HomeMy WebLinkAbout01/03/1995 MEDC
MINUTES OF THE MUNICIPAL ECONOMIC
DEVELOPMENT CORPORATION
HELD ON
JANUARY 3, 1995
A meeting of the Municipal Economic Development Corporation Board of Directors for
the City of The Colony, Texas was called to order at 7:10 p.m. on the 3rd day of January,
1995, at the Chamber of Commerce. The following persons were in attendance:
Toby Pollard, Councilman
Dean Kindy, President
Jerry Sebastian, Vice-President
Gary McClure, Treasurer
Tommy Thompson, Executive Vice-President
Lori Harlan, Staff Liaison, Economic Development Coordinator
1. ESTABLISH THE STRUCTURE AND PURPOSE OF THE ECONOMIC
DEVELOPMENT CORPORATION
President Dean Kindy asked to once again review the difference between 4A and
4B Economic Development Corporations and the original purpose of the Council in
establishing the 4B Corporation. Councilman Pollard explained that the 4A v. 4B
distinction is most important when discussing the types of projects the two corporations
can finance, especially concerning the half cent sales tax for economic development. The
primary purpose of the 4B Corporation is not tied to the economic development sales tax.
Instead, this group was established to oversee the development of the Wynnewood
Peninsula Golf Course. Although there will be other economic development issues the
corporation will be asked to address in the future, the first order of business for this
organization is the proposed golf course.
The group discussed the bond financing proposed for the golf course, classified as
special revenue bonds. Councilman Pollard clarified that the bonds will not be tied to the
assets of the city in any way. Therefore, the level of risk for the city in this project is
minimal. Alternative financing for the project in case the bond funds are not available was
also discussed. However, the group realized this would not be an issue unless Rauscher
Pierce felt the bonds were not an appropriate risk.
Clarification of the various entities participating in the project was requested by the
board. Staff member Lori Harlan will provide a detailed listing of the participating
organizations and their representatives for board members.
Additional questions concerning bond fianding were raised and discussed. Also,
questions were addressed concerning ultimate management of the course construction and
operation. Champions Golf has worked with Matthews Southwest on the design of the
course and will likely be the firm selected to construct and manage the facility. However,
the group was concerned about the details of the lease agreement for course management.
Councilman Pollard assured the group that the details of this lease would be negotiated
between the EDC and the management group selected. Concerns about pricing and other
operational issues must be addressed in that lease agreement.
2. IDENTIFY, ESTABLISH RESPONSIBILITIES FOR, AND PRIORITIZE
UPCOMING PROJECTS
Rauscher Pierce is expected to provide an opinion on whether the proposed bond
financing will materialize by January 11, 1994. If the answer is positive, the next step for
this organization should be to obtain a more complete understanding of the bonds. To
facilitate such an understanding, Bond Counsel Leroy Grawunder will be asked to attend
an EDC meeting on January 17, 1995. At this time he will present the financing and
answer questions from group members.
After financing questions are explained, negotiations should begin with Champions
Golf and their architects concerning the details of the course, its construction and
operation criteria. Champions provided for the group their initial plans for the course,
broad cost projections and a description of the construction management plan used by the
group. After receiving an answer on the financing and meeting with the Corps of
Engineers, Champions will be able to provide a detailed plan for the course and line item
cost projections. Champions would like to present that information to the board as soon
as possible after the January 17 meeting.
3. ESTABLISH LONG AND SHORT TERM GOALS
Due to time constraints, this issue was not addressed.
4. IDENTIFY TASKS AND ASSIGN RESOURCES
This issue will not be addressed until after the bond financing is explained and
more detail is available on the necessary arrangements for a management lease.
5. ESTABLISH AGENDAS FOR FUTURE ACTIVITIES
A meeting was scheduled with Bond Counsel Leroy Grawunder for Tuesday,
January 17, 1995. After that meeting, a time will be scheduled to meet with
representatives from Champions Golf.
Prior to the next meeting, city staff will provide copies of the lease between the
city and the Corps of Engineers for Wynnewood Peninsula, the model lease agreement
between the city and Lake Dallas Golf, the previous group which had the option to
develop a golf course on the peninsula, and any agreement which exists between the city
and Matthews Southwest.
Respectfully submitted,
t9-zt.
Lori H lan, ED Coordinator