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Home My WebLink AboutAgenda_GEDCO_08.16.2021Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown August 16, 2021 at 4:00 P M at Georgetown City Hall Community Room, 808 Martin L uther K ing Jr. St. 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. The Ge or ge town E c onomic D e ve lopme nt C or por ati on B oard is now me eting in -per son with a quorum pre se nt and publ ic is we lc ome to atte nd. If spe cial ac commodati ons are ne eded due to C O V I D -19 and atte nding vi rtually is nee de d, pl e ase r eac h out to the S taff L iai son, S har on P ar ker at 512-930-6534 for assistanc e. 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 ap p ro val o f the July 19, 2021 G E DC O minutes - S haron P arker, Bo ard Liaison. B C ons id eratio n o f the p reliminary financ ial rep o rt fo r period ending July 31, 2021 - Nathan P arras , Assistant F inance Directo r, C ity o f G eorgetown C Disc ussio n regarding the S taff R eport - David Mo rgan, G eorgetown C ity Manager D 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. E 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. P ro jec t F lex P ower Page 1 of 41 Adjournment 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 _________________, 2021, 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 41 City of Georgetown, Texas Georgetown Economic Development Corporation August 16, 2021 S UB J E C T: C o nsideration and approval of the July 19, 2021 G EDC O minutes - S haro n P arker, Board Liais o n. 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: D escription Type Minutes Backup Material Page 3 of 41 GEDCO Minutes July 19, 2021 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas July 19, 2021 The Georgetown Economic Development Corporation of the City of Georgetown, TX, met virtually on Monday March 15, 2021. Members Present: Barrie Laing, Hugh Brown, Robert Hilton, Ron Garland (Virtual), Steve Fought, Shawn Hood Members Absent: Kevin Cummins Staff Present: David Morgan, City Manager; Michaela Dollar, Director of Economic Development; Nathan Paras, Assistant Finance Director; Conchita Gusman, Business Retention Manager, Sharon Parker, Board Liaison. Guest Present: MINUTES Meeting called to Order at 4:02 pm A. Consideration and approval of the May 17, 2021 GEDCO Minutes— Sharon Parker, Board Liaison Motion to approve by Barry Laing , 2nd by Robert Hilton . Approved 5-0 Kevin Cummins Absent . B. Consideration of the September 1, 2020 Financial report – Nathan Parras, Assistant Finance Director. Correction the Financial report is for June 2021. Nathan presented the June 2021 financial report. No action needed. C. Sales Tax Presentation – Nathan Parras, Assistant Finance Director. Nathan presented the Sales Tax presentation, Nathan showed the ways sales tax is tracked and options for obtaining information. No action needed. D. Discussion and possible action to recommend the FY2022 proposed GEDCO budget and administrative services contract – Nahtan Parras, Assistant Finance Director. Nathan presented the FY2022 proposed budget and administrative services contract. Motion to recommend to Council for approval of the FY2022 proposed budget and the administrative services contract as presented by Barry Laing , 2nd by Robert Hilton . Approved 5-0 Kevin Cummins Absent . E. Discussion regarding the Staff Report -David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items Page 4 of 41 GEDCO Minutes July 19, 2021 Page 2 of 2 Michaela reviewed the Performance Agreement report and the Activity Report. No action needed. F. Action out of Executive Session. No Executive session, no action needed. Motion to adjourn by Ron Howard , 2nd by Hugh Brown . Meeting adjourned at 5:06 pm Hugh Brown, Secretary Kevin Cummins, President Page 5 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation August 16, 2021 S UB J E C T: C o nsideration of the preliminary financial report for p erio d end ing July 31, 2021 - Nathan P arras, As s is tant F inance Direc tor, C ity of G eorgetown IT E M S UMMARY: T he c o rp o rate bylaws req uire the F inanc e Manager to p res ent the mo nthly financ ial rep o rts to the Bo ard. Includ ed in thes e reports will be: F inancial reports S ales Tax revenues Monthly exp enditures Any other relevant financ ial info rmatio n S ales tax revenue is two months in arrears; therefo re the revenues reflect only the amo unt received , not actually earned, as o f the rep o rt d ate. 