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Home My WebLink AboutAgenda_GEDCO_07.18.2022Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown July 18, 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 June 20, 2022 G EDC O minutes - S haron P arker, Board Liais on. C S ales Tax P resentation - Nathan P arras , Assistant F inanc e Direc tor D Disc ussion and possible action to recommend the F Y2023 proposed G EDC O budget and adminis trative services contrac t – Nathan P arras, As s is tant F inance Director E Disc ussion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager Adjournment 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 _________________, 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 1 of 75 City of Georgetown, Texas Georgetown Economic Development Corporation July 18, 2022 S UB J E C T: C onsideration and approval of the June 20, 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 2 of 75 GEDCO Minutes May 17, 2022 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas June 20, 2022 The Georgetown Economic Development Corporation of the City of Georgetown, TX, met on Monday, June 20, 2022 at 4:00 PM at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas Members Present: Hugh Brown, Kevin Cummins, Barrie Laing, and Shawn Hood Members Absent: Robert Hilton, Amanda Parr Staff Present: David Morgan, City Manager, Laurie Brewer, Assistant City Manager, Nick Woolery, Assistant City Manager, Kim McAuliffe, Interim Economic Development Director, 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 – Kevin Cummins, Board President Meeting was called to order at 4:00 pm. B. Consideration and approval of the May 16, 2022 GEDCO Minutes— Sharon Parker, Board Liaison Motion to approve by Hugh Brown , 2nd by Shawn Hood . Approved 4-0 C. Consideration and presentation on FY2022 GEDCO second quarter financial report – Nathan Parras, Assistant Finance Director. Nathan presented the financial reporting, there will be a year-end Budget Amendment that the GEDCO fund had two large payment agreements this year for Titan and Champion. No action needed, presentation only. D. Discussion regarding the Staff Report -David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Kim and Conchita presented the staff report. No action needed. ----GEDCO entered into Executive Session at 4:26 pm and returned to Regular Session at 4:33 pm----- E. Action out of Executive Session. Page 3 of 75 GEDCO Minutes May 17, 2022 Page 2 of 2 Motion to approve Project Spur as discussed in executive session by Barrie Laing 2nd by Hugh Brown Approved 4-0 . Motion to adjourn by Shawn Hood, 2nd by Kevin Cummins Meeting adjourned at 4:35 pm Barrie Lang, Secretary Kevin Cummins, President Page 4 of 75 City of Georgetown, Texas Georgetown Economic Development Corporation July 18, 2022 S UB J E C T: S ales Tax P res entation - Nathan P arras, As s is tant F inance Director IT E M S UMMARY: R eview of the sales tax methodology and projections. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Sales Tax Presentation Backup Material Page 5 of 75 Sales Tax Methodology Page 6 of 75 22 Overview of Sales Tax $0.0825 $0.062 5 $0.0 2 Page 7 of 75 33 Sales Tax Break Down: The City of Georgetown’s Two Cents Page 8 of 75 44 Sales Tax Model –Shape of Data Page 9 of 75 55 Sales Tax Model –Large Data Sources •Two Major Sources of Data: •Confidential Report from the State Comptrollers Office (200,000 rows of data per month) •All Cities Data (230,000 rows of data annually) Page 10 of 75 66 Sales Tax Model –Excel Power Pivot Page 11 of 75 77 Sales Tax Model –NAICS North American Industrial Classificati on System Page 12 of 75 88 Sales Tax Model –Tables Page 13 of 75 99 Sales Tax Model –Slicers Page 14 of 75 1010 Sales Tax Model –Slicers Page 15 of 75 1111 Sales Tax Model –Sector •FY2020 core sectors – 63% •Food •Retail •Information Page 16 of 75 1212 Sales Tax Model –Subsector •Information Sector •Subsectors •Telecommunicati ons •Data Processing •Publishing •Other Services •Motion