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HomeMy WebLinkAboutAgenda_GEDCO_07.20.2020Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown July 20, 2020 at 4:00 P M at Georgetown P ublic Library - F riends Room - 402 W 8th Street, Georgetown, Texas T he C ity o f G eorgetown is c o mmitted to c ompliance with the Americans with Dis ab ilities 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, reasonable 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 contac t the C ity S ecretary's O ffic e, at leas t three (3) d ays p rio r to the s cheduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eo rgeto wn, T X 78626 for ad d itional info rmation; T T Y us ers route thro ugh R elay Texas at 711. C O V I D -19 S pe ci al N otice P lease note that a quor um of the Ge orge town E c onomi c D e ve lopme nt C or por ati on may not all be pr e se nt at the same physi c al loc ation. S ome membe r s may inste ad participate i n this me eting from one or mor e r emote locations i n an effor t to advanc e the publ ic he alth goal of l imiti ng face to fac e mee tings and to contain the spr e ad of C O V I D -19. In addi tion, the re may be oc casions when the audio tr ansmissi on may not be c l e ar or may be inte rr upte d. In those instanc e s, the mee ting will conti nue so long as a quor um is still pr e se nt. With the G ove rnor’s O r de r, all C ity B ui ldings ar e fol lowing the se proc edur e s: M asks ar e r equi re d P hysic al distanc ing; 6 fe e t be twe en you and anyone not in your house hol d P r ac tic e good hygiene and wash your hands If any of these apply, do not vi si t: known close c ontac t wi th C O V I D-19 P e r son, fe ve r gr eate r or e qual to 100.0 degr ee s F ahr enhe it, difficulty bre athing or shor tne ss of br e ath, cough, loss of taste or sme ll , sor e thr oat, chil ls, he adac he , diar r hea or musc le pain. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c o nvene an Exec utive S es s ion for any purp o s e authorized b y the O pen Meetings Ac t, Texas G o vernment C ode 551.) A C ons id eratio n and p o s s ib le ac tion to nominate and elect a P res id ent, Vic e-P res ident, and S ec retary c o nsistent with S ectio n 3.02 of the G EDC O Bylaws — David Morgan, C ity Manager B R eview and dis c us s ion regard ing the Amended Bylaws fo r G E DC O approved by the C ity C ounc il on April 23, 2019 - David Mo rgan, C ity Manager Page 1 of 85 C C ons id eratio n and ap p ro val o f the June 15, 2020 G E DC O minutes--Hugh Brown, S ec retary D Disc ussio n and p o s s ib le ac tion to rec o mmend the F Y 2021 proposed G EDC O b udget and ad ministrative services c o ntrac t -- Laurie Brewer, As s is tant C ity Manager E Disc ussio n and p o s s ib le ac tion regard ing the S taff R eport – David Mo rgan, C ity Manager F C ons id eratio n and cons ent to assignment of the Mo tion C ommerc ial P ro p erties , LLC agreement to Titan NorthP ark35 -- Michaela Dollar, Economic Develo p ment Direc tor G Ac tion out of Exec utive S es s io n E xecutiv e Session In c o mp lianc e with the O p en Meetings Act, C hap ter 551, G o vernment C od e, Vernon's Texas C o d es , Anno tated , the items lis ted b elo w will b e disc us s ed in c lo s ed session and are s ub ject to ac tion in the regular s es s io n. H Sec. 551.071: CON S ULTAT IO N WIT H AT TO R N E Y C ons ultatio n with atto rney regard ing legal is s ues related to agend a items and o ther matters in which (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) pend ing or contemplated litigatio n; o r (B) a s ettlement offer; or (2) on a matter in whic h the duty o f the atto rney to the governmental body under the Texas Disc ip linary R ules o f P rofes sional C ond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter - C harlie Mc Nab b , C ity Atto rney I Section 551.072. D E LIB E R AT IO N R E GAR D IN G R E AL P R O P E RT Y Disc ussio n 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 purp o s es authorized b y the Develo p ment C o rp o ration 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. J Section 551.087. D E LIB E R AT IO N R E GAR D IN G E C ON O MIC D E VE LO P ME N T N E G O T IAT IO NS . Deliberation regard ing c o mmercial o r financ ial informatio n that