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: D escription Type GEDCO Financial Report Backup Material GEDCO Pres entation Pres entation GEDCO Summary Backup Material Page 6 of 41 COG ‐ GEDCO Financial Report Period: Jul‐21 Budget FY2021 YTD Actuals w/Encumbrances Variance % of YTD Actuals to Budget Beginning Fund Balance 8,845,777 8,845,777 ‐ 100.00% Operating Revenue 40002:Sales Taxes 2,063,750 1,688,518 (375,232) 81.82% 42001:Interest Income 19,000 23,204 4,204 122.13% Operating Revenue Total 2,082,750 1,711,722 (371,028) 82.19% Operating Expense Operations 593,783 291,370 302,413 49.07% Transfers 1,200,169 1,040,084 160,085 86.66% Operating Expense Total 1,793,952 1,331,455 462,497 74.22% Total Net Operations 288,798 380,267 (833,525) 131.67% Non‐Operating Revenue Non‐Operating Expense Operations 8,256,391 396,500 7,859,891 4.80% Debt Service 90,572 ‐ 90,572 0.00% Non‐Operating Expense Total 8,346,963 396,500 7,950,463 4.75% Net Non‐Operations Total (8,346,963) (396,500) 7,950,463 4.75% Excess (Deficiency) of Total Revenue over Total Requirements (8,058,165) (16,233) (8,074,398) 100.20% Ending Fund Balance 787,612 8,829,544 8,041,932 1121.05% Reserves Contingency Reserve 505,468 505,468 ‐ 100.00% Debt Service Reserve 202,769 202,769 ‐ 100.00% Reserves Total 708,237 708,237 ‐ 100.00% Available Fund Balance 79,375 8,121,307 8,041,932 10231.57% YTD Actuals Budget Vs. Actuals Page 7 of 41 GEDCO Financial Summary: July 21Page 8 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Revenue •FY2021 Revenue Budget •Revenue Budget Sources •The FY2021 revenue budget for the GEDCO is $2.1 million •99% of budgeted revenue is sales tax, $2.1 million •Interest Income accounts for $19,000 99.09% 0.91% 40002:Sales Taxes 42001:Interest Income Page 9 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Revenue COG - GEDCO Financial Report Period: Jul-21 Budget FY2021 Jul-20 Jul-21 Variance % Variance Variance from Budget % of Budget Operating Revenue 40002:Sales Taxes 2,063,750 1,343,617 1,688,518 344,901 25.67%(375,232) 81.82% 42001:Interest Income 19,000 86,386 23,204 (63,182) -73.14%4,204 122.13% Operating Revenue Total 2,082,750 1,430,003 1,711,722 281,719 19.70%(371,028) 82.19% YTD Comparison YTD Budget Comparison Page 10 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Revenue •Sales Tax •Year -to-date sales tax revenue totals $1,688,518, 81.82% of budget •FY2021 year-to-date collections are 25.67% more than FY2020 year-to-date collections •There is a two-month lag on sales tax collections. 25.67% 1,688,518 SALES TAX REVENUE - FY2020 Versus FY2021 K 250K 500K 750K 1.0M 1.3M 1.5M 1.8M 01 ) O c t 02 ) N o v 03 ) D e c 04 ) J a n 05 ) F e b 06 ) M a r 07 ) A p r 08 ) M a y 09 ) J u n 10 ) J u l FY2020 FY2021 Page 11 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Expense •FY2021 Expense Budget •Expense Budget Sources •The FY2021 expense budget for the GEDCO is $10.1 million •81% of budgeted expenses are for Economic Development Agreements •Administrative expense budget totals $283,783 •Debt service payment for FY2021 accounts for $90,752 2.80%1.77% 1.28% 81.42% 0.72% 0.17% 11.83% 51001:Administrative Expense 51003:Marketing & Promotional 51004:Contractual Services 53011:Economic Development Agreements 55001:Principal Reduction 55002:Interest Expense 80001:Transfers Out Page 12 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Revenue COG - GEDCO Financial Report Period: Jul-21 Budget FY2021 YTD Actuals w/Encumbrances: Jul-20 YTD Actuals w/Encumbrances: Jul-21 Variance % Variance Variance from Budget % of Budget Operating Expense 51001:Administrative Expense 283,783 203,976 189,189 14,787 -7.25%94,594 66.67% 51003:Marketing & Promotional 180,000 75,904 88,488 (12,584) 16.58%91,512 49.16% 51004:Contractual Services 130,000 6,615 12,500 (5,885) 88.96%117,500 9.62% 51006:Subscriptions - 10,972 - 10,972 -100.00%- 0.00% 51010:Legal Services - 2,493 - 2,493 -100.00%- 0.00% 53016:Travel Expense - 92 1,194 (1,102) 1204.51%(1,194) 0.00% 80001:Transfers Out 1,200,169 41,334 1,040,084 (998,750) 2416.27%160,085 86.66% Operating Expense Total 1,793,952 341,386 1,331,455 (993,963) 290.01%462,497 74.22% Non-Operating Expense 53009:Strategic Partnership - 448,316 400,000 48,316 -10.78%(400,000) 0.00% 53011:Economic Development Agreement 8,256,391 356,235 (3,500) 359,735 -100.98%8,259,891 -0.04% 55001:Principal Reduction 72,830 - - - 0.00%72,830 0.00% 55002:Interest Expense 17,742 - - - 0.00%17,742 0.00% Non-Operating Expense Total 8,346,963 804,551 396,500 408,051 -50.72%7,950,463 4.75% YTD Actuals w/Encumbrances Comparison YTD Budget Comparison Page 13 of 41 FY2021 FINANCIAL SUMMARY: GEDCO GEDCO Expense •Operating Expenses •Operating expense budget totals $1.8 million •Administrative Expense: 58.3% of budget •Marketing: year to date expenses total 49.16% of budget •Contractual Services: year to date expenses 9.62% of budget 593,783 291,370 OPERATING EXPENSES K 50K 100K 150K 200K 250K 300K 51001:Administrative Expense 51003:Marketing & Promotional 51004:Contractual Services FY2021 FY2021 Page 14 of 41 FY2021 FINANCIAL SUMMARY: GEDCO Questions Page 15 of 41 F GEDCO MONTHLY REPORT AS OF JULY 31, 2021 Operating revenue is comprised of sales tax and allocated interest. The budget for sales tax collections for GEDCO is $2,063,750. Year-to-date sales tax revenue totals $1,688,518, or 81.82% of budget. Through this period, sales tax collections are up$344,901, or 25.67% over year-to-date collections from the prior fiscal year. The City continues to see and monitor the strong performance in sales tax. Operating expenses total $1,793,952, or 74.22% of budget through the period. Operating expenses include administrative expenses, marketing costs, contractual services, and operating transfers to other City funds. Administrative expenses include the allocation for City staff to support the GEDCO fund. Year-to-date administrative expense total $189,189, or 66.67% of budget. The GEDCO fund has dedicated funding to market the City for potential economic development. Year-to-date marketing efforts total $88,488 or 49.16% of budget. Contractual services include $130,000 budgeted for consulting in FY2021. GEDCO will transfer out $1,200,169 in FY2021. This includes a transfer out to the Electric fund for GEDCO’s portion of the Titan North Park development, and a transfer to the Water fund to pay for debt service. Non-Operating revenue, which typically includes bond proceeds, is not part of the FY2021 budget. City staff does not intend to issue any new debt for this fund in the current fiscal year. Non-Operating expense budget totals $8,346,963. Year-to-date non-operating expenses total $396,500 or 4.75% of budget through the period. Non-Operating expenses include funding for strategic partnerships and GEDCO’s debt service payment. Strategic partnerships include year-to-date expense of $400,000 for economic incentive agreements. GEDCO’s debt service payment includes principal reduction of $72,830, and an interest expense of $17,742. The debt service payment for FY2021 has been made and is reflected in this report. Ending fund balance for FY2021 is anticipated to be $787,612. After accounting for the contingency reserve of $505,468, and the debt service reserve of $202,769, this fund will have an available fund balance of $79,375. 25.67% 1,688,518 SALES TAX REVENUE - FY2020 Versus FY2021 K 250K 500K 750K 1.0M 1.3M 1.5M 1.8M 01 ) O c t 02 ) N o v 03 ) D e c 04 ) J a n 05 ) F e b 06 ) M a r 07 ) A p r 08 ) M a y 09 ) J u n 10 ) J u l FY2020 FY2021 593,783 291,370 OPERATING EXPENSES K 50K 100K 150K 200K 250K 300K 51001:Administrative Expense 51003:Marketing & Promotional 51004:Contractual Services FY2021 FY2021 Page 16 of 41 City of Georgetown, Texas Georgetown Economic Development Corporation August 16, 2021 S UB J E C T: Dis cus s io n regard ing the S taff R ep o rt - David Morgan, G eo rgeto wn 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. Activity R eport P erfo rmanc 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: D escription Type GEDCO Active Project report Backup Material GEDCO Activity Report Backup Material Page 17 of 41 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended WBW Development Infrastructure reimbursement grant of $200,000 for qualified expenditures and a $120,000 job creation grant for the creation of 30 jobs over 6 years related to the development of their headquarters location in Downtown Georgetown.2/12/2019 within 6 years of the certificate of occupancy date 320,000$ 4871 Williams Dr., LLC (Sedro