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HomeMy WebLinkAbout04/16/1996 MEDC MINUTES OF THE MUNICIPAL ECONOMIC DEVELOPMENT CORPORATION HELD ON APRIL 16, 1996 A meeting of the Municipal Economic Development Corporation Board of Directors for the City of The Colony, Texas was called to order at 6:30 p.m. on the 16th day of April, 1996, at The Colony Chamber of Commerce. The following board members were in attendance: Gary McClure, President Jerry Sebastian, Secretary Tommy Thompson, Executive Vice President Mary Watts, Executive Vice President John Dillard, Executive Vice President Lori Harlan, City Staff Liaison, Director of Economic Development 2. MARINA RFP UPDATE President McClure asked Ms. Harlan to provide an overview of a recent meeting between the City and the Corps of Engineers and any effect that meeting might have on proceeding with the marina RFP. Ms. Harlan stated that at a meeting to discuss The Colony projects on Lake Lewisville, the Colonel had said that he would not consider lifting the moratorium on marina development at Lake Lewisville until the Corps was satisfied that lake safety had been sufficiently addressed. After discussing the project with the City Manager, Ms. Harlan stated that to proceed with the RFP might succeed in only confusing the issue. By involving a private party, pressure might be placed on both the city and the Corps that would weaken the positive working partnership that currently exists. Councilmembers Dillard and Watts raised questions concerning the EDC's involvement in the preparation of a request for proposal for a potential marina project in The Colony. The primary concern was that this was an item the City Council had assigned to staff. Therefore, the use of the EDC to prepare the RFP was inappropriate. Ms. Harlan stated that when the City Council first determined to go ahead with the marina project by seeking an outside developer, staff was assigned the task of developing the RFP. The City Manager assigned the duty to the Economic Development Department and the EDC to allow for additional input beyond the ED Director in the preparation of the document. The involvement of the EDC also allowed for a built-in committee to review any proposals and work toward a recommendation to the City Council. The Councilmembers expressed the opinion that Council is unaware of the position of the Corps of Engineers concerning future lake development. Ms. Harlan stated that although she was not certain of recent cornmunications, the Council had been informed of the EDC's progress on the marina RFP through monthly reports and hand-outs such as a request for input into the development of the RFP. Based on the concerns voiced by the Councilmembers, Mr. Sebastian moved that the EDC table the marina RFP issue until the EDC receives additional direction from Council. That motion was unanimously approved. 1. DISCUSSION OF OPTIONS FOR THE USE OF A HALF-CENT SALES TAX Ms. Harlan provided a hand-out that gave information on two important issues to be determined concerning a sales tax recommendation. The first questioned whether any proposed tax would be perpetual or of a limited scope to allow the tax to sunset at some point in the future. Board members expressed various opinions concerning types of taxes and the length of time the taxes should be collected. Discussion also concerned the impact this decision would have on the board's ability to "sell" the project to the voters. A second question concerned the type of tax to be recommended. The current sales tax rate in The Colony is 7.25%. The state cap for sales tax is 8.25%. Therefore, a full cent increase could be proposed. However, the types of taxes are capped at 1/2 cent each, so a recommendation for a full cent increase would include at least two types of taxes. Board members also discussed that the sales tax does not have to be proposed in 1/2 cent increments. For example, 1/4 could be proposed as a 4A tax, 1 /4 for property tax reduction, and 1 /2 for a 413 tax. Also, a portion of the recommendation could be for a perpetual tax, i.e. the property tax reduction, and a portion for a specific project(s) tax that would sunset after the projects are paid for, i.e. the 4B tax. Mr. Thompson stated that to make a successful proposal, he felt the taxes must be used to impact the future development of the community. Ideas such as developer participation and infrastructure enhancement were discussed as projects that would truly enhance the likelihood of quality future development. Several board members mentioned the need for additional citizen input into determining the sales tax recommendation that would be made to the City Council. President McClure stated that the citizen committees established to review the city's capital projects program for the future bond proposal had been provided information about sales tax use. He further stated that the committees were meeting together for a progress report on Monday, April 22. Board members felt it was important to be at that meeting and provide some basic information on sales tax. Also, the EDC should request the assistance of those committees as they review the current capital projects needs of the city. In that review process, they can make recommendations concerning projects that might be funded by sales tax as well as additional ideas generated from their work session. Ms. Harlan stated that she will speak with Mayor Manning and the City Secretary to request a place on the April 22nd agenda. She will review sales tax options with the committees, provide additional written materials for their review, and answer any questions that arise. Because there are five weeks in April, the next scheduled meeting of the EDC is three weeks away. Board members agreed to schedule an additional meeting for Tuesday, April 30, to further discuss sales tax issues. J(aJa"I Lori H rlan, Director of Economic Development