the c o rporatio n has received from a bus iness pros pec t that the G eo rgeto wn Ec ono mic Development C o rporatio n s eeks to have loc ate, stay, or expand in o r near the territo ry o f the C ity o f G eo rgeto wn and with whic h the C o rp o ration is c o nducting ec ono mic d evelopment negotiations ; and/o r deliberatio n regard ing the o ffer of a financ ial o r other inc entive to a b usines s prospec t that the C o rp o ration seeks to have loc ate, s tay, o r exp and in or near the territory of the C ity o f G eo rgeto wn. Adjournment Adjourn Ce rtificate of Posting I, R obyn Dens mo re, C ity S ec retary for the C ity of G eorgetown, Texas, do hereb y certify that this Notice of Meeting was p o s ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgeto wn, T X 78626, a p lace readily acc es s ib le to the general p ublic as req uired by law, on the _____ day of _________________, 2020, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us hours prec eding the sc heduled time of s aid meeting. __________________________________ R o b yn Dens more, C ity S ecretary Page 2 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: C o nsideration and pos s ible actio n to nominate and elec t a P resident, Vice-P res id ent, and S ecretary cons is tent with S ec tion 3.02 o f the G EDC O Bylaws — David Mo rgan, C ity Manager IT E M S UMMARY: P ursuant to the G EDC O Bylaws, S ec tion 3.02 O fficers: "T he offic ers o f the C o rp o ration shall be a p res id ent, vic e president, and sec retary. T he Bo ard , at each annual meeting, which s hall no rmally o cc ur in the firs t meeting in Marc h o f eac h year, shall elec t thes e o fficers. T he Bo ard may appoint s uc h o ther o ffic ers as it deems nec es s ary, who s hall have the authority, and s hall p erform s uc h d uties as fro m time to time may b e presc rib ed by the Bo ard .” Acc o rd ingly, the C o rp o ration mus t nominate and elec t o fficers. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan, C ity Manager Page 3 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: R eview and d is c us s io n regarding the Amend ed Bylaws for G EDC O appro ved b y the C ity C o uncil o n Ap ril 23, 2019 - David Morgan, C ity Manager IT E M S UMMARY: Each year, G EDC O is as ked to review the c urrent b ylaws doc uments. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan, C ity Manager AT TAC H ME N T S: D escription Type GEDCO Bylaws 4-23-19 Cover Memo Page 4 of 85 Page 5 of 85 Page 6 of 85 Page 7 of 85 Page 8 of 85 Page 9 of 85 Page 10 of 85 Page 11 of 85 Page 12 of 85 Page 13 of 85 Page 14 of 85 Page 15 of 85 Page 16 of 85 Page 17 of 85 Page 18 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: C o nsideration and approval of the June 15, 2020 G EDC O minutes --Hugh Bro wn, S ecretary IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Board Liais on AT TAC H ME N T S: D escription Type 6/15/20 Minutes Cover Memo Page 19 of 85 GEDCO Minutes June 15, 2020 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas June 15, 2020 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday June 15, 2020. Members Present: Steve Bohnenkamp, Kevin Cummins, Hugh Brown, Steve Fought, Ron Garland Members Absent: Barrie Laing Staff Present: Michaela Dollar, Director of Economic Development; Paul Diaz, Budget Manager; David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Conchita Gusman, Business Retention Manager, Katherine Clayton, Budget Analyst Guest Present: Jim Johnson MINUTES Steve Bohnenkamp called to Order at 4:02 pm A. Review and discussion regarding the Fourth Amended Bylaws for GEDCO approved by the City Council on December 8, 2015 and the Articles of Amendment for GEDCO approved by the City Council on December 8, 2015 related to Board Membership --David Morgan, City Manager Review of Bylaws postponed to a future meting in order to have most current version. B. Review and possible action related to the Day and Time of the GEDCO Board Meetings--David Morgan, City Manager Motion by Hugh Brown to approve current schedule of GEDCO meetings to take place on the 3rd Monday of the month at 4:00 P.M. 2nd by Ron Garland. Approved 5-0 (Laing absent). C. Review and discussion regarding the City Council Attendance Policy for Board