HomeMy WebLinkAboutMinutes_GEDCO_07.15.2013Minutes of the Meeting of
the Georgetown Economic Development Corporation
and the Governing Body of the
City of Georgetown, Texas
Monday, July IS, 2013
The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on
Monday, July 15, 2013.
Members Present:
Steve Fought, Walt Barkalow, Jerry Hammerlun, Patty Eason, Hugh Brown, Kevin Kelly, Charles
Carter
Members Absent:
Staff Present:
Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley
Rinn, Executive Assistant, Micld Rundell, Finance Manager, Laurie Brewer, Assistant City
Manager, Skye Masson, Assistant City Attorney
Minutes
Regular Meeting
Patty Eason opened the meeting at 4:31 p.m.
Board introduced themselves.
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 told the Board that all projects are on track except for one that is not going
to meet its job expectations and staff will come back to the Board with
recommendations and options. Difusion Technologies is a company at TLCC who
received a piece of equipment with a GEDCO Grant. Difusion is potentially going to
be purchased by another company and staff will keep Board abreast of the situation.
Thomas also provided an overview of the clawbacks in their contract to the new
members of the Board. Discussion as to if they are purchased by a local company
whether the contract could be amended to include the new company.
Thomas provided an overview of how the Difusion deal was structured and
acknowledged that this particular deal was unique.
He also told the Board that Grape Creek has 3 levels of sales expectations and that
Georgetown sales are above their highest level of expectation.
B Consideration and approval of the minutes from the Meeting held Monday, June 17,
2013 -- Hugh Brown, Secretary
Motion by Barkalow second by Hammerhm to approve minutes from the Meeting
held Monday, June 17, 2013 (Approved 7 -0)
C. Consideration of the June 30, 2013 Financial Reports - -Micki Rundell, Finance
Manager
Rundell provided an overview of the June 2013 financial report. She told them that
sales tax continues to be ahead of projections.
She also told the Board that sales tax was 16.7% higher in May 2013 than May 2012
and that Building Materials and Information Technology sectors compiled a good
portion of the increase. She also told them she would bring the Grape Creek
reconciliation at the next reporting period.
D. Consideration and possible action to approve the GEDCO 2013/14 Budget. — Micki
Rundell, Finance Manager
Rundell provided an overview of the proposed GEDCO 2013/14 Budget. She told
them that the payments for Airborn, TLCC, and Summit at the Rivery are included
in the proposed budget. She did indicate that if GEDCO approved the Summit at the
Rivery project they would recommend that it be debt funded. As part of the budget
package Rundell provided a listing of Projects that have been funded over the last 5
years for the Board's review.
She told them that once it was approved by GEDCO it would then go to Council for
approval.
Motion by Brown, second by Fought to approve the GEDCO 2013/14 Budget.
(Approved 7 -0)
GEDCO Minutes /July 15. 2013
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E. Consideration and possible action regarding the Administrative Services Contract
between the City of Georgetown and the Georgetown Economic Development
Corporation- -Micki Rundell, Finance Manager
Rundell provided an overview of the Administrative Services contract with the City
of Georgetown. She explained that this contract is for indirect and direct costs
related to the services City staff provides to the Board. She provided an overview of
what those costs include.
Motion by Brown, second by Barkalow to approve the Administrative Services
Contract between the City of Georgetown and the Georgetown Economic
Development Corporation. (Approved 7 -0)
F. Discussion and possible action regarding a Performance Agreement with Texas Life
Sciences Collaboration Center (TLCC) in an amount not to exceed $150,000 -Mark
Thomas, Economic Development Director
Thomas told the Board that this contract is essentially the same contract that the
GEDCO Board previously approved. He clarified that the Executive Director is not
classified as a full-time employee. However, he currently works more than that and
also collaborates with Southwestern University. There was further discussion
regarding the subjectivity of the performance measures as to how many companies
have to be retained in that, as in the situation with DiFusion, things can change
quickly. He said that while some companies may leave, there will be others that
take their place. He wanted to get some direction from the Board as to how to
approach the performance measures related to number of companies and
employees.
Board indicated that the way it was handled this past year when TLCC provided a
report as to its activities is appropriate and that when they get ready to come back
next year, that they provide a similar report.
Motion by Barkalow, second by Carter to approve the Performance Agreement
with Texas Life Sciences Collaboration Center (TLCC) in an amount not to exceed
$150,000. (Approved 7 -0)
G Discussion and possible action regarding a Performance Agreement with Radiation
Detection Company (RDC) in an amount not to exceed $320,000 -Mark Thomas,
Economic Development Director
Thomas introduced the CEO of RDC to the Board.
GEDCO Minutes /July 15, 2013
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Thomas provided an overview of the terms of the Performance Agreement to assist
RDC to purchase the property for their facility, which is directly across from TLCC
and next to Airbom.
He also told the Board that the widening of Snead Drive is necessary because of the
expansion of TLCC and the RDC facility.
He told the Board that there was a change from the original job expectations of 60
employees to 50 full and part time employees. There was also a clarification of the
lien status for GEDCO with regard to the construction and permanent loans for the
facility.
RDC clarified that they expect that approximately 28 of their current employees will
be coming with them. He said that many of them are already tallcing to real estate
professionals to either build or purchase existing homes.
Motion by Brown, second by Barkalow to approve the Performance Agreement
with Radiation Detection Company (RDC) in an amount not to exceed $320,000.
(Approved 7 -0)
Recessed into Executive Session at 5:17 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 551.067. 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 STI International
- Radiation Detection Company - financial and other proprietary information
1. 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 into regular session at 5:44 p.m.
GEDCO Minutes /July 15, 2013
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K. Action out of Executive Session.
There was no action out of Executive Session.
Adjourned at 5:45 p.m.
Attest:
Hugh Brown, Corporate Secretary
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Patty EasogPresident