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HomeMy WebLinkAboutMinutes_GEDCO_09.16.2013Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, September 16, 2013 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, September 16, 2013. Members Present: Steve Fought, Patty Eason, Hugh Brown, Kevin Kelly, Charles Carter Members Absent Jerry Hammerlun, Walt Barkalow Staff Present: Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley Rinn, Executive Assistant, Micki Rundell, Finance Manager, Laurie Brewer, Assistant City Manager, Bridget Chapman, City Attorney, Susan Morgan, Assistant Finance Director, Chris Foster, Utility Financial Analyst Minutes Regular Meeting Meeting was called to order at 4:30 p.m. A. Sales Tax Presentation — Chris Foster, Utility Financial Analyst and Micki Rundell, Finance Manager Rundell provided an overview of the item. Chris Foster provided a PowerPoint presentation outlining the sectors that are providing the City's "Sales Tax Identity". He told the Board that the City of Georgetown has had significant sales tax growth compared to other Cities in the region. He also told the Board that building materials is by far the largest sector providing sales tax to the City. He indicated that this area is the largest risk for the City if the building economy had a downturn. He indicated that a lot of cities in the region get their building materials from Georgetown. Wolf Ranch represents about 30% of the sales tax collected from retail. He told the Board that inflation is low right now and hasn't changed much, but the potential is that when inflation does eventually increase it may hit hard and fast. He also talked about how the healthcare exchanges, national Debt Limit discussions, Syria, drought, etc. can impact the local economy. He also discussed how retail establishments such as Bass Pro, Waterpark, Gander Mountain, etc. are responses to population growth. He indicated that it is difficult to estimate what the future will hold for the local economy and local spending, however, the expectation is for the population boom to slow, but for per capita income to continue to rise. He indicated that we are currently 5 years into the current business cycle, maturing period. B Discussion and possible action regarding the Project Progress Report, including Airborn, Enflite, Radix BioSolutions, Lone Star Circle of Care, Grape Creek Winery, Georgetown Winery, Difusion Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radiation Detection Company -- Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager. Thomas indicated that all projects are on track, except Enflite, which may have a jobs shortfall. An update will be provided at the next GEDCO Meeting. C. Consideration and approval of the minutes from the Meeting held Monday, July 15, 2013 -- Hugh Brown, Secretary Motion by Fought, second by Kelly to approve the minutes from the Meeting held Monday, July 15, 2013. Approved 5-0. D. Review and possible action related to the Day and Time of GEDCO Meetings --Paul E. Brandenburg, General Manager Brandenburg provided an overview. Motion by Fought, second by Carter to change the meeting time to 3:30 p.m. Approved 5-0. E. Consideration of the August 31, 2013 Financial Reports--Micki Rundell, Finance Manager Rundell provided an overview of the Financial Report. She told the Board that Sales Tax Collection for July was 3.11% higher than last year. She indicated that not much changed from the last report. F. Presentation of the Grape Creek Project Closeout Report--Micki Rundell, Finance Manager Rundell provided an overview of the Closeout Report for Grape Creek. She told the Board that any balance remaining will be reallocated to the Downtown TIRZ and GEDCO. G. Discussion and possible action regarding Freeport Exemption Study --Mark Thomas, Economic Development Director Thomas provided an overview and explanation of the Freeport Exemption and how it is used as an economic tool. Thomas told the Board that there are 7 or 8 companies who are taking advantage of the Freeport Exemption in Georgetown. He explained why some companies utilize the tool and others do not. He told the Board that we currently have a double Freeport Exemption (County and City). He also told them that staff has been GEDCO Minutes/September 16, 2013 Page 2 of 4 working with GISD to show them benefits of participating in a triple Freeport Exemption. He indicated that GISD is receptive to participating as long as it can be shown that there is no negative impact to their budget. Staff's recommendation is to hire a consultant to perform an analysis of the financial impact of a Freeport Exemption on the GISD. Thomas indicated that if the analysis will show that GISD will ultimately be made whole then they will probably participate. He told the Board that the cost of the study will be $6,000. Discussion regarding history of the Freeport Exemption and its impact with the County. Motion by Brown, second by Fought to hire a consultant to perform an analysis of the financial impact of a Freeport Exemption on the Georgetown Independent School District in an amount not to exceed $6,000. Approved 5-0 H. Staff report regarding proposed Performance Agreement for improvements associated with the development of new business enterprises in The Summit at the Rivery Park Subdivision, including possible direction to Staff -- Bridget Chapman, City Attorney Chapman provided an overview of the Summit at the Rivery Conference Center Project to this point. She told the Board that they received the cost estimates from the developer today and that those figures would be used to complete the necessary agreements. She said that staff should be able to bring a Performance Agreement to the GEDCO Board for its consideration at the October Board Meeting. She told the Board that the City has made a $12.5 million financing commitment for the Project to be allocated between the City, GTEC, and GEDCO. She also told the Board that it would be asked to participate in the infrastructure costs. She told the Board that GTEC is more limited in the types of projects it can participate in, specifically transportation related. GTEC is funding the Transportation Improvement Assessment (TIA) for the subdivision. She also told the Board that this project is located in a TIRZ. Brandenburg indicated to the Board that staff is bringing this update to all the Boards so that everyone is aware of all of the moving parts of the project and all of the Agreements that are required. Rundell provided an overview of the portion of this project that GEDCO will be asked to participate in. She told them the City will own the parking garage and that debt will be issued for the project. Discussion regarding the annual financial impact to GEDCO. Rundell indicated the Agreements will be structured such that the financial impact will be minimal to the Board's Budget. Rundell indicated that the risk for this project has been mitigated as much as it can be and staff feels comfortable with how it is coming together. GEDCO Minutes/September 16, 2013 Page 3 of 4 Recessed into Executive Session 5:31 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) I. 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. J. 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. --STI International K. 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. L. Action out of Executive Session. 5:49 p.m. Motion by Fought second by Kelly to direct staff to proceed as discussed in Executive Session with regard to STI International. Approved 5-0 Adjourned at 5:51 p.m. Attest: Hugh Brown, Corporate Secretary GEDCO Minutes/September 16, 2013 Page 4 of 4 Patty Eason, Rfesident