HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 06/18/2012MINUTES
CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A)
REGULAR MEETING
CITY HALL — COUNCIL CHAMBERS
JUNE 18, 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.
1.& 2. Approval of Minutes — Mr. Escobedo made a motion to approve the Regular minutes of
May 21, 2012, seconded by Mr. Edwards and passed. Mr. Edwards made a motion to
amend the Special minutes of June 6, 2012 to reflect that he was not present at the site
visit of the Salt Flats Levy System, seconded by Mr. Escobedo and passed. Mr. Edwards
made a motion to approve the minutes of June 6, 2012 as amended, seconded by Mr.
Escobedo and passed.
3. Financial Report — Director of Financial Services Constance Sanchez presented the
sales tax report updated through May; the cash flow statements; the commitment reports
for the economic development fund; and the inception reports for the arena, seawall and
economic development funds.
A motion was made by Mr. Tamez to approve the financial report, seconded by Mr.
Edwards and passed.
4. Presentation and update from Accion Texas concerning the number of clients
Accion Texas has had over the past two (2) years and their forecast for the
remainder of this fiscal year and the next fiscal year. — Mike Culbertson, Corpus
Christi Regional Economic Development Corporation (EDC), introduced Vicky Garcia
and Ashley Rodriguez from Accion and Type A board representative on the Accion
board, Gabe Guerra. Ms. Garcia provided information on the buydown program; the
amount of the grant; and the number of businesses assisted through the program. In
response to President Salazar, Ms. Garcia commented that Accion does not see a
problem with utilizing the remaining funds.
5. Motion to aaarove a $96.000 arant to the Corpus Christi Reaional Economic
Development Corporation to initiate an Economic Gardening program to help
small businesses in Corpus Christi, TX, to amend the budget to allow for this
funding of $96,000 to the Corpus Christi Regional Economic Development
Corporation from the Unreserved Fund Balance in the No. 1140 Business /Job
Development Fund and to appropriate the $96,000 to the Corpus Christi Regional
Economic Development Corporation from the Unreserved Fund Balance in the No.
1140 Business /Job Development Fund. — Emily Martinez, EDC, stated that the EDC is
requesting $96,000 to initiate an Economic Gardening pilot program to assist small
Type A Meeting
June 18, 2012 — Page 2
business by providing market research and technical assistance to help companies
become more competitive. Ms. Martinez added that the pilot program will assist 20
companies at a cost of $4,000 per company.
Mr. Edwards made a motion to approve Item 5, seconded by Mr. Escobedo and passed.
Discussion of the IRS Audit of the Whataburger Field Baseball Stadium bonds —
Constance Sanchez, Director of Financial Services, provided a brief overview of the
notification letter from the IRS stating that the IRS is auditing the baseball stadium
bonds.
A. Motion authorizing the appointment of M.E. Allison & Co. Inc. as Financial
Advisor, for the Corpus Christi Business and Job Development Corporation Sales
Tax Revenue Refunding Bonds, Series 2012 (Seawall Project);
B. Motion authorizing the appointment of Fulbright & Jaworski, LLP as Bond
Counsel for the Corpus Christi Business and Job Development Corporation Sales
Tax Revenue Refunding Bonds, Series 2012 (Seawall Project);
C. Motion authorizing the appointment of Coastal Securities, Inc. as Senior
Underwriter, and Citigroup Global Markets and Hutchinson, Shockey, Erley & Co.
as Co- Managers for the Corpus Christi Business and Job Development
Corporation Sales Tax Revenue Refunding Bonds, Series 2012 (Seawall Project);
D. Resolution authorizing the issuance of "Corpus Christi Business and Job
Development Corporation Sales Tax Revenue Refunding Bonds, Series 2012
(Seawall Project) "; pledging certain "pledged revenues" of the Corporation,
including "gross sales tax revenues ", to the payment of the principal of and
interest on the bonds and enacting other provisions incident and related to the
issuance, payment, security and delivery of said bonds; prescribing the form,
terms, conditions, and resolving other matters incident and related to the
issuance, sale and delivery of the bonds, including the approval and distribution
of an official statement pertaining thereto; authorizing the execution of a paving
agent /registrar agreement, a purchase contract, and an escrow deposit letter;
complying with the letter of representations with the depository trust company;
delegating the authority to certain members of the Board of Directors and
Corporation staff to execute certain documents relating to the sale of the bonds;
and providing an effective date. — Constance Sanchez, Director of Financial Services,
explained that this item is requesting the approval of the financing team and issuance of
the refunding bonds for the seawall with a 10 year par call.
Mr. Edwards made a motion to approve Items 7A -D as submitted by staff, seconded by
Mr. Tamez and passed.
Motion to approving the Corporation's Fiscal Year 2012 -2013 operating budget for
the Seawall Fund #1120, the Arena Facility Fund #1130 and the Business /Job
Development Fund #1140. — Eddie Houlihan, Assistant Director of Management and
Budget, presented the budgets for the seawall improvement fund, the arena facility fund,
the business & job development fund and the list of small business projects.
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June 18, 2012 — Page 3
9. Motion to aaarove the Coraoration's Fiscal Year 2012 -2013 oaeratina budaet for
the Seawall Debt and Service Fund #1121, the Arena Facility Debt and Service
Fund $1131 and the Business /Job Development Debt and Service Fund #1141. —
Mr. Houlihan presented the debt service fund budgets for the seawall, arena, and
economic development funds.
Mr. Tamez made a motion to approve Items 8 and 9, seconded by Mr. Escobedo and
passed.
10. Discussion of storm surge analysis and wave run -up action along the Corpus
Christi Flood Protection System as it relates to Federal Emergency Management
Agency's (FEMA's) Flood Insurance Rate Maps (FIRMS); also discuss the potential
cost of such analysis and budgeting for such expense. — Dan Biles, Interim Director
of Engineering Services, explained that this item is a discussion on the consideration of
hiring a local consultant to provide an assessment of the FEMA data and determine
whether the City agrees with the data and modeling of the seawall.
11. Discussion of whether or not a Board member can serve on the Evaluation Team
for the American Bank Center RFP review after that Board member's term expires.
Charlotte Yochem, Assistant City Attorney, stated that the position on the evaluation
team is specifically intended to be a Type A board member. The board recommended
that Mr. Tamez serve on the evaluation team.
12. Discussion of use of Type A funds for other Schlitterbahn waterparks in cities
other than Corpus Christi. — Ms. Yochem provided information on other Schlitterbahn
projects that are assisted with similar incentives or tax incentives in Galveston, Cedar
Park, South Padre Island, and Kansas City.
13. Discussion and Dossible action of the marketina and outreach of Tvae A
programs. — President Salazar stated that he was concerned about the outreach and
marketing of the programs to the community. In response to President Salazar, Director
of Neighborhood Services Eddie Ortega reported that the affordable housing programs
are doing well and that Neighborhood Services doesn't feel the need to expend
additional dollars for marketing. Mike Culbertson, EDC, said the small business
programs are marketing their programs and there is not a need for additional outreach.
President Salazar requested a future discussion on any programs failing to expend their
funds.
G. Public Comment - None.
H. Identify Future Agenda Items — The following items were requested as future agenda
items: outreach of Type A programs; action on FEMA analysis, confirmation of Mr.
Tamez to the American Bank Center evaluation team; and how the funds can be spent
after the tax expires in 2018.
Adjournment There being no other business to come before the board, President
Salazar adjourned the meeting at 4:38 p.m.