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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 01/18/2010MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) REGULAR MEETING CITY HALL -COUNCIL CHAMBERS JANUARY 18, 2010 - 3:00 P.M. PRESENT: Members: Eloy Salazar, President Brad Lomax, Vice President Foster Edwards Adolfo (Butch) Escobedo Robert Tamez Staff: Angel R. Escobar, Executive Director Armando Chapa, Secretary Jay Reining, Assistant City Attorney Cindy O'Brien, Interim Asst. City Mgr. Constance Sanchez, Interim Dir. of Finance A. Called meeting to order -President Salazar called the meeting to order at 3:08 p.m. B. Roll Call - President Salazar verified that the necessary quorum of the Board were present to conduct the meeting. C. Approval of Minutes - Mr. Tamez made a motion to approve the minutes of December 21, 2009, seconded by Mr. Lomax and passed. D. Executive session under $551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information that the City Council has received from or to deliberate the offer of a financial or other incentive to, a business prospect that the City Council seeks to have locate, stay, or expand in or near the city and with which the City Council is conducting economic development negotiations, with possible discussion and action in open session. • Project Sailfin • Project Victor President Salazar announced the executive session. The Corporation went into executive session. The Corporation returned from executive session. Mr. Tamez made a motion authorizing the Corporation President to execute a business incentive agreement with The First American Corporation for creation of up to 400 jobs; the agreement to provide grants up to $1,200,000 over a period of up to 10 years. The motion was seconded by Mr. Edwards and passed. 2. Financial Report -Interim Assistant City Manager Cindy O'Brien presented the sales tax report updated through November sales, December collections, and January allocations and cash flow statements for the arena, seawall, and economic development funds. Ms. O'Brien also provided information that was provided to the City Council regarding the status of sale tax revenues. The following topics pertaining to this item were discussed: the breakdown of sales tax for mining, wholesale trade, retail, and accommodations/food services; the total projected loss of sales tax; and the balance of the economic development fund. A motion was made by Mr. Lomax to approve the financial report, seconded by Mr. Edwards and passed. IAICII~YFCI Type A Meeting January 18, 2010 -Page 2 3. Review of and possible action on Corpus Christi Business and Job Development Corporation Affordable Housing -New Construction Proqram Guidelines and Criteria for Application -Eddie Ortega, Director of Neighborhood Services, provided a brief overview of the recommended change to the new construction program requirement to remove the criteria defining affordable housing as owner occupied housing that is accessible to households at a cost that does not exceed 30% of the monthly household income. Mr. Ortega said the State statute requirement that an affordable home is one whose purchase price does not exceed 95% of the area median purchase price and income limits are attached where they do not exceed 80% of the median income. Bart Braselton, Braselton Homes, stated that taking out the 30% criteria is a wonderful addition to the program and brings the program more in line with existing national mortgage guidelines. Mr. Braselton also recommended that consideration be made to clarify the definition of area for the median purchase price. Abel Alonzo, 1701 Thames, stated that he was concerned that the elimination of the 30% would make it harder for the economically disadvantaged. Jay Reining, Assistant City Attorney, clarified that the area is determined by the Secretary of the U.S. Department of Housing and Urban Development (HUD). The following topics pertaining to this item were discussed: whether eliminating the 30% criteria will allow for more candidates that will be eligible for the program; changes to mortgage guidelines; definition of area for the median purchase price; income limits; mortgage loan ranges; the entity that teaches the homebuyer class; and the homebuyer eligibility requirement that states that homebuyer's cash on hand cannot exceed program limits. Mr. Edwards made a motion to eliminate the 30% criteria and to adopt the guidelines as amended, seconded by Mr. Escobedo and passed. 