HomeMy WebLinkAboutAgenda_GEDCO_10.20.2014Notice of Meeting for the
Georgetown Economic Development Corporation and the Governing Body
of the City of Georgetown
October 20, 2014 at 3:30 PM
at in the City Council Chambers, located at 101 E. 7th Street, Georgetown, Texas
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA).
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contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City
Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711.
Regular Session
(This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose
authorized by the Open Meetings Act, Texas Government Code 551.)
A Consideration and approval of the minutes for Georgetown Economic Development Corporation
for the Regular Meeting held Monday, September 22, 2014--Hugh Brown, Secretary
B Consideration of the September 30, 2014 Financial Reports-Micki Rundell, Finance Manager
C Discussion and possible action regarding the Project Progress Report, including Airborn, Radix
BioSolutions, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion
Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radix, Radiation Detection
Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS
Texas Corporation—Paul E. Brandenburg, General Manager and Mark Thomas, Economic
Development Director
D Discussion and possible action regarding the Texas Life-Sciences Collaboration Center (TLCC) -
Mark Thomas
E Action out of Executive Session.
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session.
F Sec. 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.
G Section 551.072. DELIBERATIONREGARDING 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 adetrimental effect on negotiations with third persons.
H 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.
- Pecan Branch
- TLCC
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice
of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public
at all times, on the ______ day of __________________, 2014, at __________, and remained so
posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Consideration and approval of the minutes for Georgetown Economic Development Corporation
for the Regular Meeting held Monday, September 22, 2014--Hugh Brown, Secretary
ITEM SUMMARY:
ATTACHMENTS:
1. Draft Minutes for the Regular Meeting held Monday, September 22, 2014
FINANCIAL IMPACT:
None
SUBMITTED BY:
Hugh Brown, Corporate Secretary
ATTACHMENTS:
Description Type
Sept. 22, 2014 minutes Cover Memo
GEDCO Minutes
September 22, 2014
Page 1 of 3
Minutes of the Meeting of the
Georgetown Economic Development Corporation
And the Governing Body of the
City of Georgetown, Texas
September 22, 2014
The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on
Monday, September 22, 2014.
Members Present:
Steve Fought, Kevin Kelly, Patty Eason, Charles Carter, John Hesser
Members Absent: Walt Barkalow, Hugh Brown
Staff Present: Paul E. Brandenburg, General Manager; Mark Thomas, Economic Development
Director; Micki Rundell, Finance Manager; Laurie Brewer, Assistant City Manager; Jodi Levi, Senior
Accountant; Bridget Chapman, City Attorney; Tina Dunbar, Administrative Assistant
MINUTES
Call to Order at 03:35 PM
Legislative Regular Agenda
A Action out of Executive Session.
No executive session.
B Consideration and approval of the minutes for Georgetown Economic Development Corporation
for the Regular Meeting held Monday, August 18, 2014--Hugh Brown, Secretary
Brandenburg asked that the minutes be amended to show that he was in attendance at the
August meeting.
Motion by Fought, second by Hesser to approve the Georgetown Economic Development
Corporation minutes as amended for the Regular Meeting held Monday, August 18, 2014.
Approved 5-0
C Consideration and possible action to approve the GEDCO 2014/15 budget - Micki Rundell, Finance
Manager
Rundell explained the budget document. Kelly questioned the loan payment for Citicorp. Rundell
explained that GEDCO is repaying the Wastewater fund for the wastewater line.
GEDCO Minutes
September 22, 2014
Page 2 of 3
Motion by Carter, second by Fought to approve the budget as presented. Approved 5-0
D Consideration of the August 2014 Financial Reports-Micki Rundell, Finance Manager
Rundell explained the financial report for August.
E Discussion and possible action regarding the Project Progress Report, including Airborn, Radix
BioSolutions, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion
Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radix, Radiation Detection
Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS Texas
Corporation—Paul E. Brandenburg, General Manager and Mark Thomas, Economic Development
Director
Thomas provided the status of existing projects and stated that TLCC will make a presentation at
the next meeting.
F Discussion and possible action to approve the Economic Development Department's participation
in the Wilco Funding Portal joint venture on behalf of GEDCO - Mark Thomas
Thomas explained the Wilco Funding website and how it uses crowdfunding to help smaller
companies and the startup market. This segment of Georgetown businesses have been hard for
us to assist. Round Rock brought the Wilco Portal to the Williamson County Partnership. Thomas
explained that 2 Georgetown businesses are successfully using the website: Etruck (raised
$200,000) and All Things Kids. The administrator of the Wilco Portal is requesting a small one-
time set up fee from member communities.
