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HomeMy WebLinkAboutAgenda_GEDCO_08.20.2018Notice of Meeting for the Georgetown Economic Dev elopment Corporation of the City of Georgetown August 20, 2018 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 Meeting held Mo nday, July 16, 2018--Steve Bo hnenkamp , Sec retary B Co nsideration of the July 2018 financial report. Leigh Wallace, Finance Manager, GEDCO, F inance Directo r, COG C 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 -Activity Report -Other Staff Items D 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. E 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 - Charlie McNabb, C ity Attorney F 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 a detrimental effect on negotiations with third pers ons . G 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 Page 1 of 37 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. - Projec t Deliver 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 __________________, 2018, 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 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 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 Meeting held Mond ay, July 16, 2018--Steve Bohnenkamp, S ecretary ITEM SUMMARY: ATTACHMENTS: Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Steve Bo hnenkamp, C o rp o rate Sec retary ATTACHMENTS: Description Type minutes Cover Memo Page 3 of 37 GEDCO Minutes July 16, 2018 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas July 16, 2018 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, July 16, 2018. Members Present: Members Absent: Kevin Kelly, Jeff Parker, Steve Bohnenkamp, Tom Menke Valerie Nicholson, Steve Fought, Bill Mateja Staff Present: David Morgan, City Manager; Michaela Dollar, Director of Economic Development; Leah Wallace, Finance Manager; Laurie Brewer, Assistant City Manager; Conchita Gusman, Business Retention and Expansion Program Manager; Kim McAuliffe, Downtown Development Manager; Tina Dunbar, Marketing Coordinator; Debbie Mitchell, Senior Accountant MINUTES Call to Order at 4:00 pm A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, June 18, 2018—Steve Bohnenkamp, Secretary Motion by Bohnenkamp, second by Parker to approve the June 18, 2018 minutes. (Approved 4-0) B. Consideration of the April and May 2018 financial reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Wallace presented the financial reports and answered questions from the Board. C. Discussion and possible action regarding the Staff Report —David Morgan, City Manager - Performance Agreement Report - Activity Report - Other Staff Items Morgan explained the Performance Agreement document. Dollar presented the activity report and economic indicators and then answered questions from the board. D Consideration and possible action regarding repairs to the stucco exterior of the building at 101 W 7th St, Georgetown, TX 78626 - Michaela Dollar, Director of Economic Development Motion by Bohnenkamp, second by Parker to approve up to $10,000 for additional stucco repair for the building located at 101 W 7th Street, Georgetown. Page 4 of 37 GEDCO Minutes July 16, 2018 Page 2 of 2 E Action out of Executive Session. 5:10 Motion by Bohnenkamp, second by Menke to approve the incentives for Project Toms as discussed in Executive Session (Approved 4-0) Meeting was adjourned at 5:20 p.m. Attest: ______________________________ ___________________________________ Steve Bohnenkamp, Corporate Secretary Kevin Kelly, President Page 5 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 SUBJECT: Cons id eration o f the July 2018 financ ial repo rt. Leigh Wallac e, Financ e Manager, GEDCO, Financ e Direc tor, 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 report Cover Memo Page 6 of 37 GEDCO Board Meeting Date: August 20, 2018 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the July 31, 2018 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. 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 37 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 5,902,863 6,051,152 OPERATING REVENUES Interest 25,400 11,313 80,111 80,200 Lease Revenue (Grape Creek)24,000 4,000 40,000 40,000 Miscellaneous Revenue 61,100 - 60,991 61,000 Sales Tax 1,643,750 150,230 1,111,713 1,693,750 Sale of Property - - OPERATING REVENUES Total 1,754,250 165,543 1,292,815 1,874,950 OPERATING EXPENDITURES Debt Service 212,569 - 43,784 212,569 Interest Expense 26,128 - - 26,128 Joint Services Allocation 221,328 18,444 184,440 221,328 Miscellaneous Expense 11,108 - 10,991 11,040 Principal Reduction 90,485 - - 90,485 Promotional & Marketing Program 81,000 - 78,301 81,000 Special Services 57,500 - 47,440 57,500 Supplies 300 - - - Travel & Training 1,500 - - 500 OPERATING EXPENDITURES Total 701,918 18,444 364,956 700,550 TOTAL NET OPERATIONS 1,052,332 147,099 927,859 1,174,400 NON-OPERATING EXPENDITURES Catalyst 36,000 - 18,839 18,839 DisperSol 60,000 - 40,000 40,000 Economic Development Projects -Undetermined 6,308,518 - - 150,000 Texas Life Sciences 139,740 - 139,740 139,740 NON-OPERATING EXPENDITURES Total 6,544,258 - 198,579 348,579 TOTAL NET NON-OPERATIONS (6,544,258) - (198,579) (348,579) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,491,926) 147,099 729,279 825,821 ENDING FUND BALANCE 410,938 6,876,973 RESERVES