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HomeMy WebLinkAboutAgenda_GEDCO_11.15.2021Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown Nov ember 15, 2021 at 4:00 P M at Georgetown City Hall Community Room, 808 Martin L uther K ing Jr. St. T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C ons ideration and approval of the O ctober 18, 2021 G EDC O minutes - S haron P arker, Board Liaison. B Disc ussion and possible action to approve a G eorgetown S mall Bus iness Loan P rogram – Michaela Dollar, Economic Development Director C Disc ussion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2021, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 1 of 35 City of Georgetown, Texas Georgetown Economic Development Corporation November 15, 2021 S UB J E C T: C onsideration and approval of the O c tober 18, 2021 G EDC O minutes - S haron P arker, Board Liais on. IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Minutes Backup Material Page 2 of 35 GEDCO Minutes October 18, 2021 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas October 18, 2021 The Georgetown Economic Development Corporation of the City of Georgetown, TX, met on Monday, October 18, 2021 at 4:00 PM at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas Members Present: Hugh Brown, Robert Hilton, Ron Garland, Steve Fought, Kevin Cummins, and Shawn Hood. Members Absent: Barrie Laing, Staff Present: David Morgan, City Manager; Michaela Dollar, Director of Economic Development; Nathan Parras, Assistant Finance Director; Conchita Gusman, Business Retention Manager, Kathryn Clayton, Budget Analyst, Sharon Parker, Board Liaison. Guest Present: MINUTES Meeting called to Order at 4:01 pm A. Consideration and approval of the August 16, 2021 GEDCO Minutes— Sharon Parker, Board Liaison Motion to approve by Hugh Brown , 2nd by Robert Hilton . Approved 5-0, Barrie Lang was absent and Kevin Cummins had not arrived. . Kevin Cummins arrived at 4:06pm B. Consideration of the preliminary financial report for period ending September 30, 2021 – Nathan Parras, Assistant Finance Director. Nathan presented the financial reports for period ending September 30, 2021. No Action needed. Board moved to Item D and E due to speaker for Item C running late. C. Discussion and possible action to approve a Georgetown Small business Loan Program –Michaela Dollar, Economic Development Director. Michaela presented to the board a proposed partnership with BCL and how the program would work between GEDCO and BCL. Guest speaker Rosa Valdez presented the background and experience administration these types of programs. There was discussion on the types of business and potential eligibility criteria. Staff will compile a more detailed scope based on feedback received and bring back to GEDCO for action at the next meeting. No Action taken. D. Consideration and possible action to amend a performance agreement between the City of Georgetown and WBW Single Development LLC – Series 201–Michaela Dollar, Economic Development Director. Michaela presented to the board a recommendation to amend a performance agreement with WBW Single Development. The engineer has stated numerous factors have contributed to not meeting the Certificate of Occupancy issued on or before December 31,2020. These factors included the upheaval in the marketplace Page 3 of 35 GEDCO Minutes October 18, 2021 Page 2 of 2 due to COVID-19, as well as the supply constraints that manifested in the construction industry. There was also a negotiated purchase from the City in order to achieve approvals to the design that HARC mandated for window openings. Additionally, they were required to design a substantial stormwater conveyance system. The unforeseen challenges resulted in construction completion and CO issuance on September 3, 2021. Motion to approve by Hugh Brown, 2nd by Steve Fought. Approved 6-0 Barrie Lang absent . E. Discussion regarding the Staff Report -David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Michaela presented the staff report. No action needed. Board moved back to Item C. ----GEDCO entered into Executive Session at 5:07 pm and returned to Regular Session at 5:23 pm----- F. Action out of Executive Session. Motion to approve Project Flex Power as discussed in executive session by Hugh Brown, 2nd by Robert Hilton Approved 6-0 Barrie Lang absent . Meeting adjourned