Members—David Morgan, City Manager David Morgan reviewed the attendance policy. No voting needed. D. Consideration and approval of the Feb 17, 2020 GEDCO minutes--Hugh Brown, Secretary Motion to approve by Ron Garland, 2nd by Hugh Brown. Approved 5-0 (Laing absent) E. Consideration and approval of the March 30, 2020 Special GEDCO meeting minutes --Hugh Brown, Secretary Motion to approve by Ron Garland, 2nd by Kevin Cummings. Approved 5-0 (Laing absent) F. Consideration of the February 1 - May 31, 2020 financial report--Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. Laurie Brewer and Paul Diaz reviewed the financial report. No voting needed. Laurie Brewer notified the Board that this would be Paul’s last GEDCO meeting since he is leaving the City to work for the City of Waco. Page 20 of 85 GEDCO Minutes June 15, 2020 Page 2 of 2 G. Discussion and possible action regarding the Staff Report -- David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Michaela Dollar reviewed the performance agreement report. Michaela Dollar also reviewed the activity report. No voting needed. H. Action out of Executive Session. ----------There was no Executive Session held at this meeting----- Motion to adjourn by Steve Bohnenkamp, 2nd by Kevin Cummings Meeting adjourned at 4:52 pm Attest: Hugh Brown, Secretary Steve Bohnenkamp, President Page 21 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: Dis cus s io n and pos s ible actio n to recommend the F Y 2021 p ro p o s ed G EDC O bud get and adminis trative s ervic es c o ntrac t -- Laurie Brewer, Assistant C ity Manager IT E M S UMMARY: T he p ro p o s ed F Y2021 G E DC O bud get inc lud es p ro jects id entified fo r funding along with ad ministrative costs and to tal funding req uirements. T he p ropos ed F Y2021 b udget identifies revenues and s p ecific projec ts planned fo r the upc oming year, as well as c o s ts as s oc iated with p as t d eb t is s uanc es . · P ropos ed F Y2021 Bud get P resentation · P ropos ed F Y2021 Bud get F und S chedule · P ropos ed F Y2021 Adminis trative C ontrac t S P E C IAL C O N S ID E R AT IO N S: C o uncil is sc hed uled to act on all components o f the F Y2021 bud get in S ep tember 2020. F IN AN C IAL IMPAC T: S ee attac hments S UB MIT T E D B Y: Leigh Wallace, F inance Directo r AT TAC H ME N T S: D escription Type FY21 Budget Pres entation Cover Memo GEDCO Summary Cover Memo Adminis trative Services Contract Cover Memo Page 22 of 85 FY2021 Annual Budget FY2021 Proposed GEDCO Budget Page 23 of 85 FY2021 Annual Budget GEDCO Budget Process •GEDCO -“component unit” of the City –GEDCO Board recommends budget to City Council –City Council adopts in August/September •Guided by GEDCO Fiscal and Budgetary Policy •GEDCO projects in collaboration with Economic Development Department Page 24 of 85 FY2021 Annual Budget GEDCO Budget Process •GEDCO budget developed annually –Revenue estimates for upcoming year •Sales Tax –Expenses for approved economic development projects and agreements; promotions –Debt service –from previously issued debt for projects –Administrative costs •Staff, overhead, project management, training Page 25 of 85 FY2021 Annual Budget Revenues •Sales tax is projected to end FY2020 at $1,984,375 –Meets budget due to strong first six months of fiscal year, offset by decreases due to COVID business closures •FY2021 Sales Tax is projected to be $1,984,375, which matches the FY20 budget and projection. •Interest revenue is budgeted at $19,000 in FY2021, which is lower than current year due to lower fund balances as incentive agreements are paid Page 26 of 85 FY2021 Annual Budget Expenditures •Operation expenses include: –$180,000 for Marketing (increase of $80,000) –$130,000 for Special Services/Contracts •$100,000 for update to the strategic plan –Administrative Costs/Overhead -$283,783 •Two Debt Service Payments - –Transfer out to the City’s main debt fund for $200,169 for Rivery conference center project –Repayment to the Water Fund for $90,572 Page 27 of 85 FY2021 Annual Budget Expenditures •Existing projects -$5,290,000 •Funding available for undetermined projects –$3.9 million •Reserves –per fiscal and budgetary policy –Contingency = 25% of sales tax •$496,093 –Debt Service = one year of debt service •$202,769 Page 28 of 85 FY2021 Annual Budget Administrative Contract •Administrative Contract –$197,821 for the Joint Service contract includes services of Economic Development, Legal, and Finance Administration –$85,962 for General Fund –other/city management –Total $283,783 –15.9% increase from FY20 due to additional contract oversight and activity –Contract approved as a separate agenda item Page 29 of 85 FY2021 Annual Budget Conclusion •Discussion •Recommendation to Council Page 30 of 85 FY2021 Annual Budget 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 2020 Total revenues are projected to be $2.07 million, which is a slight increase of less than ½ percent over budget. This increase is due to stronger interest income than anticipated. Sales tax collections are projected to on budget. A strong first half of the fiscal year helped make up for reductions in sales tax revenue seen during the Spring as the COVID19 pandemic closed many businesses. Total expenses are projected to be $1.7 million, which is significantly less than the budgeted amount of $9.5 million. This is because GEDCO appropriates nearly the full amount of funding available for economic development projects each year, leaving 25% of annual sales tax revenues in contingency reserve. Economic Development project expenditures are projected to end FY2020 at $1,050,000 and include natural gas infrastructure improvements to downtown, one incentive to Sedro Crossing and $100,000 for small business grants. Projects are considered throughout the year and unused project funding is appropriated in the following year. Total fund balance as of September 30th, 2020 is projected to be $8.8 million with a sales tax contingency reserve of $489,298 and a reserve for future debt service of $200,169. FISCAL YEAR 2021 Budgeted revenues are expected to total $2 million in FY2021. Sales tax is projected to remain flat over FY2020 projections, to reflect a conservative view of the impact of COVID19 pandemic on local businesses. Interest revenue is expected to decrease, as cash balances will be lower as approved incentives are paid throughout the year. Budgeted expenses total $9.9 million in FY2021. This includes $9.3 million available for future economic development projects. Expenses also include the administrative overhead contract with City staff, debt service for the Rivery conference center project, and the annual repayment of the loan from the Water Fund with an infrastructure grant for Citi Corp. Marketing and advertising expenses have a proposed increase of $80,000 to continue to promote the City for economic development. An additional $100,000 is also included for an update to the strategic plan. Total fund balance is projected to be $698,862 as of September 30th, 2021. This meets the contingency requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement of $202,769. Page 31 of 85 FY2021 Annual Budget FUND SCHEDULE FY2019 Actuals FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Beginning Fund Balance 6,972,636 8,138,781 8,138,781 8,836,402 - 8,836,402 Revenue FY2019 Actual FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Allocated Interest 16 - - - - Bond Interest 4,071 1,000 20 250 250 Direct Interest 174,456 75,000 85,000 18,750 18,750 Misc Revenue - - - - - Sales of Property - - - - - Sales Taxes 1,842,411 1,984,375 1,984,375 1,984,375 1,984,375 Grand Total 2,020,953 2,060,375 2,069,395 2,003,375 2,003,375 Expense FY2019 Actual FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Administative (Joint Services) Allocation 238,622 244,771 244,771 197,821 - 197,821 Ads - Public Notice - 50 - - - - Advertising - Print and Digital 97,324 100,000 100,000 100,000 80,000 180,000 Contracts and Leases - Temporary 12,843 30,000 15,123 30,000 100,000 130,000 Debt Interest 23,157 20,516 20,516 17,742 - 17,742 Debt Payment 80,568 83,695 83,695 72,830 - 72,830 Economic Development Agreement 30,151 8,812,339 700,000 9,256,391 - 9,256,391 Travel - 500 - - - - Property Taxes - - - - - Administative Allocation General Fund - 85,962 - 85,962 Legal Services - - - - Subsriptions & Dues - - - - - Transfer Out - General Debt Service 205,189 207,669 207,669 200,169 - 200,169 Grand Total 687,854 9,499,540 1,371,774 9,960,915 180,000 10,140,915 