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Home My WebLink AboutAgenda_GEDCO_06.20.2022Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown June 20, 2022 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 all to order - K evin C ummins, B oard P resident B C ons ideration and approval of the May 16, 2022 G EDC O minutes - S haron P arker, Board Liais on. C C ons ideration and presentation on F Y2022 G EDC O s econd quarter financial report - 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 pur Adjournment Ce rtificate of Posting Page 1 of 42 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 _________________, 2022, 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 2 of 42 City of Georgetown, Texas Georgetown Economic Development Corporation June 20, 2022 S UB J E C T: C onsideration and approval of the May 16, 2022 G EDC O minutes - S haron P arker, Board Liaison. 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 3 of 42 GEDCO Minutes May 17, 2022 Page 1 of 1 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas May 17, 2022 The Georgetown Economic Development Corporation of the City of Georgetown, TX, met on Monday, May 17, 2022 at 4:00 PM at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas Members Present: Hugh Brown, Ron Garland, Robert Hilton, and Shawn Hood Members Absent: Barrie Laing and Kevin Cummins Staff Present: David Morgan, City Manager, Laurie Brewer, Assistant City Manager, Nick Woolery, Assistant City Manager, Michaela Dollar, Director of Economic Development, Kim McAuliffe, Downtown Development Manager, Conchita Gusman, Business Retention & Expansion Program Manager and Sharon Parker, Board Liaison. Guest Present: MINUTES Meeting called to Order at 4:00 pm A. Call to Order – Robert Hilton, Board Vice President Meeting was called to order at 4:00 pm. B. Consideration and approval of the April 18, 2022 GEDCO Minutes— Sharon Parker, Board Liaison Motion to approve by Ron Garland , 2nd by Hugh Brown . Approved 4-0 Barrie Laing and Kevin Cummins absent. C. Discussion regarding the Staff Report -David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Michaela and Conchita presented the staff report. No action needed. ----GEDCO entered into Executive Session at 4:16 pm and returned to Regular Session at 4:27 pm----- D. Action out of Executive Session. Motion to approve Project Element as discussed in executive session by Shawn Hood 2nd by Hugh Brown Approved 4-0 Barrie Laing and Kevin Cummins absent. Motion to adjourn by Shawn Hood, 2nd by Hugh Brown Meeting adjourned at 4:28 pm Barrie Lang, Secretary Kevin Cummins, President Page 4 of 42 City of Georgetown, Texas Georgetown Economic Development Corporation June 20, 2022 S UB J E C T: C onsideration and pres entation on F Y2022 G EDC O sec ond quarter financ ial report - Nathan P arras , As s is tant F inance Director, C ity of G eorgetown IT E M S UMMARY: T he corporate bylaws require the F inanc e Manager to present quarterly financial 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 Narrative Backup Material Pres entation Pres entation Page 5 of 42 F GEDCO Operating revenue has a total budget of $2,806,251 in FY2022 and is comprised of sales tax and allocated interest. The budget for sales tax collections for GEDCO is $2,781,251. Year-to-date sales tax revenue totals $1,027,297, or 36.94% of budget. Through this period, sales tax collections are up $201,683, or 24.43% over year- to-date collections from the prior fiscal year. There is a two-month lag in sales tax collections/reporting. The City continues to see and monitor the strong performance in sales tax. Non-Operating revenue, which typically includes bond proceeds, is not part of the FY2022 budget. Currently, staff does not anticipate the need to issue debt in this fiscal year. GEDCO Quarterly Comparison: Q2 FY22 Budget FY2021 FY2022 FY2022 Year-to-date: Budget Vs. Actuals Quarterly Comparison FY2022 YTD Actuals: Q2 FY21 YTD Actuals: Q2 FY22 Variance % Variance Variance % Variance Operating Revenue 40002:Sales Taxes 2,781,251 825,614 1,027,297 (1,753,954) 36.94% 201,683 24.43% 42001:Interest Income 25,000 21,010 4,481 (20,519) 17.92% (16,530) -78.67% Operating Revenue Total 2,806,251 846,624 1,031,778 (1,774,473) 