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Home My WebLink AboutAgenda_GEDCO_05.15.2017Notice of Meeting for the Georgetown Economic Dev elopment Corporation of the City of Georgetown May 15, 2017 at 4:00 PM at The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Regular Session (This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.) A Co nsideration and approval of the minutes fo r Georgetown Ec o nomic Develo p ment Co rp o ration for the Regular Meeting held Mo nday, Ap ril 17, 2017--Bill Mateja, Sec retary B Co nsideration of the April 2017 financ ial rep o rts --Leigh Wallace, Financ e Manager, GEDCO, Finance Directo r, COG C Pres entatio n o f S ales Tax fo r F Y2017 Year End and F Y2018 Budget - Paul Diaz, D Dis cus s ion and pos s ible actio n regarding the Staff Rep o rt —David Morgan, C ity Manager -P erformance Agreement Report -Rep o rt from Planning -Other Pro jec ts E Actio n o ut o f Exec utive Session. Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, Annotated, the items lis ted below will be d is c us s ed in closed s es s io n and are s ubjec t to actio n in the regular s es s io n. F Sec. 551.071: CONSULTATION WITH ATTORNEY Co nsultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) p ending o r c o ntemp lated litigatio n; o r (B) a s ettlement o ffer; o r (2) o n a matter in which the d uty of the attorney to the go vernmental body under the Texas Dis ciplinary Rules o f P ro fes s io nal Cond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter - Charlie McNabb, C ity Attorney G Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Dis cus s ion and pos s ible actio n to d elib erate the p urc hase,exc hange, leas e or value of real property for purp o s es authorized b y the Development C o rp o ration Ac t which disc us s io n in o p en s es s io n would have a detrimental effect on negotiations with third pers ons . H Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT Page 1 of 41 NEGOTIATIONS. Delib eratio n regarding commerc ial or financ ial info rmation that the corp o ration has rec eived fro m a bus iness pros pec t that the Georgetown Ec ono mic Develo p ment Co rp oratio n s eeks to have loc ate, stay, or exp and in or near the territory of the City o f Georgetown and with whic h the C o rp o ration is cond uc ting ec o nomic d evelopment nego tiatio ns; and/o r deliberatio n regarding the o ffer of a financ ial or o ther incentive to a bus iness p ro s p ect that the C o rp o ration seeks to have lo cate, s tay, o r exp and in o r near the territory o f the City o f Georgetown. CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2017, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 2 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Cons id eration and ap p ro val o f the minutes for Geo rgeto wn Econo mic Development Corporatio n fo r the Regular Meeting held Mond ay, April 17, 2017--Bill Mateja, S ecretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Kevin Kelly, Corporate S ecretary ATTACHMENTS: Description Type Minutes Cover Memo Page 3 of 41 GEDCO Minutes April 17, 2017 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas April 17, 2017 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, April 17, 2017. Members Present: Jeff Parker, Steve Fought, Kevin Kelly, Keith Brainard, Bill Mateja, Steve Klein Members Absent: Hugh Brown Staff Present: David Morgan, City Manager/General Manager; Wayne Reed, Assistant City Manager; Michaela Dollar, Director of Economic Development; Conchita Gusman, Economic Development Program Manager; Laurie Brewer, Assistant City Manager; Leah Wallace, Finance Director/Finance Manager; Debbie Mitchell, Senior Accountant; Paul Diaz, Analyst; Tina Dunbar, Marketing Coordinator MINUTES Call to Order at 4:00 pm Legislative Regular Session A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, March 20, 2017--Kevin Kelly, Secretary Motion by Mateja, second by Klein to approve the March 20, 2017 Minutes. (Approved 6-0) B Presentation on the Sheraton Georgetown--David Morgan, City Manager. Morgan introduced Rita