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HomeMy WebLinkAboutAgenda_GEDCO_08.19.2019Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown August 19, 2019 at 4:00 P M at 808 Martin L uther K ing Jr Street, Georgetown, T X 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C ons ideration and approval of the minutes for the G eorgetown Ec onomic Development C orporation Meeting held on July 10, 2019--Hugh Brown, S ecretary B C ons ideration of the July 31, 2019 financ ial report.--Leigh Wallac e, F inance Manager, G EDC O , F inance Direc tor, C O G . C Disc ussion and possible action regarding the S taff R eport – David Morgan, C ity Manager • P erformance Agreement R eport • Activity R eport • O ther S taff Items D Ac tion out of Executive S ession E xecutiv e Session In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. E Sec. 551.071: C ON S ULTAT ION WIT H AT TOR N E Y C ons ultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the governmental body s eeks the advice of its attorney about: (A) pending or c ontemplated litigation; or (B) a settlement offer; or (2) on a matter in whic h the duty of the attorney to the governmental body under the Texas Dis ciplinary R ules of P rofessional C onduc t of the S tate Bar of Texas c learly conflicts with this chapter - C harlie Mc Nabb, C ity Attorney F Section 551.072. D E LIB E R AT ION R E G AR D IN G R E AL P R O P E RT Y Disc ussion and possible action to deliberate the purchas e,exchange, leas e or value of real property for purpos es authorized by the Development C orporation Act whic h dis cus s ion in open s es s ion would have a detrimental effec t on negotiations with third persons . G Section 551.087. D E LIB E R AT ION R E G AR D IN G E C ON O MIC D E VE LOP ME N T N E G O T IAT IO N S. Deliberation regarding commerc ial or financial information that the c orporation has rec eived from a Page 1 of 40 bus iness pros pect that the G eorgetown Economic Development C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting ec onomic development negotiations ; and/or deliberation regarding the offer of a financial or other inc entive to a busines s prospec t that the C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown. • P rojec t C at • P rojec t F is h • P rojec t Wafer Adjournment Adjourn meeting Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2019, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: C onsideration and approval of the minutes for the G eorgetown Economic Development C orporation Meeting held on July 10, 2019--Hugh Brown, S ec retary IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Amy Mertink, Board Liais on AT TAC H ME N T S: Description Type July Minutes Backup Material Page 3 of 40 GEDCO Minutes July 10, 2019 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas July 10, 2019 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Wednesday July 10, 2019. Members Present: Steve Bohnenkamp, Steve Fought, Kevin Cummins, Hugh Brown, Valerie Nicholson, Ron Garland Members Absent: Tom Menke Staff Present: David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Michaela Dollar, Director of Economic Development; Conchita Gusman, Business Retention and Expansion Program Manager; Leigh Wallace, Finance Director; Debbie Mitchell, Sr Accountant; Jennifer Schoenradt, Special Events & Marketing Coordinator; Amy Janecka, Finance Admin; Nathan Parras, Budget Analyst Guest Present: Justin Drummons, GISD Extern MINUTES Call to Order at 4:31 pm A. Consideration and approval of the minutes for the Georgetown Economic Development Corporation Meeting held on Monday March 18, 2019--Hugh Brown, Secretary Motion to approve the minutes by Ron Garland, 2nd by Steve Fought. Approved 5-0 (Valerie Nicholson absent for the vote). B. Presentation of the Georgetown Economic Development Corporation March, April, May and June 2019 financial reports and discussion regarding the Fiscal Year 2018 external audit and Comprehensive Annual Financial Report for the City and GEDCO-- Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. Leigh Wallace presented the financial reports. She also showed and reviewed the audit report from Weaver and explained that Weaver gave a clean report. No voting needed. C. Sales Tax Presentation--Paul Diaz, Budget Manager Nathan Parras presented on the sales tax methodology and sales tax projections. He showed the data that is collected, tools used to forecast, and the multilevel analysis that is done on the data. No voting needed. D. Discussion and possible action to recommend the FY2020 proposed GEDCO budget--Paul Diaz, Budget Manager Nathan Parras reviewed the GEDCO budget process and showed the detail on the revenues and expenses for the FY2020 proposed budget. Motion to recommend by Ron Garland, 2nd by Kevin Cummins, approved 6-0. E. Discussion and possible action regarding the Staff Report – David Morgan, City Manager • Performance Agreement Report • Activity Report • Other Staff Items David Morgan reviewed the performance agreement report. Michaela Dollar reviewed the activity report. No voting needed. Page 4 of 40 GEDCO Minutes July 10, 2019 Page 2 of 2 -----GEDCO entered into Executive Session at 6:05 pm and returned to Regular Session at 6:17 pm----- F. Action out of Executive Session. Motion to approve incentives for Project Big C as discussed in executive session by Hugh Brown, 2nd by Ron Garland, approved 6-0. Meeting adjourned at 6:18 Attest: Hugh Brown, Secretary Steve Bohnenkamp, President Page 5 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: C onsideration of the July 31, 2019 financial report.