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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 02/27/2012MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE. A) REGULAR MEETING CITY HALL — COUNCIL CHAMBERS FEBRUARY 27, 2012 — 3:00 P.M. PRESENT: Members Eloy Salazar, President Robert Tamez, Vice President Foster Edwards, Secretary Adolfo (Butch) Escobedo R. Bryan Gulley Staff Margie Rose, Assistant City Manager Charlotte Yochem, Assistant City Attorney Armando Chapa, Assistant 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. Approval of Minutes - Mr. Tamez made a motion to approve the Regular minutes of January 16, 2012, seconded by Mr. Edwards and passed. 2. Closed session under §551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to Project Sail that the Board has received from, or to deliberate the offer of a financial or other 3. Financial Report — Director of Financial Services Constance Sanchez presented the sales tax report updated through January; the cash flow statements; and the commitment reports for the economic development fund. The following topics pertaining to this item were discussed: the balance unpaid but committed for APAC in the amount of $160,000; and affordable housing funds to be awarded. A motion was made by Mr. Tamez to approve the financial report, seconded by Mr. Escobedo and passed. 4. Motion authorizing the Board to de- obligate the remaining $160,000 originally awarded to and budgeted for APAC Customer Services following approval by the Corporation January 16, 2012 to terminate the agreement with APAC. — President Salazar opened discussion on Item 4. Mr. Tamez made a motion authorizing the Board to de- obligate the remaining $160,000 originally awarded to and budgeted for APAC Customer Services, following approval by the Corporation January 16, 2012 to terminate the agreement with APAC, seconded by Mr. Edwards_and passed. INDEXED President Salazar announced the closed session. The Corporation went into closed session. The Corporation returned from closed session. President Salazar announced that no action would be taken on this item Type A Meeting February 27, 2012 - Page 2 5. Motion to amend the Corporation's grant to the Oneta Company, originally approved by the Corporation October 18 2010 to increase the grant from the original amount of $295,260 to $300,000. - Mike Culbertson, Corpus Christi Regional Economic Development Corporation (EDC), explained that Oneta Company has changed the location of their expansion to expand on the current site and staff is recommending to increase the grant $4,740 based on the revised economic impact model. Mr. Edwards made a motion to amend the Corporation's grant to the Oneta Company, originally approved by the Corporation October 18, 2010, to increase the grant from the original amount of $295,260 to $300,000, seconded by Mr. Tamez and passed. 6. Discussion of requests by the .South.. Texas Institute for the Arts for consideration of funding through the Corporation's Seawall Improvement Fund (Fund Number 1120) of the Corpus Christi Business and Job Development Corporation for a bollard and chain replacement twollect on the barge dock adiacent to South ,Texas Institute for the Arts. -- Assistant City Manager Rudy Garza presented photos of the current condition of the bollards at the South Texas Institute for the Arts. The following topics pertaining to this item were discussed: if the bollard and chain replacement project was already included as part of the Barge Dock project; concern for duplication of work and costs; use of concrete barriers; and engaging the South Texas Institute for the Arts in discussions. President Salazar requested that staff present options for consideration at a future meeting. 7. Annual Compliance Report for Susser Holdings Corporation_ — Mike Culbertson, EDC, reported that Susser Holdings Corporation was in full compliance of the agreement. 7.1. Discussion and possible action regarding SMG's request for $15.000 from the Arena Marketing Co- Promotion Fund to offset Arena rental expenses to hold the November 2 -3, 2012 Texas Youth Football and Cheer Association's annual State Cheer Competition at the Arena. — Donna Cannatella, SMG, stated that SMG is requesting $15,000 to offset arena rental expenses for the Texas Youth Football and Cheer Association's annual Cheer Competition. Ms. Cannatella provided information on the estimated attendance and economic impact. The following topics pertaining to this item were discussed: Texas Youth Football and Cheer Association's consideration to book the arena through 2021 and the balance of the arena marketing fund. Mr. Tamez made a motion to approve SMG's request for $15,000 from the Arena Marketing Co- Promotion Fund to offset Arena rental expenses to hold the November 2 -3, 2012 Texas Youth Football and Cheer Association's annual State Cheer Competition at the Arena, seconded by Mr. Escobedo and passed. Type A Meeting February 27, 2012 - Page 3 7.2. Discussion and possible action regarding SMG's request for $95,286 from the Arena Marketing Co _Promotion Fund to underwrite /subsidize Arena rental expenses for potential concert promoters as an 'incentive for such promoters to host major concerts at the Arena. — Assistant City Manager Rudy Garza reported that SMG is requesting the balance of the arena marketing co- promotion fund to entice major concerts at the American Bank Center, not to exceed $30,000 per concert. The following topics pertaining to this item were discussed: the discrepancy between SMG and staff's fund balance figures; the actual balance of the arena marketing fund; approval of the use of the funds by the City Manager; consideration to table the discussion until the actual amount of the fund is determined; and whether there was a potential event SMG is immediately considering. Mr. Escobedo made a motion authorizing the use of Arena Marketing Co- Promotion Funds in the amount of $25,000 to underwrite /subsidize Arena rental expenses for potential concert promoters as an incentive for such promoters to host major concerts at the Arena; subject to City Manager approval and availability of funds, seconded by Mr. Tamez and passed. 8. Update on Economic Gardening_ Program /Project - Roland Mower, EDC, provided a powerpoint presentation on the Economic Gardening project including an explanation of economic gardening and a background of the program; the reason for using economic gardening; the approach to implementing the program; and cost. The following topics pertaining to this item were discussed: the difference between the economic gardening program and the business incubator program; employee ranges for the program; where the program has been implemented in Texas; the Edward Lowe Foundation; and the staff training process. 9. Update on Arena Performance Audit — Assistant City Manager Rudy Garza provided an overview of the arena performance audit for the American Bank Center including the audit elements and priorities; operation and benchmark analysis; the finding of the audit; the comparison of utilization and financials; best practices; and the summary of key findings. The following topics pertaining to this item were discussed: operating revenues; the subsidy for the Convention Center and the Selena Auditorium; the working relationship between the Convention and Visitors Bureau (CVB) and SMG; board representation on the CVB board; the 20% rental rate discount cap for convention center; and the use of the annual City's Convention /Events Fund. 10. Staff /Board overview of Sales Tax Workshop held in December in Austin, TX — Board members Escobedo, Gulley and Tamez provided an overview of the discussions on allowable uses of the funds for tourism, sporting events and building roads that would stimulate economic activity. President Salazar directed staff to verify the use of the funds for these items. G. Public Comment - None. Type A Meeting February 27, 2012 — Page 4 H. Identify Future Agenda Items - The Board directed staff to place the following items on a future agenda: an update on Affordable Housing; the use of Type A funds for tourism; and the balance of the marketing fund, evaluation of the fund and possible action. Adjournment There being no other business to come before the board, President Salazar adjourned the meeting at 5:02 p.m.