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HomeMy WebLinkAboutMinutes_GEDCO_01.17.2012Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Tuesday, January 17, 2012 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Tuesday, January 17, 2012. Members Present: Pat Berryman, Rachael Jonrowe, Tommy Gonzalez, John Marler Members Absent: John Kiltz Staff Present: Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley Rinn, Executive Assistant, Laurie Brewer, Deputy City Manager, Micki Rundell, Finance Manager, Bridget Chapman, Acting City Attorney Minutes Regular Meeting Called to Order at 1:19 p.m. A.Discussion and possible action regarding the Project Progress Report, including Airborn, Enflite, Radix BioSolutions, Lone Star Circle of Care, Grape Creek Winery, Georgetown Winery, and Difusion Technologies, Inc. -- Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager . Difusion grant was approved for the spectrometer. However in the meantime there was an issue with their investors and concern whether they could move forward. Thomas spoke with them this morning and he has been assured that their funds are in the bank, but until it is certified the Agreement has not been finalized. Jonrowe asked staff to confirm that TLCC has not promised companies funding prior to contacting the GEDCO Board with the vetting form completed. The GEDCO Board would like to have the vetting form presented to the Board when companies are requesting funding. Board is concerned about consistency in approval of funding for companies. Board wants the companies to be sure to know what the process is and that the applicants fill out the vetting form. B.Consideration and approval of the minutes from the Meeting held Monday, November 21, 2011--John Kiltz, Secretary Motion by Marler , second by Jonrowe to approve the minutes from the Meeting held Monday, November 21, 2011. (Approved 4-0)(Kiltz Absent) C.Consideration of the December 31, 2011 Financial Reports--Micki Rundell, Finance Manager Rundell provided the December 31 st financial reports. November sales tax is down. Staff will be looking at the sales tax quarterly to track it. The Board will also be provided a STARS report at the next meeting. Payment to Lone Star Circle has been made. She also let the Board that the report notes a duplication of the Georgetown Winery encumbrance that will be corrected on the next report. Board indicated to staff that it would like to ensure that the members are provided a copy of the vetting form prior to the Board receiving the requests for funding and that those companies are made aware of the proper procedure and process for requesting funding from the 4A Board. D.Discussion and possible action regarding amending the 2011/12 GEDCO Budget for projects with remaining funds and approval from 2010/11—Micki Rundell, Finance Manager Rundell told the Board that this amendment is being made to roll the left over promotional funds from the FY 2010-11 budget to the FY 2011-12 budget. Motion by Gonzalez, Second by Marler to approve the amendment of the 2011/12 GEDCO Budget for projects with remaining funds and approval from 2010/11. (Approved 4-0)(Kiltz Absent) D.Discussion and possible action regarding the allocation of costs related to the construction and rehabilitation of the floor at 101 W. 7th Street (old Visitor's Center) property--Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager Thomas explained to the Board the issues related to and the need to repair the floor in the building. This was discovered in the feasibility period. He told the Board that it will be around $70,000 to fix the floor. There was Board discussion as to why this wasn’t discovered on the front end of this project. There was further discussion regarding the process utilized to complete this project, i.e. utilizing use vs. facility instead of vice versa. There was additional discussion regarding the uniqueness of this project. Brandenburg explained that the sale of the property has not closed yet and that staff wanted to make sure that the Board was aware of the issues with the floor and that the City of Georgetown is going to pay for the repairs. The property will close by the end of the month and then the Lease Agreement with Grape Creek will be finalized. E.Discussion and possible action regarding the use of Promotional Funds in 2012 – Mark Thomas, Economic Development Director Thomas went over the outline attached to the coversheet of potential marketing trips, site selector events, marketing opportunities, conferences, etc. that his office may like to utilize this year to promote Georgetown. He explained the benefits of actively marketing Georgetown at these type of events. Thomas told the Board that he would like permission from the Board to have a marketing budget with more flexibility for his department. He provided an example of how he could take advantage of marketing opportunities “on the fly” to take advantage of items that come up in the course of business. Motion by Berryman , Second by Gonzalez to approve a $43,000 marketing budget for the Economic Development Department to utilize for its marketing efforts for the City of Georgetown and for the Economic Development Director to report back to the GEDCO Board on a quarterly basis the results of its marketing efforts. Approved 4-0 (Kiltz Absent) G.Discussion and possible action regarding the EB-5 Certification Process- Mark Thomas, Economic Development Director Thomas provided the Board with an overview of what the EB-5 program entails. He introduced Dan Dan Zu who further explained how the investments are structured and how it works. The Office of the Immigration and Naturalization facilitates the program. Dan Dan told the Board that several states have done a very good job in utilizing this program, including Ohio. Thomas introduced Jeff Novak as the Developer of the Hotel and Conference Center at the Rivery. He explained that this project is ideal for EB-5 funding and why. He explained how the European Debt crisis impacted the investments related to this project and how EB-5 is a win/win situation to help facilitate the funding of their project. He outlined the risk factors involved with this type of funding, which primarily rest on the EB-5 investor if they don’t for whatever the reason don’t receive their green cards. Dan Dan provided the Board an explanation of the timelines for implementing this program for Georgetown. Thomas let the Board know that the purpose of this discussion was to make the GEDCO Board aware of the program. Dan Dan told the Board it would be helpful to have a Resolution /Vote of Support. She is compiling that support at several levels. Motion by Berryman, Second by Gonzalez to approve a Resolution of Support for the EB-5 Program and the TEA Certification for Georgetown. Approved 4-0 (Kiltz Absent) Dan Dan told the Board that the TEA Certification has to be done prior to the EB-5 program moving forward. EXECUTIVE SESSION The Georgetown Economic Development Corporation will meet in closed executive session as allowed by Texas Open Meetings Act (Texas Government Code Chapter 551), as follows: H.Section 551.072. DELIBERATION REGARDING 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 a detrimental 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 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. Section 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. K. Action out of Executive Session Executive Session was not convened. Adjourned at 2:14p.m. Attest: __________________________________________________________ _____________, Corporate Secretary___________________, President