36.77% 185,154 21.87% Non-Operating Revenue Revenue Total 2,806,251 846,624 1,031,778 (1,774,473) 36.77% 185,154 21.87% Operating expenses have a total budget of $884,873 for FY2022. Year-to-date operational expenses incurred total $304,968, or 34.46% of budget. Operating expenses include administrative expenses, marketing costs, contractual services, subscriptions, and operating transfers to other City funds. Administrative expenses include the allocation for City staff to support the GEDCO fund. Year-to-date administrative expense total $173,802, or 50.00% of budget. The GEDCO fund has dedicated funding to market the City for potential economic development. Year-to-date marketing efforts total $20,111, or 13.41% of budget. Contractual services include $130,000 budgeted for consulting in FY2022. GEDCO will transfer out $202,769 in FY2022. The transfer out is to the Water fund to repay GEDCO’s portion of loan from the Water fund. K 200K 400K 600K 800K 1.0M Q1 Q2 SALES TAX REVENUE FY2020 FY2021 FY2022 Page 6 of 42 F Non-Operating expense budget totals $1,168,048. Year-to-date non-operating expenses total $2,840,000, or 243.14% of budget through the period. Non-Operating expenses include funding for strategic partnerships and GEDCO’s debt service payment. GEDCO has a budget of $976,000 for economic development agreements in FY2022. Year-to-date expenses for economic development agreements total $2,840,000 for Titan North Park and Champion Site Prep. Staff anticipates paying approximately $5.9M in economic development agreements during the fiscal year. Staff will include GEDCO as part of the year-end budget amendment to increase appropriation for the upcoming economic development agreements. Additionally, non-operating expense is where GEDCO’s budgets for the funds debt service payment. The debt service payment includes principal reduction of $74,511, and an interest expense of $17,537. The debt service payment will be reflected in the Q3 report as it aligns with the City’s annual debt payment. GEDCO Quarterly Comparison: Q2 FY22 Budget FY2021 FY2022 FY2022 Year-to-date: Budget Vs. Actuals Quarterly Comparison FY2022 YTD Actuals: Q2 FY21 YTD Actuals: Q2 FY22 Variance % Variance Variance % Variance Operating Expense Operations 682,104 227,997 266,084 416,020 39.01% (38,087) -16.70% Transfers 202,769 1,040,084 38,884 163,885 19.18% (1,001,200) -96.26% Operating Expense Total 884,873 1,268,082 304,968 579,905 34.46% 963,113 75.95% Non-Operating Expense Operations 1,076,000 400,000 2,840,000 (1,764,000) 263.94% (2,440,000) -610.00% Debt Service 92,048 - - 92,048 0.00% - 0.00% Operating Expense Total 1,168,048 400,000 2,840,000 (1,671,952) 243.14% 2,440,000 610.00% Expense Total 2,052,921 1,668,082 3,144,968 (1,092,047) 153.19% (1,476,887) 189% Ending fund balance for FY2022 is anticipated to be $1,746,055. After accounting for the contingency reserve of $665,371, and the debt service reserve of $204,019, this fund is budgeted to have an available fund balance of $876,665. 0 100,000 200,000 300,000 400,000 51001:Administrative Expense 51003:Marketing & Promotional 51004:Contractual Services 51006:Subscriptions 51010:Legal Services 80001:Transfers Out OPERATING EXPENSE BY LEDGER YTD Actuals W /Encumbrances FY2022 Budget Page 7 of 42 F Fund Schedule: GEDCO Period: Mar-22 Budget Current Period Year-to-date FY2022 Year-to-date: Budget Vs. Actuals FY2022 Mar-22 YTD Actuals W/Encumbrances Variance % of Budget Beginning Fund Balance 992,725 992,725 - 100.00% Operating Revenue 40002:Sales Taxes 2,781,251 243,095 1,027,297 (1,753,954) 36.94% 42001:Interest Income 25,000 840 4,481 (20,519) 17.92% Operating Revenue Total 2,806,251 243,934 1,031,778 (1,774,473) 36.77% Operating Expense Operations 682,104 31,728 266,084 416,020 39.01% Transfers 202,769 - 38,884 163,885 19.18% Operating Expense Total 884,873 31,728 304,968 579,905 34.46% Net Operations Total 1,921,378 212,207 726,809 1,194,569 37.83% Non-Operating Revenue Non-Operating Expense Operations 1,076,000 500,000 2,840,000 1,764,000 263.94% Debt Service 92,048 - - (92,048) 0.00% Non-Operating Expense Total 1,168,048 500,000 2,840,000 1,671,952 243.14% Excess (Deficiency) of Total Revenue over Total Requirements 753,330 (287,793) (2,113,191) (2,866,521) -280.51% Ending Fund Balance 1,746,055 1,719,534 (26,521) 98.48% Reserves AFR Adjustment - - - - 0.00% Contingency Reserve 665,371 - 665,371 - 100.00% Debt Service Reserve 204,019 - 204,019 - 100.00% Reserves Total 869,390 - 869,390 - 100.00% Available Fund Balance 876,665 - 850,144 (26,521) 96.97% Page 8 of 42 GEDCO QUARTERLY FINANCIAL REPORT Page 9 of 42 2 QUARTERLY FINANCIAL REPORT GEDCO •Revenue Budget Sources •Operating Revenue totals $2.8M •Sales tax is budgeted at $2.7M •Interest income budgeted at $25K Page 10 of 42 3 QUARTERLY FINANCIAL REPORT GEDCO GEDCO Quarterly Comparison: Q2 FY22 Budget FY2022 YTD Actuals: Q2 FY21 YTD Actuals: Q2 FY22 Variance % Variance Variance % Variance Operating Revenue 40002:Sales Taxes 2,781,251 825,614 1,027,297 (1,753,954) 36.94%201,683 24.43% 42001:Interest Income 25,000 21,010 4,481 (20,519) 17.92%(16,530) -78.67% Operating Revenue Total 2,806,251 846,624 1,031,778 (1,774,473) 36.77%185,154 21.87% Non-Operating Revenue Revenue Total 2,806,251 846,624 1,031,778 (1,774,473) 36.77%185,154 21.87% FY2021 FY2022 FY2022 Year-to-date: Budget Vs. Actuals Quarterly Comparison Page 11 of 42 4 QUARTERLY FINANCIAL REPORT GEDCO •Sales Tax •Year-to-date sales tax revenue totals $1 million, or 37% of budget •FY2022 year-to-date collections are 24% more than FY2021 year-to-date collections •There is a two-month lag on sales tax collections •Sales tax is budgeted at $2.7M 24.43% 1,027,297 SALES TAX K 100K 200K 300K 400K 500K 600K 700K 800K Q1 Q2 FY2021 FY2022 Page 12 of 42 5 QUARTERLY FINANCIAL REPORT GEDCO •Operating Expense Budget Sources •Administrative Expense –support from City Staff •Transfers Out –GEDCO’s repayment to the Water Fund •Marketing and Promotional •Contractual Services •Subscriptions Page 13 of 42 6 QUARTERLY FINANCIAL REPORT GEDCO •Non-Operating Expense Budget Sources •Economic Development Agreements •Strategic Partnerships •GEDCO debt service payment – principal reduction and interest expense Page 14 of 42 7 QUARTERLY FINANCIAL REPORT GEDCO GEDCO Quarterly Comparison: Q2 FY22 Budget FY2022 YTD Actuals: Q2 FY21 YTD Actuals: Q2 FY22 Variance % Variance Variance % Variance Operating Expense Operations 682,104 227,997 266,084 416,020 39.01%(38,087) -16.70% Transfers 202,769 1,040,084 38,884 163,885 19.18%(1,001,200) -96.26% Operating Expense Total 884,873 1,268,082 304,968 579,905 34.46%963,113 75.95% Non-Operating Expense Operations 1,076,000 400,000 2,840,000 (1,764,000) 263.94%(2,440,000) -610.00% Debt Service 92,048 - - 92,048 0.00%- 0.00% Operating Expense Total 1,168,048 400,000 2,840,000 (1,671,952) 243.14%2,440,000 610.00% Expense Total 2,052,921 1,668,082 3,144,968 (1,092,047) 153.19%(1,476,887) 189% FY2021 FY2022 FY2022 Year-to-date: Budget Vs. Actuals Quarterly Comparison Page 15 of 42 City of Georgetown, Texas Georgetown Economic Development Corporation June 20, 2022 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 Pres entation Page 16 of 42 Name Description Start Date (Council Approved) End Date Estimated 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 Atmos Gas Natural gas extension to NorthPark35 upon confirmation of a signed user 6/8/2021 6/8/2024 $ 1,400,000 CelLink Infrastructure Reimbursement - Must invest a minimum of $80,000,000 and remain in Georgetown for 15 years 2/22/2022 2/22/2027 $ 2,500,000 CelLink Job Creation Grant - $3K for each job with an average salary of $90K+, $2K for each job with an average salary of $70K-$89K 2/22/2022 2/22/2027 $ 525,000 Champion Site Prep Infrastructure reimbursement grant associated with the development of 30,000 SF headquarters facility representing a $13M capital investment where the company shall remain for at least 5 years. 1/28/2020 12/21/2026 (within 5 years of the certificate of occupancy date $ 500,000 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 KJ Scientific Retention/expansion grant of the equipment obtained in the TLCC brand acquisition to KJ Scientific valued at $50K 2/27/2018 12/31/2022 $ 50,000.00 GEDCO - AGREEMENTS STATUS REPORT Page 17 of 42 Name Description Start Date (Council Approved) End Date Estimated GEDCO - AGREEMENTS STATUS REPORT Loram (GREX)$500,000 infrastructure reimbursement and job retention/creation grant of $1K per job, up to $300K; must invest a minimum of $12M and minimum average wages of $50K 2/23/2021 Five years from CO $ 800,000 Texas Speed & Performance Job creation grant of $2K per job up to 100 jobs in 5 years. 