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HomeMy WebLinkAboutAgenda_GEDCO_06.01.2015Notice of Meeting for the Georgetown Economic Development Corporation and the Governing body of the City of Georgetown June 1, 2015 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). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please 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 Action out of Executive Session. B Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, April 20, 2015--Hugh Brown, Secretary C Consideration of the April 30, 2015 Financial Reports-Micki Rundell, Finance Manager D Presentation of the 2015-2016 Economic Development Department Budget - Mark Thomas E Discussion and possible action regarding the Project Progress Report, including Radix, DisperSol, Airborn, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radiation Detection Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS Texas Corporation—Mark Thomas, Economic Development Director F Consideration and possible action to nominate and elect a President, Vice-President, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— Mark Thomas, Director of Economic Development 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. G 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. H 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. Page 1 of 39 I 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. - Project Lone Star 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 __________________, 2015, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. ____________________________________ Jessica Brettle, City Secretary Page 2 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Action out of Executive Session. ITEM SUMMARY: FINANCIAL IMPACT: None SUBMITTED BY: Bridget Chapman, City Attorney Page 3 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, April 20, 2015--Hugh Brown, Secretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes for the Regular Meeting held Monday, April 20, 2015 FINANCIAL IMPACT: None SUBMITTED BY: Hugh Brown, Corporate Secretary ATTACHMENTS: Description Type Minutes from April 20, 2015 Cover Memo Page 4 of 39 GEDCO Minutes April 20, 2015 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 20, 2015 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, April 20, 2015. Members Present: Steve Fought, Hugh Brown, Patty Eason, Kevin Kelly, John Hesser, Bill Mateja, Jeff Parker Staff Present: Jim Briggs, Acting City Manager, Mark Thomas, Economic Development Director; Laurie Brewer, Assistant City Manager; Paul Diaz, Finance; Terri McCord, Senior Accountant; Sky Mason, Assistant City Attorney; Tina Dunbar, Administrative Assistant; Conchita Gusman, Program Manager MINUTES Call to Order at 03:30PM Regular Agenda A Consideration and approval of the minutes of the Georgetown Economic Development Corporation for the Regular Meeting held Monday, February 16, 2015 Motion by Fought, second by Kelly to approve the Georgetown Economic Development Corporation minutes for the Regular Meeting held Monday, February 16, 2015. Approved 7-0 B Consideration of the February 28 and March 31, 2015, Financial Reports Paul Diaz explained the financial reports. 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— and Mark Thomas, Economic Development Director Mark Thomas updated the board on recent activity and answered questions regarding compliance status of projects. Page 5 of 39 GEDCO Minutes April 20, 2015 Page 2 of 2 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. E 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. F 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 a detrimental effect on negotiations with third persons. G 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. - Project Block - Project Lift - Project Tut - Project Park H Action out of Executive Session. No action out of executive session The meeting was adjourned at 4:30PM Attest: ______________________________ ___________________________________ Hugh Brown, Corporate Secretary Patty Eason, President Page 6 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Consideration of the April 30, 2015 Financial Reports-Micki Rundell, Finance Manager ITEM SUMMARY: See Attachment FINANCIAL IMPACT: None SUBMITTED BY: Micki Rundell, Finance Manager ATTACHMENTS: Description Type April 2015 Financial report Cover Memo Page 7 of 39 Page 8 of 39 Page 9 of 39 Page 10 of 39 Page 11 of 39 Page 12 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Presentation of the 2015-2016 Economic Development Department Budget - Mark Thomas ITEM SUMMARY: City Council received this presentation at its May 12, 2015 workshop meeting. Now Mark Thomas would like to provide the information to GEDCO. FINANCIAL IMPACT: n/a SUBMITTED BY: Mark Thomas, Economic Development Director ATTACHMENTS: Description Type Economic Development Budget Presentation Cover Memo Page 13 of 39 Economic Development GEDCO Budget Presentation June 1st, 2015 Page 14 of 39 Economic Development •Recruitment of new business •Retention of existing business •Redevelopment of vacant or blighted areas •All of which… Create or retain jobs Increase property taxes Increase sales tax Increase utility revenue Encourage capital investment Expands economic options for retail and commercial uses Produces goods & services for local consumption or exportation Page 15 of 39 TARGETED ECONOMIC SECTORS •Data Centers/High Tech •Corporate Headquarters/Technology Office •Medical/Healthcare •Lifesciences/Biosciences •Clean Manufacturing: •Surgical, medical & dental instruments manufacturers •Military related suppliers •Motor vehicle suppliers Page 16 of 39 Sectors including…. •Research, development, testing companies: Electronic components & accessories companies •Semiconductor products & semiconductor equipment •Computers & peripherals companies •Plastics & composites manufacturing companies: Computer programming, data processing, other computer services •Software product & services companies •Logistics & distribution companies •Signature Destination projects Page 17 of 39 Economic Development Council Direction Sales tax/revenue generators Target businesses that leverage property taxes, sales taxes and utilities (electric) Intergovernmental relations Coordinate efforts with County, State & other area entities Signature destination projects: Signature destination as an economic development tool and quality of life generator Page 18 of 39 Economic Development Council Direction Recruitment, Retention and Expansion  Ensure efficient manageable development processes Ensure existing businesses needs are met through regular meetings/contact Target development that leverage existing resources & utilities Continue workforce development programs in partnership with local Higher Education Institutions, Georgetown ISD and the private sector Increase pro-active marketing efforts for job generator projects, sales and property tax generator projects and power user projects Page 19 of 39 Growth and Projects City of Georgetown Page 20 of 39 South Georgetown Development 2002 City of Georgetown Page 21 of 39 South Georgetown Development 2014 City of Georgetown Page 22 of 39 South Georgetown New Build Projects since 2003 And Corresponding Strategic Plan Objective •Tasus: Motor Vehicle Manufacturing •Airborn: Military and Electronics Manufacturing •Citi Group: Data Center •Radiation Detection Company: Clean Manufacturing, Medical Manufacturing •Rocksprings Behavioral Hospital: Medical •Georgetown Behavioral Health Institute: Medical •Austin Avenue Medical Plaza: Medical •Texas Life Sciences Collaboration Center: Life Sciences/Bio Technology –Molecular Templates: Bio Technology –Dispersol: Bio Technology –Difusion: Bio Technology –Celling Bioscience: Bio Technology –KJ Scientific: Bio Technology City of Georgetown Page 23 of 39 2015 Projects •Summit at Rivery: Under construction –Strategic plan objective: (Signature Destination) •TOPE Spec building –60,000 sq. ft. under construction now –Strategic plan objective: (Clean Manufacturing) •Inner Visions Speculative Building –60,000 sq. ft. in two buildings being completed now –30,000 sq. ft. expansion plan in building three when first two are leased –Strategic plan objectives: (Corporate Headquarters/Technology Office , Medical/Healthcare, Lifesciences/Biosciences) City of Georgetown Page 24 of 39 City of Georgetown Inner Visions Spec Buildings 2015 TOPE Spec building 2015 TLCC Building II 2015 135,000 sq. ft. completing in 2015 Page 25 of 39 Horizon Projects •Westinghouse Road TIRZ –Est. capital investment at build out +/- $500,000,000 –Planned +/- 1,000,000 sq. ft. of class A office space –South Georgetown Gateway: (Council objective) –Strategic Plan Objective: (Corporate Headquarters/Technology Office, High Wage Jobs ) •Pecan Branch –Big box retailers –North Gateway (Council objective) –In planning phase, begin construction 2016 –Strategic plan objective: (Sales and property tax generators, high power users) City of Georgetown Page 26 of 39 City of Georgetown Summit at Rivery 2015 Ground Breaking Page 27 of 39 Department Resources •Director of Economic Development •Director of Retention and Expansion •Administrative Assistant/Social Media/Proposals City of Georgetown Page 28 of 39 Evaluation of Needs •Business Development –Lead generation –Increase site visits –Follow up with prospects –Increase contacts with site selectors –Project closure City of Georgetown Page 29 of 39 Retail Development •Elevate retail development as a target •Look for retail development opportunities near Sun City and in the Eastern “Gateway” to the city •Staff has been evaluating consulting services that can assist with retail development •Staff is working on retail developments currently that could seek GEDCO funding City of Georgetown Page 30 of 39 Questions? Additional direction? Page 31 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Discussion and possible action regarding the Project Progress Report, including Radix, DisperSol, Airborn, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radiation Detection Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS Texas Corporation—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: Mark Thomas, Economic Development Director ATTACHMENTS: Description Type Project Report Cover Memo Page 32 of 39 Project Project Description Approved by Council Funded Monitoring Compliance Closed Citigroup $1.3 Million Grant for wastewater infrastructure disbursed in April 2008. 12/12/2006 Funded April 2008 Approved and completed; Monitoring Compliance No Airborn II Provided a $300,000 grant for job creation and retention and capital investment based on new 50,000 sq. ft. manufacturing facility at Georgetown South Commercial Park. Amending Performance Agreement to extend the construction completion date to May 2010. Extension was approved by GEDCO on January 25, 2010 and the City Council on January 26, 2010. Construction of Facility completed May 2010. They didn't meet the number 490 for the final year of the agreement, therfore no incentive was earned or paid. Their headcount in Georgetown as of 3/12/15 is 460. 9/25/2007and 1/26/2010 Partially Funded. First Annual payment made February 2011 Yes. Final compliance date is 12/31/2014. yes (pending formal letter to company) Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Agreement approved by GEDCO on February 9, 2010 and Council approved the Agreement at its March 9, 2010 Meeting. They paid back $47K on 3/15/15.3/9/2010 Funded May 13, 2010 Yes, Final compliance date is March 2018 No Lone Star Circle of Care Provided a grant not to exceed $387,000 for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have not been executed. Agreement approved by GEDCO on June 23, 2011 and Council approved the Agreement at its June 28, 2011 Meeting. 