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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 07/21/2014 1201 Leopard Street Corpus Christi Corpus Christi,TX 78401 cctexas.com Meeting Minutes • Corpus Christi Business and Job Development Corporation Monday,July 21,2014 3:00 PM City Council Chambers A. President Robert Tamez to call the meeting to order. President Tamez called the meeting to order. B. Call Roll President Tamez verified that a quorum of the Board was present to conduct the meeting. Present: 5- President Robert Tamez, Secretary Debbie Lindsey-Opel,Vice Chair R. Bryan Gulley, Board Member Bart Braselton and Board Member Gabriel Guerra C. MINUTES 1. Approval of Regular Meeting of May 19, 2014. President Tamez called for approval of the minutes. Mr.Guerra made a motion to amend item number 5 in the minutes to include that an economic impact study has been attached to support the$100,000 matching grant for the artificial reef,seconded by Ms.Opel and passed. Ms.Opel made a motion to approve the minutes as amended,seconded by Mr.Braselton and passed. D. CLOSED SESSION ITEMS: (ITEM 2) 2. Closed session pursuant to Section 551.087 of the Texas Government Code to discuss confidential commercial or financial information pertaining to a business prospect that the Corporation seeks to have locate, stay, or expand within the City limits and with which the Corporation is conducting economic development negotiations and to deliberate possible offers of financial or other incentives to said business prospect with no discussion or action in open session. This E-Session Item was discussed in executive session. E. AGENDA ITEMS: (ITEMS 3 -10) 3. Motion to accept Financial Report. President Tamez referred to Item 3. Director of Financial Services Constance Sanchez presented the sales tax report;cash flow statements;commitment Corpus Christi Page 1 Printed on 8/11/2014 INDEXED Corpus Christi Business and Job Meeting Minutes July 21,2014 Development Corporation reports for the economic development fund;and pro forma report for the economic development fund. Ms.Opel asked what interest rate the monies are earning. Ms.Sanchez stated the monies are currently earning 23 basis points. Ms.Opel also requested an efficiency measure for each project recommended for approval by the Board that measures the time from consideration by the Board through final action by the City Council. Dr.Gulley made a motion to approve the financial report,seconded by Mr.Guerra and passed. Enactment No: 4. Motion to Approve Fiscal Year 2014-2015 Operating Budget Motion to approve the Corporation's Fiscal Year 2014-2015 operating budget for the Seawall Fund#1120, the Seawall Debt Service Fund #1121, the Arena Facility Fund#1130, the Arena Facility Debt Service Fund#1131, the Business/Job Development Fund#1140, and the Business/Job Development Debt Service Fund#1141. President Tamez referred to Item 4. Assistant Director of Management and Budget Eddie Houlihan presented the Corporation's Fiscal Year 2014-2015 operating budget. Items discussed were: the change in the Corporation's fiscal year to begin October 1st of each year;the FY2014-2015 budget reflects a 6%increase in sales tax revenue over FY 2013-2014; transfers of operating funds to pay debt service;seawall revenue and debt service; transfers to the arena fund for insurance,management fees and MIS-related costs;transfer of funds for visitors'facilities;encumberances for major business incentives; reserve for commitments of 2% related to bond covenants;and administrative costs in each fund. Dr.Gully made a motion to provide$15,000 from each fund toward staff administrative costs,amending the FY 2014-2015 operating budget,seconded by Ms.Opel and passed.Ms.Opel made a motion to accept the budget as amended and revisit the budget in August 2014,seconded by Mr. Braselton and passed. Enactment No 5. Update on Solid Rock Commercial Properties, Ltd.with Possible Action President Tamez referred to Item 5. Wes Pierson Assistant City Manager stated that the purpose of this item is to provide the Board with an update on the extension of Junior Beck Road and the agreement with Solid Rock Commercial Properties,Ltd. Mr.Pierson played Mayor Nelda Martinez's comments regarding this item during the July 8th city council meeting regarding the recommendation from the Board regarding this item and the precedent it sets with respect to a level playing field for businesses. Mayor Martinez indicated staff will discuss two options with Solid Rock Commercial Properties,Ltd.to find a solution to make this project happen. Board members discussed the following topics: what action council can take with respect to recommendations from the Board;and that staff is researching the creation of an adminstrative assessment on surrounding property owners or a public improvement district to fund the improvements. Mr.Pierson stated it is staff's goal to have the road completed within a year of execution of the agreement that is eventually finalized. No action was taken. Corpus Christi Page 2 Printed on 8/11/2014 Corpus Christi Business and Job Meeting Minutes July 21,2014 Development Corporation 6. Post-Economic Development Sales Tax Future Uses Workshop Report Discussion about the March 17, 2014 economic development one-eighth cent sales tax post-workshop report and possible action regarding its suggested future uses of the tax and adoption of guidelines for these uses. President Tamez referred to Item 6. Ms.Opel indicated the purpose of this item is to discuss future uses of the one-eighth cent sales tax and adoption of guidelines for these uses. Ms.Opel discussed the following principles: leveraging funding to stimulate private investment;coordinating planning with city council;targeting certain geographic areas;developing a decision matrix for public infrastructure;and assessing social and economic program impacts. Mr.Guerra stated that the Board needs to develop a strategic plan,with assistance from city staff. Ms.Opel made a motion to direct staff to schedule a workshop with city council to discuss strategic planning for the economic development Type A funds and to shed some light on building a strategic plan for the next few years,seconded by Mr.Guerra and approved. 