--Leigh Wallace, F inanc e Manager, G EDC O , F inanc e Director, C O G . IT E M S UMMARY: T he c orporate bylaws require the F inance Manager to pres ent the monthly financ ial reports to the Board. Included in these reports will be: •F inanc ial reports •S ales Tax revenues •Monthly expenditures •Any other relevant financ ial information S ales tax revenue is two months in arrears ; therefore the revenues reflect only the amount rec eived, not actually earned, as of the report date. A report on payments made to vendors in the month of July is also inc luded. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Leigh Wallace, F inanc e Direc tor AT TAC H ME N T S: Description Type July Financials Backup Material Page 6 of 40 GEDCO Board Meeting Date: August 19, 2019 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the July 31, 2019 financial report. 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; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors in the month of July is also included. ATTACHMENTS: Monthly Financial Report Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 7 of 40 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 6,972,637 OPERATING REVENUES Interest 40,300 11,932 144,269 119,000 Sales Tax 1,768,275 147,782 1,212,754 1,859,375 OPERATING REVENUES Total 1,808,575 159,713 1,357,023 1,978,375 OPERATING EXPENDITURES Joint Services Allocation 238,622 - 178,967 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 - 73,843 100,000 Special Services 30,000 705 - 30,000 Travel & Training 500 - - - OPERATING EXPENDITURES Total 369,172 705 252,810 368,672 TOTAL NET OPERATIONS 1,439,403 159,008 1,104,213 1,609,703 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - 42,534 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 225,000 DisperSol 50,000 - 30,000 30,000 Economic Development Projects -Undetermined 7,000,517 - - - Holt Cat 185,000 - - - Radiation Detection Company 150,000 - - - NON-OPERATING EXPENDITURES Total 7,840,407 - 72,534 563,794 TOTAL NET NON-OPERATIONS (7,840,407) - (72,534) (563,794) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 159,008 1,031,679 1,045,909 ENDING FUND BALANCE 452,069 7,884,752 8,018,546 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Jul FY2019 Page 8 of 40 As of July 31, 2019 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2014-15 2015-16 2016-17 2017-18 2018-19 To FY 17 To FY 17 October 98,094$ 106,050$ 114,748$ 124,478$ 159,033$ 34,555$ 27.76% November 102,891 112,766 125,214 127,063 135,079 8,016$ 6.31% December 143,774 148,200 160,542 162,940 171,066 8,126$ 4.99% January 87,695 96,563 110,006 115,291 126,985 11,694$ 10.14% February 89,107 108,117 105,556 133,797 134,421 624$ 0.47% March 123,951 133,492 137,301 158,112 168,168 10,056$ 6.36% April 102,671 108,977 117,261 135,036 155,962 20,926$ 15.50% May 95,699 120,418 125,188 148,761 159,422 10,661$ 7.17% June 130,589 142,767 151,484 157,313 July 108,994 119,534 154,889 143,616 August 102,888 132,582 122,847 142,154 September 125,201 135,378 143,897 154,864 Total 1,311,554$ 1,464,844$ 1,568,933$ 1,703,425$ 1,210,136$ YTD 843,882 934,583 995,816 1,105,478 1,210,136 104,658 9.47%[b] Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. [b]YTD compared through current month. $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Re v e n u e s Sales Tax 3 Year Trend 2016-17 2017-18 2018-19 Page 9 of 40 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF JULY 2019 • Special Services: - Inland Geodetics, LP $ 705.00 Page 10 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: Dis cus s ion and pos s ible ac tion regarding the S taff R eport – David Morgan, C ity Manager • P erformanc e Agreement R eport • Ac tivity R eport • O ther S taff Items IT E M S UMMARY: T he G EDC O Board has requested that staff provide a project progres s and status report at eac h meeting on all of the ac tive projec ts dis cus s ed by the Board. 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: Description Type Project updates Backup Material Activity Report Backup Material Page 11 of 40 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 $185,000 infrastructure grant for the cost of connecting to a new wastewater line run to the property by the City. Approved by Council on 1/24/17.1/24/2017 185,000$ 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 $600,00 to assis with construction of an access road and turn lane to maintain access to the Georgetown airport as area land development continues.3/8/2019 3/31/2022 600,000.00$ Sedro Crossing Infrastructure reimbursement grant of $250,000 to assist with utilities and access points for construction of 170,000 square feet of new professional office space on Williams Dr.3/26/2019 12/31/2023 250,000.00$ GEDCO - AGREEMENTS STATUS REPORT August 19, 2019 Page 12 of 40 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - AGREEMENTS STATUS REPORT August 19, 2019 Atmos Energy Infrastructure reimbursement grant of $148,499.36 