6/28/2011 Funded November and December 2011 Yes, Final Compliance Date is July 28, 2016 No. Grape Creek Provide a grant not to exceed $447,000 for 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 in Georgetown Agreement approved by GEDCO on July 25, 2011 and Council approved the Agreement at its August 23, 2011 Meeting. Fourth Amended Performance Agreement, Lease Agreement, and Promissory Note was approved by GEDCO on August 20, 2012 and by the City Council on August 28, 2012. TIRZ Agreement for $60,000 approved by City Council on 9-11-12. 8/23/2011 Funded Yes, Final Compliance is March 2018.No Georgetown Winery Provide a grant not to exceed $70,000 for Qualified Expenditures described as equipment for wine production and an agreement to maintain and operate the existing winery in Georgetown. Agreement approved by GEDCO on July 25, 2011 and Council approved the Agreement at its August 23, 2011 Meeting. 8/23/2011 Funded Yes, Final Compliance Date is June 30, 2016 No GEDCO PROJECT UPDATE AND STATUS REPORT April 20, 2015 Page 33 of 39 Project Project Description Approved by Council Funded Monitoring Compliance Closed GEDCO PROJECT UPDATE AND STATUS REPORT April 20, 2015 DiFusiion Technologies Provide a grant not to exceed $92,000 for Qualified Expenditures described as an ICP Spectrometer to be purchased by TLCC to be leased to Dufusion under the terms of the Performance Agreement. Qualified Expenditure to remain the Property of GEDCO unless transferred to DiFusion per the terms of the Performance Agreement.Agreement approved by GEDCO on October 17, 2011 and November 21, 2011 and Council approved the Agreement at its December 13, 2011 Meeting. Performance Agreement and Lease Agreement have not been executed. The GEDCO Board approved additional requirements for the Performance Agreement on May 21, 2012. Approved by Council on July 10, 2012.7/10/2012 Funded Yes, Final Compliance Date is July 31, 2015 No Georgetown Indpendent School District Provided a grant not to exceed $200,560 for the purchase of qualified expenditures related to the equipment for the Engineering Program and Laboratories at Georgetown and East View High Schools. GISD will offer the MSSC Certifications, implement a Job Placement Program, provide and annual report and annual tour of the facilities to the GEDCO Board. Agreement was approved by GEDCO on September 17, 2012 and the City Council on September 25, 2012. The GEDCO Board approved the GISD request to amend the Performance Agreement to allow the purchase different equipment than outlined in the original agreement on November 18, 2013.9/17/2012 Partially Funded. Yes. Final Compliance based on life of equipment. No Texas Life Sciences Collaboration Center (3) Provide a grant of $150,000 for the maintenance of the TLCC. Performance Agreement approved by GEDCO on 10/17/14. 11/11/2014 Funded Dec. 2014 Yes. Final Compliance October 31, 2015 No. The Rivery at Summit Conference Center Provide a grant not to exceed $4.5 Million for Public Infrastructure Improvements. Approved by the GEDCO Board on November 18, 2013. Approved by the City Council on December 10, 2013. 12/10/2013 Not Funded Yes.Construction Deadline is September 30, 2015. No. TASUS Texas Corporation Provide a grant of $67,500 for job creation related to expansion of manufacturing facilities. Approved by the City Council on February 25, 2014 and approved by the GEDCO Board on February 17, 2014 2/25/2014 Not Funded Yes. Final Compliance May 31, 2017 No. Radiation Detection Corporation Provide a grant of $320,000 for job creation related to the relocation of the corporate offices to Georgetown. Approved by City Council and GEDCO on July 23, 2013. 7/23/2013 Funded Yes. Final Compliance December 31, 2021 No Page 34 of 39 Project Project Description Approved by Council Funded Monitoring Compliance Closed GEDCO PROJECT UPDATE AND STATUS REPORT April 20, 2015 DisperSol Provide a grant of $250,000 for job creation related to expansion of manufacturing facilities. Approved by the GEDCO Board on August 18, 2014. Company earned $50K (= 10 eligible positions at $10/job). Check delivered 4/17/15 to company. 10/16/2014 Partially Funded Yes. Final Compliance February 15, 2019 No. Page 35 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 SUBJECT: Consideration and possible action to nominate and elect a President, Vice-President, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— Mark Thomas, Director of Economic Development ITEM SUMMARY: Pursuant to the GEDCO Bylaws, Section 3.02 Officers: "The officers of the Corporation shall be a president, vice president, and secretary. The Board, at each annual meeting, which shall normally occur in the first meeting in March of each year, shall elect these officers. The Board may appoint such other officers as it deems necessary, who shall have the authority, and shall perform such duties as from time to time may be prescribed by the Board.” Accordingly, the Corporation must nominate and elect officers. FINANCIAL IMPACT: None SUBMITTED BY: Mark Thomas, Economic Development Director Page 36 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 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: Bridget Chapman, City Attorney Page 37 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 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 Page 38 of 39 City of Georgetown, Texas Georgetown Economic Development Corporation June 1, 2015 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. - Project Lone Star ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Bridget Chapman, City Attorney Page 39 of 39