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HomeMy WebLinkAboutAgenda_GEDCO_02.21.2019Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown F ebruary 21, 2019 at 4:30 P M at 808 Martin L uther K ing Jr Street, Georgetown, T X 78626 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 minutes for the G eorgetown Ec onomic Development C orporation Meeting held on Monday January 28, 2019--S teve Bohnenkamp, S ecretary B C ons ideration of the January 31, 2019 financial report --Leigh Wallace, F inanc e Manager, G EDC O , F inanc e Direc tor, C O G . C Disc ussion and possible action regarding the S taff R eport – David Morgan, C ity Manager • P erformance Agreement R eport • Ac tivity R eport • O ther S taff Items D Ac tion out of Executive S ession E xecutiv e Session In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. E Sec. 551.071: C ON S ULTAT ION WIT H AT TOR N E Y C ons ultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the governmental body s eeks the advice of its attorney about: (A) pending or c ontemplated litigation; or (B) a settlement offer; or (2) on a matter in whic h the duty of the attorney to the governmental body under the Texas Dis ciplinary R ules of P rofessional C onduc t of the S tate Bar of Texas c learly conflicts with this chapter - C harlie Mc Nabb, C ity Attorney F Section 551.072. D E LIB E R AT ION R E G AR D IN G R E AL P R O P E RT Y Disc ussion and possible action to deliberate the purchas e,exchange, leas e or value of real property for purpos es authorized by the Development C orporation Act whic h dis cus s ion in open s es s ion would have a detrimental effec t on negotiations with third persons . G Section 551.087. D E LIB E R AT ION R E G AR D IN G E C ON O MIC D E VE LOP ME N T N E G O T IAT IO N S. Deliberation regarding commerc ial or financial information that the c orporation has rec eived from a Page 1 of 30 bus iness pros pect that the G eorgetown Economic Development C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting ec onomic development negotiations ; and/or deliberation regarding the offer of a financial or other inc entive to a busines s prospec t that the C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown. --P rojec t Ac cess C E RT IF IC AT E O F P O S T IN G 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 pos ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a place readily ac cessible to the general public at all times, on the ______ day of __________________, 2019, at __________, and remained so pos ted for at least 72 continuous hours preceding the sc heduled time of s aid meeting. ____________________________________ R obyn Densmore, C ity S ecretary Page 2 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: C onsideration and approval of the minutes for the G eorgetown Economic Development C orporation Meeting held on Monday January 28, 2019--S teve Bohnenkamp, S ec retary IT E M S UMMARY: Minutes attac hed F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: S teve Bohnenkamp, S ecretary AT TAC H ME N T S: Description Type Jan 28, 2019 minutes Backup Material Page 3 of 30 GEDCO Minutes January 29, 2019 Page 1 of 1 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas January 28, 2019 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, January 28, 2019. Members Present: Tom Menke, Jeff Parker, Steve Bohnenkamp, Kevin Kelly, Valerie Nicholson, Bill Mateja Members Absent: Steve Fought Staff Present: David Morgan, City Manager; Michaela Dollar, Director of Economic Development; Wayne Reed, Assistant City Manager; Conchita Gusman, Business Retention and Expansion Program Manager; Paul Diaz, Budget Manager; Tina Dunbar, Marketing Coordinator Guest Present: Mary Calixtro MINUTES Call to Order at 4:03 pm A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, November 19, 2018—Steve Bohnenkamp, Secretary Motion by Parker, second by Menke to approve the November 19, 2018 minutes. (Approved 6-0) B. Consideration of the September 30, October 31, 2018, November 30, 2018, and December 31, 2018 financial reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Diaz presented the financial reports and answered questions from the Board. C. Discussion and possible action regarding the Staff Report —David Morgan, City Manager - Performance Agreement Report - Activity Report - Other Staff Items Morgan went over the performance agreement report. After thanked by Mateja for his recent presentation on the electric rate issue, Morgan explained the issue to members who had not seen the presentation. Dollar presented the Activity Report and answered questions from the Board. GEDCO entered into Executive Session at 4:40 p.m. and returned to Regular Session at 4:55 p.m. D Action out of Executive Session. Motion by Bohnenkamp, second by Mateja to approve incentives for Project Gear as discussed in executive session. (Approved 6-0) Motion