Picture & Sound Recording Page 17 of 75 1313 Forecasting –Multiple Views •Different trend analysis •Regression types •Different timeframes •Correlation Models •Aggregate •Sector Based Page 18 of 75 1414 Forecasting –Consistency in Data Page 19 of 75 1515 Forecasting –Multiplier Month Month %Running Month %Multiplier 01) Oct 7.28%7.28%13.74 02) Nov 7.25%14.53%6.88 03) Dec 10.36%24.89%4.02 04) Jan 7.18%32.07%3.12 05) Feb 6.77%38.84%2.57 06) Mar 9.65%48.49%2.06 07) Apr 7.83%56.32%1.78 08) May 8.06%64.38%1.55 09) Jun 9.80%74.18%1.35 10) Jul 8.18%82.35%1.21 11) Aug 8.34%90.69%1.10 12) Sep 9.31%100.00%1.00 Page 20 of 75 1616 Forecasting –Another Way to Think About This… Player Average Points Per Game % of Total Points Projected Team Total Tim Duncan 19 40%87.5 Tony Parker 15.5 30%93.3 Manu Ginobili 13.3 27%88.9 Page 21 of 75 1717 Forecasting –Major Sectors •Four Year Average of Sectors •Food •Retail •Information Page 22 of 75 1818 Forecasting •Multi-Level Analysis •Georgetown Data •Austin MSA region •Top Twenty cities in Texas •Regions in Texas •All Cities in Texas Page 23 of 75 2020 Forecasting •FY2022: all four-year end models are all in agreement. •Aggregate Model Average 49.5M •Correlation 51M •Trend Analysis 52M Page 24 of 75 2121 Forecasting Fund FY2022 Projection FY2023 Budget 100 –General Fund $26,016,147 $28,097,407 203 –Street Maintenance Fund $6,504,029 $7,024,352 400 –GTEC Fund $13,008,059 $14,048,703 420 -GEDCO $3,252,015 $3,512,176 Total Sales Tax $48,780,250 $52,682,638 Page 25 of 75 2222 Questions Page 26 of 75 City of Georgetown, Texas Georgetown Economic Development Corporation July 18, 2022 S UB J E C T: Dis cus s ion and pos s ible ac tion to rec ommend the F Y2023 propos ed G EDC O budget and administrative s ervic es c ontract – Nathan P arras , Assistant F inanc e Direc tor IT E M S UMMARY: T he proposed F Y2023 G EDC O budget inc ludes projects identified for funding along with adminis trative costs and total funding requirements . T he proposed F Y2023 budget identifies revenues and s pecific projec ts planned for the upcoming year, as well as c os ts as s ociated with past debt issuanc es . · P roposed F Y2023 Budget P res entation and F und S chedule · P roposed F Y2022 Administrative C ontrac t S P EC I AL C O NS I DER AT I O NS : C ouncil is sc heduled to ac t on all c omponents of the F Y2023 budget in S eptember 2022. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Pres entation Pres entation Fund Schedule Backup Material Adminis trative Contract Backup Material Page 27 of 75 FY2023 Proposed Budget - GEDCO Page 28 of 75 2 FY2023 BUDGET -GEDCO AGENDA •Budget Process •Revenues •Allocations and Administrative Contracts •Expenditures •Administrative Contract Page 29 of 75 3 FY2023 BUDGET -GEDCO BUDGET PROCESS •Georgetown Economic Development Corporation (GEDCO) is a component unit of the City •The GEDCO Board recommends the budget to City Council •City Council adopts the presented budget in August and September •Guided by GEDCO Fiscal and Budgetary Policy •GEDCO projects in collaboration with the Economic Development department. Page 30 of 75 4 FY2023 BUDGET -GEDCO BUDGET PROCESS •GEDCO Budget is developed annually •Revenue estimates for upcoming year •Sales Tax revenue is the primary revenue source •Expenses: •Approved economic development projects •Agreements •Promotions •Administrative Costs for staff support, overhead, project management, and training •Debt Service programmed from previous debt issuances Page 31 of 75 5 FY2023 BUDGET -GEDCO REVENUES •Sales tax is projected to end FY2022 at $3.25 million •Exceeds budget as sales tax continues to perform stronger than anticipated •22.5% over prior year actuals •FY2023 sales tax is projected to be $3.5 million •Interest revenue is budgeted at $30 thousand Page 32 of 75 6 FY2023 BUDGET -GEDCO ALLOCATIONs AND ADMINISTRATIVE CONTRACT •FY2022 the City worked with Wildan on a Cost Allocation Study •Defined how shared services are allocated •The City developed a two-year strategy to