Loading...
HomeMy WebLinkAbout11/21/1995 MEDC MINUTES OF THE MUNICIPAL ECONOMIC DEVELOPMENT CORPORATION HELD ON NOVEMBER 21, 1995 A meeting of the Municipal Economic Development Corporation Board of Directors for the City of The Colony, Texas was called to order at 6:40 p.m. on the 21 st day of November, 1995, at The Colony Chamber of Commerce. The following persons were in attendance: Gary McClure, President David Stanwick, Vice President Jerry Sebastian, Secretary Ronnie Fischer, Treasurer Tommy Thompson, Executive Vice President Mary Watts, Executive Vice President Lori Harlan, City Staff Liaison, Director of Economic Development John Dillard, Executive Vice President, arrived at 9:15 p.m. I. DISCUSSION OF FUTURE DIRECTION OF GOLF COURSE PROJECT WITH PENINSULA GOLF PARTNERS President McClure and Mr. Thompson updated the board on discussions between the negotiating teams held after the November 14 meeting. The first item for discussion was the proposal from Peninsula Golf to provide a $50,000 escrow deposit to allow Peninsula Golf onto Wynnewood Peninsula to begin the environmental assessment of the property. It was the feeling of the negotiation team that this was a necessary first step that will ease the time frame in which negotiation of a concession agreement must occur. The environmental assessment is necessary no matter which party ultimately funds and owns the course. Therefore, allowing Peninsula Golf to begin the study - to be paid for from the escrow deposit - will allow the project to move forward while negotiations continue. Mr. Sebastian made a motion to accept the proposal, and Mr. Fischer seconded. Approval was unanimous. Discussion then focused on future negotiation of a concession agreement. Board members requested that any negotiating sessions be recorded for the protection of both parties. Ms. Harlan will discuss this request with Peninsula Golf and the EDC's attorney. The following items were determined by the board to be "big hitters" in preliminary negotiations. The stance of the EDC is stated on each issue. Greens Fees The EDC feels that a $50 greens fee is too high. Board members would like to see two stratified courses much like the courses were described in the feasibility study. The board also stressed that Peninsula Golf should realize that the Corps expects the greens fees to be in line with other comparable courses in the area, i.e. courses on Corps property. Realizing those concerns, the EDC wants Peninsula Golf to state its exact position on course greens fees, i.e. willingness to stratify, exact fee structure, etc. Walkabitity The EDC would like to have at least one of the courses as a walkable course - with the ability to pull a cart. Walkability should be defined as both allowing customers to walk the course and a course design that is feasible to walk. Percent of Course Revenue The EDC is interested in sharing in more than just a percentage of greens fees revenue. What is Peninsula Golf prepared to offer? The EDC did not further define this as percentage of gross, x% of food/beverage, etc. Out-of-Pocket Expenses NON-NEGOTIABLE reimbursements are those directed by the City Council, i.e. repayment of the feasibility study amount ($20,800) and legal fees ($2,000) EDC would also like to negotiate repayment of Tripp Davis for work he did that went into the feasibility study. Ms. Harlan is working to get an itemized list of these expenses. This is a STRONG issue because Peninsula Golf is using the feasibility study that could not have been completed without Tripp's input. Earnest Money - NO LONGER USE THIS TERMINOLOGY This would now be addressed separately from the reimbursement of expenses. The EDC would like the $100,000 of guaranteed revenue from the course beginning in year one instead of year three (the first year of operation). The initial year will be paid at the time the concession agreement is signed. This might be referred to as a land lease, since the EDC is receiving the $100,000 as compensation for its investment in the project - the Corps land. Back End Loading of Sale of Property Just an item to mention the EDC would like to see in the finalized concession agreement. The EDC did not specify a percentage. This is another item on which the EDC would like to have Peninsula Golf's position. OTHER INFO: The EDC decided not to address the Matthews Southwest issue in hopes that an agreement will be reached between the parties and further involvement by the EDC in that relationship will be unnecessary. There was some discussion concerning asking Peninsula Golf to involve either a different negotiator than Jerry Andrews or someone in addition to him that is more of a decision maker as their representative during negotiations. Ms. Harlan will assemble the EDC's thoughts on the above issues and confer with other members of the EDC's negotiating team. After those thoughts are finalized, the next meeting between the negotiating teams will be scheduled. Ms. Harlan briefly introduced the idea of an Economic Development Plan that will compliment the city's Comprehensive Land Use Plan currently underway. Mr. Worth Blake will meet with the EDC at the next scheduled meeting, Tuesday, November 28, to discuss components of such a plan. The meeting was adjourned at 10:00 p.m. r Lori Harlan, Director of Economic Development