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HomeMy WebLinkAboutAgenda_GEDCO_08.15.2016Notice of Meeting for the Georgetown Economic Dev elopment Corporation and the Gov erning Body of the City of Georgetown August 15, 2016 at 4:00 PM at the City Council Chambers, located at 101 E. 7th Street, Georgetown, TX 78626 The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Regular Session (This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.) A Co nsideration and approval of the minutes fo r Georgetown Ec o nomic Develo p ment Co rp o ration for the Regular Meeting held Friday, June 17, 2016--Kevin Kelly, S ecretary B Co nsideration of the June 30, 2016 and July 31, 2016 Financ ial Rep o rts . Leigh Wallace, F inance Manager, GEDCO, F inance Direc tor, COG. C Pres entatio n, dis c us sion and possible action regard ing an overview of projec t typ es eligib le for GEDC O funding. D Dis cus s ion and pos s ible actio n regarding the Staff Rep o rt —David Morgan, C ity Manager -P erformance Agreement Report -Retail Stud y and Rec ruitment Plan -Other Pro jec ts E Actio n o ut o f Exec utive Session. Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, Annotated, the items lis ted below will be d is c us s ed in closed s es s io n and are s ubjec t to actio n in the regular s es s io n. F Sec. 551.071: CONSULTATION WITH ATTORNEY Co nsultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) p ending o r c o ntemp lated litigatio n; o r (B) a s ettlement o ffer; o r (2) o n a matter in which the d uty of the attorney to the go vernmental body under the Texas Dis ciplinary Rules o f P ro fes s io nal Cond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter. G Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Dis cus s ion and pos s ible actio n to d elib erate the p urc hase,exc hange, leas e or value of real property for purp o s es authorized b y the Development C o rp o ration Ac t which disc us s io n in o p en s es s io n would have adetrimental effect on negotiations with third pers ons . Page 1 of 18 H Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Delib eratio n regarding commerc ial or financ ial info rmation that the corp o ration has rec eived fro m a bus iness pros pec t that the Georgetown Ec ono mic Develo p ment Co rp oratio n s eeks to have loc ate, stay, or exp and in or near the territory of the City o f Georgetown and with whic h the C o rp o ration is cond uc ting ec o nomic d evelopment nego tiatio ns; and/o r deliberatio n regarding the o ffer of a financ ial or o ther incentive to a bus iness p ro s p ect that the C o rp o ration seeks to have lo cate, s tay, o r exp and in o r near the territory o f the City o f Georgetown. - Pro ject Ho p - Project Badge CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2016, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 2 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Cons id eration and ap p ro val o f the minutes for Geo rgeto wn Econo mic Development Corporatio n fo r the Regular Meeting held F rid ay, June 17, 2016--Kevin Kelly, Sec retary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes for the Regular Meeting held Friday, June 17, 2016 FINANCIAL IMPACT: None SUBMITTED BY: Shirley Rinn for Kevin Kelly, Co rp o rate Sec retary ATTACHMENTS: Description Type june minutes Cover Memo Page 3 of 18 GEDCO Minutes June 17, 2016 Page 1 of 2 Minutes of the Special Meeting of the Georgetown Economic Development Corporation And the Governing Body of the City of Georgetown, Texas June 17, 2016 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, June 17, 2016. Members Present: Kevin Kelly, Rachel Jonrowe, Bill Mateja, Jeff Parker, Hugh Brown, Steve Fought, Steve Klein Staff Present: David Morgan, City Manager/General Manager; Wayne Reed, Assistant City Manager; Charlie