fully implement the results of the study •Administrative Contract increased by 67% •Majority of the Economic Development is allocated to GEDCO based on staff •Allocated by economic development related projects •63% of economic development projects are GEDCO related Page 33 of 75 7 FY2023 BUDGET -GEDCO EXPENDITURES •FY2023 Operations budget -$800,834 •$120 thousand for marketing efforts •$200,000 for consulting to update the strategic plan •FY2023 Administrative Charges -$580,834 •General Fund Allocation -$71,746 •Joint Service Allocation -$509,088 •Debt Service •Transfer out to the City’s Debt Service fund in the amount of $204,0419 for Rivery Conference Center project •Repayment to the Water fund for $91,626 Page 34 of 75 8 FY2023 BUDGET -GEDCO EXPENDITURES •Economic Development Agreements total $3.3 million in FY2023 Project Name FY2022 FY2023 Atmos -NorthPark35 $1,400,000 CelLink $1,014,000 $1,094,000 Champion Site Prep $500,000 Loram Technologies Inc. (GREX)$697,000 Motion Commercial $1,000,000 Sedro Crossing $500,000 Texas Outdoor Power $250,000 $250,000 Texas Speed $150,000 $20,000 NorthPark35 Electric $950,000 WBW Development $200,000 $105,000 TOTALS $5,964,000 $3,328,500 Page 35 of 75 9 FY2023 BUDGET -GEDCO EXPENDITURES •Reserves •Contingency equal to 25% of projected sales tax revenue per fiscal and budgetary policy •$878 thousand •Next year’s debt service requirement reserved per fiscal and budgetary policy •$205 thousand Page 36 of 75 10 FY2023 BUDGET -GEDCO FEEDBACK •Approval of Administrative Contract •Questions and feedback Page 37 of 75 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION FUND The Georgetown Economic Development Corporation (GEDCO) considers requests and also grants economic development funds as authorized and defined by the Internal Revenue Code of 1986, Section 4A, leading to the creation or retention of primary jobs and/or provision of significant capital investment which benefits the community of Georgetown. The funding source is 1/8th cent of the City’s sales tax rate. FISCAL YEAR 2022 Total revenues are projected to be $3.3 million, which is a 18% percent increase over budget. This increase is due to strong sales tax collections. Total expenses are projected to be $6.9 million, which is more than the budgeted amount of $2 million. This is largely due to the timing of economic development incentive payments and the fund will be amended at year-end. Several approved agreements have met their performance targets to receive reimbursement: Champion Site Prep, Motion Commercial, Sedro Crossing, NorthPark35, and WBW Development. Additional payments are anticipated for Atmos, CelLink, Texas Outdoor Power, and Texas Speed. Total fund balance as of September 30th is projected to be $2.8 million with a sales tax contingency reserve of $665,000 and a reserve for debt service of $204,000. FISCAL YEAR 2023 Budgeted revenues are expected to total $3.5 million. Sales tax is projected to increase 8% over 2022 projections. Budgeted expenses total $4.6 million. This includes the cost of all currently anticipated Economic Development projects for CelLink, Loram, Texas Outdoor Power, Texas Speed and WBW. The budget includes $100,000 for the startup of a small business loan program. GEDCO’s share of Joint Services and General Fund Allocations total $580,000. A cost allocation study was completed which results in a slight decrease of GEDCO’s allocation to the General Fund, and a large increase to GEDCO’s allocation to the Joint Services Fund. These increases are a result of the data sets used to allocate Economic Development department, Finance departments, City Manager’s Office, and other support services. The annual debt service payment for the Sheraton Garage in the Rivery TIRZ is $204,000. They repayment of a loan from the Water Fund is $90,000. Total fund balance is projected to be $1.7 million as of September 30th. This meets the contingency requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement. Page 38 of 75 FUND SCHEDULE