Eason asked about the security of having our companies posted on the site. Thomas explained
that there are no Guarantees but by doing our jobs we will keep the companies in Georgetown.
Motion by Fought, second by Carter to approve payment of the start-up fee for and participation
in the Wilco Funding Portal. Approved 5-0
D Consideration and possible action on funding for the Pecan Branch development - Mark Thomas
Thomas introduced Randy Mongold and named some of his completed and current projects in
Georgetown, such as, Innervision, Texas Outdoor Power, South Austin Medical Plaza and the
Georgetown Behavioral Health Institute. Thomas explained how Mr. Mongold came to own the
property and how the market has driven the creation of the Pecan Branch development. Thomas
confirmed that this project is the one recently covered in the press. Mongold explained his
deliberations with potential retailers for this property and his opinion of the future for adjacent
properties.
Discussion was held on the benefits of developing this area as retail rather than the planned
employment center. Thomas explained that GTEC was favorable of the project and is now going
through its process to determining if and what type of incentives could be available to the project.
GEDCO Minutes
September 22, 2014
Page 3 of 3
Eason asked the City Attorney if the number of Council members on GTEC and GEDCO combined
presents a rules violation (quorum of City Council) when the Boards vote on the same item
separately. Chapman explained that it is not an issue as both GEDCO and GTEC are private
corporations and each corporation is deliberating on a different aspect of this project. Based on
this explanation, Eason stated for the record that the reason a majority of City Council can vote
on this issue is 1) GEDCO and GTEC are each private corporations (not like the City’s other Boards
or Commissions) and 2) each Corporation is voting on a different issue of the project.
Motion by Fought, second by Hesser to support the move from employment center to retail for
this project. Approved 5-0
Motion by Fought, second by Kelly to direct staff to create an ROI on this project for
consideration of possible incentives. Approved 5-0
NO EXECUTIVE SESSION
ADJOURNMENT
The Meeting was adjourned at 4:30 p.m.
Attest:
______________________________ ___________________________________
Hugh Brown, Corporate Secretary Patty Eason, President
City of Georgetown, Texas
SUBJECT:
Consideration of the September 30, 2014 Financial Reports-Micki Rundell, Finance Manager
ITEM SUMMARY:
See Attachment
FINANCIAL IMPACT:
None
SUBMITTED BY:
Micki Rundell, Finance Manager
ATTACHMENTS:
Description Type
September 30, 2014 Financial Report Cover Memo
City of Georgetown, Texas
SUBJECT:
Discussion and possible action regarding the Project Progress Report, including Airborn, Radix
BioSolutions, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion
Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radix, Radiation Detection
Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS
Texas Corporation—Paul E. Brandenburg, General Manager and Mark Thomas, Economic
Development Director
ITEM SUMMARY:
The GEDCO Board has requested that staff provide a project progress and status report at each
meeting on all of the active projects discussed by the Board.
ATTACHEMENT:
1. Project Status Report
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Paul E. Brandenburg, General Manager and Mark Thomas, Economic Development Director
ATTACHMENTS:
Description Type
GEDCO Project Log Backup Material
City of Georgetown, Texas
SUBJECT:
Discussion and possible action regarding the Texas Life-Sciences Collaboration Center (TLCC) -
Mark Thomas
ITEM SUMMARY:
At it July 15, 2013 meeting, GEDCO approved a performance agreement to provide a grant of
$150,000.00 to TLCC. As part of the agreement, GEDCO agreed to consider future funding on an
annual basis. Below is the item and action from the 7-15-2013 minutes.
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)
When this agreement expired on September 30, 2014, TLCC had exceeded all of the requirements
of the agreement (2013/2014 Agreement attached). The attached document and presentation by
TLCC will detail the success of TLCC and its future plans.
Now, therefore, staff respectfully requests that GEDCO approve funding of $150,000.00 and
direct staff to create a performance agreement for Oct. 2014 to Sep. 2015.
