolf Ranch to sales tax collections. He provided information about the sales tax trends over the last several years. Additional discussion regarding impact of special events on sales tax collection. The report that is being provided is broader than breaking it down by smaller time increments. Further discussion regarding the variables that are utilized to determine sales tax forecasts. Food Services, Other Retail, Information, Motor Vehicles and Parts are the four areas that have remained the most constant variables If economy slows down retail sales collections could be impacted, which in turn would impact city services. Further discussion regarding the impact of Wolf Ranch to the City's sales tax collections. Discussion regarding how population growth and unemployment will impact sales tax collections. GEDCO Minutes/January 25, 2010 Page 2 of 4 E. Discussion and possible action to amend the terms of the Perforniance Agreement regarding Airborn, Inc. --Mark Thomas, Economic Development Director Thomas told the Board that Airborn has requested that the Agreement timeline be extended to May 31, 2010. Motion by Ross, second by Shelly to approve an Amended Performance Agreement regarding Airborn, Inc. (Approved 3-0, Smith and Berryman absent) Discussion and possible action regarding the approval of a Loan Agreement and Promissory Note between GEDCO and Ringdale, Inc --Mark Thomas, Economic Development Director Thomas provided an overview of the request of $20,000 for electrical upgrades. He told the Board that there is a positive Retuin on Inveslinent. He also told the Board that there is a section that was added to the agreement for wages and benefits . 'l'he Agreement is written such that the company will receive the funding after the construction of the electrical infrastructure, which is consistent with how the Board has handled these types of Agreements in the past. Discussion regarding whether the Board needs to front end the creation. 20,000 prior to the job Discussion regarding an analysis of the Return on Investment of companies who were already provided funding compared to what was anticipated. Board supports this project, but wants the agreement revised to provide the funding at the back end of the performance requirements. lhomas will let Ringdale know about the Board's recommendation to provide funding at the back end of the performance agreement and will bring this item back for consideration at the next GEDCO Meeting. Recessed into Executive Session at 11.20 am EXECUTIVE SESSION: The Georgetown Economic Development Corporation will meet in closed executive session as allowed by Texas Open Meetings Act (Texas Government Code Chapter 551), as follows: G. Section 551.072. DELIBERATION REGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase, exchange, lease or value of real property for purposes authorized by the Development Corporation Act which discussion in open session would have a detrimental effect on negotiations with third persons. H. Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. GEDCO Minutes/January 25, 2010 Page3of4 Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is conducting economic development negotiations; and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. -- Discussion and possible action regarding the approval of a Loan Agreement and Promissory Note between GEDCO and Radix BioSolutions aka Project Lab --Mark Thomas, Economic Developiiient Director Section 551.071. CONSULTATION WITH ATTORNEY Consultation with attoiiiey regarding legal issues related to agenda iteins and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Adjounied out of Executive Session and reconvened in Regular Session at 11:45a.m. J. Action out of Executive Session There was no action out of Executive Session. Adjourned at 11:46 a.m. Pat Berryman, Vice-Presid n Ben Oliver, Corporate Secretary GEDCO Minutes/January 25, 2010 Page 4 of 4