GEDCO FY2021 FY2022 FY2023 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance 5,740,067 992,725 6,416,281 2,790,935 - 2,790,935 Operating Revenue 40002:Sales Taxes 2,654,706 2,781,251 3,252,015 3,512,176 - 3,512,176 42001:Interest Income 24,863 25,000 25,000 30,000 - 30,000 Operating Revenue Total 2,679,569 2,806,251 3,277,015 3,542,176 - 3,542,176 Operating Expense Operations 406,571 682,104 546,154 800,834 - 800,834 Transfers 1,200,284 202,769 202,769 204,019 - 204,019 Operating Expense Total 1,606,855 884,873 748,923 1,004,853 - 1,004,853 Available Operating Fund Balance 6,812,781 2,914,103 8,944,373 5,328,258 - 5,328,258 Non-Operating Revenue 45001:Misc Revenue - - 2,610 - - - Non-Operating Revenue Total - - 2,610 - - - Non-Operating Expense Operations 396,500 1,076,000 6,064,000 3,528,500 - 3,528,500 Debt Service 90,572 92,048 92,048 91,626 - 91,626 Non-Operating Expense 487,072 1,168,048 6,156,048 3,620,126 - 3,620,126 Ending Fund Balance 6,325,709 1,746,055 2,790,935 1,708,132 - 1,708,132 Reserves AFR Adjustment 90,572 - - - - - Contingency 505,468 665,371 665,371 878,044 - 878,044 Debt Service Reserve 202,769 204,019 204,019 205,519 - 205,519 Reserves Total 708,237 869,390 869,390 1,083,563 - 1,083,563 Available Fund Balance 5,708,044 876,665 1,921,545 624,569 - 624,569 Page 39 of 75 GEDCO: City of Georgetown FY2020 FY2021 ACTUALS ACTUALS AMENDED BUDGET PROJECTIONS %Variance Fav/(Unfav): FY2022 Projections to FY2022 Budget BASE BUDGET CHANGES PROPOSED BUDGET %Variance Fav/(Unfav): FY2023 Budget to FY2022 Projections REVENUE 40002:Sales Taxes 2,122,831 2,654,706 2,781,251 3,252,015 116.93%3,512,176 - 3,512,176 8.00% 42001:Interest Income 98,282 24,863 25,000 25,000 100.00%30,000 - 30,000 20.00% 45001:Misc Revenue - - - 2,610 0.00%- - - -100.00% REVENUE TOTAL 2,221,114 2,679,569 2,806,251 3,279,625 116.87%3,542,176 - 3,542,176 8.01% FY2022 FY2023 Page 40 of 75 GEDCO: CC0001 Non-Departmental FY2020 FY2021 ACTUALS ACTUALS AMENDED BUDGET PROJECTIONS %Variance Fav/(Unfav): FY2022 Projections to FY2022 Budget BASE BUDGET CHANGES PROPOSED BUDGET %Variance Fav/(Unfav): FY2023 Budget to FY2022 Projections PERSONNEL OPERATIONS 51001:Administrative Expense 122,385 - - - 0.00%- - - 0.00% OPERATIONS TOTAL 122,385 - - - 0.00%- - - 0.00% OPERATING CAPITAL CIP EXPENSE DEBT SERVICE 55001:Principal Reduction - - 74,511 74,511 100.00%76,559 - 76,559 2.75% 55002:Interest Expense - - 17,537 17,537 100.00%14,947 - 14,947 -14.77% 55003:Handling Fees - - - - 0.00%120 - 120 0.00% DEBT SERVICE TOTAL - - 92,048 92,048 100.00%91,626 - 91,626 -0.46% TRANSFERS 80001:Transfers Out 207,789 1,200,284 202,769 202,769 100.00%204,019 - 204,019 0.62% TRANSFERS TOTAL 207,789 1,200,284 202,769 202,769 100.00%204,019 - 204,019 0.62% CC0001 Non-Departmental Total 330,174 1,200,284 294,817 294,817 100.00%295,645 - 295,645 0.28% FY2022 FY2023 Page 41 of 75 GEDCO: CC0637 Economic Development FY2020 FY2021 ACTUALS ACTUALS AMENDED BUDGET PROJECTIONS %Variance Fav/(Unfav): FY2022 Projections to FY2022 Budget BASE BUDGET CHANGES PROPOSED BUDGET %Variance Fav/(Unfav): FY2023 Budget to FY2022 Projections PERSONNEL OPERATIONS 51001:Administrative Expense 122,385 283,783 347,604 347,604 100.00%580,834 - 580,834 67.10% 51003:Marketing & Promotional 68,778 109,903 150,000 46,000 30.67%120,000 - 120,000 160.87% 51004:Contractual Services 16,615 12,000 130,000 100,000 76.92%100,000 - 100,000 0.00% 51006:Subscriptions 10,972 831 54,500 52,500 96.33%- - - -100.00% 53009:Strategic Partnership 448,316 400,000 100,000 100,000 100.00%200,000 - 200,000 100.00% 53011:Economic Development Agreements 356,235 (3,500) 976,000 5,964,000 611.07%3,328,500 - 3,328,500 -44.19% 53016:Travel Expense 92 54 - 50 0.00%- - - -100.00% OPERATIONS TOTAL 1,023,393 803,071 1,758,104 6,610,154 375.98%4,329,334 - 4,329,334 -34.50% OPERATING CAPITAL CIP EXPENSE DEBT SERVICE 55001:Principal Reduction 83,695 72,830 - - 0.00%- - - 0.00% 55002:Interest Expense 20,516 17,742 - - 0.00%- - - 0.00% DEBT SERVICE TOTAL 104,211 90,572 - - 0.00%- - - 0.00% TRANSFERS CC0637 Economic Development Total 1,127,604 893,643 1,758,104 6,610,154 375.98%4,329,334 - 4,329,334 -34.50% FY2022 FY2023 Page 42 of 75 1 ADMINISTRATIVE SERVICES CONTRACT BETWEEN THE CITY OF GEORGETOWN, TEXAS AND THE GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION STATE OF TEXAS § COUNTY OF WILLIAMSON § THIS CONTRACT FOR SERVICES ("Contract") is made by and between the City of Georgetown, 808 Martin Luther King, Georgetown, Texas 78626, hereinafter called "City" and the Georgetown Economic Development Corporation, having its principal business address at 808 Martin Luther King Jr., Georgetown, Texas 78626, hereinafter called "Corporation" for the purpose of contracting for administrative services of the staff and employees of the City. WITNESSETH WHEREAS, on May 7, 2005 the City established the Corporation pursuant to Secion 4A of the Economic Development Corporation Act of 1979, as amended (Vernon's Rev. Civ. Stat. Ann., Article 5190.6. § 4(A), as amended) (the “Act”) to promote and develop new and expanded business enterprises on behalf of the City of Georgetown. WHEREAS, on June 21, 2005 the City Council approved the Articles of Incorporation for the Corporation. WHEREAS, on December 13, 2005 the Board of Directors of the Corporation approved the Bylaws of the Corporation. WHEREAS, on January 10, 2006 the City Councl approved the Bylaws of the Corporation. WHEREAS, Section 3.08 of said Bylaws provide that the City and the Corporation shall execute an administrative services contract for the services to be provided to the Corporation by the City by the General Manager, Finance Director, City Attorney, and other City personnel, services or functions, pursuant to. Section 2(4) of the Act, which authorizes the Corporation to pay administrative and legal expenses which are necessary or incidental to placing a project into operation; and WHEREAS. the City and Corporation desire to contract for administrative services described as follows: the services provided by the City Manager, Finance Director, the staff and employees of the City's Finance and Administration Division, and the Economic Development Department, as well as, the City Attorney's Office. AGREEMENT NOW, THEREFORE, the City and Corporation, in consideration of the mutual covenants and agreements herein contained, do hereby mutually agree as follows: Page 43 of 75 2 ARTICLE I SCOPE OF SERVICES TO BE PROVIDED BY CITY The City will furnish items and perform those services for fulfillment of the Contract as identified in the Bylaws of the Corporation. ARTICLE 2 CONTRACT PERIOD This Contract shall begin at the start of business on October 1, 20221 and terminate at the close of business on September 30, 20232 unless extended by written supplemental agreement duly executed by the Corporation and the City prior to the date of termination. Any work performed or cost incurred prior to the date of this contract and after estabilishment of the Corporation, will be reimbursemented as in the terms of the Contract. ARTICLE 3 CONTRACT PRICE Corporation shall pay City for the services contemplated herein as follows: 1. For all administrative and legal services, the monthly flat fee of $28,967 as identified in Attachment A. External third party legal services will be billed separately as needed. ARTICLE 4 PAYMENT PROCEDURES The Corporation shall pay the City $48,402 per month on the first of each month, begininng on October 1, 20221 during the term of this Agreement. In addition, the Corporation shall pay for all external legal or other professional services invoices pursuant to the Article 3 within thirty (30) days of receipt. ARTICLE 5 OWNERSHIP OF DOCUMENTS All data, basic sketches, charts, calculations, plans, specifications, and other documents created or collected under the terms of this Contract are the exclusive property of the Corporation and shall be furnished to the Corporation upon request. Release of information to the public shall be subject to and in conformance