FINANCIAL IMPACT:
$150,000.00
SUBMITTED BY:
ATTACHMENTS:
Description Type
2013/2014 Performance Agreement Cover Memo
Presentation Cover Memo
Texas Life Sciences
Collaboration Center
Report to GEDCO
October 20, 2014
TLCC Report to GEDCO
October 2014
•In October 2013 GEDCO provided $150,000 to
support the annual operational budget of TLCC
•GEDCO required a semi annual report
(completed) and an annual report
•Multi year support for $150,000 annually was
requested
•GEDCO approved support for one year but asked
for TLCC to return in one year to report results
and the board recognized that additional funding
would likely be requested
TLCC Funding Model
(Real Estate Model)
•GREX built the 15,000 sq. ft. building now occupied by TLCC
and TLCC companies. This is referred to as TLCC building #1.
•TLCC leases from GREX at a favorable rate per sq. ft.
•TLCC companies pay a market lease rate to TLCC (for
enhanced bio space) which results in positive cash flow to
TLCC
•The positive cash flow in part provides operational funding
to TLCC
•There has been a shortfall of funding in every year of
operations based on the amount of total space producing
lease revenue
•That funding gap is what the city and then GEDCO have
provided funding for
TLCC Funding Model
(Real Estate Model)
•It is expected that when there is enough lease space
constructed that the gap will be closed in this real estate
funding model
•A second 15,000 sq. ft. building has been completed and is
being built out now for clients with signed leases
•A third building pad site is ready to go and construction can
start on that building as soon as building number two is
filled
•Two thirds of building number two is leased and under
construction
•When three 15,000 sq. ft. buildings are filled it is expected
that the real estate model will provide sufficient funding for
TLCC.
Funding History
•The city and then GEDCO have combined to
provide $530,000 for gap/operational funding
•The funding by year has been by 70K (2007), 70K
(2008), 90K (2009), 50K (2010), 50K (2011), 50K
(2012) and 150k in 2013.
•It was recognized in 2013 that $150,000 was the
ongoing gap until more space was constructed
•Up to 2013, federal grant funds provided
substantial operational funding
ROI Analysis based on Total Investment
•The city/GEDCO have provided $530,000 for
operational funding over a seven year period
•There has been a shortfall of an estimated +/‐
$338,350 based on the direct increase of
property taxes, sales taxes and utility usage
measured against the total investment by the
city and GEDCO over a seven year period
•Or looked at another way TLCC has provided
$191,650 in direct benefits to the city
One Year Return on Investment
•In 2013 GEDCO invested $150,000 for the measurement period from
October 2013 to October 2014
•During that time 50 TLCC jobs were retained and 6 net new jobs were
created at TLCC
•GREX completed TLCC building number II with an estimated value of
$2,500,000
•TLCC was awarded an EDA grant for $300,000
•Radiation Detection Company (RDC) constructed a $5,000,000 facility
across the street from TLCC and cited TLCC as a main reason Georgetown
was selected
•RDC created 50 new jobs in Georgetown during the measurement period
•Inner Visions: 80,000 sq. ft. +/‐facility under construction. Cited TLCC as a
key reason for constructing needed spec building space
•Other indirect impacts have occurred as well including the two new
behavioral health hospitals locating near TLCC
TLCC building II: 15,000 sq. ft.
Radiation Detection Company: 15,000 Sq.
Ft. Building and 50 new jobs
Inner Visons Spec Building:
Under construction
Conclusion
•The GEDCO investment in TLCC is accelerating job
growth and capital investment in the valuable bio
technology sector
•The goal of the bio initiative is to create a bio
technology cluster which is occurring
•TLCC is requesting funding of $150,000 to cover
partial operational funding for the period of
October 2014 to October 2015
•Every effort will be made to make TLCC
sustainable through a real estate model for
funding or from other sources
City of Georgetown, Texas
SUBJECT:
Action out of Executive Session.
ITEM SUMMARY:
FINANCIAL IMPACT:
None
SUBMITTED BY:
Bridget Chapman, City Attorney
City of Georgetown, Texas
SUBJECT:
Sec. 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.
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
City of Georgetown, Texas
SUBJECT:
Section 551.072. DELIBERATIONREGARDING 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 adetrimental effect on negotiations with third persons.
ITEM SUMMARY:
FINANCIAL IMPACT:
n/a
SUBMITTED BY:
Bridget Chapman, City Attorney
City of Georgetown, Texas
SUBJECT:
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.
- Pecan Branch
- TLCC
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Bridget Chapman, City Attorney