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HomeMy WebLinkAboutMinutes_GEDCO_06.17.2013Minutes of the Meeting of the {Georgetown Economic: Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, ,June 17, 2413 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, ,tune 17, 2013. Members Present: Steve Fought, Walt Barkalow, ,ferry Haimnerhm Patty Eason, Hugh Brown Members Absent: Kevin Kelly, Charles Carter Staff Present: Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley Ruin, Executive Assistant, Laurie Brewer, Assistant City Manager, Micki Rundell, Finance Manager, Skye Masson, Assistant City Attorney .......... Minutes Regular Meeting The Secretary, Hugh Brown, called the Meeting to Order. A. Consideration and possible action to elect officers to include President, Vice - President and Secretary consistent with Section 3.02 of the GEDCO Bylaws as result of new Councilmembers being appointed to the GEDCO Board. --Paul E. Brandenburg, General Manager Motion by Hammerlun, second by Fought to nominate Patty Eason as President (Approved 5 -0) (Carter and Kelly Absent) Motion by Brown, second by Eason to nominate Jerry Hammerlun as Vice President (Approved 5 -0) (Carter and Kelly Absent) Motion by Hammerlun, second by Fought to nominate Hugh Brown as Secretary (Approved 5 -0) (Carter and Kelly Absent) B. Discussion and possible action regarding the Project Progress Deport, including Airborn, 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 explained to the new Board Members the purpose of the Project Update. He told the Board that Enflite has added jobs but not as many as the Performance Agreement requires and that staff is working with the Company on a plan to address the compliance. He indicated that all of the other projects were on course. Fought asked for a clarification on how the Performance Agreements are negotiated and how the terms are set. Thomas provided an explanation. C Consideration and approval of the minutes from the Meeting held Monday, April 15, 2013 -- Hugh Brown, Secretary Motion by Brown, second by Barkalow to approve the minutes from the Meeting held on Monday, April 15, 2013. (Approved 5- 0)(Carter and Kelly Absent) D. Consideration of the May, 2013 Financial Reports- -Micki Rundell, Finance Manager Rundell provided an overview of the Financial Report. She told the Board that the sales tax revenues are approximately 91/2% ahead of last year. She told the Board that a more detailed sales tax report will be provided at the end of the year. E. Discussion and possible action regarding SU, a Georgetown manufacturing company- -Mark Thomas, Economic Development Director Thomas told the Board that his department regularly does retention visits with local. businesses. He provided an overview of a success story regarding Airborn. He then introduced the principals of STI, a local manufacturing company that makes handguns with an international market. The company is now at a point where they have grown to the extent that they need to expand. He introduced Tim Dillon to provide an overview of their business operations. Thomas told the Board that STT is looking at locations in Georgetown, but also at others in the local area so we are competing to keep them in Georgetown. Mr. Dillon provided an overview of the business operations and told the Board that he wants to stay in Georgetown. He went on to provide a PowerPoint Presentation to explain further. He said he's really familiar with the growth cycles. He said he expects a 10% growth over the next several years. He also told the board that his intent is to keep the firing range piece of the facility enclosed and safe, but it is imperative his company be allowed to discharge firearms in the city limits. They are grandfathered at their current location, but it is something that would need to be approved. He told the Board that 60% of his workforce are college educated /craftsmen and the rest manufacturing and on the line. He runs 2 shifts. He told the Board that they have already purchased property in Jarrell as a backstop. GEDCO Minutes /June 17, 2013 Page 2of5 F. Discussion and possible action regarding the speculative commercial buildings project - -Mark 'Thomas, Economic Development Director Thomas told the Board that we are starting to see stronger companies who are looking for commercial space. There is a need for space that is ready to go. Texas Outdoor Power has a 40,000 square foot pad site that is ready to go. Is there away to get over the threshold to get the buildings built without a specific tenant or company? Developers are hesitant to build spec buildings because of the amount of loan interest they have to pay until the buildings are leased. Mark was wondering if the Board would be willing to consider funding those types of costs for a year until the buildings were leased. Once the buildings were built, the Developer would pay those costs back, and if the building is not leased within a year, any costs related to the upkeep would then fall back on the Developer. He wanted to bring this concept to the Board for their consideration. The Board was receptive to this idea but wanted to make sure the concept was a legal use for 4A funding. Motion by Hamrnerlun, second by Fought to bring a more formal proposal back to the Board for its consideration with a legal opinion as to its viability. (Approved 5-0) (Carter and Kelly Absent) G Discussion and possible action regarding Texas Life Sciences Collaboration Center (TLCC) -Mark Thomas, Economic Development Director Thomas introduced Dr. Michael Douglas, the Executive Director, for TLCC. He told the Board we are at a critical point to move forward. TLCC is at a point they need to expand and build a new building. The companies are growing and expanding quickly and they also have new companies that want to come. Dr. Douglas told the Board about his background. TLCC is Service Provider for companies and helps them to nurture and develop these companies to the point they are ready to expand and grow. The next building that is being completed is already at 50 %. He went on to provide some of the economics of running their facility and the costs of expansion. He told the Board that their business plan has worked and provided an overview of the companies that are located at the TLCC and the economic impact they have provided to the community. He told the Board that TLCC serves the City as an economic arm to attract companies to Georgetown. He went on to explain the role of federal grants and how the GEDCO board can further assist the TLCC in their current efforts. Discussion regarding the role of GREX. There was a recommendation to continue to invest in the TLCC to assist it with its operations so that it can continue to serve the City as an economic arm . Thomas provided a GEDCO Minutes/June 17, 2013 Page 3 of 5 Report to the Board on the Return on Investment that the TLCC has provided to the community. The TLCC is requesting an annual commitment of $150,000, which could potentially be offset by federal grants. Eason told the board that this is exactly what she had hoped for when the City invested in that very first company at the TLCC. Motion by Brown, second to Hammerlun to commit $150,000 for the upcoming year and to authorize staff to negotiate a Performance Agreement outlining the terms for an ongoing commitment. (Approved 5- 0)(Carter and Kelly Absent) Eason left the dais. Recessed into Executive Session at 5:50 p.m. 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: H. 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. I. 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. - Discussion regarding terms for Performance Agreement with Radiation Detection Company -S'1T J. 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. Reconvened at 6:10 p.m. K. Action out of Executive Session. Motion by Fought, second by Barkalow to approve a Performance Agreement with Radiation Detection Company under the terms discussed in Executive Session, to clarify the amount of radiation waste and safety measures taken by the company related to radiation waste, review of the financial information on the Company, verify the Return on Investment, and then forward the Performance Agreement to City Council for its consideration (Approved 4 -0) (Carter, Kelly, and Eason Absent) GEDCO Minutes/June 17, 2013 Page 4of5 Motion by Fought, second by Barkalow to authorize staff to negotiate a Performance Agreement with SU under the terms discussed in Executive Session. (Approved 4- 0)(Carter, Kelly, and Eason Absent) Adjourned at 6:1.3 p.m. Attest: Hugh Brown, Corporate Secretary GPDCO Minutes /June 17, 2013 Page 5 of 5 — Aa Patty Eason, Nsident