McNabb, City Attorney; Laurie Brewer, Assistant City Manager; Conchita Gusman, Economic Development Program Manager; Leah Wallace, Finance Director/Finance Manager; Debbie Mitchell, Senior Accountant; Paul Diaz, Budget Manager; Tina Dunbar, Administrative Assistant; Andreina Davila, Project Coordinator MINUTES Call to Order at 10:00 am Legislative Regular Session A. Consideration and approval of the minutes of the Georgetown Economic Development Corporation Regular Meetings held Monday, April 18 and Monday, May 16, 2016--Kevin Kelly, Secretary Motion by Mateja, second by Jonrowe to approve the March 21, 2016 minutes. (Approved 6-0) B. Presentation, discussion and possible action regarding the Retail Strategy & Recruitment Plan - Jason Claunch, Catalyst Commercial, Inc. Jason Claunch provided an overview of the Retail Strategy & Recruitment Plan and the reaction/comments of attendees at his presentation to downtown Georgetown stakeholders. Discussion was held and Claunch answered questions from GEDCO members. C. Consideration of the May 31, 2016 Financial Reports -- Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO Wallace presented the reports and explained the new report format. Klein arrived at 10:30 D. Discussion and possible action to adopt the FY2017 proposed GEDCO budget and set a date for the public hearing on the proposed budget. Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO Page 4 of 18 GEDCO Minutes June 17, 2016 Page 2 of 2 Wallace presented the GEDCO 2017 budget. Discussion was held and Wallace answered questions from GEDCO members. Motion by Jonrowe, second by Mateja to approve the FY2017 Budget. Fought requested that an item to provide funds for TLCC be added to the Budget. Motion by Jonrowe, second by Mateja to approve the FY2017 Budget with the addition of funding for TLCC. (Approved 7-0) E. Sales tax presentation regarding FY2016 and FY2017 projected sales tax collections. Paul Diaz provided a presentation of FY2016 and FY2017 projected sales tax collections. F. Discussion and possible action regarding the Project Progress Report—Wayne Reed, Assistant City Manager Reed and Gusman provided updates on the performance agreements and explained that the report format will be updated at the next meeting. Reed presented an update on the search for the Economic Development Director. G. Discussion, and possible action regarding the Performance Agreement between GEDCO and the Georgetown Independent School District (GISD) - Wayne Reed, Assistant City Manager Gusman provided and explanation of the history of the GISD Performance Agreement and amendments requested by GISD. Discussion was held on the request. Motion by Jonrowe, second by Parker to approve the amended Performance Agreement. (Approved 7-0) H. Discussion and possible action regard the Performance Agreement between GEDCO and DiFusion Technologies, Inc. - Wayne Reed, Assistant City Manager Reed provided the status of the Performance Agreement and information on the process of terminating the agreement. Discussion was held on the impact of the Agreement termination to GEDCO and TLCC. I. Action out of Executive Session No Executive Session was held. Adjourn at 11:45 am ATTEST: ______________________________ ___________________________________ Kevin Kelly, Corporate Secretary Hugh Brown, President Page 5 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Cons id eration o f the June 30, 2016 and July 31, 2016 F inancial Reports . Leigh Wallac e, Financ e Manager, GEDCO, Financ e Directo r, COG. ITEM SUMMARY: See Attachments FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace, Financ e Manager, GEDCO F inanc e Direc tor, COG ATTACHMENTS: Description Type Financial Report Cover Memo Page 6 of 18 GEDCO Board Meeting Date: August 15, 2016 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the