at 5:24 pm Hugh Brown, Secretary Kevin Cummins, President Page 4 of 35 City of Georgetown, Texas Georgetown Economic Development Corporation November 15, 2021 S UB J E C T: Dis cus s ion and pos s ible ac tion to approve a G eorgetown S mall Busines s Loan P rogram – Mic haela Dollar, Ec onomic Development Direc tor IT E M S UMMARY: P ropos al to partner with BC L of Texas to adminis ter a G eorgetown S mall Bus iness Loan P rogram F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Pres entation Pres entation Page 5 of 35 Georgetown Small Business Zero Interest Loan Program November 15, 2021 Page 6 of 35 Background •Current incentive structure makes small business incentives difficult •Emphasis on small business support in recent years •Staff has been looking for options to support small businesses in Georgetown •Partnering with a 3rd party, similar to the COVID-19 Grant Program, is best way to achieve Page 7 of 35 BCL of Texas •BCL of Texas is a US Treasury Certified Development Financial Institution (CDFI), a U.S. Small Business Administration Certified Development Corporation (CDC), and a HUD-certified housing counseling agency. •Our other credentials and certifications include: •501c3 nonprofit organization •Community Development Entity (CDE) •HUD Secondary Finance Lender •Nationwide Multi -State Licensing System (NMLS) Regulated Lender •Office of Consumer Credit Commissioner (OCCC) Regulated Lender •USDA Intermediary lender •USDA Micro Lender •U.S. Small Business Administration Micro Lender •U.S. Small Business Administration Community Advantage (7a) Lender Page 8 of 35 GEDCO & BCL of Texas Proposed Partnership PILOT •BCL of Texas will reserve $250,000 of lending capital to make loans to City of Georgetown Small Businesses •Businesses can borrow up to $50,000 each with a 36 month term each •GEDCO will pay an interest rate of 7% on behalf of each borrower to BCL of Texas to administer the loans •This will be paid out of the 10% of GEDCO funds allowed for promotion •Estimated at $2,800 per business for first 12 months, if equal payments are made over the 36-month period (up to $14,000 in year one if all funds are used) •BCL of Texas will provide quarterly loan portfolio reports for interest payments Page 9 of 35 Loan Qualifications •Meet BCL underwriting guidelines •Be located within the Georgetown city limits •$3 million or less in annual revenues •Have less than 25 employees •Must pay a “livable wage” to employees •In business a minimum of 5 years, or in business a minimum of 3 years for women and minority owned businesses •Must be used for capital investment, not operating expenses Page 10 of 35 Messaging for Pilot Loan Program •Will be listed in the incentive portion of the economic development website at a “Partnership with BCL of Texas” •Will be referral-based by economic development staff in order to better target the funds for expansion projects specifically •Will not do a public call for applicants due to the low number of total businesses able to take advantage of the program •If program is successful, we can look to broaden its reach Page 11 of 35 Questions? Page 12 of 35 City of Georgetown, Texas Georgetown Economic Development Corporation November 15, 2021 S UB J E C T: Dis cus s ion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager IT E M S UMMARY: T he G EDC O Board has requested that staff provide a project progres s and status report at eac h meeting on all of the ac tive projec ts dis cus s ed by the Board. Activity R eport P erformanc e Agreement R eport O ther S taff Items F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Active Project Report Backup Material Activity Report - November 2021 Pres entation Page 13 of 35 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended WBW Development Infrastructure reimbursement grant of $200,000 for qualified expenditures and a $120,000 job creation grant for the creation of 30 jobs over 6 years related to the development of their headquarters location in Downtown Georgetown. (*First Amendment effective 11/9/2021 establishes Certificate of Occupancy issue date as 11/9/2021)3/8/2019 (within 6 years of the certificate of occupancy date. CofO date= 11/9/2021) 11/9/2027 320,000$ 4871 Williams Dr., LLC (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 89,500 square feet of commercial building space.3/26/2019 12/31/2023 