HomeMy WebLinkAbout10/08/08 EDC
MINUTES
THE COLONY ECONOMIC DEVELOPMENT CORPORATION
REGULAR BOARD MEETING
CITY HALL CONFERENCE ROOM
OCTOBER 8, 2008
The Regular Session of The Colony Economic Development Corporation of The Colony, Texas,
was called to order at 7:01 p.m. on the Sth day of October 200S, at City Hall, 6S00 Main Street,
The Colony, Texas, with the following roll call:
Bob Norris
Rick Casterline
Tom Tvardzik
Kevin Brady
President
Vice President
Treasurer
Member at Large
Present
Present (arrived at 7:04 p.m.)
Present
Present
Perry Schrag
Council Liaison
Present
And with three board members present a quorum was established and the following items
were addressed:
[IQ] ROUTINE ANNOUNCEMENTS, RECOGNITIONS AND PROCLAMATIONS:
Call To Order
Pledge of Allegiance to the United States Flag
Announcement of upcoming events and activities1 - Mr. Terrall mentioned that
consensus among board members of various city boards was that it would be better to
hold the volunteer banquet in February rather than in November as it has been in the
past.
Citizen Input-none
[IQJ CONSENT AGENDA
2.2 Monthly Yz cent sales tax graph (Terrall)
2.3 Tax allocation summary for September (Terrall)
2.4 Approval of the minutes of the regular board meeting September 10, 200S (Terra II)
2.5 Approval to hold November regular board meeting on November 5th instead of
November 12th (Terra II)
Motion to approve above consent agenda items - Tvardzik; second by Braby; motion passed with all
ayes.
1 These items are strictly public service announcements. No action will be taken and no direction will be given regarding these
items.
Mr. Tvardzik requested this item to be pulled in order to make a correction to the Julv and August sales
tax revenue totals on the bottom of the worksheet to match the revenue numbers along the top part.
2.1 Cash flow projection (Terrall)
[ill REGULAR AGENDA
3.1 Summary of current activity regarding development (Terrall)
Mr. Terrall learned that DBSI Development has closed the Dallas office. He does not
know what they intend to do with the property on S.H. 121. He reported on an article
was recently published in the Dallas Business Journal which said that DBSI most recently
developed a project in The Colony scheduled for completion in October. Mr. Terrall does
not know where that information came from.
3.2 Marketing update (Lane)
Ms. Lane gave an update of the website statistics and recent print advertising.
3.3 CoreNet golf tournament September 26,2008 update (Terrall)
Mr. Terrall said that this was the first year for The Colony EDC to sponsor this group's
tournament. There were more than 144 golfers in attendance, a full house for the
luncheon and awards, and Mr. Terrall was allowed to speak to the group to welcome
them to The Colony and briefly discuss ongoing projects. He said that he did not notice
much of a cross over with the NAIOP golfers. They were very complimentary of The
Colony. The 2009 tournament is already booked for another location but Mr. Terrall is
working on bringing them back to The Tribute in 2010. The other cities economic
development representatives were low key and respectful of The Colony. Overall, Mr.
Terrall felt like the exposure was worth money spent on the sponsorship.
3.4 Update and discussion regarding use of The Colony EDC funds for city projects (Terrall)
Mr. Terrall gave an update on the status of the city projects that the EDC could possibly
pay for. There is still no list completed, but Mr. Terrall had a meeting with the
consultant the city hired to do the engineering work. His findings are based upon trip
generation. When the list is completed, Mr. Terrall will have the consultant come to the
board meeting to discuss it. Mr. Terrall decided that it would not be a wise move to go
back to the council to see if they still are of the opinion that the EDC pay for the
qualified city projects and Council member Perry Schrag agreed. Councilmember Schrag
explained why even with the ad valorem revenue coming in higher than expected, the
city has a larger margin in their budget but they still want the EDC to contribute because
the extra funds have been spent on other things.
3.5 Update of relocation of utilities underground on Main Street (Terrall)
Mr. Terrall said that since the last 4A board meeting he talked to Rich Krog with the TBE
Group, a national company made up of experts experienced with the relocation of
utilities. Mr. Terrall discussed with them the cost of relocating electricity underground.
Mr. Krog concurred with Gordon Scruggs that it would cost $5-10 million to complete
that project. One reason for the high cost is that additional easement would have to be
EDC Minutes October 8, 2008, Page 2
acquired; also poles and towers on the south end create a lot of heat and would take
extra money to locate and insulate them underground. Looking at amortization
schedules, the annual payment on $5 million would be between $411,000 - $415,000;
$7.5 million would be $617,500 - $622,750 per year; and for $10 million the annual
payments would range from $824,000 - $829,500. Mr. Terrall said that his personal
opinion is that this project is getting away from the EDC's mission; business recruitment
and expansion. . Beautification, although a wonderful thing, is not why we are here and
is not a deciding factor with a business when deciding whether or not to locate here.
Council member Schrag asked another engineer and was told it could range between
$12-15 million.
3.6 Report of TEDC annual conference (Terrall)
Mr. Terrall reported that the annual conference was held in Austin this year, Ms. Lane
also attended, and there were over 300 attendees. Most sessions consisted of
alternative energy topics. A marketing session enforced what The Colony EDC is already
doing with personal meetings and networking. Conferences, tradeshows, golf
tournaments, and breakfasts will be focused for The Colony EDC even more in the
future. In talking with colleagues, new projects have slowed down or stopped, and
continuing projects are being continued.
3.7 Discussion and appropriate action on NAIOP memorandum of understanding to be
their golf tournament title sponsor for years 2010-2014 (Terrall)
Mr. Terrall said that there is a MOU in place that The Colony EDC is currently using and
the new one is for five more years beginning with the year 2010. The terms and
conditions are the same, the only changes are date changes and the price per golfer
went from $65 to $70. Mr. Terral! recommended that the board authorize President
Norris to sign the memorandum of understanding.
Mr. Casterline made a motion to accept the MOU and the motion was seconded by Mr. Braby.
All members voted in favor with the exception of Mr. Tvardzik who abstained.
3.8 Status of search for new board members (Terrall)
Mr. Terrall said that board applications were still being accepted and that tentatively the
20th of October is when the current applicants will be interviewed by council. There are
two former applicants plus two more who have recently submitted applications. Mr.
Tvardzik asked who the applicants were so far and Mr. Terrall said that they are David
Peerson, James Bullington, Daniel Mahle, and Femi Omaje.
~I EXECUTIVE SESSION
4.1 A. The Economic Development Corporation shall convene into closed executive
session pursuant to Section 551.087 of the TEXAS GOVERNMENT CODE to deliberate
the offer of a financial or other incentive to business prospect to locate, stay or
expand in The City of The Colony
No executive session.
EDC Minutes October 8, 2008, Page 3
Reconvene to Open Session
4.2 A. Any action to be taken as a result of executive session regarding financial or
other incentive to business prospect to locate, stay or expand in The City of The
Colony
No action taken.
ADJOURNMENT
President Norris adjourned the 4A board at 7:50 p.m.
&JYrl1'~
Cindi Lane
Recording Secretary
~~ f~~
Robert E. Norris
President
EDC Minutes October 8, 2008, Page 4