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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 05/16/2011MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) REGULAR MEETING CITY HALL — COUNCIL CHAMBERS MAY 16, 2011 — 3:00 P.M. PRESENT: Members Eloy Salazar, President Brad Lomax, Vice President Foster Edwards Adolfo (Butch) Escobedo Robert Tamez Staff Ron Olson, Executive Director Jay Reining, Assistant City Attorney Margie Rose, Assistant City Manager Constance Sanchez, Finance Emily Martinez, Economic Development A. Called meeting to order — President Salazar called the meeting to order at 3:05 p.m. B. Roll Call - President Salazar verified that the necessary quorum of the Board were present to conduct the meeting. 1. Approval of Minutes - Mr. Lomax made a motion to approve the Regular minutes of April 18, 2011, seconded by Mr. Edwards and passed. 2. Financial Report — Interim Director of Financial Services Constance Sanchez presented the sales tax report updated through April 2011; the cash flow statements; and the commitment reports for the economic development fund. The following topics pertaining to this item were discussed: the status of the RFP for affordable housing; the status of the Del Mar Fast Trac Program; and ACCION. President Salazar requested a status report on the RFP for affordable housing and the other affordable housing programs. A motion was made by Mr. Lomax to approve the financial report, seconded by Mr. Tamez and passed. 3. Motion approving 2011 -2012 ORerating Budget. - Interim Director of Financial Services Constance Sanchez presented the budgets for the seawall, arena, and business and job development funds for FY2011 -2012. The following topics pertaining to this item were discussed: the $4 million in reserve for seawall maintenance; the seawall projects not approved by Council; the recommended seawall projects; the status of the City Council's consideration to ask the voters to reauthorize the seawall funds for street maintenance; whether there is a state law that requires windstorm insurance; the transfer to visitors facility breakdown; the consultant for venue manager fees; whether the RFP for the arena venue manager will include the beverage and food operations; discussions on whether to budget an amount for major business and small business contracts or wait until each contract is approved and appropriate the funds at that time; the allocation for small business last fiscal year; future major business projects; proactive approach for use of business and job development funds; discussions with the Corpus Christi Regional Economic Development Corporation INDEXED Type A Meeting May 16, 2011 - Page 2 to develop a strategy for using economic development funds; balanced approach on how to spend economic development funds; and the sales tax revenue. Mr. Edwards requested an update on the seawall funds and the allowable uses for those funds. Mr. Edwards also requested holding discussions between the Type A Board and the EDC to develop a strategy for economic development ideas. Mr. Lomax made a motion to allocate $950,000 for small business, leave the major business incentive projects at $0 budgeting only the commitments, and request that the EDC present the Board with a plan for the use of business and job development funds before the end of the fiscal year on July 31, 2011. The motion was seconded by Mr. Edwards and passed Mr. Edwards made a motion to approve the seawall (1120) and arena (1130) funds as submitted by staff. The motion was seconded by Mr. Tamez and passed (Lomax was absent). 4. Status report for Arena Capital Improvements - Assistant City Manager Margie Rose explained that the Board was provided a status report at the last meeting on the arena capital improvements and requested that this item be placed on this month's agenda for discussion. Mr. Tamez stated that $148,000 was allocated for the upgrade to the main arena concourse and SMG was able to resolve the condensation issues at the arena by installing carpet in the amount of $25,000. Mr. Tamez asked questions regarding the plans for the remaining available funds in the amount of $122,672.50. Ms. Rose stated that staff will provide a final report on the $500,000 allocation for the arena capital improvement projects and the American Bank Center will provide a recommendation on additional improvements needed at the arena. Ms. Rose added that the Board only authorized the use of the funds for the projects listed and will have to determine whether to allocate the available funds to additional projects. In response to Mr. Tamez, General Manager for the American Bank Center Jim Saiamenta reported that the size of the outdoor marquee is 9 feet x 15 feet. 5. Discussion of using Type A funds for interns by the Chamber of Commerce, Hispanic Chamber of Commerce, and other non - profits - Assistant City Attorney Jay Reining explained that he was asked to provide an explanation as to why participants in the Del Mar and Texas A & M University - Corpus Christi intern programs could not work for the Chamber of Commerce or Hispanic Chamber of Commerce. Mr. Reining reported that the contract language only allows for interns to be used for small businesses; however, the contracts can be amended to allow interns for non - profits. Mr. Reining added that the guidelines would have to be changed and structured specifically to creating jobs and business development. The following topics pertaining to this item were discussed; amending the contract language to allow non - profits to use interns to strictly support and develop small businesses; whether non - profits would be able to create future jobs for interns; and Type A Meeting May 16, 2011 — Page 3 consideration for issuing an Request for Proposal (RFP) for organizations to submit a proposal for small business funds. President Salazar requested that an item be placed on next month's meeting to make an amendment to allow for non - profits to utilize the internship program. 6. Status report regarding SMG Performance Audit — Ms. Rose explained that the Board requested that staff provide a status report on the SMG performance audit. Ms. Rose provided an overview of the performance audit including the solicitation of proposals to eight companies; the three responses; the evaluation team; the selection of Crossroads Consultant Services; and the purpose of the audit. Ms. Rose reported that Crossroad Consultant Services will provide a recommendation by the end of June or early July. 7. Status report on Acireement with SMG — Ms. Rose explained that the Board requested a status report on the agreement with SMG. Ms. Rose stated that the term of the agreement is for five (5) years ending July 2014. Ms. Rose added that the agreement stipulates that the City has the ability to terminate the agreement with or without cause the last day of the third year or anytime thereafter, providing for a 90 -day notice. Ms. Rose also report that at beginning of the third year (August 2011), the City must solicit for venue managers and make a recommendation by the end of the third year. President Salazar requested that a Board member be involved in the process. 8. Status report from ACCION — Bill Savin, Chief Lending Officer for ACCION, provided an overview of the ACCION program including the employment and reorganization changes; ACCION's mission; the six (6) regions in Texas and Louisiana; the decrease in loan production last year; and the 10% increase in loan production in March and April of 2011. Vicki Garcia, Loan Officer for ACCION, provided stories of the success of the buy - down program. President Salazar asked questions regarding consideration to expand the loan program. Mr. Reining stated that the contract limits the loan for start up businesses to five years. Ms. Garcia explained that ACCION would like to expand the program beyond five years. President Salazar asked that this item be placed on a future agenda. The following topics pertaining to this item were discussed: the buydown rate; the balance unpaid but committed as of April; anticipated spending by the end of the contract; and the location of the local office. G. Public Comment - None. H. Adjournment There being no other business to come before the board, President Salazar adjourned the meeting at 5:07 p.m.