250,000$ Cockrum Commercial (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 60,000 square feet of new professional office space on Williams Dr.3/26/2019 12/31/2023 250,000$ Atmos Energy Infrastructure reimbursement grant of $148,499.36 for the installation of 776 feet gas main along 7th, 8th, and 9th streets.4/6/2019 148,499$ 143,674$ Texas Speed & Performance Job creation grant of $2K per job up to 100 jobs in 5 years.11/12/2019 11/12/2024 200,000$ Titan NorthPark35, LLC Infrastructure reimbursement grant for qualified infrastructure costs related to the speculative development of a master planned industrial business park located at SH130 & I35.11/17/2020 Certificate of Occupancy date $1,900,000 (Motion Commercial Properties) assigned to: Titan NorthPark35, LLC Infrastructure reimbursement grant in connection with the construction of 2 bldgs : $500K infrastructure reimbursement bldg #1 $500K infrastructure reimbursement bldg #2 Certificate of occupancy date 10 year anniversary of start date $1,000,000 --------- GEDCO - AGREEMENTS STATUS REPORT November 15, 2021 Page 14 of 35 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - AGREEMENTS STATUS REPORT November 15, 2021 Costco Agreement to partner with Atmos for natural gas line extension and reimbursement of cost to GEDCO by Costco if retail store construction is not completed.12/10/2019 12/10/2024 N/A Page 15 of 35 Economic Development Activity Report November 2021 Page 16 of 35 Strategic Goal 1 Support existing businesses and industries Page 17 of 35 Business Retention Activity 0 10 20 30 40 50 60 No v - 2 0 De c - 2 0 Ja n - 2 1 Fe b - 2 1 Ma r - 2 1 Ap r - 2 1 Ma y - 2 1 Ju n - 2 1 Ju l - 2 1 Au g - 2 1 Se p - 2 1 Oc t - 2 1 Visits Touches Page 18 of 35 Business Retention Activity •Held annual business appreciation event 10/29 •Holding annual BRE visits with major employers •Working on Small Business Loan Fund program Page 19 of 35 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 20 of 35 Leads Received 0 5 10 15 20 25 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY20 FY 21 FY22 11 1 Rolling 12-Month Average Page 21 of 35 Qualified Leads 0 2 4 6 8 10 12 14 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY20 FY21 FY22 Rolling 12-Month Average Page 22 of 35 Site Visits 0 1 2 3 4 5 6 7 8 9 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY20 FY 21 FY22 Rolling 12-Month Average Page 23 of 35 Active Projects 0 10 20 30 40 50 60 70 80 No v - 2 0 De c - 2 0 Ja n - 2 1 Fe b - 2 1 Ma r - 2 1 Ap r - 2 1 Ma y - 2 1 Ju n - 2 1 Ju l - 2 1 Au g - 2 1 Se p - 2 1 Oc t - 2 1 Development Hot Warm Cold Page 24 of 35 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 25 of 35 Workforce Development Activity •Held Manufacturing Day 10/22 Page 26 of 35 Strategic Goal 4 Encourage speculative development Page 27 of 35 Speculative Development Activity •Continued working with landowners and speculative developers on sites including: •NorthPark35 •Gateway Commerce 35 •Longhorn Junction •“Golden Triangle” •Kelley Foundation Property Page 28 of 35 Overall Goal Tell our story to a broader local audience Page 29 of 35 Other Activity •Participated in Citizen Leadership Academy –Development Day •Prepping for Leadership Georgetown Economic Development Day •Prepping for Shop Small Business Saturday 11/27 •Planning downtown parking garage engagement •Planning for 2022 Economic Development Symposium •Prepping for MD&M East 12/6 –12/9 with the WilCo EDP •Planning the 2022 WilCo EDP Site Selector Fam tour •Beginning updates to 2022 Community Profile (transitioning to digital) •Planning Q4 e-newsletter Page 30 of 35 Economic Indicators Page 31 of 35 Unemployment Rate 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Ma r 2 1 Ap r i l 2 1 Ma y 2 1 Ju n e 2 1 Ju l y 2 1 Au g 2 1 Se p t 2 1 Unemployment Rate Rolling 12-Month Average Page 32 of 35 Sales Tax Collections $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Page 33 of 35 Construction Permit Applications 0 200 400 600 800 1000 1200 1400 1600 1800 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sept 21 Oct 21 # of Permits Valuation (in millions) Page 34 of 35 Certificates of Occupancy Issued 0 2 4 6 8 10 12 14 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Ma r 2 1 Ap r i 2 1 Ma y 2 1 Ju n 2 1 Ju l 2 1 Au g 2 1 Se p t 2 1 Oc t 2 1 COs Issued Rolling 12-Month Average Page 35 of 35