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HomeMy WebLinkAboutAgenda_GEDCO_03.15.2021Notice of Meeting for the Georgetown E conomic Dev elopment Corporation Regular meeting of the G E D C O B oard of Directors of the City of Georgetown March 15, 2021 at 4:00 P M at Virtual 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. C onsistent with Gover nor Greg A bbo’s sus pens ion of various pr ovis ions of the Open M eengs A ct, effecve A ugus t 1, 2020 and unl further noce, to r educe the chance of C O V I D-19 trans m is s ion, all C ity of Geor getown A dvis or y Board m eengs will be held vir tually. P ublic com m ent will be allowed via teleconfer ence; no one will be allowed to appear in person. 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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 possible action to nominate and elect a P res ident, vic e president, and sec retary to fill the current vacancy, c onsistent with S ec tion 3.02 of the G EDC O Bylaws — David Morgan, C ity Manager B C ons ideration and approval of the O ctober 19, 2020 G EDC O minutes - S haron P arker, Board Liaison. C C ons ideration of the preliminary financial report for period ending F ebruary 28, 2021 - Nathan P arras, Assistant F inanc e Direc tor, C ity of G eorgetown D Disc ussion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager E 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. F 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 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 S tamp Adjournment Page 2 of 34 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 3 of 34 City of Georgetown, Texas Georgetown Economic Development Corporation March 15, 2021 S UB J E C T: C onsideration and approval of the O c tober 19, 2020 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 4 of 34 GEDCO Minutes October 19, 2020 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas October 19, 2020 The Georgetown Economic Development Corporation of the City of Georgetown, TX, met virtuallyon Monday October 19, 2020. Members Present: Steve Bohnenkamp, Hugh Brown, Steve Fought, Ron Garland, Kevin Cummins (Barrie Laing joined after the meeting was called to order) Members Absent: Staff Present: Michaela Dollar, Director of Economic Development; Nathan Paras, Assistant Finance Director; David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Conchita Gusman, Business Retention Manager, Katherine Clayton, Budget Analyst, Sharon Parker, Administrative Assistant Guest Present: MINUTES Steve Bohnenkamp called to Order at 4:01 pm A. Consideration and approval of the September 21, 2020 GEDCO minutes - Ron Garland, Secretary Motion to approve by Ron Garland, 2nd by Hugh Brown. Approved 5-0 (Barrie Laing joined after the meeting was called to order) B. Consideration of the October 1, 2020 financial report - Nathan Parras, Assistant Finance Director Nathan reviewed the financial report. No voting needed. C. Presentation and discussion regarding the mobility bond program targeting the May 2021 election - David Morgan, City Manager Bridget provided an overview of the mobility bond program. No voting needed. D. Discussion and possible action on the proposed first amendment to the Radiation Detection Company July 23, 2013 performance agreement - Michaela Dollar, Economic Development Director Michaela explained proposed amendment to performance agreement reflecting change in ownership and security of performance. Motion to approve amendment to performance agreement by Ron Garland, 2nd by Kevin Cummins. Approved 5-0 (Barrie Laing recused himself from the meeting for this agenda item) E. Discussion and possible action regarding the Staff Report -- David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Michaela Dollar introduced Sharon Parker, Administrative Assistant to Finance and Economic Development departments. Michaela reviewed the Performance Agreement report and the Activity Report. No voting needed. ----GEDCO entered into Executive Session at 4:48 pm and returned to Regular Session at 5:19 pm----- F. Action out of Executive Session. Motion to approve Project Door as discussed in executive session by Hugh Brown, 2nd by Ron Garland. Approved 6-0 Motion to approve Project LTI as discussed in executive session by Kevin Cummins, 2nd by Hugh Brown. Approved 6-0 Motion to approve Project Dazed as discussed in executive session by Steve Bohnenkamp, 2nd by Barrie Laing. Approved 6-0 Page 5 of 34 GEDCO Minutes October 19, 2020 Page 2 of 2 Motion to adjourn by Kevin Cummins, 2nd by Steve Bohnenkamp Meeting adjourned at 5:25 pm Attest: Ron Garland, Secretary Steve Bohnenkamp, President Page 6 of 34 City of Georgetown, Texas Georgetown Economic Development Corporation March 15, 2021 S UB J E C T: C onsideration of the preliminary financ ial report for period ending F ebruary 28, 2021 - Nathan P arras , As s is tant F inance Director, C ity of G eorgetown 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 financial 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. 