11/12/2019 9/30/2031 11/12/2024 $ 200,000 Texas Outdoor Power Equipment Infrastructure reimbursement grant totaling up to $500K for construction of 2 buildings in 2 phases (1-headquarters; 2-spec) and to be paid in two equal installments upon completion of each phase of construction. Company agrees to dedicate right-of-way for 1/15/2021 date of second installment payment $ 500,000 Titan NorthPark35, LLC Infrastructure reimbursement grant for electric infrastructure costs related to the speculative development of a master planned industrial business park located at 11/17/2020 Certificate of Occupancy date $1,900,000 Titan NorthPark35, LLC (Assigned from Motion Commercial Properties) Infrastructure reimbursement grant in connection with the construction of 2 bldgs, each $500K 9/30/2021 (Certificate of occupancy date) 10 year anniversary of start date $ 1,000,000 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. (*First Amendment effective 11/9/2021 establishes Certificate of Occupancy issue date as 11/9/2021) 3/8/2019 11/9/2027 (within 6 years of the certificate of occupancy date. CofO date= 11/9/2021) $ 320,000 Page 18 of 42 Economic Development Activity Report June 2022 Page 19 of 42 Strategic Goal 1 Support existing businesses and industries Page 20 of 42 33 Business Retention Activity 0 10 20 30 40 50 60 Ju n - 2 1 Ju l - 2 1 Au g - 2 1 Se p - 2 1 Oc t - 2 1 No v - 2 1 De c - 2 1 Ja n - 2 2 Fe b - 2 2 Ma r - 2 2 Ap r - 2 2 Ma y - 2 2 Visits Touches Page 21 of 42 4 •Filmed heavy metal sector videos at Champion Site Prep and Holt Additional Business Retention Activity Page 22 of 42 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 23 of 42 6 Leads Received 0 5 10 15 20 25 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY20 FY 21 FY22 Rolling 12-Month Average Page 24 of 42 7 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 25 of 42 8 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 26 of 42 9 Active Projects by Stage 15 23 9 Hot Warm Cool Page 27 of 42 10 Active Projects by Type 15 22 8 2 Development Recruitment Expansion/Retention Downtown Page 28 of 42 11 Recruitment Activity •GAMA Distribution Groundbreaking •ONX Homes Groundbreaking Page 29 of 42 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 30 of 42 13 Workforce Development Activity •Job Fair & Business Expo 7/21 •Local businesses employ 19 GISD teacher externs this summer Page 31 of 42 Strategic Goal 4 Encourage speculative development Page 32 of 42 15 •Continued working with landowners and developers on sites including: •Gateway35 Commerce •CrossPoint (Jackson Shaw) •Molto (Longhorn Junction) •NorthPark35 •Portman Industrial (Longhorn Junction) •Stonelake •Woodgate Speculative Development Activity Page 33 of 42 Overarching Goal Tell our story to a broader local audience Page 34 of 42 17 Other Activity •Hired an administrative assistant for Wilco EDP •Scheduled to attend Opportunity Austin Chicago Marketing Trip Page 35 of 42 Economic Indicators Page 36 of 42 1919 Unemployment Rate 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Ma y 2 1 Ju n e 2 1 Ju l y 2 1 Au g 2 1 Se p t 2 1 Oc t 2 1 No v 2 1 De c 2 1 Ja n 2 2 Fe b 2 2 Ma r 2 2 Ap r i l 2 2 Unemployment Rate Rolling 12-Month Average Page 37 of 42 2020 Sales Tax Collections $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Page 38 of 42 2121 Hotel Occupancy Tax Collections $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Oct Nov Dec Jan Feb Mar April May Jun Jul Aug Sep FY17 FY18 FY19 FY20 FY21 FY22 Page 39 of 42 2222 Construction Permit Applications 0 200 400 600 800 1000 1200 1400 1600 Jun 21 Jul 21 Aug 21 Sept 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 # of Permits Valuation (in millions) Page 40 of 42 2323 Certificates of Occupancy Issued 0 1 2 3 4 5 6 7 8 Ju n 2 1 Ju l 2 1 Au g 2 1 Se p t 2 1 Oc t 2 1 No v 2 1 De c 2 1 Ja n 2 2 Fe b 2 2 Ma r 2 2 Ap r i 2 2 Ma y 2 2 COs Issued Rolling 12-Month Average Page 41 of 42 2424 Average Wage $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 Page 42 of 42