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HomeMy WebLinkAboutAgenda_GEDCO_08.17.2015Notice of Meeting for the Georgetown Economic Development Corporation And the Governing Body of the City of Georgetown August 17, 2015 at 3:30 PM at in the City Council Chambers, located at 101 E. 7th Street, Georgetown, Texas The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711. Legislative Regular Agenda A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, June 1, 2015--Kevin Kelly, Secretary B Presentation regarding sales tax forecasting, FY2015 year-end projections and the FY2016 sales tax budget projections. C Consideration of the May 31, June 30 and July 31, 2015 Financial Reports-Micki Rundell, Finance Manager D Consideration and possible action to approve the GEDCO 2015/16 budget - Micki Rundell, Finance Manager E Consideration and possible action regarding the Administrative Services Contract between the City of Georgetown and the Georgetown Economic Development Corporation - Micki Rundell, Finance Manager F Discussion and possible action regarding the Project Progress Report—Mark Thomas, Economic Development Director G Action out of Executive Session. Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. H Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase,exchange, lease or value of real property for purposes authorized by the Development Corporation Act which discussion in open session would have adetrimental effect on negotiations with third persons. I Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Page 1 of 49 Corporation is conducting economic development negotiations; and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. J Sec. 551.071: CONSULTATION WITH ATTORNEY Consultation with attorney regarding legal issues related to agenda items and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. CERTIFICATE OF POSTING I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the ______ day of __________________, 2015, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. ____________________________________ Jessica Brettle, City Secretary Page 2 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, June 1, 2015--Kevin Kelly, Secretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes for the Regular Meeting held Monday, June 1, 2015 FINANCIAL IMPACT: None SUBMITTED BY: Kevin Kelly, Corporate Secretary ATTACHMENTS: Description Type June 1 Cover Memo Page 3 of 49 GEDCO Minutes June 1, 2015 Page 1 of 3 Minutes of the Meeting of the Georgetown Economic Development Corporation And the Governing Body of the City of Georgetown, Texas June 1, 2015 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, April 20, 2015. Members Present: Steve Fought, Hugh Brown, Rachael Jonrowe, Kevin Kelly, Jeff Parker Members Absent: Bill Mateja Staff Present: David Morgan, General Manager; Jim Briggs, Assistant City Manager; Mark Thomas, Economic Development Director; Laurie Brewer, Assistant City Manager; Paul Diaz, Finance; Lisa Hanes, Senior Accountant; Bridget Chapman, City Attorney; Tina Dunbar, Administrative Assistant; Conchita Gusman, Program Manager MINUTES Call to Order at 03:31PM A. No Executive Session, therefore, no action. B. Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, April 20, 2015--Hugh Brown, Secretary Motion by Brown, second by Kelly to approve the Georgetown Economic Development Corporation minutes for the Regular Meeting held Monday, April 20, 2015. (Approved C. Consideration of the April 30, 2015 Financial Reports-Micki Rundell, Finance Manager Lisa Hanes explained the financial reports and she and Mark Thomas answered questions. Accepted by the Board D. Presentation of the 2015-2016 Economic Development Department Budget - Mark Thomas Page 4 of 49 GEDCO Minutes June 1, 2015 Page 2 of 3 Mark Thomas went through the budget presentation that was previously presented to Council plus one slide regarding retail that was added. Discussion was held regarding the marketing program, targeted retail, and defining community assets and areas. E. Discussion and possible action regarding the Project Progress Report, including Radix, DisperSol, Airborn, Lone Star Circle of Care, Georgetown Winery, Grape Creek Winery, Difusion Technologies, Inc., Texas Life Sciences Collaboration Center (TLCC), Radiation Detection Company, Summit at the Rivery Conference Center, Molecular Templates, Inc., and TASUS Texas Corporation—Mark Thomas, Economic Development Director Mark Thomas provided a summary of activity on several of the projects. Mark Thomas updated the board on recent activity and answered questions regarding compliance status of projects. F. Consideration and possible action to nominate and elect a President, Vice-President, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— Mark Thomas, Director of Economic Development Morgan called for nominations and election of officers. Motion by Jonrowe, second by Brown to accept the nomination of and elect Steve Fought to the office of President of the Corporation. (Approved Motion by Jonrowe, second by Kelly to accept the nomination of and elect Hugh Brown to the office of Vice President of the Corporation. (Approved Motion by Fought, second by Parker to accept the nomination of and elect to the office of Secretary of the Corporation. (Approved Adjourn at 4:14 Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. No Executive Session Page 5 of 49 GEDCO Minutes June 1, 2015 Page 3 of 3 The meeting was adjourned at 4:30PM Attest: ______________________________ ___________________________________ Hugh Brown, Corporate Secretary Patty Eason, President Page 6 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Presentation regarding sales tax forecasting, FY2015 year-end projections and the FY2016 sales tax budget projections. ITEM SUMMARY: Paul Diaz, Budget Manager for the City, will present information on sales tax forecasting and Georgetown sales tax projections. FINANCIAL IMPACT: none SUBMITTED BY: Paul Diaz, Budget Manager ATTACHMENTS: Description Type Sales Tax Analysis Cover Memo Page 7 of 49 Sales Tax  Analysis Page 8 of 49 Sales Tax  Projection Process •Monthly Report  from the State –Individual Companies –about 15,000 each month •Sales Tax  ID •Date of Collections •Amount •NAICS Code: North American Industry Classification  System –453998 »45: Retail »453: General Merchandise  Page 9 of 49 Sales Tax  Projection Process Wal ‐Mart,  Kohl’s, Target,  Old Navy General  Merchandise  Subsector Retail Sector Page 10 of 49 Sales Tax  by Sector Page 11 of 49 Georgetown Data •Current Year: Correlation •Variance analysis •Year ‐end projections Page 12 of 49 Georgetown Data •Next Year: Trend  Analysis –Regression & multi‐year trends by sector. Page 13 of 49 Statewide Economy •Regional Cities: Austin MSA •Top  Twenty  Cities •All Texas  Cities Page 14 of 49 FY2015 Projection •Year  end projection totals $21 M. –Less than budget –Directly tied to large, one‐time in nature  occurrences last year. –Year  to  date, the Retail, Food and Information  sectors are up nearly 10%. Page 15 of 49 FY2016 Budget •Overall budgeted increased of 2.5% –Slowing Texas  economy –No new direct retail  generators –Hedges against highly volatile sectors Page 16 of 49 Questions Page 17 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Consideration of the May 31, June 30 and July 31, 2015 Financial Reports-Micki Rundell, Finance Manager ITEM SUMMARY: See Attachment FINANCIAL IMPACT: None SUBMITTED BY: Micki Rundell, Finance Manager ATTACHMENTS: Description Type financial Cover Memo Page 18 of 49 Page 19 of 49 Page 20 of 49 Page 21 of 49 Page 22 of 49 Page 23 of 49 Page 24 of 49 Page 25 of 49 Page 26 of 49 Page 27 of 49 Page 28 of 49 Page 29 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Consideration and possible action to approve the GEDCO 2015/16 budget - Micki Rundell, Finance Manager ITEM SUMMARY: See Attachment FINANCIAL IMPACT: See Attachment SUBMITTED BY: Micki Rundell, Finance Manager ATTACHMENTS: Description Type 15/15 Budget Cover Memo Page 30 of 49 Page 31 of 49 Page 32 of 49 Page 33 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Consideration and possible action regarding the Administrative Services Contract between the City of Georgetown and the Georgetown Economic Development Corporation - Micki Rundell, Finance Manager ITEM SUMMARY: Please see attached FINANCIAL IMPACT: See Attachment for Budget Details SUBMITTED BY: Micki Rundell, Finance Manager ATTACHMENTS: Description Type 15/16 Admin Services Cover Memo Page 34 of 49 Page 35 of 49 Page 36 of 49 Page 37 of 49 Page 38 of 49 Page 39 of 49 Page 40 of 49 Page 41 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Discussion and possible action regarding the Project Progress Report—Mark Thomas, Economic Development Director ITEM SUMMARY: The GEDCO Board has requested that staff provide a project progress and status report at each meeting on all of the active projects discussed by the Board. ATTACHEMENT: 1. Project Status Report FINANCIAL IMPACT: N/A SUBMITTED BY: Mark Thomas, Economic Development Director ATTACHMENTS: Description Type 8-17 Cover Memo Page 42 of 49 Project Project Description Approved by Council Funded Monitoring Compliance Closed Citigroup $1.3 Million Grant for wastewater infrastructure disbursed in April 2008. 12/12/2006 Funded April 2008 Approved and completed; Monitoring Compliance No Airborn II Provided a $300,000 grant for job creation and retention and capital investment based on new 50,000 sq. ft. manufacturing facility at Georgetown South Commercial Park. Amending Performance Agreement to extend the construction completion date to May 2010. Extension was approved by GEDCO on January 25, 2010 and the City Council on January 26, 2010. Construction of Facility completed May 2010. They didn't meet the number 490 for the final year of the agreement, therfore no incentive was earned or paid. Their headcount in Georgetown as of 3/12/15 is 460. 9/25/2007and 1/26/2010 Partially Funded. First Annual payment made February 2011 Yes. Final compliance date is 12/31/2014. yes (pending formal letter to company) Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Agreement approved by GEDCO on February 9, 2010 and Council approved the Agreement at its March 9, 2010 Meeting. They paid back $47K on 3/15/15.3/9/2010 Funded May 13, 2010 Yes, Final compliance date is March 2018 No Lone Star Circle of Care Provided a grant not to exceed $387,000 for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have not been executed. Agreement approved by GEDCO on June 23, 2011 and Council approved the Agreement at its June 28, 2011 Meeting. 