by Parker, second by Bohnenkamp to adjorn at 5:05 p.m. Attest: Steve Bohnenkamp, Corporate Secretary Kevin Kelly, President Page 4 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: C onsideration of the January 31, 2019 financ ial report --Leigh Wallac e, F inance Manager, G EDC O , F inance Director, C O G . IT E M S UMMARY: T he c orporate bylaws require the F inance Manager to pres ent the monthly financ ial reports to the Board. Included in these reports will be: • F inancial reports • S ales Tax revenues • Monthly expenditures • Any other relevant financ ial information S ales tax revenue is two months in arrears ; therefore the revenues reflect only the amount rec eived, not actually earned, as of the report date. A report on payments made to vendors in the month of January is als o included. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Leigh Wallace, F inanc e Manager, G EDC O , F inanc e Direc tor, C O G AT TAC H ME N T S: Description Type Jan Packet Backup Material Page 5 of 30 GEDCO Board Meeting Date: February 18, 2019 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the January 31, 2019 financial report. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: The corporate bylaws require the Finance Manager to present the monthly financial reports to the Board. Included in these reports will be: • Financial reports • Sales Tax revenues • Monthly expenditures • Any other relevant financial information Sales tax revenue is two months in arrears; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors in the month of January is also included. ATTACHMENTS: Monthly Financial Report Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 6 of 30 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 6,853,073 OPERATING REVENUES Interest 40,300 15,354 55,879 40,300 Sales Tax 1,768,275 135,076 298,940 1,768,275 OPERATING REVENUES Total 1,808,575 150,430 354,819 1,808,575 OPERATING EXPENDITURES Joint Services Allocation 238,622 19,885 79,541 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 16,974 53,829 100,000 Special Services 30,000 - - 30,000 Travel & Training 500 - - 500 OPERATING EXPENDITURES Total 369,172 36,859 133,370 369,172 TOTAL NET OPERATIONS 1,439,403 113,571 221,449 1,439,403 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - - 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 146,096 DisperSol 50,000 - - 50,000 Economic Development Projects -Undetermined 7,000,517 - - 7,000,517 Holt Cat 185,000 - - 185,000 Radiation Detection Company 150,000 - - 150,000 NON-OPERATING EXPENDITURES Total 7,840,407 - - 7,840,407 TOTAL NET NON-OPERATIONS (7,840,407) - - (7,840,407) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 113,571 221,449 (6,401,004) ENDING FUND BALANCE 452,069 7,074,522 452,069 RESERVES Contingency 442,069 442,069 442,069 RESERVES Total 442,069 - 442,069 442,069 AVAILABLE FUND BALANCE 10,000 6,632,453 10,000 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Jan FY 2019 Page 7 of 30 As of January 31, 2019 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2014-15 2015-16 2016-17 2017-18 2018-19 To FY 17 To FY 17 October 98,094$ 106,050$ 114,748$ 124,478$ 159,033$ 34,555$ 27.76% November 102,891 112,766 125,214 127,063 135,079 8,016$ 6.31% December 143,774 148,200 160,542 162,940 January 87,695 96,563 110,006 115,291 February 89,107 108,117 105,556 133,797 March 123,951 133,492 137,301 158,112 April 102,671 108,977 117,261 135,036 May 95,699 120,418 125,188 148,761 June 130,589 142,767 151,484 157,313 July 108,994 119,534 154,889 143,616 August 102,888 132,582 122,847 142,154 September 125,201 135,378 143,897 154,864 Total 1,311,554$ 1,464,844$ 1,568,933$ 1,703,425$ 294,112$ YTD 200,985 218,816 239,962 251,541 294,112 42,571 16.92%[b] Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. [b]YTD compared through current month. $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Re v e n u e s Sales Tax 3 Year Trend 2016-17 2017-18 2018-19 Page 8 of 30 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF JANUARY 2019 • Promotion and Marketing Programs: - Chmura Economics & Analytics, LLC $ 5,621.93 - Costar Realty Information, Inc. $ 6,351.60 - Williamson Co. Economic Development Partnership $ 5,000.00 Page 9 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: Dis cus s ion and pos s ible ac tion regarding the S taff R eport – David Morgan, C ity Manager • P erformanc e Agreement R eport • Activity R eport • O ther S taff Items 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. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan, C ity Manager AT TAC H ME N T S: Description Type Activity Report Feb 2019 Backup Material Performance Agreement Status Report Backup Material Page 10 of 30 Economic Development Activity Report February 2019 Page 11 of 30 Strategic Goal 1 Support existing businesses and industries Page 12 of 30 0 5 10 15 20 25 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Business Retention Activity Visits Assistance Requests Touches Page 13 of 30 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 14 of 30 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 FY19 Page 15 of 30 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Proposals Submitted FY17 FY18 FY19 Page 16 of 30 0 1 2 3 4 5 6 7 8 9 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY17 FY18 FY19 Page 17 of 30 0 10 20 30 40 50 60 70 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Active Projects Development Hot Warm Cold Page 18 of 30 Additional Recruitment Activity •WBW Development contract passed February 12 by council Page 19 of 30 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 20 of 30 Workforce Development Activity •Working with three four employers, Austin Community College, and Texas Workforce Solutions on a Skills Development Fund grant application •Career explore day held in January •High School career fair in February Page 21 of 30 Strategic Goal 4 Encourage speculative development Page 22 of 30 Speculative Development Activity •Eight of the active projects are speculative development •Several development meetings recently •Also focusing on “shovel-ready” sites Page 23 of 30 Overall Objective Tell our story to a broader local audience Page 24 of 30 Other Activity •Sun City town hall meeting •Working to connect with Army Futures Command •Planning a county-wide commercial brokers event/road show Page 25 of 30 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 2/15/2019 250,000$ $ 80,000 Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 12/31/2021 320,000$ $ 320,000 KJ Scientific (KJS) Provide a grant of the equipment obtained in the TLCC brand acquisition to KJ Scientific (KJS) to retain the business in Georgetown.The retention equipment grant is for five years with KJS obligated to pay a pro-rated amount of $10,000 per year should they relocate outside of the City.2/27/2018 12/31/2022 $ 50,000.00 $ 50,000.00 Holt Caterpillar GEDCO to provide up to $185,000 infrastructure grant for the cost of connecting to a new wastewater line run to the property by the City. Approved by Council on 1/24/17.1/24/2017 185,000.00$ Radiation Detection Corporation 2 Grant for job creation and reimbursement of Qualified Expenditures related to the expansion of the existing HQ corporate offices located in Georgetown. 6/13/2018 6/1/2019 150,000$ $ - Georgetown Development I, LLC Infrastructure reimbursement grant of $500,000 for qualified expenditures related to the development of 90,000 SF of speculative business park space in Georgetown at the Westinghouse Business Center.10/9/2018 6/1/2021 500000 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.2/12/2019 320000 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT February 18, 2019 Page 26 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: Action out of Exec utive S es s ion IT E M S UMMARY: F IN AN C IAL IMPAC T: T BD S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 27 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: S ec. 551.071: C O N S ULTAT IO N WIT H AT TO R N E Y C onsultation with attorney regarding legal issues related to agenda items and other matters in which (1) when the governmental body seeks the advic e of its attorney about: (A) pending or contemplated litigation; or (B) a s ettlement offer; or (2) on a matter in which the duty of the attorney to the governmental body under the Texas Disc iplinary R ules of P rofes s ional C onduct of the S tate Bar of Texas clearly c onflic ts with this c hapter - C harlie Mc Nabb, C ity Attorney IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 28 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: S ection 551.072. D E LIB E R AT IO N R E GAR D IN G R E AL P R OP E RT Y Dis cus s ion and pos s ible ac tion to deliberate the purc hase,exc hange, lease or value of real property for purposes authorized by the Development C orporation Ac t which disc ussion in open session would have a detrimental effect on negotiations with third pers ons. IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 29 of 30 City of Georgetown, Texas Georgetown Economic Development Corporation February 21, 2019 S UB J E C T: S ection 551.087. D E LIB E R AT IO N R E GAR D IN G E C O N OMIC D E VE LO P ME N T N E GOT IAT ION S . Deliberation regarding c ommercial or financ ial information that the corporation has received from a busines s prospec t that the G eorgetown Ec onomic Development C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting economic development negotiations; and/or deliberation regarding the offer of a financ ial or other incentive to a bus iness pros pect that the C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown. --P roject Acc es s IT E M S UMMARY: --P roject Acc es s F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 30 of 30