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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 09/29/2011 - SpecialMINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) SPECIAL MEETING CITY HALL — COUNCIL CHAMBERS SEPTEMBER 29, 2011 — 3:00 P.M. PRESENT: Members Eloy Salazar, President Foster Edwards Adolfo (Butch) Escobedo R. Bryan Gulley Robert Tamez Staff Margie Rose, Assistant City Manager Brian Narvaez, Assistant City Attorney Armando Chapa, Secretary Constance Sanchez, Finance A. Called meeting to order — President Salazar called the meeting to order at 3:07 p.m. B. Roll Call - President Salazar verified that the necessary quorum of the Board were present to conduct the meeting. C.1. Approval of Minutes - Mr. Tamez made a motion to approve the Regular minutes of August 15, 2011, seconded by Mr. Escobedo and passed. D. President Salazar announced the Closed Session items as follows: 2. Closed meeting under §551_ of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to Proiect Lake 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 oRen session. 3. Closed meet under §551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to Double Puck 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. The Corporation went into closed session. The Corporation returned from closed session. President Salazar opened discussion on Item 2 regarding Project Lake. Mike Culbertson, Corpus Christi Regional Economic Development Corporation (EDC) explained that Lakeside Steel is requesting a grant in the amount of $150,000 to expand a pipe finish facility. Mr. Culbertson provided information on the terms of the contract; job creation; capital investment; and return on investment. Mr. Tamez made a motion awarding Project Lake $150,000 in Type A Funds payable in five (5) annual payments of $30,000 or $2,500 per job created to aid Project Lake in the expansion of an existing facility located at 625 Corn Products Road, seconded by Mr. Edwards and passed. INDEXED Type A Meeting September 29, 2011 —Page 2 President Salazar opened discussion on Item 3 regarding Double Puck. Pat Dunn, General Manager of the Corpus Christi IceRays, stated that the IceRays are requesting a renewal of funding for the voucher program for the 2011 -2012 hockey season. Mr. Dunn provided information on the success of the IceRays organization; community contributions; attendance; and sales packaging. Dr. Gulley made a motion authorizing renewal of funding for the IceRays Voucher Program for the 2011 -2012 Hockey Season in the amount of $100,000, seconded Mr. Tamez and passed. 4. Financial Report — Interim Director of Financial Services Constance Sanchez presented the sales tax report updated through August 2011; the cash flow statements; the commitment reports for the economic development fund; and the inception reports for the seawall, arena, and economic development funds. The following topics pertaining to this item were discussed: the status on the Oneta and Majek Boats projects; the beginning timeframe for the Texas A &M University — Corpus Christi Research Laboratories and Del Mar Aviation program projects; and Turner Industries. Assistant City Manager Margie Rose reported that staff would provide an update on the projects. A motion was made by Mr. Edwards to approve the financial report, seconded by Mr. Escobedo and passed. 5. _Motion recommending the al2pointment of Gabriel Guerra as a director of ACCION Texas — Mike Culbertson, EDC, explained that as part of the Type A agreement with ACCION Texas, the board needs to fill the position to the ACCION Board of Directors. Mr. Culbertson stated that the EDC is recommending the appointment of Gabriel Guerra to fill the position. Mr. Edwards made a motion recommending the appointment of Gabriel Guerra as a director of ACCION Texas, seconded by Mr. Tamez and passed. 6. Motion appropriating $37,500.00 from the Corporation's unreserved fund balance fora grant to Del Mar College Del Mar for support of Del Mar's Procurement Technical Assistance Center, and authorizing the President to execute a Small Business Incentives Agreement with Del Mar for Del Mar's Procurement Technical Assistance Center and a Small Business Incentives Service Agreement with the City of Corpus Christi related to the grant. This motion is contingent upon Del Mar's Procurement Technical Assistance Center assisting businesses, within the City of Corpus Christi, with the creation of mobs by obtaining contracts with Federal State and local agencies and the execution of the final agreements acceptable to the President and Executive Director, and approval of the grant and agreements by the City Council. — Mr. Culbertson stated that the Procurement Technical Assistance Center (PTAC) assist businesses on the requirements of the government procurement process. Mr. Culbertson explained that the request is a grant for one -year for $$7,500 for a full -time position in the PTAC's planning room to help small business to compete and bid for contracts. Mr. Culbertson introduced Ann Fierova, Type A Meeting September 29, 2011 — Page 3 Director of the Small Business Development Center, and Margie Silguero, PTAC , who were available to respond to questions. The following topics pertaining to this item were discussed: the process at PTAC; the number of clients assisted; and the marketing of the program. Mr. Edwards made a motion to approve Item 8, seconded by Dr. Gulley and passed 7. Discussion with possible action on cap ital Improvements and maintenance of the American Bank Center Arena — Jim Salamenta, SMG: A. Motion amending the Corporation's Arena Allocations by reducing the Unreserved Fund balance by $100,000 and increasing the Capital Allocation from $150,000 to $200,000 and the Repair Maintenance Allocation from $150,000 to $200,000. — Mr. Salamenta explained that SMG is requesting to increase the Arena capital needs and Arena repair and maintenance by $50,000 each and earmarking the additional funds to address the needs of Centerplate for food and beverage concessions. B. Motion authorizing the expenditure of $150,895 for capital improvement purchases as listed on the attached supplemental request. — Mr. Salamenta provided a supplemental list of capital improvements for the American Bank Center Arena. The following topic pertaining to this item was discussed: assurances that the projects are capital expenditures. Assistant City Manager Rose stated that staff will meet with SMG and Finance to insure that the projects are capital items. Mr. Tamez made a motion to approve Item 7.a. as presented, seconded by Mr.. Edwards and passed. Mr. Edwards made a motion to approve Item 7.b., authorizing the expenditure of $150,895 for capital improvement purchases as listed on the attached supplemental request, with consideration that if the expenditure is not a capital improvement it be moved to the proper fund, seconded by Mr. Tamez and passed. 