7. De-Obligate Funds From Texas A&M University -Corpus Christi FAA Center Project Motion to de-obligate funds in the amount of$13,250 from the grant to Texas A&M University-Corpus Christi to support an FAA Center project and return the funds to the unreserved fund balance of the No. 1140 Business/Job Development Fund. President Tamez referred to Item 7. Mike Culbertson,Corpus Christi Regional Economic Development Corporation,stated that the purpose of this item is to de-obligate funds from the Grant to Texas A&M University-Corpus Christi. Dr. Brian Gulley made a motion to de-obligate funds in the amount of$13,250 from the Grant to Texas A&M University-Corpus Christi to support an FAA Center project and return the funds to the unreserved fund balance of the No.1140 Business/Job Development Fund,seconded by Mr.Guerra and passed. Enactment No: 8. Appoint Representative to Accion Texas Board of Directors Motion to appoint Kathryn Snapka to the Accion Texas Board of Directors. President Tamez referred to Item 8. Mike Culbertson,Corpus Christi Economic Development Corporation,stated the purpose of this item is to appoint Kathryn Snapka to the Accion Texas'Board of Directors. Janie Barrera,President/CEO of Accion Texas and Kathryn Snapka spoke regarding the mission of Accion. Mr.Tamez made a motion to appoint Kathryn Snapka to the Accion Texas Board of Directors,seconded by Mr.Guerra and passed. Enactment No: 9. Motion to Amend Program Guidelines for the Builder's New Corpus Christi Page 3 Printed on 8/11/2014 Corpus Christi Business and Job Meeting Minutes July 21,2014 Development Corporation Construction and Existing Inventory Affordable Housing Programs Motion to delete the following language from Guidelines for the Program and Criteria for Application, Section II. General Program Description; "or any Affordable Housing program administered by the City of Corpus Christi". President Tamez referred to Item 9. Eddie Ortega,Director of Housing and Community Development,stated that the purpose of this item is to modify the language in the Guidelines for the Program and Criteria for Application that will allow qualified homebuyers to participate in the City's Homebuyer Assistance Program when utilizing the Type A funded Affordable Housing Program. Mr. Guerra made a motion to delete the following language from Guidelines for the Program and Criteria for Application,Section II.General Program Description; "or any Affordable Housing program administered by the City of Corpus Christi",seconded by Dr.Gulley and passed. Enactment No: 10. Fiscal Year 2015 Seawall Capital Improvement Program Budget Motion to approve the Fiscal Year 2015 Seawall Capital Improvement Program Budget and recommend City Council approval and appropriation of funds. President Tamez referred to Item 10. Natasha Fudge,Acting Director of Capital Programs,stated that the purpose of this item is to approve the Seawall Capital Improvement Program. Directors discussed funding and funding matches for sand re-nourishments at North and Magee Beaches. Ms.Opel made a motion to approve the Fiscal Year 2015 Seawall Capital Improvement Program Budget and recommend City Council approval and appropriation of funds,seconded by Mr.Guerra and approved. Enactment No: F. PRESENTATION ITEMS: (ITEMS 11 - 13) 11. Update -Capital Programs Monthly Project Report President Tamez referred to Item 11. Natasha Fudge,Acting Director of Capital Programs,discussed the current status of the Salt Flats Levee Project; Barge Dock Project;and the screening wall that is part of the American Bank Center Loading Dock Project. 12. Update - Housing and Community Development Report President Tamez referred to Item 12. Eddie Ortega,Director of Housing and Community Development,presented the May and June Housing and Community Development Activity Reports. 13. Update -Type A Projects Corpus Christi Page 4 Printed on 8/11/2014 Corpus Christi Business and Job Meeting Minutes July 21,2014 Development Corporation President Tamez referred to Item 13. Mike Culbertson,Corpus Christi Economic Development Corporation,gave an update of small business programs and large business incentives regarding Accion and Del Mar Aviation. David Arrequin,Department Chair of the Business Professional Technology Education Division,provided an update on the aviation program. Ms.Jamie Barrera,Accion Texas,provided an update regarding Accion's loan program funded by the City. Ms.Barrera discussed the buy-down program. Laura Estrada,Accion Texas,provided examples of clients to which Accion Texas has provided working capital to start small businesses. Ms.Barrera also discussed a possible name change for Accion Texas and reported that,of the funds provided by the Corporation,Accion has about$100,000 remaining. G. EXECUTIVE DIRECTOR'S COMMENTS: Deputy City Manager Margie Rose stated that this is President Tamez's last meeting and she thanked him for his service on the Board. Dr.Gulley also thanked President Tamez for his work on the Board. President Tamez introduced his replacement on the Board,Mr.Chris Hamilton. H. PUBLIC COMMENT Michael Culbertson,Corpus Christi Economic Development Corporation, thanked President Tamez for his service on the Board. PLEASE BE ADVISED THAT THE OPEN MEETINGS ACT PROHIBITS THE CORPORATION FROM RESPONDING AND DISCUSSING YOUR COMMENTS AT LENGTH.THE LAW ONLY AUTHORIZES THEM TO DO THE FOLLOWING: 1. MAKE A STATEMENT OF FACTUAL INFORMATION. 2. RECITE AN EXISTING POLICY IN RESPONSE TO THE INQUIRY. 3.ADVISE THE CITIZEN THAT THIS SUBJECT WILL BE PLACED ON AN AGENDA AT A LATER DATE. I. IDENTIFY FUTURE AGENDA ITEMS President Tamez referred to identifying future agenda items.The following items were requested to be placed on a future agenda:budget workshop and the Corporation's strategic plan. J. ADJOURNMENT The meeting was adjourned at 5:38 p.m. Corpus Christi Page 5 Printed on 8/11/2014