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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 04/18/2011MINUTES CORPUS CHRIST] BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) REGULAR MEETING CITY HALL — COUNCIL CHAMBERS APRIL 18, 2011 -- 3:00 P.M. PRESENT: Members Eloy Salazar, President Brad Lomax, Vice President Foster Edwards Adolfo (Butch) Escobedo Robert Tamez Staff Margie Rose, Executive Director Mary Juarez, Assistant Secretary Carlos Valdez, City Attorney Constance Sanchez, Finance Mike Culbertson, Economic Development 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. Approval of Minutes - Mr. Edwards made a motion to approve the Regular minutes of February 21, 2011, seconded by Mr. Tamez and passed. 2. Closed meeting under §551.087 of the Texas Government Code to discuss or deliberate. regarding commercial or financial information pertaining to Proiect Steel that the Board has received from, or to deliberate the offer of a financial or other incentive to, a business prospect that the Board seeks to have locate, stay, or expand in or near the city and with which the Corporation_ is conducting economic development negotiations, with possible discussion and action in open session. - President Salazar announced the closed session. The Corporation went into closed session. The Corporation returned from closed session. Mike Culbertson, Corpus Christi Regional Economic Development Corporation, introduced Commercial Metals Company representatives Don Schwab and Joe McGraw who were available to respond to questions. Mr. Culbertson explained that Commercial Metals Company is a steel production and recycling company interested in creating a business on Hwy 44 and Blanco Road. Mr. Culbertson provided information on the investment in capital improvements; retention and creation of jobs; and the performance based contract. The following topics pertaining to this item were discussed: zoning and purchase of the property. Mr. Lomax made a motion authorizing the President to execute a Business Incentive Agreement with Commercial Metals Company that will award grants of up to $132,600, if Commercial Metals Company invests $20 million in capital improvements and equipment and retains at least 39 existing jobs and creates at least 12 new jobs, with an average annual salary of at least $35,154 over a 5 year period and appropriating the amount needed to fund the grant from the Corporation's available economic development funds. This motion is contingent upon approval of the final agreement which has been executed by Commercial Metals Company by the City Council. The motion was seconded by Mr. Tamez and passed. INMEXED Type A Meeting April 18, 2011 -- Page 2 3. Financial Report - Interim Director of Financial Services Constance Sanchez presented the sales tax report updated through March; the cash flow statements; and the commitment reports for the economic development fund. The following topics pertaining to this item were discussed: the audit adjustment in March; the comparison of year to date sales tax; the RFP for affordable housing for funds available to award; items pending Council approval; and the status of the ACCION contract. A motion was made by Mr. Edwards to approve the financial report, seconded by Mr. Lomax and passed. 4. Motion authorizing the expenditure of $15.000 from the American Bank Center Arena Market! n Co- Promotion Fund for Destination Ima iNation's Academic State Tournament & Awards Ceremony in March 2012. — Donna Canatella, Director of Sales at the American Bank Center (ABC), explained that this item is a request from SMG for funding in the amount of $15,000 from the Arena Marketing/Co- Promotion fund to encourage Destination ImagiNation to return to Corpus Christi and confirm their event at the Arena in March 2012 and future years. Ms. Canatella provided information on estimated total attendance for the event; the estimated number of room nights; and the economic impact. The following topics pertaining to this item were discussed: where Destination ImagiNation has held the event since 2005; requesting that SMG ask for Destination ImagiNation to consider signing a contract for a one or multiyear period; and the balance of the co- marketing fund. Mr. Edwards made a motion authorizing the expenditure of $15,000 from the American Bank Center Arena Marketing /Co- Promotion Fund for Destination lmagiNation's Academic State Tournament & Awards Ceremony in March 2012, seconded by Mr. Lomax and passed. 5. Annual Compliance Report for Del Mar College's__ Fastrac Growth Venture Agreem — Mike Culbertson, EDC, reported that Del Mar College is in full compliance of the contract and provided statistics on the amount of the grant and the amount of invoices. Mr. Culbertson stated that the program has a balance of $65,000 that will come back to the fund. 6. Annual Compliance Report for Turner Industries Group, LLC. — Mr. Culbertson, EDC, provided information on Turner Industries including the contracted and actual amount of capital investment; the retained and additional jobs and the gross annual payroll. Mr. Culbertson reported that Turner Industries Group was not in compliance with the agreement for additional employment and gross annual payroll and will not receive any funding for Year 2. The following topics pertaining to this item were discussed: funding for Turner Industries should they met cumulative levels for Years 2 and 3 and the vacant positions listed under retained jobs. Type A Meeting April 18, 2011 - Page 3 G. Public Comment - None. Mr. Tamez requested an item at the next meeting on the following items: a status of the Arena capital improvement projects and a legal interpretation on the reason that nonprofits can not utilize the internship programs. Mr. Escobedo requested a status report on the performance audit for SMG. H. Adjournment There being no other business to come before the board, President Salazar adjourned the meeting at 3:59 p.m.