June 30, 2016 and July 31, 2016 Financial Reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: The corporate bylaws require the Finance Manager to present the monthly financial reports to the Board. Included in these reports will be: • Financial reports • Sales Tax revenues • Monthly expenditures • Any other relevant financial information Sales tax revenue is two months in arrears. Included in this report is the sales tax revenue collected in May and June for sales in March and April. Payments made to vendors for the month of June are also included. There were no payments made to vendors in the month of July. ATTACHMENTS: Monthly Financial Reports Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 7 of 18 YEAR-END YEAR-END APPROVED JUN-16 YEAR TO DATE YEAR-END VARIANCE % VARIANCE BUDGET W/ENCUMB W/ENCUMB PROJECTION FAV(UNFAV)FAV(UNFAV) BEGINNING BALANCE 5,370,479 5,378,900 8,421 0.2% OPERATING REVENUES Sales Tax 1,345,313 104,859 818,478 1,406,750 61,437 4.6% Interest 7,500 3,042 16,981 12,427 4,927 65.7% Miscellaneous Revenue 0 9,938 59,958 56,750 56,750 NA Lease Revenue (Grape Creek)48,000 4,000 36,000 48,000 0 0.0% Total Operating Revenues 1,400,813 121,839 931,417 1,523,927 123,114 8.8% OPERATING EXPENDITURES Debt Service 106,694 0 16,133 106,694 0 0.0% Bond Issuance Costs 87,500 0 18,224 18,224 69,276 79.2% Interlocal Agreement 211,200 0 136,611 136,611 74,589 35.3% Supplies 300 0 2 2 298 99.3% Special Services 7,500 0 0 0 7,500 100.0% Travel & Training 1,500 0 730 730 770 51.3% Promotional & Marketing Program 81,000 6,000 25,552 25,552 55,448 68.5% Miscellaneous Expense 2,500 11,429 11,429 11,429 (8,929)(357.2%) Total Operating Expenditures 498,194 17,429 208,681 299,242 198,952 39.9% TOTAL NET OPERATIONS 902,619 104,410 722,736 1,224,685 (75,838)(8.4%) NON-OPERATING REVENUES Bond Proceeds 3,100,000 0 2,977,185 2,977,185 (122,815)(4.0%) Premium on Bond Issuance 0 0 141,562 141,562 141,562 NA Total Non-Operating Revenues 3,100,000 0 3,118,747 3,118,747 18,747 0.6% NON-OPERATING EXPENDITURES Catalyst 71,000 0 0 71,000 0 0.0% DisperSol 200,000 0 20,000 20,000 180,000 90.0% Economic Development Projects -Undetermined 3,988,774 0 0 0 3,988,774 100.0% Georgetown ISD 109,496 0 0 15,649 93,847 85.7% Rivery 4,500,000 0 0 4,500,000 0 0.0% Tasus 67,500 0 0 0 67,500 100.0% Texas Life Sciences 100,000 0 100,000 100,000 0 0.0% Total Non-Operating Expenditures 9,036,770 0 120,000 4,706,649 4,330,121 47.9% TOTAL NET NON-OPERATIONS (5,936,770)0 2,998,747 (1,587,902)(4,311,374)72.6% EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,034,151)104,410 3,721,483 (363,217)4,670,934 (92.8%) ENDING BALANCE 336,328 5,015,683 4,679,355 1,391.3% RESERVED ENDING BALANCE 336,328 351,688 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of June 2016 Page 8 of 18 As of June 30, 2016 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 To FY 15 To FY 15 October 66,121$ 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 7,956$ 8.11% November 77,461 74,472 82,083 99,552 102,891 112,766 9,875$ 9.60% December 116,780 111,968 117,582 134,682 143,774 148,200 4,426$ 3.08% January 67,968 73,177 82,714 89,357 87,695 96,563 8,868$ 10.11% February 57,904 72,946 77,890 86,901 89,107 108,117 19,010$ 21.33% March 108,015 105,822 115,564 114,355 123,951 133,492 9,541$ 7.70% April 72,100 81,362 84,420 106,002 102,671 108,977 6,306$ 6.14% May 73,307 80,919 94,412 112,572 95,699 120,418 24,719$ 25.83% June 101,012 99,664 114,132 123,306 130,589 July 69,781 89,969 92,765 102,435 108,994 August 75,202 85,792 92,735 98,015 102,888 September 89,831 88,334 125,197 119,473 125,201 Total 975,483$ 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 934,583$ YTD 639,657 670,929 740,989 835,284 843,882 934,583 110.75% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for May will