4. Audit Reports for Texas A & M -Corpus Christi Internship Proqram and Extreme Homes. -Interim Director of Financial Services Constance Sanchez explained that GF Valdez, P.C. completed two annual audits for Extreme Homes of Texas and the Texas A & M University - Corpus Christi (TAMU-CC) Internship Program. Ms. Sanchez introduced Lupe Valdez and Dalia Rocha with GF Valdez, P.C. who were available to respond to questions. Ms. Rocha provided an overview of the finding for the TAMU-CC Internship program stating that there was a violation of the agreement because the agreement states that businesses would pay interns double the minimum wage rate. The minimum wage rate was adjusted on July 24, 2008 and July 24, 2009. Ms. Rocha added that the interns were paid the double the minimum wage rate; however, the employers were not reimbursed for the second adjustment. Type A Meeting January 18, 2010 -Page 3 Dr. Jim Needham, TAMU-CC, stated that the employers did not pay double the minimum wage and they can not be reimbursed for what they did not pay. Mr. Valdez stated that based on records from employers, the interns did get paid double the minimum wage rate. The following topics pertaining to this item were discussed: whether the employers were owed the shortage of $672.00 for reimbursement of the minimum wage adjustment; the time period that the employers were not reimbursed; the double minimum wage requirement; and whether there is a written agreement between TAMU-CC and the interns stating that they will be paid double the minimum wage. There was a consensus of the Corporation members to reimburse the employers. Ms. Rocha provided an overview of the two findings for Extreme Homes of Texas including that Extreme Homes did not retain any documentation in reference to families assisted or funding and the criteria that two homes were under the minimum of 1147 square feet. Linda Mikulencak, Extreme Homes, stated that they misinterpreted the requirement that they were to retain the customer files and would correct that error. Ms. Mikulencak reported that the City has maintained those files. Ms. Mikulencak also clarified that the appraiser incorrectly appraised the home that was 972 square feet and that the actual square footage was 1144 square feet. A brief discussed ensued regarding the home that was appraised at 972 square feet. Mr. Edwards requested that this item be placed on the agenda to hear from the auditor and staff that the square footage on this home was corrected. Mr. Valdez explained that if Ms. Mikulencak provided them with the correct plan, they could revise the report. 5. Status Report -Arena Turf Business Plan -Eric Jaramillo, Director of Marketing and Corporate Sales with the American Bank Center, provided a brief summary of the business plan including the objectives; life of the turf; rental fees collected from the Hammerheads and other events; turf sponsorship; sponsorship sales strategy; profit analysis. The following topics pertaining to this item were discussed: whether any of the turf sponsorships had been sold; life of the turf; the projected additional revenue for the Hammerhead season; whether SMG collects rental fees from the Parks and Recreation events or nonprofits; and whether SMG is looking for additional sponsors. 6. Status Report Seawall Improvements- Director of Engineering Services Pete Anaya stated that staff had proceeded with the four proposed uses for the seawall proceeds including the barge dock improvements, salt flats levee system short term improvement, Sunfish Island and breakwater improvements, and the seawall maintenance reserve fund. Mr. Anaya reported that Engineering issued request for proposals (RFP) for the barge dock improvements, salt flats levee system short term improvement, Sunfish Island and breakwater improvements. Mr. Anaya explained that City Council expressed concern over the projects and the use of the sales tax including the possibility of considering using the proceeds for street improvements. Staff evaluated the procedures Type A Meeting January 18, 2010 -Page 4 and submitted a memo to Council. Mr. Anaya stated that staff has not received any more direction from the Council and staff is ready to move forward with implementation of the projects. Ted Stephens, Downtown Management District, stated that the DMD is concerned with the levee system. Mr. Stephens added that the Federal Emergency Management Agency (FEMA) is reevaluating the flood levels for the City and part of the protection in the downtown area is the levee system. Mr. Stephens reported that the City needs to be proactive on getting the levee system inspected before FEMA evaluates the system. Mr. Stephens recommended that the levee system become the first priority of the improvements. Chad Magill, 641 Texas Avenue, spoke regarding the insurance concerns for the downtown area if the levee system does not get certified by FEMA. Mr. Anaya stated that the City has extensive documentation on the maintenance of the levee system. The following topics pertaining to this were discussed: the fund balance for the seawall fund; the cost of the levee improvements and the barge dock improvements; and the concerns of the Council. Chairperson Salazar stated that the Corporation has already given direction to move forward with these projects. H. Public Comment: Abel Alonzo, 1701 Thames, stated that the Corporation is doing a greatjob and that he is impressed on how inclusive the Corporation is with managing the funds. Adjournment: There being no other business to come before the board, President Salazar adjourned the meeting at 5:03 p.m.