Contingency 410,938 423,438 RESERVES Total 410,938 423,438 AVAILABLE FUND BALANCE - 6,453,535 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Jul FY2018 Page 8 of 37 As of July 31, 2018 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2013-14 2014-15 2015-16 2016-17 2017-18 To FY 17 To FY 17 October 91,863$ 98,094$ 106,050$ 114,748$ 124,478$ 9,730$ 8.48% November 99,552 102,891 112,766 125,214 127,064 1,850$ 1.48% December 134,682 143,774 148,200 160,542 162,940 2,398$ 1.49% January 89,357 87,695 96,563 110,006 115,291 5,285$ 4.80% February 86,901 89,107 108,117 105,556 133,797 28,241$ 26.75% March 114,355 123,951 133,492 137,301 158,112 20,811$ 15.16% April 106,002 102,671 108,977 117,261 135,036 17,775$ 15.16% May 112,572 95,699 120,418 125,188 148,761 23,573$ 18.83% June 123,306 130,589 142,767 151,484 July 102,435 108,994 119,534 154,889 August 98,015 102,888 132,582 122,847 September 119,473 125,201 135,378 143,897 Total 1,278,513$ 1,311,554$ 1,464,844$ 1,568,933$ 1,105,479$ YTD 835,284 843,882 934,583 995,816 1,105,479 109,663 11.01%[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 2015-16 2016-17 2017-18 Page 9 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 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 -Activity Report -Other Staff Items 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 ATTACHMENTS: Description Type activity report Cover Memo PA Cover Memo Page 10 of 37 Economic Development Activity Report August 2018 Page 11 of 37 Strategic Goal 1 Support existing businesses and industries Page 12 of 37 0 5 10 15 20 25 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Ju l 1 8 Business Retention Activity Visits Assistance Requests Touches Page 13 of 37 Additional BRE Activity •Still seeing workforce and facilities as major themes •15 of the active projects are existing businesses (about 25%) •Manufacturer’s Alliance (Sep. 6) •Breakfast Bites (Sep. 12) •Annual Lunch & Bowl Event (Sep. 28) Page 14 of 37 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 15 of 37 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 Page 16 of 37 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Proposals Submitted FY17 FY18 Page 17 of 37 0 1 2 3 4 5 6 7 8 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY17 FY18 Page 18 of 37 Development, 22 Hot, 20 Warm , 12 Cold, 7 Active Projects Page 19 of 37 Additional Recruitment Activity •Working with available building owners to identify leads for their space •New development activity on multiple lots –spec, retail, and industrial related •Opportunity Austin Recruitment trips –Chicago (Aug.) –Northern California (Sep.) •NAI Global Show (Sep.) Page 20 of 37 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 21 of 37 Workforce Development Activity •Veteran’s Job Fair (Aug. 15) •Manufacturers Day (Oct. 5) •Working with companies on way to raise brand awareness to help with filling vacant positions Page 22 of 37 Strategic Goal 4 Encourage speculative development Page 23 of 37 Speculative Development Activity •Eight of the active projects are speculative development •Also focusing on “shovel-ready” sites Page 24 of 37 Overall Objective Tell our story to a broader local audience Page 25 of 37 Other Activity •City Downtown Building Sales •Planning Symposium (Oct. 31) •WilCo EDP rebranding Page 26 of 37 Economic Indicators Page 27 of 37 - 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 $450.0 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Ju l 1 8 Construction Permit Applications Valuation (in millions) # of Permits Page 28 of 37 0 2 4 6 8 10 12 14 16 18 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Ju l 1 8 Certificates of Occupancy Issued Page 29 of 37 $- $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 Page 30 of 37 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Unemployment Rate Page 31 of 37 Name Description Start Date (Council Approved) Citigroup Grant for wastewater infrastructure for construction of datacenter. 12/12/2006 DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 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 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 Radiation Detection Corporation 2 Grant for Qualified Expenditures and job creation related to the expansion of the existing corporate offices located in Georgetown. 6/13/2018 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS August 20, 2018 Page 32 of 37 End Date $ Encumbered $ Expended 12/31/2018 $ 1,300,000 $ 1,300,000 2/15/2019 250,000$ $ 80,000 12/31/2021 320,000$ $ 320,000 12/31/2022 $ 50,000.00 $ 50,000.00 185,000.00$ 6/1/2019 150,000$ $ - REPORT Page 33 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: TBD SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 34 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 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 - C harlie McNab b , City Atto rney ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 35 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 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 a d 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 36 of 37 City of Georgetown, Texas Georgetown Economic Development Corporation August 20, 2018 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. - P ro ject Deliver ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 37 of 37