Healy, General Manager of the Sheraton. Healy provided an overview of the hotel’s business plan, challenges, and successes. C Consideration of the March 2017 financial report --Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Wallace presented the report and answered questions from the board. D Discussion and possible action regarding the Staff Report —David Morgan, City Manager -Performance Agreement Report - David introduced the BRE program and Conchita Gusman provided an explanation of the BRE program and how city staff and community partners assist with the program. She also explained general themes learned from business visits. Morgan presented the monthly report from planning. Page 4 of 41 GEDCO Minutes April 17, 2017 Page 2 of 2 E Consideration and possible action to forward an RFP to the City Council on the matter of a Feasibility Study on a Hospice Facility in the Georgetown Area - Steve Fought, GEDCO Board member Fought presented the draft RFP and explained how GEDCO could partner with other community organizations to fund the study. The study would be conducted in phases. The first phase to discover if there is a need for a hospice facility and the second phase to determine the best way to develop the facility. Motion by Fought, second by Klein to forward an item to City Council for approval of up to $10,000.00 out of the GEDCO budget to fund a portion of the RFP. F Consideration and possible action to approve an amendment to the agreement between GEDCO and Rentschler Brewing LLC--Michaela Dollar, Director of Economic Development Gusman gave a review of the Agreement and introduced Andrew Rentschler. Rentschler explained the construction and equipment supply issues that created the need for an extension of the agreement timeline. Motion by Fought, second by Mateja to extend the term of the performance agreement to the end of 2017. G Action out of Executive Session No executive session. Adjourn at 5:12pm. ATTEST: ______________________________ ___________________________________ Bill Mateja, Corporate Secretary Jeff Parker, President Page 5 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Cons id eration o f the Ap ril 2017 financial reports --Leigh Wallac e, Financ e Manager, GEDCO, Financ e Direc tor, COG ITEM SUMMARY: See Attachments FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace, Financ e Manager, GEDCO F inanc e Direc tor, COG ATTACHMENTS: Description Type April Cover Memo Page 6 of 41 GEDCO Board Meeting Date: May 15, 2017 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the April 30, 2017 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. Included in this report is the sales tax revenue collected in March for sales in January. Payments made to vendors in the month of April are also included. ATTACHMENTS: Monthly Financial Reports Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 7 of 41 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALALNCE 5,015,684 5,068,518 Revenue OPERATING REVENUES Sales Tax 1,468,750 101,036 620,247 1,468,750 Interest 10,400 3,747 20,622 10,400 Miscellaneous Revenue 60,321 50,000 60,302 60,321 Lease Revenue (Grape Creek)48,000 4,000 32,000 48,000 OPERATING REVENUES TOTAL 1,587,471 158,783 733,171 1,587,471 OPERATING EXPENDITURES Debt Service 115,839 - 66,679 115,839 Principal Reduction 100,000 - - 100,000 Interest Expense 111,463 - - 111,463 Joint Services Allocation 197,722 16,477 115,339 197,722 Supplies 300 - 140 300 Special Services 7,500 - 33 7,500 Travel & Training 1,500 - - 1,500 Promotional & Marketing Program 81,000 3,750 56,004 81,000 Miscellaneous Expense 10,321 - 10,302 10,321 Bond Issuance Costs - - (114) - OPERATING EXPENDITURES Total 625,645 20,227 248,384 625,645 TOTAL NET OPERATIONS 961,826 138,556 484,787 961,826 NON-OPERATING EXPENDITURES Catalyst 24,000 - - 24,000 DisperSol 60,000 10,000 20,000 60,000 Economic Development Projects -Undetermined 5,370,322 - - 5,370,322 Radix 50,000 - - 50,000 Tasus 6,000 - - 6,000 Texas Life Sciences 100,000 - - 100,000 Rentschler Brewing LLC - 70,000 70,000 - NON-OPERATING EXPENDITURES