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HomeMy WebLinkAbout11/09/05 EDC I I I MINUTES THE COLONY ECONOMIC DEVELOPMENT CORPORATION REGULAR BOARD MEETING CITY HALL NOVEMBER 9, 2005 The Regular Session of The Colony Economic Development Corporation of the City of The Colony, Texas, was called to order at 7:02 p.m. on the 9th day of November 2005, at the City Hall Conference Room with the following roll call: Board Members: Bob Norris, President Al Garcia, Vice President Kevin Greene, Treasurer Rick Casterline, Member Paul Koenig, Member Perry Schrag, Council Liaison Present Absent (business) Absent Present Present Absent Staff Members Present: Tom Terrall, Director of Economic Development Cindi Lane, Economic Development Specialist Rebecca Koo, Director of Finance And with three voting members present, a quorum was established and the following items were addressed: Item 1.1. Pledge of Allegiance: President Bob Norris led in the Pledge of Allegiance. Item 4.2. Discussion and appropriate action regarding the amount of money to be funded by Certificates of Obligation and amount to be funded directly from the EDC fund balance to pay for the Jackson-Shaw incentives for Cascades at The Colony: Mr. Terrall explained that the board has two decisions to make for this agenda item. First they need to decide how much money to fund for incentives using Certificates of Obligation and how much incentive money to pay with cash. Rebecca Koo explained the debt service scenarios and gave out an additional handout of debt service schedules. She explained the timing for the City's schedule for issuing the certificates. The board had a lengthy discussion going through several options. They went through several scenarios discussing how to make the best use of the bonds verses having more cash in the bank to use for future incentives and whether it would be better to use more of to day's money or obtain future certificates of obligation should the need arise. They also looked at the possibility of issuing the certificates a month before the City issues theirs and decided it would cost them more to do a separate issuance. They also discussed whether or not it would be better to pay interest only for a period of years versus principal and interest, and weighted the advantages and disadvantages, the known and the unknown. Rick Casterline made a motion to fund $2.875 million plus the issuance cost with debt and $803,000 with cash. Paul Koenig seconded the motion and the motion carried will all members voting in favor. Mr. Casterline made a motion to structure the debt to pay interest only for the first three years and pay principal and interest after that for the remaining 17 years of the note. Mr. Koenig seconded the motion and the motion carried with all members voting in favor. Item 4.3. Discussion and appropriate action regarding the timing of issuance of Certificates of Obligation to fund the incentive payments to Jackson-Shaw for Cascades at The Colony: Discussion of this item was made as part of the Item 4.2 discussion. Mr. Casterline made a motion to issue debt the same time as the City. Mr. Koenig seconded the motion and the motion carried with all members voting in favor. 2.0. CONSENT AGENDA Item 2.1. Reports: a. Cash flow projection b. Monthly Y2 Cent Sales Tax graph c. Tax Allocation Summary for October d. Summary of current activity regarding development e. Marketing update f. Report on DFW Marketing Team Steering Committee - CoreNet Las Vegas g. Report ofICSC Texas Idea Exchange Nov 1-4 (a) Tom Terrall reported that sales tax in October was almost $11,000 ahead of budget. He also pointed out that the line items referring to The Cascades debt service and cash payments would be updated as a result of the debt issuance structure and latest figures. (b) October sales tax was 22% higher than the base year. (c) The allocation summary is there for the board members to compare our tax revenues with those of other cities. (d) Mr. Terrall reported that there was nothing new to report since last month. (e) Cindi Lane reported the website statistics, gave a report on current magazine ads, and gave an update of the web site status. (f) Mr. Terrall reported that the CoreNet event in Las Vegas turned out extremely well. There were an estimated 3,000 attendees at the conference and approximately 1,000 visited the DFW area of the ballroom. They collected 200 business cards of people to follow up with. He said there are 34 area city members of the DFW Marketing Team. (g) Mr. Terrall reported that this year's Texas Idea Exchange was the most attended so far. There were approximately 2,500 attendees and 200 exhibitors at the show. He gave a rundown of the events and discussed a retailer book that lists which retailers are expanding to Texas and what demographics and sizes they are looking for. It is a great book for matching companies with properties and demographics. The Colony EDC exhibited at the EDC Minutes November 92005, Page 2 I tradeshow for the first time. Several people stopped by and follow up correspondence will be mailed. Item 2.2. Approval of the minutes of the regular board meeting October 12, 2005: President Norris asked if there were any corrections, changes or additions that anyone would like to make and there were none. Mr. Casterline made a motion to approve the minutes as written and the minutes were approved. 3.0 PUBLIC COMMENTS 3.1. Public Input: There was no public input. 4.0 REGULAR AGENDA Item 4.1. Discussion and appropriate action regarding changing meeting day: The board felt that this was a moot point and said it would be fine to leave the meeting day where it is. Item 4.4 EXECUTIVE SESSION as authorized by section 551.087 of the Local Government Code regarding Economic Development, to-wit: I A. 4A shall convene into a closed executive session pursuant to section 51.087 of the TEXAS LOCAL GOVERNMENT CODE To deliberate an amendment to an incentive agreement for a business prospect: There was no executive session held. Item 4.5: Consideration of appropriate action to be taken as a result of executive session: A. There was no action taken. President ~orris adjourned the 4A board at 8:22 p.m. . ~'~ ~~r:&~ Cmdl Lane '---Robert E. Noms Economic Development Specialist President I EDC Minutes November 9 2005, Page 3