with the Texas Public Information Act. ARTICLE 6 SUSPENSION As authorized by Section 3.08 of the Corporation’s Bylaws, the City may suspend services under this Contract without committing a breach of its terms upon the occurrence of any of the following: (1) The City Manager does not approve of the utilization of any or all services; Page 44 of 75 3 (2) The City Manager feels the City is not receiving reasonable compensation for any or all services; or (3) The performance of a service materially interferes with the other duties of the affected City personnel. ARTICLE 7 TERMINATION The Contract may be terminated before the stated termination date by any of the following conditions: (1) By mutual written agreement and consent; or (2) By either party, upon the failure of the other party to fulfill its obligations as set forth herein; or (3) By either party for reasons of its own and without the consent of the other party, provided that at least thirty (30) days written notice is provided to the other party. The termination of this Contract and payment of an amount in settlement as prescribed in Article 3, above shall extinguish all rights, duties, and obligations of the City and the Corporation under this Contract. ARTICLE 8 INDEMINIFICATION Corporation's Indemnification. The Corporation agrees, to the extent permitted by law, to save harmless the City and its agents, officers and employees from all claims and liability due. to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the Corporation or of the Corporation’s agents, officers, and employees. The Corporation shall also save harmless the City and its agents, officers, and employees from any and all expense, including, but not limited to, attorney fees which may be incurred by the City in litigation or otherwise resisting said claim or liabilities which may be imposed on the City as a result of such activities by the Corporation, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of City, its agents, officers or employees. Further, this indemnity shall not require payment of a claim by City or its agents, officers or employees as a condition precedent to City's recovery under this provision. City's Indemnification. The City agrees, to the extent permitted by law, to save harmless the Corporation and its agents, officers, and employees from all claims and liability due to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the City or the City’s agents, officers, or employees. The City shall also save harmless the Corporation from any and all expense, including, but not limited to, attorney fees which my be incurred by the Corporation in litigation or otherwise resisting said claim or liabilities which may be imposed on the Corporation as a result of such activities by the City, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of Corporation, its agents, officers or employees. Further, this indemnity shall not require payment of a claim by Corporation or its officers or employees as a condition precedent to Corporation's recovery under this provision. ARTICLE 9 Page 45 of 75 4 SEVERABILITY In the event any one or more of the provisions contained in this Contract shall for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. ARTICLE 10 PRIOR CONTRACTS SUPERSEDED This Contract constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral contracts between the parties respecting the subject matter defined herein. ARTICLE 11 NOTICES All notices to either party by the other required under this Contract shall be personally delivered or mailed to such party at the following respective addresses: For City: City Manager City of Georgetown P.O. Box 409 Georgetown, Texas 78626 (PO Box zip is 78627) For Corporation: General Manager Georgetown Economic Development Corporation P.O. Box 409 Georgetown, Texas 78626 (PO Box zip is 78627 ARTICLE 12 Page 46 of 75 5 SIGNATORY WARRANTY The undersigned signatory or signatories for the parties hereby represent and warrant that the signatory is an officer of the organization