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 GEDCO Monthly Financial Report Backup Material Page 7 of 34 F GEDCO Monthly Report GEDCO MONTHLY REPORT AS OF FEBRUARY 28, 2020 Please note the February period is still open. These figures are preliminary and unaudited. This financial report reflects the CIP Roll Forward amendment that was approved by Council in January. Operating revenue is comprised of sales tax and allocated interest. Sales tax revenue is budgeted at $2.06 million and is two months in arrears. Year-to-date, the City has received $649,433 in sales tax revenue. This amount is ahead of the budget at this point in the year. Fall returns saw continued increases relative to the prior 12-month periods. Year- to-date, sales tax is up 15.13% compared to the same period in FY2020. The increase in sales tax is a combination of a one-time in nature payments, new businesses, and continued growth in our core sectors. Allocated interest totals $20,331. Operating expense includes administrative expenses, marketing costs, and special services. Marketing efforts total $66,156, or 36.75% of budget. Expenses for special services such as contractual and legal services total $14,993, or 11.53% of budget for FY2021. Non-operating revenue is budgeted at zero. It is anticipated this fund will not issue any debt in FY2021. Non-operating expense is budgeted at $8.35 million and includes funding for debt service, known economic development projects, as well as funding for new economic development projects which may occur through the fiscal year. The debt service payment will be made in the spring as part of the City’s normal debt schedule. Page 8 of 34 COG ‐ GEDCO Financial Report Period: Feb‐21 Budget Period  FY2021  Feb‐21   YTD Actuals  w/Encumbrances  Variance  % Variance  Beginning Fund Balance 8,845,777                   ‐                              8,845,777                   ‐                              100.00% Operating Revenue 40002:Sales Taxes 2,063,750                  250,135                     649,433                     (1,414,317)                 31.47% 42001:Interest Income 19,000                        9,082                          20,559                        1,559                          108.21% Operating Revenue Total 2,082,750                  259,217                     669,992                     (1,412,758)                 32.17% Operarting Expense Operations 593,783                     12,244                        175,743                     418,040                     29.60% Transfers 1,200,169                  40,084                        2,040,084                  (839,915)                    169.98% Operating Expense Total 1,793,952                  52,329                        2,215,828                  (421,876)                    123.52% Total Net Operations 288,798                     206,888                     (1,545,836)                 (1,257,038)                  ‐535.27% Non‐Operating Revenue Non‐Operating Expense Capital 8,256,391                  400,000                     400,000                     7,856,391                  4.84% Debt Service 90,572                         ‐                               ‐                              90,572                        0.00% Non‐Operating Expense Total 8,346,963                  400,000                     400,000                     7,946,963                  4.79% Net Non‐Operations Total (8,346,963)                 (400,000)                    (400,000)                    (7,946,963)                 4.79% Excess (Deficiency) of Total Revenue over Total Requirements (8,058,165)                 (193,112)                    (1,945,836)                 (6,112,329)                 75.85% Ending Fund Balance 787,612                     (193,112)                    6,899,941                  6,112,329                  876.06% Reserves Contingency Reserve 505,468                     505,468                      ‐                              100% Debt Service Reserve 413,087                     413,087                      ‐                              100% Non‐Operational Reserve (210,318)                    (210,318)                     ‐                              100% Reserves Total 708,237                     708,237                      ‐                              100% Available Fund Balance 79,375                       6,191,704                  6,112,329                  7800.57% YTD Actuals Budget Vs. Actuals Page 9 of 34 City of Georgetown, Texas Georgetown Economic Development Corporation March 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 Activity Report March 2021 Pres entation Performance Agreement Report Backup Material Page 10 of 34 Economic Development Activity Report March 2021 Page 11 of 34 Strategic Goal 1 Support existing businesses and industries Page 12 of 34 0 10 20 30 40 50 60 70 80 90 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Ju l 2 0 Au g 2 0 Se p 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Business Retention Activity Visits Touches Page 13 of 34 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 14 of 34 0 2 4 6 8 10 12 14 16 18 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY19 FY20 FY 21 Rolling 12-Month Average Page 15 of 34 0 2 4 6 8 10 12 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Qualified Leads FY19 FY20 FY21 Rolling 12-Month Average Page 16 of 34 We have qualified for an average of 50% of leads over the last 12 months. 