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HomeMy WebLinkAboutMinutes_GEDCO_09.17.2012Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, September 17, 2012 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, September 17, 2012. Members Present: John Marler, Rachael Jonrowe, Tommy Gonzalez, Hugh Brown Members Absent Bill Sattler Staff Present: Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley Rinn, Executive Assistant, Laurie Brewer, Deputy City Manager, Micici Rundell, Finance Manager, Bridget Chapman, Acting City Attorney Regular Meeting Meeting was called to order at 4:30 p.m. A. Discussion and possible action regarding the Project Progress Report, including Airbom, Enflite, Radix BioSolutions, Lone Star Circle of Care, Grape Creek Winery, Georgetown Winery, and Difusion Technologies, Inc. -- Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager. Thomas provided a report to the Board and told them that Difusion has received their equipment and that Grape Creek is excited to get started and the timeline will probably be mid -January. B. Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, August 20, 2012—Rachael Jonrowe, Secretary Motion by Gonzalez, second by Marler to approve the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, June 25, 2012.(Approved 4-0) (Sattler Absent) C. Consideration of the August 31, 2012 Financial Reports--Micki Rundell, Finance Manager Rundell provided an overview to the Board. She told them that sales tax is up and provided insight as to the differences between last year 's collections vs. this year. The Board is interested in finding out from local vendors how much of the sales tax collected for their businesses is generated locally . Thomas has a retention visit scheduled with ProBuild and will make some inquiries about where their sales are corning from . There was an inquiry about the status of the Terravista Development and Mark told him that his understanding is that it is ready to move forward. There was discussion regarding how the impact that the Development will have on the local economy. D. Discussion and possible action to approve a Performance Agreement between GEDCO and the Georgetown Independent School District (GISD) for equipment grant for the Engineering Laboratories at Georgetown and Eastview High Schools in an amount not to exceed $200,560--Mark Thomas, Economic Development Director Chapman told the Board that this type of Agreement is new to the Board. She told the board that the statute appears to allow this project with GISD for a Career Center. She told them that the Agreement was written to fit within the parameters of the statute to memorialize an Agreement with GISD. GEDCO will provide the funds, the equipment purchased, and GEDCO will lease the equipment to GISD for $10 per year for as long as they provide the program. When the equipment wears out then GISD would come back to the Board at that time if a request for new equipment was needed . GISD would be responsible to insure and maintain the equipment, etc. Chapman outlined the Agreement, including provisions that will require that some type of program be implemented to work with local businesses to place graduates in local businesses, that GISD will report to the GEDCO Board annually about the program, including how many graduated, how many were placed with jobs, etc., and will also offer an annual tour of the engineering facilities. She told that if the Board approves the Performance Agreement it will go to the City Council on September 25, 2012. Motion by Jonrowe, second by Gonzales to approve a Performance Agreement between GEDCO and the Georgetown Independent School District (GISD) for an equipment grant for the Engineering Laboratories at Georgetown and Eastview High Schools in an amount not to exceed $200,560. (Approved 4-0) (Sattler Absent) E Discussion and possible action regarding the status of and possible termination of the Performance Agreement between GEDCO and Blackbird Enterprises, LLC and the potential negotiations with Project Bluebird to enter into a new Performance Agreement — Paul E. Brandenburg, City Manager and Mark Thomas, Economic Development Director Thomas told the Board that after the Agreement was approved that David Phillips met with him and requested some changes to the Agreement. Blackbird wants to change the location so that it wouldn't be tied to Tamiro if they moved, but that they had to stay in Georgetown and to also start the clock back on June 1, 2012 instead of the date when the Agreement was actually executed. The current Agreement includes an $87,000 grant for job creation. The issue for the company is that they have already begun hiring positions. Additionally, Blackbird is still part of their operations, but they also would like for the Agreement to be GEDCO Minutes/September 17, 2012 Page 2 of 4 with Bluebird Medical Enterprises and not Blackbird. The Board went on to discuss that Blackbird was the initial company who had the funds to start the funding and the concern that there is now a new now there are new company with no financial history. There was also discussion regarding the Certificate of Occupancy with at Tamiro Plaza. There was an indication that the Board was frustrated with all of the requested changes. The Board indicated that before approving any additional changes it would like to meet with Mr. Phillips to provide an overview as to the proposed changes and how they are different from the initial presentation that was provided to the Board . They want to know if funds are expended if they will help the company grow and create future jobs. The Board indicated that before expending approving the expenditure of funds it would like to see solid information that doesn't change, including the following. • Who is the Business Entity • What is the Stability • Future Job Growth • Future Capital Investment • Overview of Business Model Board indicated that it would evaluate a new proposal based on the new company and its business operations. Motion by Jonrowe, second by Marler to revoke current Performance Agreement with Blackbird. (Approved 4-0) (Sattler Absent) Motion by Marler, second by Jonrowe to Adjourn. 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: F. 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. G. Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. 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. H. Section 551.071. CONSULTATION WITH ATTORNEY Consultation with attorney regarding legal issues related to agenda items 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. I. Action out of Executive Session GEDCO Minutes/September 17, 2012 Page 3 of 4 Executive Session was not held, therefore, there were no action items. Meeting was adjourned at 5:00 p.m. Attest: Rzcael i Rachael Jonrowe, 2orpojate Secretary - John Marler, President GEDCO Minutes/September 17, 2012 Page 4 of 4