Crossing) Infrastructure reimbursement grant of $250,000 to assist with improvements (utilities and access points) for construction of 89,500 square feet of commercial building space.3/26/2019 12/31/2023 250,000$ 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 $2K per job up to 100 jobs in 5 years.11/12/2019 11/12/2024 200,000$ Titan NorthPark35, LLC Infrastructure reimbursement grant for qualified 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 (Motion Commercial Properties) assigned to: Titan NorthPark35, LLC 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 --------- 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 GEDCO - AGREEMENTS STATUS REPORT August 16, 2021 Page 18 of 41 Economic Development Activity Report August 2021 Page 19 of 41 Strategic Goal 1 Support existing businesses and industries Page 20 of 41 Business Retention Activity Page 21 of 41 Business Retention Activity •Planning the 2021 Business Appreciation Event •Working with Grande Communications on business introductions to extend commercial broadband service in Georgetown •Participated in the Chamber’s Downtown Business meeting •Participated in the Chamber's Hispanic Business Owners meeting Page 22 of 41 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 23 of 41 Leads Received 0 2 4 6 8 10 12 14 16 18 20 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY19 FY20 FY 21 Rolling 12-Month Average Page 24 of 41 Qualified Leads 0 2 4 6 8 10 12 14 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY19 FY20 FY21 Rolling 12-Month Average Page 25 of 41 Qualified Leads Comparison 0 2 4 6 8 10 12 14 16 18 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Leads Qualified Page 26 of 41 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 FY19 FY20 FY 21 Rolling 12-Month Average Page 27 of 41 Active Projects 0 10 20 30 40 50 60 70 80 90 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Development Hot Warm Cold Page 28 of 41 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 29 of 41 Workforce Development Activity •Implemented a job listing software for website to support major employers •Participated in the Chamber's Healthcare Alliance meeting on Georgetown applying for Dementia Friendly City Program and impact on employers' workforce recruitment & retention. •Scheduling the Veterans’ and Military Spouses Job Fair for the Spring •Participating in WILCO Workforce Coalition through Rural Capital Area Workforce Solutions Page 30 of 41 Strategic Goal 4 Encourage speculative development Page 31 of 41 Speculative Development Activity •Continued working with land owners and speculative developers on sites including: •NorthPark35 •Gateway Commerce 35 •Longhorn Junction •“Golden Triangle” •Kelley Foundation Property Page 32 of 41 Overall Goal Tell our story to a broader local audience Page 33 of 41 Other Activity •Held the Blazin’ Beer Crawl –hosted several brokers •Held the Minority Business Owners Twelve@12 luncheon •Producing mini videos for WilCo EDP •Aldi Grand Opening –8/12 @ 8:15 a.m. Page 34 of 41 Symposium •Speaker: Dr. Mark G. Dotzour •Date: August 30, 2021 •Location:Sheraton Hotel & Conference Center •11:00 a.m.Registration 11:30 a.m.Lunch and Presentation Page 35 of 41 Economic Indicators Page 36 of 41 Unemployment Rate 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Ju l y 2 0 Au g 2 0 Se p t 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Ma r 2 1 Ap r i l 2 1 Ma y 2 1 Ju n e 2 1 Unemployment Rate Rolling 12-Month Average Page 37 of 41 Sales Tax Collections $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Oc t No v De c Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p FY 2018 FY 2019 FY 2020 FY 2021 Page 38 of 41 Hotel Occupancy Tax Collections $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Oct Nov Dec Jan Feb Mar April May Jun Jul Aug Sep FY18 FY19 FY20 FY21 Page 39 of 41 Construction Permit Applications 0 500 1000 1500 2000 2500 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 Au g 2 0 Se p 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Ma r 2 1 Ap r 2 1 Ma y 2 1 Ju n 2 1 Ju l 2 1 Valuation (in millions) # of Permits Page 40 of 41 Certificates of Occupancy Issued 0 2 4 6 8 10 12 14 16 18 Au g 2 0 Se p t 2 0 Oc t 2 0 No v 2 0 De c 2 0 Ja n 2 1 Fe b 2 1 Ma r c h 2 1 Ap r i l 2 1 Ma y 2 1 Ju n e 2 1 Ju l y 2 1 COs Issued Rolling 12-Month Average Page 41 of 41