8. Discussion, with possible action, on use of the Corporation's affordable housing funds: ..... 1 1 + ♦_'J eia rat �ri�i - a l ■ 1 i 1 3 - y -y -J- - �Y•]ll.iR �li�Jltli.��Y -1 a'Jal.il'aYli: lZlal� l- aa Type A Meeting September 29, 2011 — Page 4 — Director of Neighborhood Services Eddie Ortega provided a brief overview of the Request for Proposal Process; the five proposals received; and the two projects previously awarded. Mr. Ortega explained that this item includes consideration of staff's recommendation to approve a proposal from Nueces County Community Action Agency ( NCCAA) for a revolving mortgage fund program that was tabled at the last meeting. Sam Esquival, NCCAA, explained that the request is for funding to establish a revolving loan fund for permanent financing. Mr. Esquival added that the funds would be leveraged by selling the loans through NeighborWorks America. The following topics pertaining to this item were discussed: the number of families anticipated to assist with the initial funding; NeighborWorks America process; whether NeighborWorks America discounts the loan; concern with recourse; track record with the NeighborWorks program; whether homebuyers are provided additional funds through homebuyer assistance programs; the screening process for eligible homebuyers; when NCCAA will begin the process for qualifying the four homebuyers; and whether NCCAA could work with a lower award amount. Mr. Escobedo made a motion to deny Item 8.a., seconded by Dr. Gulley and passed. President Salazar recommended that NCCAA provide information on other cities that have implemented the NeighborWorks America program; success stories; and the number of years the program has been established. B. Motion terminating the Affordable Housing_Proiect Agreements with Vanguard Hall Consulting Firm, Inc. for Home Buyer Assistance, Coastal Bend Center for Independent Living for the Home of Your Own Program, and Corpus Christi Community Development Corporation for a New Home Construction Project for failure to meet the terms of their expired affordable housing project agreements and returning the following expended funds to the Corporation's Affordable Housing Fund for reallocation: UNEXPENDED AFFORDABLE HOUSING FUNDS Agency Name Awarded Amount Amount Unexpended Vanguard Hail $180,000 $ 80,000 Coastal Bend Center for Independent Living 80,000 60,000 Corpus Christi Community Development Corporation 225,000 1 225,090 212,933 Total $485,000 1 $999 $352,933 Mr. Edwards stated that he was a member of the Corpus Christi Community Development Corporation and would abstain from the discussion and vote on this item. Director of Neighborhood Services Eddie Ortega made a correction to the Corpus Christi Community Development Corporation amount unexpended from $225,000 to $212,933 changing the total amounted unexpended to $352,933. Mr. Ortega explained that the various agencies agreements have Type A Meeting September 29, 2011 -Page 5 expired and action is necessary to recapture the remaining funds for future allocation. Mr. Tamez made a motion to approve Item 8.b., seconded by Mr. Escobedo and passed (Edwards abstained). Mr. Edwards recommended developing a policy to help develop lots or establish a rolling mortgage program. President Salazar stated that the board had requested additional information on the proposals from Nueces County Community Action Agency -- Infrastructure and Like Oak Construction Inc. Sam Esquival, NCCAA, explained that NCCAA is requesting a grant in the amount of $52,000 to offset infrastructure costs for land located at 3404 Tiger Lane. President Salazar directed staff to bring back this item for action. Ronnie Voss, Live Oak Construction, Inc., explained that Live Oak Construction is requesting a grant in the amount of $150,000 for 15 homeowners to be assisted with the purchase. of a home in a 48 -lot subdivision located on Greenwood. President Salazar directed staff to bring back this item for action. President Salazar directed staff to provide a recommendation on the uses for the additional affordable housing funds for consideration. 9. Motion authorizing the expenditure of the Corporation's funds to pay the costs of sending members of the Board of Directors and the members of the City staff, who are required to attend a training seminar regarding the operation of the Corporation under Section 502.101, Texas Local Government Code, to a training seminar tFa sessso n. - President Salazar asked questions regarding compliance of the Open Meetings Act and whether two members of the Board can be at the same location if more than two members choose to attend the seminar. Assistant City Attorney Brian Narvaez said that staff could post this item to comply with the Open Meetings Act. Assistant City Manager Rose stated that the next workshop is in December. City Secretary Chapa stated that the board is exempt from the Texas Open Meetings Laws if the board is attending training sessions and does not need to post. Mr. Edwards made a motion to authorizing the expenditure of the Corporation's funds to pay the costs of sending members of the Board of Directors and the members of the City staff, who are required to attend a training seminar regarding the operation of the Corporation under Section 502.101, Texas Local Government Code, to a training seminar, seconded by Mr. Escobedo and passed. 10. Status re ort on seawall improvement ro'ects- Assistant City Manager Johnny Perales referred to a powerpoint presentation including the seawall system; location map; project summary & estimated costs; project status; and individual project reports. Type A Meeting September 29, 2011 — Page 6 The following topics pertaining to this item were discussed: elevation of the seawall; the existing barge dock structure; the affect raising the barge dock will have on the Art Museum; the difference between the short and long term improvements for the Salt Flats Levy System; Sunfish Island Breakwater; the primary functions of Sunfish improvements; the priority list of projects; and the status of the seawall maintenance fund. G. Public Comment - None. H. Adjournment There being no other business to come before the board, President Salazar adjourned the meeting at 5:58 p.m.