0 2 4 6 8 10 12 14 16 18 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Ju l 2 0 Au g 2 0 Se p 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Qualified Leads Comparison Leads Qualified Page 17 of 34 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 FY19 FY20 FY 21 Rolling 12-Month Average Page 18 of 34 0 10 20 30 40 50 60 70 80 90 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Ju l 2 0 Au g 2 0 Se p 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Active Projects Development Hot Warm Cold Page 19 of 34 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 20 of 34 Workforce Development Activity •Worked with the SBDC to connect them with manufacturers for potential defense contracts Page 21 of 34 Strategic Goal 4 Encourage speculative development Page 22 of 34 Speculative Development Activity •Continuing to work with prospective industrial speculative developers and landowners Page 23 of 34 Overall Objective Tell our story to a broader local audience Page 24 of 34 Other Activity •Held the Major Employers [virtual] Twelve@12 •Completing a quarterly e-newsletter •Completed the economic development annual report •Planning alternative Swirl event and Spring Fling Page 25 of 34 Economic Indicators Page 26 of 34 0 500 1000 1500 2000 2500 3000 3500 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n e 2 0 Ju l y 2 0 Au g 2 0 Se p 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Construction Permit Applications Valuation (in millions) # of Permits Page 27 of 34 0 2 4 6 8 10 12 14 16 18 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Ju l 2 0 Au g 2 0 Se p t 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Certificates of Occupancy Issued COs Issued Rolling 12-Month Average Page 28 of 34 $- $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 Oc t No v De c Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Sales Tax Collections FY 2018 FY 2019 FY 2020 FY 2021 Page 29 of 34 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n e 2 0 Ju l y 2 0 Au g 2 0 Se p t 2 0 Oc t 2 0 No v 2 0 De c 2 0 Unemployment Rate Unemployment Rate Rolling 12-Month Average Page 30 of 34 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 20 1 7 Q 4 20 1 8 Q 1 20 1 8 Q 2 20 1 8 Q 3 20 1 8 Q 4 20 1 9 Q 1 20 1 9 Q 2 20 1 9 Q 3 20 1 9 Q 4 20 2 0 Q 1 20 2 0 Q 2 20 2 0 Q 3 Average Annual Wage Page 31 of 34 0.00 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 140,000.00 160,000.00 180,000.00 Oct Nov Dec Jan Feb Mar April May Jun Jul Aug Sep Hotel Occupancy Tax FY2017 FY2018 FY2019 FY2020 FY2021 Page 32 of 34 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended 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 $ 50,000 Holt Caterpillar GEDCO to provide up to $360,000 infrastructure grant for fire suppression system pump house installation.9/10/2019 360,000$ 356,235$ Georgetown Development I, LLC Infrastructure reimbursement grant of $500,000 for qualified expenditures related to the development of 90,000 SF of speculative business park space in Georgetown at the Westinghouse Business Center.10/9/2018 6/1/2021 500,000$ WBW Development Infrastructure reimbursement grant of $200,000 for qualified expenditures and a $120,000 job creation grant for the creation of 30 jobs over 6 years related to the development of their headquarters location in Downtown Georgetown.2/12/2019 within 6 years of the certificate of occupancy date 320,000$ Confido III, LLC Infrastructure reimbursement grant for $600,000 to assist with construction of an access road and turn lane to maintain access to the Georgetown airport as area land development continues.3/8/2019 3/31/2022 600,000$ 4871 Williams Dr., LLC (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 89,500 square feet of commercial building space.3/26/2019 12/31/2023 250,000$ GEDCO - AGREEMENTS STATUS REPORT March 15, 2021 Page 33 of 34 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - AGREEMENTS STATUS REPORT March 15, 2021 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 issue date 10 year anniversary of start date $1,000,000 --------- Atmos Energy (Lakeway Extension) Extension of natural gas line for any GEDCO applicable project. Payment made 3/4/2021 12/10/2019 12/10/2024 400,000$ 400,000$ 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 34 of 34