6/28/2011 Funded November and December 2011 Yes, Final Compliance Date is July 28, 2016 No. Grape Creek Provide a grant not to exceed $447,000 for Qualified Expenditures for the lease/purchase and future site improvements at 101 E. 7th Street and 614 Main Street for the operation of a winery on the Downtown Square in Georgetown Agreement approved by GEDCO on July 25, 2011 and Council approved the Agreement at its August 23, 2011 Meeting. Fourth Amended Performance Agreement, Lease Agreement, and Promissory Note was approved by GEDCO on August 20, 2012 and by the City Council on August 28, 2012. TIRZ Agreement for $60,000 approved by City Council on 9-11-12. 8/23/2011 Funded Yes, Final Compliance is March 2018.No Georgetown Winery Provide a grant not to exceed $70,000 for Qualified Expenditures described as equipment for wine production and an agreement to maintain and operate the existing winery in Georgetown. Agreement approved by GEDCO on July 25, 2011 and Council approved the Agreement at its August 23, 2011 Meeting. 8/23/2011 Funded Yes, Final Compliance Date is June 30, 2016 No GEDCO PROJECT UPDATE AND STATUS REPORT August 17, 2015 Page 43 of 49 Project Project Description Approved by Council Funded Monitoring Compliance Closed GEDCO PROJECT UPDATE AND STATUS REPORT August 17, 2015 DiFusiion Technologies Provide a grant not to exceed $92,000 for Qualified Expenditures described as an ICP Spectrometer to be purchased by TLCC to be leased to Dufusion under the terms of the Performance Agreement. Qualified Expenditure to remain the Property of GEDCO unless transferred to DiFusion per the terms of the Performance Agreement.Agreement approved by GEDCO on October 17, 2011 and November 21, 2011 and Council approved the Agreement at its December 13, 2011 Meeting. Performance Agreement and Lease Agreement have not been executed. The GEDCO Board approved additional requirements for the Performance Agreement on May 21, 2012. Approved by Council on July 10, 2012.7/10/2012 Funded Yes, Final Compliance Date is July 31, 2015 No Georgetown Indpendent School District Provided a grant not to exceed $200,560 for the purchase of qualified expenditures related to the equipment for the Engineering Program and Laboratories at Georgetown and East View High Schools. GISD will offer the MSSC Certifications, implement a Job Placement Program, provide and annual report and annual tour of the facilities to the GEDCO Board. Agreement was approved by GEDCO on September 17, 2012 and the City Council on September 25, 2012. The GEDCO Board approved the GISD request to amend the Performance Agreement to allow the purchase different equipment than outlined in the original agreement on November 18, 2013.9/17/2012 Partially Funded. Yes. Final Compliance based on life of equipment. No Texas Life Sciences Collaboration Center (3) Provide a grant of $150,000 for the maintenance of the TLCC. Performance Agreement approved by GEDCO on 10/17/14. 11/11/2014 Funded Dec. 2014 Yes. Final Compliance October 31, 2015 No. The Rivery at Summit Conference Center Provide a grant not to exceed $4.5 Million for Public Infrastructure Improvements. Approved by the GEDCO Board on November 18, 2013. Approved by the City Council on December 10, 2013. 12/10/2013 Not Funded Yes.Construction Deadline is September 30, 2015. No. TASUS Texas Corporation Provide a grant of $67,500 for job creation related to expansion of manufacturing facilities. Approved by the City Council on February 25, 2014 and approved by the GEDCO Board on February 17, 2014 2/25/2014 Not Funded Yes. Final Compliance May 31, 2017 No. Radiation Detection Corporation Provide a grant of $320,000 for job creation related to the relocation of the corporate offices to Georgetown. Approved by City Council and GEDCO on July 23, 2013. 7/23/2013 Funded Yes. Final Compliance December 31, 2021 No Page 44 of 49 Project Project Description Approved by Council Funded Monitoring Compliance Closed GEDCO PROJECT UPDATE AND STATUS REPORT August 17, 2015 DisperSol Provide a grant of $250,000 for job creation related to expansion of manufacturing facilities. Approved by the GEDCO Board on August 18, 2014. Company earned $50K (= 10 eligible positions at $10/job). Check delivered 4/17/15 to company. 10/16/2014 Partially Funded Yes. Final Compliance February 15, 2019 No. Page 45 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Action out of Executive Session. ITEM SUMMARY: FINANCIAL IMPACT: None SUBMITTED BY: Bridget Chapman, City Attorney Page 46 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase,exchange, lease or value of real property for purposes authorized by the Development Corporation Act which discussion in open session would have adetrimental effect on negotiations with third persons. ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Bridget Chapman, City Attorney Page 47 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is conducting economic development negotiations; and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Bridget Chapman, City Attorney Page 48 of 49 City of Georgetown, Texas Georgetown Economic Development Corporation August 17, 2015 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Consultation with attorney regarding legal issues related to agenda items and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Bridget Chapman, City Attorney Page 49 of 49