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HomeMy WebLinkAbout10/17/07 EDC MINUTES THE COLONY ECONOMIC DEVELOPMENT CORPORATION REGULAR BOARD MEETING CITY HALL CONFERENCE ROOM OCTOBER 17,2007 The Regular Session of The Colony Economic Development Corporation of the City of The Colony. Texas. was called to order at 7:01 p.m. on the I ill day of October 2007. at the City Hall conference room with the following roll call: Board Members: Bob Norris. President Rick Casterline. Vice President Kevin Greene. Treasurer Paul Koenig. Secretary AI Garcia. Member Present Present Present Absent (Business) Present Staff Members Present: Tom Terral!, Director of Economic Development Cindi Lane. Economic Development Specialist Council Liaison: Perrv Schrao . c Absent (Business) And with four voting members present a quorum was established and the following items \vere addressed: Item J. J. Pledge of Allegiance: President Bob Norris led in the Pledge of Allegiance. 2.n. CONSENT AGENDA Item 2. J. Reports: a. Cash flow projection b. Monthly Yz Cent Sales Tax graph c. Tax Allocation Summary for September d. Summary of current activity regarding development e. Marketing update f. Report of TEDC annual conference September 26-28 g. ICSC Texas Conference & Deal Making tradeshow October 10-12 h. Treasurer report J. Quarterly report to city manager ./. Report of NTCAR bus tour September 21 (a) Mr. Terrall reported that the sales tax revenue was approximately $40.000 ahead of projection for the previous fiscal year ending September 30. 2007 and the cash flow pr(~jection is carry forwarding about $5 million into the 2007-2008 fiscal year. (b) The graph looks good. (c) The sales tax revenue is 5.46% ahead of last year. (d) Mr. Terrall said that according to the planning department. there is nothing new to report for this month with the exception that Zaxby's closed on some property in The Colony along Main Street and will begin the permitting process shortly. KB Homes has made a density change increasing the townhomes and decreasing the patio homes due to customer demand. (e) Ms. Lane reported the website statistics. ads in Black's Guide. Shopping Center Business. and Texas Real Estate Business. Ms. Lane and Mr. Terrall had a meeting with the owner of OnMessage to meet the new account representative and to discuss advertising strategy for the next year. (t) Mr. Terrall reported that the annual TEDC meeting was held in Farmer's Branch this year. There were several interesting breakouts sessions and more than 300 attendees were in attendance. Mr. Terrall said that he has completed his second term as a board member and his third year on the executive committee. He will attend the annual board retreat next month to finish up the year. (g) Mr. Terrall reported that there were approximately 4,300 attendees and 250 exhibitors at the Texas ICSC conference and tradeshow. The conference took place for about 2 Y:z days and it was very busy the entire time. He and Ms. Lane \vere involved in three retail prospect meetings with DBSI. Mr. Terral I attended the retail roundup and met many retailers who would be a good fit for The Colony. He and Ms. Lane will follow up with correspondence. (h) Mr. Greene gave the treasurer report. According to his report the EDC had a cash balance of approximately $4.8 million with approximately $45K in payables as of June 30. 2007. During the current year the EDC is budgeted to run at a deficit of $848.800 for the year. Through the second quarter actual results are a deficit of $ 1.46 I. 700. He said that currently. the run rate for the income is coming in higher than the budget by 23%. excluding the impact of the debt issuance. Additionally, expenditures exceed the budgeted amount for the year for economic incentives due to the payment to Jackson-Shaw of $2.318.800. Income is favorable to budget and expenses are unfavorable to budget at this point due to timing and the amount of the incentives paid. Mr. Terrall said that there is still about $109.000 in incentives left to pay to Jackson-Shaw Company. (i) Mr. Terrall did not go over the report but said it was there tor the board's review. (j) Mr. Terrall said that originally The Colony was not included in the bus tour but he was able to get the Pizza Inn corporate building in the tour and literature about it as well as an aerial map of The Colony and information about The Colony in the bus tour booklets. He rode one bus and Ms. Lane rode another and they were able to give an infomercial including Pizza Inn and the Jackson-Shaw project. 