actually be received in July $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Re v e n u e s Sales Tax 3 Year Trend 2013-14 2014-15 2015-16 Page 9 of 18 • Promotions & Marketing Program: - Conway Data Inc. • Contracts - Other: - Williamson County Tax Collector Page 10 of 18 YEAR-END YEAR-END APPROVED JUL-16 YEAR TO DATE YEAR-END VARIANCE % VARIANCE BUDGET W/ENCUMB W/ENCUMB PROJECTION FAV(UNFAV)FAV(UNFAV) BEGINNING BALANCE 5,370,479 5,378,900 8,421 0.2% OPERATING REVENUES Sales Tax 1,345,313 116,104 939,439 1,406,750 61,437 4.6% Interest 7,500 3,022 20,003 12,427 4,927 65.7% Miscellaneous Revenue 0 0 59,958 56,750 56,750 NA Lease Revenue (Grape Creek)48,000 4,000 40,000 48,000 0 0.0% Total Operating Revenues 1,400,813 123,126 1,059,400 1,523,927 123,114 8.8% OPERATING EXPENDITURES Debt Service 106,694 90,562 106,695 106,694 0 0.0% Bond Issuance Costs 87,500 0 18,224 18,224 69,276 79.2% Interlocal Agreement 211,200 0 136,611 136,611 74,589 35.3% Supplies 300 0 2 2 298 99.3% Ads, Notices, Recording Fees 0 0 56 0 0 NA Special Services 7,500 0 0 0 7,500 100.0% Travel & Training 1,500 0 730 730 770 51.3% Promotional & Marketing Program 81,000 0 38,352 25,552 55,448 68.5% Miscellaneous Expense 2,500 0 11,429 11,429 (8,929)(357.2%) Total Operating Expenditures 498,194 90,562 312,099 299,242 198,952 39.9% TOTAL NET OPERATIONS 902,619 32,564 747,301 1,224,685 (75,838)(8.4%) NON-OPERATING REVENUES Bond Proceeds 3,100,000 0 2,977,185 2,977,185 (122,815)(4.0%) Premium on Bond Issuance 0 0 141,562 141,562 141,562 NA Total Non-Operating Revenues 3,100,000 0 3,118,747 3,118,747 18,747 0.6% NON-OPERATING EXPENDITURES Catalyst 71,000 0 0 71,000 0 0.0% DisperSol 200,000 0 20,000 20,000 180,000 90.0% Economic Development Projects -Undetermined 3,988,774 0 0 0 3,988,774 100.0% Georgetown ISD 109,496 0 0 15,649 93,847 85.7% Rivery 4,500,000 0 0 4,500,000 0 0.0% Tasus 67,500 0 0 0 67,500 100.0% Texas Life Sciences 100,000 0 100,000 100,000 0 0.0% Total Non-Operating Expenditures 9,036,770 0 120,000 4,706,649 4,330,121 47.9% TOTAL NET NON-OPERATIONS (5,936,770)0 2,998,747 (1,587,902)(4,311,374)72.6% EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,034,151)32,564 3,746,048 (363,217)4,670,934 (92.8%) ENDING BALANCE 336,328 5,015,683 4,679,355 1,391.3% RESERVED ENDING BALANCE 336,328 351,688 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of July 2016 Page 11 of 18 As of July 31, 2016 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 To FY 15 To FY 15 October 66,121$ 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 7,956$ 8.11% November 77,461 74,472 82,083 99,552 102,891 112,766 9,875$ 9.60% December 116,780 111,968 117,582 134,682 143,774 148,200 4,426$ 3.08% January 67,968 73,177 82,714 89,357 87,695 96,563 8,868$ 10.11% February 57,904 72,946 77,890 86,901 89,107 108,117 19,010$ 21.33% March 108,015 105,822 115,564 114,355 123,951 133,492 9,541$ 7.70% April 72,100 81,362 84,420 106,002 102,671 108,977 6,306$ 6.14% May 73,307 80,919 94,412 112,572 95,699 120,418 24,719$ 25.83% June 101,012 99,664 114,132 123,306 130,589 142,767 12,178$ 9.33% July 69,781 89,969 92,765 102,435 108,994 August 75,202 85,792 92,735 98,015 102,888 September 89,831 88,334 125,197 119,473 125,201 Total 975,483$ 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 1,077,350$ YTD 740,669 770,592 855,121 958,590 974,471 1,077,350 110.56% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for June will actually be received in August $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Re v e n u e s Sales Tax 3 Year Trend 2013-14 2014-15 2015-16 Page 12 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Presentatio n, d is c us s io n and p o s s ib le ac tion regarding an o verview o f projec t types eligible fo r GEDCO fund ing. ITEM SUMMARY: The Develo pment Corporatio n Act of 