Total 5,610,322 80,000 90,000 5,610,322 EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS 961,826 138,556 484,787 961,826 ENDING FUND BALANCE 367,188 420,022 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of April 2017 Page 8 of 41 As of March 31, 2017 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 To FY 15 To FY 15 October 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 114,748$ 8,698$ 8.20% November 74,472 82,083 99,552 102,891 112,766 125,214 12,448$ 11.04% December 111,968 117,582 134,682 143,774 148,200 160,542 12,342$ 8.33% January 73,177 82,714 89,357 87,695 96,563 110,006 13,443$ 13.92% February 72,946 77,890 86,901 89,107 108,117 105,556 (2,561)$ -2.37% March 105,822 115,564 114,355 123,951 133,492 137,301 3,809$ 2.85% April 81,362 84,420 106,002 102,671 108,977 May 80,919 94,412 112,572 95,699 120,418 June 99,664 114,132 123,306 130,589 142,767 July 89,969 92,765 102,435 108,994 119,534 August 85,792 92,735 98,015 102,888 132,582 September 88,334 125,197 119,473 125,201 135,378 Total 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 1,464,844$ 753,367$ YTD 402,826 446,594 502,355 521,561 571,696 616,066 44,370 7.76% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for December is actually received in February $- $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 2014-15 2015-16 2016-17 Page 9 of 41 • Promo and Marketing Programs: - Xceligent, Inc • Economic Development Projects: - Dispersol Technologies, LLC - Rentschler Brewing, LLC Page 10 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Presentatio n of Sales Tax for FY2017 Year End and FY2018 Bud get - Paul Diaz, ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Paul Diaz, Bud get Manager & Nathan Parras , Bud get Analyst ATTACHMENTS: Description Type PP Cover Memo Page 11 of 41 FY2018 Annual Budget Sales Tax Page 12 of 41 FY2018 Annual Budget Agenda •Sales Tax Overview •Process and Methodology •Projections Page 13 of 41 FY2018 Annual Budget Sales Tax Facts •8.25 = Total Sales Tax •6.25 = State’s Portion •2.00 = City’s Portion Page 14 of 41 FY2018 Annual Budget A Whole Lot of Data Two Major Data Sources •Confidential Report: This is specific to Georgetown (194,028). –NAICS Code •All Cities Data (217,323). Page 15 of 41 FY2018 Annual Budget Unique IDs = Connections 10145698778 Paul’s Pizza Shack NAICS Code: 725050 = Food 101 Main Street Georgetown, TX Downtown TIRZ Page 16 of 41 FY2018 Annual Budget PowerPivot Page 17 of 41 FY2018 Annual Budget Page 18 of 41 FY2018 Annual Budget Forecasting Tools We Use •Prisms –Regression •Linear –y = m(x) + b •Polynomial –2nd Order and 4th Order –Correlation •Pattern Recognition •Different Timeframes –Longitudinal Trends Page 19 of 41 FY2018 Annual Budget Consistency allows for Correlation Page 20 of 41 FY2018 Annual Budget Page 21 of 41 FY2018 Annual Budget Page 22 of 41 FY2018 Annual BudgetYou Knew a Sports Reference Was Coming Sooner or Later Player Point per Game %of Total Project Total Jordan 40.1 51%= 1.96*40 = 78.62 Pippen 20.5 25%= 4.00*21 = 82.00 Rest of the Team 19.9 26%= 3.84*19 = 76.53 Page 23 of 41 FY2018 Annual Budget Top 20 Cities in Texas Page 24 of 41 FY2018 Annual Budget All Cities in Texas Page 25 of 41 FY2018 Annual Budget Sales Tax by Regions Page 26 of 41 FY2018 Annual Budget Sales Tax by Regions Page 27 of 41 FY2018 Annual Budget Sales Tax by Regions Page 28 of 41 FY2018 Annual Budget Sales Tax Comparsion Page 29 of 41 FY2018 Annual Budget FY2017 Projections •FY2017 Year End Projections: $25,300,000 –Increase of 7.2% over FY2017 Budget. –Increase of 7.9% over FY2016 Actuals. –Mirrors population growth rate. Page 30 of 41 FY2018 Annual Budget FY2018 Projections •Slowing in the Retail Sector particularly in the Building Material Subsector. Page 31 of 41 FY2018 Annual Budget FY2018 Projections •Food and Information sectors continue to be strong seeing growth rates that mirror population trends. •Overall we are projecting the City will receive a total of $26,200,000 in sales tax. Page 32 of 41 FY2018 Annual Budget FY2018 Sales Tax Breakdown Segment FY2018 