FY2019 Actuals FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Ending Fund Balance 8,305,735 699,616 8,836,402 878,862 (180,000) 698,862 CAFR Adjustment (175,439) - - - - - Contingency 460,603 489,298 489,298 496,093 - 496,093 Debt Service Reserve - 210,318 200,169 202,769 - 202,769 Reserved for Capital - - - - - - Available Fund Balance 7,669,693 0 8,146,935 180,000 (180,000) - Page 32 of 85 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 33 of 85 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, 2020 and terminate at the close of business on September 30, 2021 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 $23,648.58 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 $23,648.58 per month on the first of each month, begininng on October 1, 2020, 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: Page 34 of 85 3 (1) The City Manager does not approve of the utilization of any or all services; (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 Page 35 of 85 4 or employees as a condition precedent to Corporation's recovery under this provision. ARTICLE 9 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 78627 For Corporation: General Manager Georgetown Economic Development Corporation P.O. Box 409 Georgetown, Texas 78627 Page 36 of 85 5 ARTICLE 12 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_________, 2020. GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION By: Printed Name: Title: ATTEST: By: Printed Name: Title: CITY OF GEORGETOWN By: Printed Name: Dale Ross Title: Mayor ATTEST: By: Printed Name: Robyn Densomre Title: City Secretary APPROVED AS TO FORM: Skye Masson City Attorney Page 37 of 85 6 Attachment A The GEDCO Administrative Allocation for departments such as City Manager’s Office, Finance and Accounting, and the Legal Deparment totals $283,783 for FY2021. This equates to $23,648.58 per month. Page 38 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: Dis cus s io n and pos s ible actio n regarding the S taff R ep o rt – David Mo rgan, C ity Manager IT E M S UMMARY: T he G E DC O Bo ard has reques ted that s taff provid e a p ro ject progres s and s tatus rep o rt at each meeting o n all of the ac tive p ro jects disc ussed b y the Board. • P erfo rmanc e Agreement R eport • Ac tivity R ep o rt • O ther S taff I tems F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan, C ity Manager AT TAC H ME N T S: D escription Type Performance Agreement Report Cover Memo Activity Report - July 2020 Cover Memo Page 39 of 85 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 12/31/2021 320,000$ $320,000 KJ Scientific (KJS) Provide a grant of the equipment obtained in the TLCC brand acquisition to KJ Scientific (KJS) to retain the business in Georgetown.The retention equipment grant is for five years with KJS obligated to pay a pro-rated amount of $10,000 per year should they relocate outside of the City.2/27/2018 12/31/2022 $ 50,000 $ 50,000.00 Holt Caterpillar GEDCO to provide up to $360,000 infrastructure grant for fire suppression system pump house installation.9/10/2019 360,000$ 356,235$ Georgetown Development I, LLC Infrastructure reimbursement grant of $500,000 for qualified expenditures related to the development of 90,000 SF of speculative business park space in Georgetown at the Westinghouse Business Center.10/9/2018 6/1/2021 500,000$ WBW Development Infrastructure reimbursement grant of $200,000 for qualified expenditures and a $120,000 job creation grant for the creation of 30 jobs over 6 years related to the development of their headquarters location in Downtown Georgetown.2/12/2019 within 6 years of the certificate of occupancy date 320,000$ Confido III, LLC Infrastructure reimbursement grant for $600,000 to assist with construction of an access road and turn lane to maintain access to the Georgetown airport as area land development continues.3/8/2019 3/31/2022 600,000$ 4871 Williams Dr., LLC (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 89,500 square feet of commercial building space.3/26/2019 12/31/2023 250,000$ GEDCO - AGREEMENTS STATUS REPORT July 20, 2020 Page 40 of 85 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - AGREEMENTS STATUS REPORT June 16, 2020 Cockrum Commercial (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 