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HomeMy WebLinkAbout07/25/01 EDC MINUTES THE COLONY ECONOMIC DEVELOPMENT CORPORATION REGULAR BOARD MEETING CITY HALL COUNCIL CHAMBERS JULY 25, 2001 Present: President Al Garcia Secretary Bob Norris Treasurer Delaina Hammock Ex-officio Member Sue Walden Staff.' Tom Terrall Cindi Lane Tony Johnston, Assistant City Manager Absent: Vice President Steven Sims Item 1.1. Call to Order: Being that a quorum was present, Al Garcia called the meeting to order at 7:10 p.m. and led in the Pledge of Allegiance. 2.0CONSENTAGENDA Item 2.1. Reports: a. Cash flow projection - beginning to build fund balance, have obligations such as Memorial Drive ($200,000), Pizza Inn ($250,000) b. Tax Allocation Summary for June and July - July had 89% growth over July 1999. Home Depot sales tax not on report yet. c. Monthly ½ Cent Sales Tax graph d. Monthly report from May and June to City Manager e. Examples of maps from other cities Convention & Visitors Bureaus Item 2.2. Approval of the minutes of the board meeting held May 24, 2001: All board members were in favor of a motion to approve the minutes as written. The motion carried with all members voting aye. 3.0 EX-OFFICIO MEMBER, PUBLIC COMMENTS Item 3.1. Report of 4B meetings: Sue Walden gave an update of the July 19, 2001 meeting to the board. There was citizen input pertaining to the old library stating that it should be used now and not wait for the grant to be approved for the space to be put to use. The design committee brought in pictures of the proposed building. A representative from the Texas Park and Wildlife department paid a visit to The Colony and the grant for $500,000 that was applied for should be determined in August. The grant for the renovation of the old library for $750,000 should be determined in January 2002. The board learned that the money borrowed for the community complex is subject to taxation if the amount of interest being earned is greater than the percent of interest owed against the borrowed amount. Item 3.2. Report of Chamber of Commerce meetings: The Chamber is working on providing a non-profit health insurance program to be made available to Chamber members. Mr. Terrall met with the Economic Development committee earlier this month and gave a PowerPoint presentation and a questionnaire for them to use on business visitation. The Chamber plans to add more questions pertaining to Chamber issues. Seven teams have been formed to visit the area businesses and they participated in a role-playing practice session so they will be more prepared for the visitations. Mr. Terrall did a good job of getting them started and his work and time spent on this project is greatly appreciated. Item 3.3. Public Input: There was no public input. 4.0 REGULAR AGENDA Item 4.1. Discussion and appropriate action regarding the approval of the 2001-2002 administrative budget: Mr. Terrall gave a detailed presentation to the board highlighting specific changes in the structure of the current budget, especially in the "Contractual Services" section. Mr. Terrall referred the board to a handout of Revenue and Expenditure Projections prepared by the finance department tracking four years of budgets including the revised 2000-2001 budget and the proposed 2001-2002 budget. He explained that one of the goals is to keep the administrative budget to within 25% of the total yearly revenue. This proposed budget is within 20% of the yearly revenue not including marketing nor incentive expenditures. Mr. Terrall explained how some similar 4A boards have approved an aggregate amount of money that is approved in advance on its own line item up to a certain dollar figure determined by the City Council. As projects come to the 4A Board, they are approved thereby becoming fast-tracked because they do not go individually to the city council each time. President Gareia asked the status of the research being done currently on finding out from neighboring cities what a formula of criteria would be for granting funds or incentives. Mr. Ten-all responded that Cindi Lane is working on that and that the project is approximately between 70 and 80% completed. Mr. Terrall went on to explain the proposed changes to line items; the addition of the marketing line item to easily track the total amount of marketing expenditures, and the addition of the incentive line item. He explained that the incentive dollars changed from $298,000 to $567,000 EDC Minutes July 25, 2001, Page 2 due to projects that have come up during this fiscal year and have already been approved by the 4A board and the city council. There was discussion of Mr. Terrall's mileage allowance being increased slightly due to actual miles and rising gasoline costs. Bob Norris made a suggestion of using a rental car for driving distances that are out of the metroplex but within a reasonable distance of not having to travel by airplane. Mr. Johnston took over the presentation and explained in detail the Revenue and Expenditure Projections for the past four years showing 1997 through 2002. He explained how the revenue calculation was determined for the next fiscal year including estimated sales tax revenue from Home Depot based along with a conservative 10% growth figure for next year. Mr. Johnston informed the board that the sales tax growth has grown 16% per year for the last five years and that the operational expenditures continue to stay under 25% of the projected revenue. In projecting revenue, Mr. Johnston and Mr. Terrall chose to error on the side of understating revenue rather than risking overstating. Mr. Johnston pointed out that looking at fiscal year 2001-2002, the Expenditures-Economic Incentives portion of the budget lists past incentives, current, and future incentives with an ending balance for 2002 showing over one million dollars including the use of a figure up to $500,000 for next year's future incentives and emphasizing that the revenue figure calculated was very conservative. One of the goals of this budget is to build up the incentive dollars for 4A to use specifically to assist a large corporate or retail business in locating to The Colony. There was discussion of Memorial Drive and drainage issues associated with Memorial Drive. Mr. Norris made a motion to approve the 2001- 2002 budget as proposed. Delaina Hammock seconded the motion and the motion passed with all members voting aye. Item 4.2. Discussion regarding The Colony/NTCAR golf tournament held June 4, 2001: Mr. Terrall reported that with this year's golf tournament, $2,300 less was spent than previous years. There were 150 golfers this year as opposed to 58 the previous year. By partnering with NTCAR, The Colony Economic Development Corporation received more exposure for fewer dollars. Mr. Terrall explained that as he meets with brokers the tournament is mentioned and remembered. Item 4.3. Discussion regarding SuperComm 2001 in Atlanta, Georgia June 5-7, 2001: Mr. Terrall reviewed the events of the SuperComm tradeshow in Atlanta with the board explaining that there were a total of six cities including Dallas and The Colony representing the Dallas metroplex. There were over 60,000 people in attendance this year, which was a record breaker. Item 4.4. Discussion and appropriate action regarding the approval of an expenditure in the amount of $1,000.00 for a Community Sponsorship at the TEDC 2001 Annual Conference in Dallas: Mr. Terrall explained to the board the importance of a sponsorship for this conference. The conference will be held in Dallas at the Landmark Hotel. The sponsorship includes an amount of $300.00 EDC Minutes July 25, 2001, Page 3 for him to attend the conference and would allow exposure for The Colony at the same time. Mr. Norris made a motion to allow for The Colony Economic Development Corporation to become a sponsor at the $1,000.00 level. Ms. Hammock seconded the motion. Mr. Norris and President Garcia voted in favor and Ms. Hammock voted against. With two thirds voting for and one third against, the motion carded. Item 4.5. EXECUTIVE SESSION as authorized by section 550.086 of the Local Government Code Economic Development, to-wit: A. To deliberate the offer of a financial or other incentive to a business prospect. The board went into executive session at 8:15 p.m. ~m 4.6. Consideration of appropriate action to be taken as a result of executive session: The board reconvened at 8:36 p.m. No action was taken. President Garcia adjourned the meeting at 8:36 p.m. Cindi Lane Administrative P~..sistant P-resident EDC Minutes July 25, 2001, Page 4