Budget General Fund 13,100,000$ GTEC 6,550,000$ GEDCO 1,637,500$ Property Tax Relief 1,637,500$ Streets 3,275,000$ Total Sales Tax 26,200,000$ Page 33 of 41 FY2018 Annual Budget Page 34 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the S taff Report —David Morgan, City Manager -P erformance Agreement Report -Report from P lanning -Other Pro jec ts ITEM SUMMARY: The GEDCO Board has req uested that staff p ro vide a projec t p ro gress and s tatus report at eac h meeting o n all of the ac tive p ro jects disc ussed b y the Bo ard . FINANCIAL IMPACT: N/A SUBMITTED BY: David S. Morgan, C ity Manager ATTACHMENTS: Description Type Report Cover Memo Page 35 of 41 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended Citigroup Grant for wastewater infrastructure for construction of datacenter. 12/12/2006 12/31/2018 $ 1,300,000 $ 1,300,000 DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 2/15/2019 250,000$ $ 80,000 Grape Creek Grant for reimbursement of Qualified Expenditures for the lease/purchase and future site improvements at 101 E. 7th Street and 614 Main Street for the operation of a winery on the Downtown Square. 8/23/2011 3/1/2018 280,000$ 280,000$ Grape Creek GEDCO purchase of building. GCV currently under lease/purchase agreement with right to exercise purchase at end of PA for $447K.8/23/2011 3/1/2018 447,000$ 447,000$ Lone Star Circle of Care Grant for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have been executed. 6/28/2011 11/30/2017 387,000$ $ 387,000 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$ Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Radix paid back $47K on 3/15/15. Radix paid back $50K 3/10/16.3/9/2010 3/31/2018 250,000$ $ 103,000 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT April 17, 2017 Over Page 36 of 41 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT April 17, 2017 TASUS Texas Corporation Provide a grant of $67,500 for job creation related to expansion of manufacturing facilities. 2/25/2014 5/31/2017 67,500$ -$ Rentch Brewery Provide financial assistance not to exceed $70K for infrastructure costs related to the expansion of their existing operation including upgraded electric transformer and upgraded waterlines to the facility.10/11/2016 3/1/2017 70,000$ $ - Page 37 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: TBD SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 38 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Cons ultation with atto rney regard ing legal iss ues related to agend a items and o ther matters in which (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) p end ing or contemplated litigation; o r (B) a settlement offer; or (2) o n a matter in whic h the duty of the attorney to the governmental b o d y und er the Texas Dis c ip linary Rules o f Pro fes s ional C o nduct of the State Bar of Texas c learly conflicts with this c hapter - C harlie McNab b , City Atto rney ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 39 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Disc ussion and p o s s ib le ac tion to deliberate the purchas e,exchange, leas e o r value o f real p ro p erty for p urposes autho rized by the Develo p ment Corporatio n Act whic h d is cus s ion in open session wo uld have a d etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 40 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation May 15, 2017 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberatio n regard ing c o mmercial o r financ ial informatio n that the c o rp o ratio n has received from a b usines s pros p ec t that the Geo rgeto wn Economic Development Corporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the City o f Geo rgeto wn and with whic h the Corporatio n is c o nducting econo mic d evelo p ment negotiations ; and/o r d elib eration regard ing the o ffer o f a financial o r other inc entive to a bus iness pros pec t that the Co rp o ration s eeks to have loc ate, stay, o r expand in or near the territory of the City of Georgetown. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 41 of 41