2.2. Approval of the minutes of the regular board meeting August 8, 2007: President Norris asked if there were any corrections. changes or additions that anyone would like to make. Mr. Garcia made a motion to approve the minutes as presented. Mr. Casterline seconded and the motion carried with all members voting in favor. EDC Minutes October 17.2007. Page 2 3.0 PUBLIC COMMENTS Item 3.1 Public Input: There was no public input. 4.0 REGULAR AGENDA Item 4. J. Discussion regarding H.B. 621 involving Super Freeport: Mr. Terrall said that he learned of a piece of legislation at the TEDC annual conference which could affect The Colony. The purpose of the legislation is to exempt from ad valorem tax goods moving from one location to another both intrastate and interstate. There is a tax exemption for goods that reside up to 175 days in warehouses while awaiting shipment to other locations outside of Texas. Under the current law (triple Freeport) only goods that are shipped outside of Texas can be tax exempt and they must be owned by someone other than the owner of the warehouse where the storage takes place. A 2001 amendment to the Texas constitution prohibits the exemption where the warehouses are owned or controlled by the owner of the goods. The enacting legislation passed in 2007 omits language relating to control. Cities can agree to "opt out"" and may have an opportunity to"opt in or out'. each year. We are currently waiting on an attorney general opinion concerning the control issue. Mr. Terrall wanted to inform the board that he is taking this item to council in November to request that The Colony "opt out'. to avoid a possible significant ad valorem tax loss in the future to the city. Incentives are still in play. Action on this bill in no way affects The Colony's ability to offer a tax abatement agreement to a business. This would apply to the 2008 calendar year and can be reversed in 2009 if it turns out to be a better situation tor The Colony. There was discussion and question from the board members conccrning this bill and how it might afTect The Colony if left the way it is currently set up. Mr. Terrall explained that he has spoken to several other economic dcvelopment directors and found that these cities have opted out or plan to do so in November. Itcm 4.2. Discussion of board term limits including interest in becoming reappointed by council: Mr. Terrall said that Mr. Greene asked that this item be placed on the agenda. Mr. Greene said that he has served two full three-year terms on the 4A board and due to increased job hours and travel he does not wish to be reappointed to the 4A board. Although Mr. Koenig was not present at this meeting. he had previously indicated that he would like to be reappointed tor another three-year term. He has served a little more than two years replacing a former 4A board member who moved away before he could finish his term. Mr. Terrall said he would like for the board members to talk to their neighbors and see if they know of anyone who would have the right experience to serve on this board. He also thanked Mr. Grcene for his many years of service on this board. Item 4.3. Discussion and appropriate action regarding changing time of November meeting: Mr. Terrall explained that his TEDC board retreat begins on November 15tll and he requested for thc November 1411l meeting to be moved back to an EDC Minutes October 17.2007. Page 3 earlicr time if possible so he can get an earlier start on the drive to the TEDC retreat. Mr. Casterline made a motion to change the November 14tll meeting time to 6:30 p.m. Mr. Garcia seconded the motion the motion passed with Mr. Garcia, Mr. Casterline. and President Norris voted in favor and Mr. Greene voting against. EXECUTIVE SESSION 5. J. The Economic Development Corporation pursuant to Section 551.071 (2) of the TEXAS GOVERNMENT CODE to deliberate a financial or other incentive to business prospect. There was no executive session. 5.2. Any action to be taken as a result of executive session regarding financial or other incentive to business prospect: No action was taken. President Norris adjourned the 4A board at 8:07 p.m. -~(~ Cindi Lane "- Economic Development Specialist ~~'l /O~ RoBert E. Norris President EDC Minutes October] 7.2007. Page 4