60,000 square feet of new professional office space on Williams Dr.3/26/2019 12/31/2023 250,000$ Atmos Energy Infrastructure reimbursement grant of $148,499.36 for the installation of 776 feet gas main along 7th, 8th, and 9th streets.4/6/2019 148,499$ 143,674$ Texas Speed & Performance Job creation grant of $2K per job up to 100 jobs in 5 years.11/12/2019 11/12/2024 200,000$ Motion Commercial Properties Infrastructure reimbursement grant in connection with the construction of 2 bldgs: $500K infrastructure reimbursement bldg #1 $500K infrastructure reimbursement bldg #2 Certificate of occupancy issue date 10 year anniversary of start date $1,000,000 --------- Atmos Energy (Lakeway Extension) Extension of natural gas line for any GEDCO applicable project 12/10/2019 12/10/2024 400,000$ Costco Agreement to partner with Atmos for natural gas line extension and reimbursement of cost to GEDCO by Costco if retail store construction is not completed.12/10/2019 12/10/2024 N/A Champion Site Prep Infrastructure reimbursement grant associated with the development of 30,000sf headquarters facility representing a $13M capital investment where the company shall remain for at least 5 years..1/28/2020 within 5 years of the certificate of occupancy date 500,000$ Page 41 of 85 Economic Development Activity Report July 2020 Page 42 of 85 Strategic Goal 1 Support existing businesses and industries Page 43 of 85 0 10 20 30 40 50 60 70 80 90 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Business Retention Activity Visits Touches Page 44 of 85 Business Retention Activity •Summer Shop Small Saturday –postponed •Partnering with Chamber on a Shop Georgetown Campaign through social media •Continuous outreach to businesses •Planning a Drive Thru BBQ Business Appreciation Event for September 11 Page 45 of 85 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 46 of 85 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY18 FY19 FY20 Rolling 12-Month Average Page 47 of 85 0 2 4 6 8 10 12 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Qualified Leads FY18 FY19 FY20 Rolling 12-Month Average Page 48 of 85 0 2 4 6 8 10 12 14 Ju l 1 9 Au g 1 9 Se p 1 9 Oc t 1 9 No v 1 9 De c 1 9 Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Qualified Leads Comparison Leads Qualified We have qualified for an average of 58% of leads over the last 12 months. Page 49 of 85 0 1 2 3 4 5 6 7 8 9 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY18 FY19 FY20 Rolling 12-Month Average Page 50 of 85 0 10 20 30 40 50 60 70 80 90 Ju l 1 9 Au g 1 9 Se p 1 9 Oc t 1 9 No v 1 9 De c 1 9 Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Active Projects Development Hot Warm Cold Page 51 of 85 Recruitment Activity •Preparing direct targeting campaign outreach for late summer •Producing virtual site visits to use in outreach •Continued lead generation with ROI, Inc. and have had several virtual visits with companies (may be the new norm for a while) •Most trade shows and recruitment trips for the remainder of the year have been cancelled Page 52 of 85 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 53 of 85 Workforce Development Activity •Working with Rural Area Capital and GISD for a virtual career fair •Planning Manufacturing Day with GISD and Chamber •Planning the Veterans and Military Spouses Virtual Job Fair Page 54 of 85 Strategic Goal 4 Encourage speculative development Page 55 of 85 Speculative Development Activity •Continuing to work with prospective industrial speculative developers •Working with existing projects through development process •Looking for proactive infrastructure scenarios Page 56 of 85 Overall Objective Tell our story to a broader local audience Page 57 of 85 Other Activity •Main Street was awarded the Chamber’s Economic Development Cornerstone award! •Updated target industry brochures with new demographics on website •Planning a marketing video production with the WilCo EDP •Holding on planning the economic development symposium until later in the year; coordinating with the Chamber Page 58 of 85 Economic Indicators Page 59 of 85 - 500 1,000 1,500 2,000 2,500 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Ju l 1 9 Au g 1 9 Se p 1 9 Oc t 1 9 No v 1 9 De c 1 9 Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n e 2 0 Construction Permit Applications Valuation (in millions) # of Permits Page 60 of 85 0 2 4 6 8 10 12 14 16 Ju l 1 9 Au g 1 9 Se p 1 9 Oc t 1 9 No v 1 9 De c 1 9 Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Ju n 2 0 Certificates of Occupancy Issued Page 61 of 85 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Oc t No v De c Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Sales Tax Collections FY 2017 FY 2018 FY 2019 FY 2020 Page 62 of 85 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Ju n 1 9 Ju l 1 9 Au g 1 9 Se p 1 9 Oc t 1 9 No v 1 9 De c 1 9 Ja n 2 0 Fe b 2 0 Ma r 2 0 Ap r 2 0 Ma y 2 0 Unemployment Rate Unemployment Rate Rolling 12-Month Average Page 63 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: C o nsideration and c o ns ent to as s ignment of the Motio n C o mmercial P ro perties , LLC agreement to Titan No rthP ark35 -- Mic haela Do llar, Ec o nomic Development Directo r IT E M S UMMARY: Motio n C o mmerc ial P roperties and Titan Develo p ment have created a jo int venture to develo p phas e one o f a larger b us ines s p ark, whic h will enc o mpas s the Texas S p eed exp ansion. S taff reques ts cons ent to trans fer the exis ting agreement fo r $1,000,000 infras tructure reimb ursement with Mo tion C ommerc ial P ro p erties approved by c o uncil No vember 12, 2019 to the joint venture, Titan No rthP ark35. F IN AN C IAL IMPAC T: No additio nal impac t. S UB MIT T E D B Y: Mic haela Dollar AT TAC H ME N T S: D escription Type As s ignment Agreement Cover Memo Page 64 of 85 1 ASSIGNMENT AND ASSUMPTION OF ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT THIS ASSIGNMENT AND ASSUMPTION OF ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT (“Assignment”) is made and entered into effective as of July _____, 2020, by and among the Georgetown Economic Development Corporation, a Type A sales tax corporation (“GEDCO”), Motion Commercial Properties, LLC, a Texas limited liability company (“Company”), and Titan NorthPark35, LLC, a Texas limited liability company (“Titan”). A. GEDCO and Company entered into that certain Economic Development Incentive Agreement dated November 15, 2019 (“Development Agreement”) for the provision of economic development grants by GEDCO to Company for the construction of certain Infrastructure (as defined therein), a true, correct and complete copy of which is attached hereto as Exhibit “A” and made a part hereof; B. Titan is under contract to purchase the Land (as defined in the Development Agreement), which Titan intends to develop into an industrial business park; and C. Company wishes to assign its rights, title and interests under the Development Agreement to Titan, and Titan, an affiliate of Company, wishes to accept and assume all rights, title and interests under the Development Agreement from Company as set forth hereunder. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, GEDCO, Company and Titan agree as follows: 1. Assignment and Assumption. Company hereby assigns, transfers, sets over and conveys to Titan, its successors and assigns, all right, title and interest of Company in, under and to the Development Agreement. Titan hereby assumes and agrees to perform all of Company’s obligations under the Development Agreement accruing and to be performed from and after the date hereof. GEDCO hereby expressly consents to this assignment and assumption of the Development Agreement provided however the consent to assignment by GEDCO is expressly subject to and conditioned upon Titan closing its purchase of the Land on or before December 15, 2020. 2. Notice. GEDCO’s and Titan’s respective addresses for notice hereafter are set forth herein below. All notices shall be given in the same manner set forth in notice provisions contained in. GEDCO: Georgetown Economic Development Corporation Attn: President City of Georgetown 808 Martin Luther King, Jr. Street Georgetown, TX 78626 With a copy to: City of Georgetown Attn: City Attorney 113 E. Eighth Street Georgetown, TX 78633 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 65 of 85 2 TITAN: Titan NorthPark35, LLC Attn: Kevin L. Reid, Manager 9601 McAllister Fwy., Suite 1120 San Antonio, TX 78216 With a copy to: Christopher M. Pacheco 6300 Riverside Plaza Ln., NW Suite 200 Albuquerque, NM 87120 3. Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of GEDCO and Titan, and their respective heirs, executors, administrators, successors, and assigns. 4. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one document. Delivery of an executed counterpart of this Agreement by facsimile shall be equally as effective as delivery of an executed original counterpart and shall constitute a covenant to deliver an executed original counterpart, but the failure to do so shall not affect the validity, enforceability and binding effect of this Agreement. 5. Governing Law. This Assignment shall be governed by the laws of the State of Texas, and venue for any action concerning this Assignment shall be in the State District Court of Williamson County, Texas. [Remainder of page intentionally left blank] DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 66 of 85 3 IN WITNESS WHEREOF, GEDCO, Company and Titan have signed this Assignment as of the day and year first above written. GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION By: Steven Bohnenkamp, President TITAN NORTHPARK35, LLC By: Titan Property Management, LLC its Manager By: Kevin L. Reid, Manager MOTION COMMERCIAL PROPERTIES, LLC By: Name: Title: DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Trevor Doelling President Page 67 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 68 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 69 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 70 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 71 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 72 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 73 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 74 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 75 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 76 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 77 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 78 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 79 of 85 DocuSign Envelope ID: 2AF88132-863E-4886-A096-BB0990A682B5 Page 80 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: Actio n o ut of Exec utive S ession IT E M S UMMARY: F IN AN C IAL IMPAC T: T B D S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 81 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: S ec. 551.071: C O NS ULTAT ION WIT H AT TOR N E Y C o nsultatio n with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) pending o r c o ntemp lated litigation; o r (B) a s ettlement o ffer; o r (2) on a matter in which the d uty o f the atto rney to the go vernmental body und er the Texas Dis ciplinary R ules o f P rofes s io nal C o nduct of the S tate Bar of Texas c learly conflicts with this c hap ter - C harlie Mc Nabb, C ity Atto rney IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 82 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: S ection 551.072. D E LIB E R AT ION R E G ARD IN G R E AL P R OP E RT Y Dis cus s io n and pos s ible actio n to d elib erate the p urc hase,exc hange, lease or value of real property fo r p urposes autho rized by the Development C orporatio n Ac t which disc ussio n in o p en s es s io n would have a d etrimental effec t o n nego tiatio ns with third p ers o ns . IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 83 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: S ection 551.087. D E LIB E R AT ION R E G ARD IN G E C O N OMIC D E VE LO P ME N T N E GOT IAT ION S . Delib eration regarding commerc ial or financial info rmation that the corporation has rec eived fro m a b usines s pros p ec t that the G eorgetown Economic Develo p ment C orporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the C ity of G eo rgeto wn and with whic h the C o rp o ration is cond uc ting 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 C orporatio n s eeks to have lo cate, s tay, or exp and in o r near the territo ry of the C ity o f G eorgetown. IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 84 of 85 City of Georgetown, Texas Georgetown Economic Development Corporation July 20, 2020 S UB J E C T: Ad jo urn IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Mic haela Dollar Page 85 of 85