for the installation of 776 feet gas main along 7th, 8th, and 9th streets.4/6/2019 148,499.36$ Page 13 of 40 Economic Development Activity Report August 2019 Page 14 of 40 Strategic Goal 1 Support existing businesses and industries Page 15 of 40 0 5 10 15 20 25 30 35 40 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Ju n 1 9 Ju l 1 9 Business Retention Activity Visits Assistance Requests Touches Page 16 of 40 Additional BRE Activity •Several active expansion retention and projects •Approximately 30% of active projects are existing businesses •Major themes are growth and workforce Page 17 of 40 Additional BRE Activity Cont. •Beginning to coordinate with the Chamber on a small business initiative •Georgetown Major Employers Twelve@12 meeting –July 12 •Breakfast Bites & Downtown Lowdown – September 11 Page 18 of 40 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 19 of 40 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 FY19 Rolling 12-Month Average Page 20 of 40 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Qualified Leads FY17 FY18 FY19 Rolling 12-Month Average Page 21 of 40 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 FY17 FY18 FY19 Rolling 12-Month Average Page 22 of 40 0 5 10 15 20 25 30 35 40 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Ju n 1 9 Ju l 1 9 Business Retention Activity Visits Assistance Requests Touches Page 23 of 40 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 24 of 40 Workforce Development Activity •Continued working on a Skills Development Fund grant application •Workforce Development Alliance Committee update •Veterans & Military Spouses Job Fair – August 21 •Coordinating a Major Employers & GISD meeting Page 25 of 40 Strategic Goal 4 Encourage speculative development Page 26 of 40 Speculative Development Activity •Continuing to see interest in speculative projects, mostly industrial •Working with existing projects through development process –Sedro Crossing –Lakeway Business Park –Westinghouse Business Center Page 27 of 40 Overall Objective Tell our story to a broader local audience Page 28 of 40 Other Activity •Hosted annual Opportunity Austin “fam tour” •Spoke to relocation realtors at Wolf Ranch •Began planning the WilCo EDP Site Selector event •Confirmed Symposium speaker & program Page 29 of 40 2019 Symposium Keynote Speaker: Revathi Greenwood Americas Head of Research, Cushman & Wakefield Moderator: Bryan Daniel Commissioner Representing the Public, Texas Workforce Commission Page 30 of 40 Economic Indicators Page 31 of 40 - 200 400 600 800 1,000 1,200 1,400 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Ju n 1 9 Ju l 1 9 Construction Permit Applications Valuation (in millions) # of Permits Page 32 of 40 0 2 4 6 8 10 12 14 16 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r i l 1 9 Ma y 1 9 Ju n e 1 9 Ju l y 1 9 Certificates of Occupancy Issued Page 33 of 40 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 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 Page 34 of 40 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Ju n e 1 9 Unemployment Rate Page 35 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: Action out of Exec utive S es s ion IT E M S UMMARY: F IN AN C IAL IMPAC T: T BD S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 36 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: S ec. 551.071: C O N S ULTAT IO N WIT H AT TO R N E Y C onsultation with attorney regarding legal issues related to agenda items and other matters in which (1) when the governmental body seeks the advic e of its attorney about: (A) pending or contemplated litigation; or (B) a s ettlement offer; or (2) on a matter in which the duty of the attorney to the governmental body under the Texas Disc iplinary R ules of P rofes s ional C onduct of the S tate Bar of Texas clearly c onflic ts with this c hapter - C harlie Mc Nabb, C ity Attorney 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 37 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: S ection 551.072. D E LIB E R AT IO N R E GAR D IN G R E AL P R OP E RT Y Dis cus s ion and pos s ible ac tion to deliberate the purc hase,exc hange, lease or value of real property for purposes authorized by the Development C orporation Ac t which disc ussion in open session would have a detrimental effect on negotiations with third pers ons. 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 38 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: S ection 551.087. D E LIB E R AT IO N R E GAR D IN G E C O N OMIC D E VE LO P ME N T N E GOT IAT ION S . Deliberation regarding c ommercial or financ ial information that the corporation has received from a busines s prospec t that the G eorgetown Ec onomic Development C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting economic development negotiations; and/or deliberation regarding the offer of a financ ial or other incentive to a bus iness pros pect that the C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown. • P roject C at • P roject F ish • P roject Wafer 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 39 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation August 19, 2019 S UB J E C T: Adjourn meeting IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Amy Mertink, Board Liais on Page 40 of 40