1979 gives c ities the ability to finance new and expand ed bus iness enterp ris es in their loc al c o mmunities thro ugh no n-profit ec o nomic development corporatio ns. Prior to 1987, thes e c orporatio ns were d ep endent on funding fro m private s o urc es . T hen in No vember o f 1987, Texas vo ters approved an amend ment to the Texas Cons titutio n allo wing the legis lature to create programs and the make lo ans and grants o f pub lic money fo r the p ublic purp o s es of develo p ment and divers ification o f the economy of the s tate. Purs uant to this c ons titutio nal amendment, the Texas Legis lature has enacted s everal laws that allow s tate and lo cal government funds to b e us ed to promo te econo mic d evelopment inc luding the 1989 amend ment to add Sec tio n 4A. S ectio n 4A allo ws fo r the c reation of a develo p ment corporatio n that c an b e funded b y the impos is tion of a loc al sales and use tax d ed icated to ec o nomic d evelopment. At an elec tion held in May o f 2005, Georgeto wn c itizens vo ted to ap p ro ve the ad o p tion of a sales and use tax for the pro mo tion and develo p ment of new and expand ed bus iness enterpris es . GEDCO was es tablished to c ons id er reques ts and ad minis ter the s ales and use tax funds. Michaela Dollar, Direc tor o f Econo mic Development, will provid e an overview o f the typ es of p ro jects that are eligib le for GEDC O funding. FINANCIAL IMPACT: N/A SUBMITTED BY: Tina Dunb ar o n b ehalf o f Mic haela Dollar, Direc to r of Ec o nomic Development Page 13 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the S taff Report —David Morgan, City Manager -P erformance Agreement Report -Retail Stud y and R ecruitment Plan -Other Pro jec ts ITEM SUMMARY: The GEDCO Board has req uested that staff p ro vide a projec t p ro gress and s tatus report at eac h meeting o n all of the ac tive p ro jects disc ussed b y the Bo ard . FINANCIAL IMPACT: N/A SUBMITTED BY: David S. Morgan, C ity Manager Page 14 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: None SUBMITTED BY: Skye Mas s o n, Interim City Attorney Page 15 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Cons ultation with atto rney regard ing legal iss ues related to agend a items and o ther matters in which (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) p end ing or contemplated litigation; o r (B) a settlement offer; or (2) o n a matter in whic h the duty of the attorney to the governmental b o d y und er the Texas Dis c ip linary Rules o f Pro fes s ional C o nduct of the State Bar of Texas c learly conflicts with this c hapter. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 16 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Disc ussion and p o s s ib le ac tion to deliberate the purchas e,exchange, leas e o r value o f real p ro p erty for p urposes autho rized by the Develo p ment Corporatio n Act whic h d is cus s ion in open session wo uld have ad etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 17 of 18 City of Georgetown, Texas Georgetown Economic Development Corporation August 15, 2016 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberatio n regard ing c o mmercial o r financ ial informatio n that the c o rp o ratio n has received from a b usines s pros p ec t that the Geo rgeto wn Economic Development Corporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the City o f Geo rgeto wn and with whic h the Corporatio n is c o nducting econo mic d evelo p ment negotiations ; and/o r d elib eration regard ing the o ffer o f a financial o r other inc entive to a bus iness pros pec t that the Co rp o ration s eeks to have loc ate, stay, o r expand in or near the territory of the City of Georgetown. - Pro ject Ho p - Project Badge ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 18 of 18