for which be or she has executed this Contract and that he or she has full and complete authority to enter into this Contract on behalf of the firm. The above-stated representations and warranties arc made for the purpose of inducing the other party to enter into this Contract. IN WITNESS HEREOF, the City and the Corporation have executed these presents in duplicate on this the ____ day of_________, 20221. GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION By: Printed Name: Title: ATTEST: By: Printed Name: Title: CITY OF GEORGETOWN By: Printed Name: Josh Schroder Title: Mayor ATTEST: By: Printed Name: Robyn Densomre Title: City Secretary APPROVED AS TO FORM: Skye Masson City Attorney Page 47 of 75 6 Attachment A The GEDCO Administrative Allocation for departments such as City Manager’s Office, Finance and Accounting, and the Legal Deparment totals $580,834 for FY20232. This equates to $48,402 per month. Page 48 of 75 City of Georgetown, Texas Georgetown Economic Development Corporation July 18, 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 49 of 75 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 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 GEDCO - AGREEMENTS STATUS REPORT Page 50 of 75 Name Description Start Date (Council Approved) End Date Estimated GEDCO - AGREEMENTS STATUS REPORT 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 SH130 & I35. 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 51 of 75 Economic Development Activity Report July 2022 Page 52 of 75 Strategic Goal 1 Support existing businesses and industries Page 53 of 75 33 Business Retention Activity 0 10 20 30 40 50 60 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 Ju n - 2 2 Visits Series3 Page 54 of 75 4 •Assisting businesses that are expanding or are new to Georgetown navigate city permitting processes •Facilitating businesses through the compliance process to receive GEDCO incentive agreement payments due to them Additional Business Retention & Expansion Activity Page 55 of 75 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 56 of 75 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 57 of 75 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 58 of 75 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 59 of 75 9 Active Projects by Stage 18 19 10 Hot Warm Cool Page 60 of 75 10 Active Projects by Type 15 22 8 1 Development Recruitment Expansion/Retention Downtown Page 61 of 75 11 Recruitment Activity •Opportunity Austin –Chicago Marketing Trip Page 62 of 75 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 63 of 75 13 Workforce Development Activity •Job Fair & Business Expo 7/21 Page 64 of 75 Strategic Goal 4 Encourage speculative development Page 65 of 75 15 •Continued working with landowners and developers on sites including: •Gateway35 Commerce •CrossPoint (Jackson Shaw) •Molto (Longhorn Junction) •NorthPark35 •Portman Industrial (Longhorn Junction) •Stonelake •Westinghouse Logistics •Woodgate Speculative Development Activity Page 66 of 75 Overarching Goal Tell our story to a broader local audience Page 67 of 75 17 Other Activity •Presentation about Georgetown Economic Development for Texas Heritage Trails Program Statewide Meeting Page 68 of 75 Economic Indicators Page 69 of 75 1919 Unemployment Rate 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 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 Ma y 2 2 Unemployment Rate Rolling 12-Month Average Page 70 of 75 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 71 of 75 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 72 of 75 2222 Construction Permit Applications 0 200 400 600 800 1000 1200 1400 1600 Jul 21 Aug 21 Sept 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 # of Permits Valuation (in millions) Page 73 of 75 2323 Certificates of Occupancy Issued 0 1 2 3 4 5 6 7 8 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 Ju n 2 2 COs Issued Rolling 12-Month Average Page 74 of 75 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 75 of 75