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HomeMy WebLinkAbout10/04/05 EDC I MINUTES THE COLONY ECONOMIC DEVELOPMENT CORPORATION ORIENTATION THE TRIBUTE OCTOBER 4, 2005 Present: President Bob Norris Member Rick Casterline Member Paul Koenig Councilmember Perry Schrag Absent: Vice President Al Garcia Treasurer Kevin Greene Staff: Tom Terrall Cindi Lane 1. Introduction of Board Members: President Bob Norris called the meeting to order at 8:09 p.m. after everyone finished their dinner. Paul Koenig and Rick Casterline introduced themselves and stated why they wanted to serve on the 4A board and what they would like to contribute to the board. I 2. President's Comments: President Norris thanked Tom Terrall and Cindi Lane for putting together the orientation meeting, welcomed the new board members, and explained that projects do not progress as quickly as one would think, but that he has seen projects like The Home Depot, Pizza Inn, and Edward Don, and now Cascades at The Colony come to fruition. President Norris said The Colony EDC does not own any land and Mr. Terrall has to work with the developers bring companies into the city. He said that it is up to the EDC board of directors to look toward the future, not the present. He explained that The Colony is not like other cities such as Frisco and Lewisville. He looks forward to comments, suggestions, and ideas from the new board members. I 3. Today's Economy and its Effect on Business Recruitment: Mr. Terrall explained the present state of the available office and industrial space in the metroplex. He explained the importance of how it affects new building by what the absorption is and that currently, there is less vacancy than the past couple of years, but there still is a fairly large amount in the metroplex which makes it more unlikely for companies to build new buildings. Most RFP's (Request for Proposals) that come into the EDC office are looking for existing space, buildings that can be moved into within 60 days or so. Mr. Terrall discussed the Jackson- Shaw and Industrial Properties projects. He also stated that retail is filling in throughout the metroplex. 4. Challenges to The Colony Recruitment Effort: Mr. Terrall explained the three main challenges to The Colony. The first is location, proximity to Stonebriar Mall. Most retailers are already located there and are already servicing The Colony. Investor-owned property is priced high and investors are willing to hold on to their property until they get their asking price, even if it takes several years. The third challenge is that commercial property owner can apply for an agricultural exemption which enables the property owner to pay a fraction of the property taxes of the true value of the property. Mr. Terrall said that The Colony needs to have or develop a niche so that retail companies can be successful here. 5. City of the Colony Incentives: The City is capable of offering a wide variety of incentives. There are no rules or regulations preventing cities from offering incentives to any type of business that they are interested in having. They must calculate their return on their investment to make sure they get their money back within a certain period of time. 6. EDC Incentives: The 4A economic development corporations have many rules and regulations, most governed by the Development Corporation Act. The EDC needs to work with the City on most projects. 7. Development Corporation Act: Mr. Terrall explained the history of the Development Corporation Act and the purpose. He explained the process of funding economic development, 4A corporations, and that the original intent was to recruit out-of-state manufacturers. The Act became abused by cities using the funds for other purposes, thus it was amended several times. Over the course of time, the legislators decided to eliminate the retail privileges. House Bill 2912 was written and passed which eliminated some of the vagueness. Eventually the bill was amended so that retail could be given certain incentives by 4A corporations, but for infrastructure assistance only, no sales tax rebate. House Bill 2912 also states that a company must have a certain NAICS code which determins which companies 4A corporations are able to provide incentives for. Mr. Terrall explained the process that enabled The Colony EDC to assist in providing incentives along with the City to Edward Don & Company. He discussed the definition of "primary job." He explained his role on a subcommittee during the 79th legislature to help TEDC formulate a position on certain changes being made with the Development Corporation Act. Specifically the bill was HB 2928 and his subcommittee made some recommendations to the legislator who wrote the bill and she implemented the changes into her bill. Mr. Terrall explained that the Development Corporation Act will be under scrutiny and subject to amendments each legislative session. 8. The Application Process: Mr. Terrall gave a summary of the application process. First the application comes to him. He sits down with the applicant and helps to tweak the application so that it can be reviewed. Then he forms a negotiation committee consisting of a combination of himself, 4A representatives, council representatives, city manager; all depending on the type and size of the project. He explained the incentive limits that The Colony EDC can authorize without additional council approval. EDC Minutes October 4, 2005, Page 2 of 3 I I I 9. Administrative Issues: Mr. Terrall gave each member a binder containing information about some of the items discussed earlier and also including maps, tax abatement policies from The Colony and Denton County, and examples of past and current print advertising placed in certain magazines. Included also was a list of organizations The Colony EDC belongs to and some annual events it participates in. The meeting was opened up to questions and comments from the group. Several questions and comments were addressed. Mr. Terrall thanked everyone for taking an evening to come to the orientation. Mr. Terrall said that since The Colony EDC has been in existence there has been more than six million dollars in incentives awarded to businesses locating or relocating to The Colony. The meeting ended at 9:30 p.m. "- ~~ Cindi Lane Economic Development Specialist ~f /LJ~ ( Robert E. Norris President EDC Minutes October 4, 2005, Page 3 of 3