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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 09/17/2012MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) REGULAR MEETING CITY HALL — COUNCIL CHAMBERS SEPTEMBER 17, 2012 — 3:00 P.M. PRESENT: Members Robert Tamez, President Debbie Lindsey -Opel, Vice President Bart Braselton Adolfo (Butch) Escobedo ABSENT R. Bryan Gulley, Secretary Staff Margie Rose, Assistant City Manager Lisa Aguilar, Assistant City Attorney Armando Chapa, Assistant Secretary Constance Sanchez, Finance A. Called meeting to order — President Tamez called the meeting to order at 3:04 p.m. B. Roll Call — President Tamez verified that the necessary quorum of the Board were present to conduct the meeting. Approval of Minutes —Ms. Opel made a motion to approve the Regular meeting minutes of August 20, 2012 seconded by Mr. Escobedo and passed (Gulley absent). President Tamez announced the following closed sessions (items 2 -3): 2. Closed Session under 4551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to HEB Bakery that the Board has received from or to deliberate the offer of a financial or other incentive to HEB Bakery, a business prospect that the Board seeks to have stay or expand in the City of Corpus Christi and with which the Corporation „is „conducting economic development negotiations, with possible discussion and action in open session. 3. Closed Session under §551.087 of the Texas Government Code to discuss_ or deliberate renarding commercial or financial information Dertaining to M &G Grou that the Board has received from, or to deliberate the offer of a financial or other incentive to M &G Group, a business prospect that the Board seeks to have stay or expand in the Citv of Cor us Christi and with which the Car oration is conductin economic development negotiations, with possible discussion and action in open session. The Corporation went into closed session. The Corporation returned from closed session. President Tamez opened discussion on Item 3. Roland Mower, Corpus Christi Regional Economic Development Corporation (EDC), provided a brief overview of the request from M &G Group including the purchase of property north of the Ship Channel; terms of the grant request; job retention and creation; projected payroll; proposed capital investment; infrastructure improvements; construction period; and the return on investment. Mauro Fenoglio, M &G, spoke regarding the PET process and thanked the board for their consideration. Ms. Opel made the following motion regarding Item 3, seconded by Mr. Braselton: 3. Motion to authorize the execution of an agreement for a grant of $3,000,000 to M &G Group for the creation of 220 new jobs, $751,000,000 in investment, and an annualized salary equal to or greater than $11,700,000, to be paid in full upon proof of creation of INDEXED Type A Meeting September 17, 2012 - Page 2 220 new jobs, $751,000,000 in investment, and an annualized salary equal to or greater than $11,700,000 and approving a request from the Board to Nueces County Commissioners Court to allow this grant to M &G since M &G's location is not within the Corpus Christi city limits and is in Nueces County, if required by Section 501.159 of the Texas Local Government Code, to amend the budget to allow for this funding of $3,000,000 to M &G Group from the unreserved fund balance in the No. 1140 Business /Job Development Fund and to appropriate the $3,000,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund. The foregoing motion was passed and approved with the following vote: Tamez, Braselton, Escobedo, and Opel, voting "Aye "; Gulley was absent. President Tamez opened discussion on Item 2. Roland Mower, EDC, provided a brief overview of the original grant award to HEB Bakery and the bid amounts received on the proposal. Mr. Mower stated that HEB is requesting to amend the previous grant to $850,000. Mr. Braselton made the following motion regarding Item 2, seconded by Ms. Opel: 2. Motion to authorize the execution of an agreement amending the previous grant of $750,000 to HEB Bakery for concrete construction /reconstruction of McCampbell Road, for the retention of 388 new jobs and to increase production at their plant on McBride Lane over a five year period approved on May 21,2012 to read as follows: "Motion to approve a grant of up to $850,000 to HEB Bakery for concrete construction/reconstruction of McCampbell Road, in compliance with City standards for the retention of up to 388 jobs (12,335,296 in annual payroll, subject to proportionately prorated incentive if amount is less and to increase production at their plant on McBride Lane to be paid out over a five year period; annually, HEB Bakery will be required to submit information on capital investment by HEB Bakery in their McBride Lane facilities, number of jobs retained, and annual payroll for the term of this agreement, to amend the budget to allow for this funding of $850,000 to HEB Bakery from the unreserved fund balance in the No. 1140 Business /Job Development Fund and to appropriate the $850,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund." The foregoing motion was passed and approved with the following vote: Tamez, Braselton, Escobedo, and Opel, voting "Aye "; Gulley was absent. 4. Financial Report - Director of Financial Services Constance Sanchez presented the sales tax report updated through August; the cash flow statements; the commitment reports for the economic development fund; and inception reports. A motion was made by Ms. Opel to approve the financial report, seconded by Mr. Braselton and passed (Gulley absent). 5. Discussion and consideration of request for the Board_ to renew their annual support of the Ice Rays voucher - distribution program in the amount of $100,000. - Kim Harris, Director of Finance for SMG, explained that the IceRays are requesting to renew funding for the IceRays Voucher Program in the amount of $100,000 and provided a brief history of the voucher program. Pat Dunn, IceRays, spoke regarding the success Type A Meeting September 17, 2012 — Page 3 of the program and the IceRays partnership with the community. There was a general consensus of the board to place this item for action at the October meeting. 6. Presentation of compliance reports for Del Mar College Aviation Technician Training Facility, Service Corps of Retired Executives (SCORE) Small Business Development, and Accion Loan Buy Down programs — Mike Culbertson, EDC, presented the compliance reports for Del Mar College Aviation Technician Training Facility, SCORE, and Accion and reported that all the programs were in compliance. 7. Presentation about "Ideas Week Corpus Christi" — Beth Terry and Lori Garza with the Young Business Professional (YBP) provided information on the "Ideas Week Corpus Christi" activities occurring on October 1 -7, 2012 including the mission of the YBP; a calendar of events; Fitness in the Park; Innovation, Education, and Economic Development Forum; ACTivate Health and Activities Fair; and the Superhero Dinner. G. Public Comment - None. H. Identify Future Agenda Items — Assistant City Manager Rose reported that the City received an email from the Ryan Group that they were formally withdrawing their request for $750,000. Mr. Escobedo requested the following agenda items for the next scheduled Type A Board meeting that will include all five (5) members: a copy of all existing agreements between the Hooks and the Type A Board; copies of any audits pertaining to those agreements including maintenance performed, dates and actual expenses paid by the Hooks organization and if there are no existing audits, a request for audit; that staff provide information regarding who has the authority to authorize the city staff to negotiate contracts with the Hooks and whether staff is required to notify the City Council or Type A board when these negotiations are initiated; a complete list of all investors in the Corpus Christi Baseball Club, LP (CCBC) in order to avoid any possible conflicts of interest by Type A board members and members of the CCBC; and a legal opinion if the Type A Board is not allowed the requested information. Ms. Opel requested information on the Type A Board's role on agreements; the contract process; expectations; and fiduciary responsibilities. Adjournment There being no other business to come before the board, President Tamez adjourned the meeting at 5:21 p.m.