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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 08/11/2014 Corpus Christi 1201 Leopard Street /4/ti\i‘ Corpus Christi,TX 78401 cctexas.corn Meeting Minutes Corpus Christi Business and Job Development Corporation Monday,August 11,2014 3:00 PM City Council Chambers A. Vice President R. Bryan Gulley to call the meeting to order. Vice President Gulley called the meeting to order. B. Call Roll Vice President Gulley verified that a quorum of the Board was present to conduct the meeting. Present: 5- Bart Braselton, Gabriel Guerra, R. Bryan Gulley, Chris Hamilton and Debbie Lindsey-Opel E. AGENDA ITEMS: (ITEM 3) 3. Corporation Officer Election for 2014-15 Term Election of Corporation Officers for August 1, 2014 through July 31, 2015. Vice President Gulley deviated from the agenda and referred to Item 3.Mr. Guerra made a motion to nominate Bart Braselton as President,seconded by Dr.Gulley and passed unanimously.Ms.Opel made a motion to nominate Bryan Gulley as Vice President,seconded by Mr.Braselton and passed unanimously.Mr.Guerra made a motion to nominate Debbie Lindsey-Opel as Secretary,seconded by Mr.Hamilton and passed unanimously. C. MINUTES 1. Approval of Regular Meeting of July 21, 2014. President Braselton called for approval of the minutes.Mr.Guerra made a motion to approve the minutes,seconded by Dr.Gulley and passed unanimously. D. CLOSED SESSION ITEMS: President Braselton referred to the day's executive session.The Corporation went into executive session. 2. Closed session pursuant to Section 551.087 of the Texas Government Code to discuss confidential commercial or financial information pertaining to Corpus Christi Cold Storage, LLC that the Corporation Corpus Christi Page 1 Printed on 9/10/2014 INDEXED Corpus Christi Business and Job Meeting Minutes August 11,2014 Development 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 possible discussion and action in open session. President Braselton referred to Item 2. Emily Martinez with the Corpus Christi Regional Economic Development Corporation stated that the purpose of this item is to consider a request from Corpus Christi Cold Storage,LLC to approve an incentive agreement in the amount of$265,000 over a five(5)year period for the expansion of the only cold storage facility available in the Corpus Christi and regional area.This incentive agreement includes the retention of six(6) jobs and the addition of five(5)jobs over the five-year period and a capital investment of$1.5 million.Butch Pool,Partner with Corpus Christi Cold Storage was available to respond to questions.Board members asked questions regarding the types of clients that use the storage facility;job retention and creation; investment in the project;and timeframe to enhance the facility. Ms.Opel made a motion to approve an award of$265,000 over five years between the Type A Corporation and Corpus Christi Cold Storage,LLC for the retention and creation of jobs in the community and appropriating$265,000 from the fund balance in Fund 1140,seconded by Dr.Gulley and passed. Enactment No: F. PRESENTATION ITEMS: (ITEM 9) 9. Fiscal Year 2014-2015 Operating Budgets President Braselton deviated from the agenda and referred to Item 9.Assistant Director of Management and Budget Eddie Houlihan provided a detailed budget on the transfer from the Arena Fund to the Visitors Fund and discussed the following changes to the FY2014-2015 Operating Budgets including the addition of$6.5 million in Fund 1120 and the addition of$500 in Fund 1140 for small business projects.Board members spoke regarding the following topics: the MIS allocation;the seawall transfer to debt service;the negative amount in the unreserved fund balance for the business and job development fund;and the budget for major business incentives. E. AGENDA ITEMS: (ITEMS 4-8) 4. Motion to accept Financial Report. President Braselton referred to Item 4.Director of Financial Services Constance Sanchez presented the sales tax report;the cash flow statements; the commitment reports for the economic development fund;and the pro forma report for the economic development fund.Board members spoke regarding the following topics:a breakdown of the baseball stadium insurance;clarification of the workers compensation;and the affordable housing balance that is unpaid but committed.Mr.Guerra made a motion to approve the financial report,seconded by Ms.Opel and passed. Corpus Christi Page 2 Printed on 9/10/2014 Corpus Christi Business and Job Meeting Minutes August 11,2014 Development Corporation Enactment No: 5. Reserving Loan Repayments for Streets Review of the legal status of reserving loan repayments for continued funding of streets. President Braselton referred to Item 5.Ms.Opel stated that she requested an explanation from the Legal Department to determine if it is feasible for the board to develop a lending mechanism for street projects similar to the Solid Rock agreement.Ms.Opel stated that based on the memo presented by the Legal Department,the board has the ability to create a loan funding mechanism to fund streets and evaluate the project based on a policy criteria established by the Board. Enactment No: 6. Amending Articles of Incorporation Motion to recommend to City Council that the Corporation's Articles of Incorporation be amended to update purposes of Corporation and update registered agent for service. President Braselton referred to Item 6.Senior Assistant City Attorney Julian Grant stated that the purpose of this item is to amend the Articles of Incorporation and update the registered agent for service.Mr.Grant stated that it was recently discovered that the Articles of Incorporation had not been updated to include the voter-approved purposes in the 2002 election that authorized the one-eighth cent economic development sales tax.Mr.Grant provided an overview of the proposed changes. Mr.Hamilton made a motion that the Board of Directors of the Corporation file with the City Council a written application requesting that the City Council approve these amendments to the certificate of formation,seconded by Ms. Opel and passed(Guerra was absent). Enactment No: 7. Discussion of Board-Applicant Contact Discussion of Board members and contacts with applicants outside a Board meeting. President Braselton referred to Item 7.Senior Assistant City Attorney Julian Grant stated that the purpose of this item is to discuss board members and contacts with applicants outside a board meeting.Mr.Grant briefed the board on the open meeting ramifications of meeting with contacts outside the scope of regularly posted meetings and advised against two(2)members of a five(5) member board meeting with an applicant outside a regularly posted meeting. Mr.Grant also spoke regarding the ethics policies and conflict of interest provisions.Board members asked questions regarding the following topics: the number of members allowed to meet with staff; how to handle touring facilities;what is allowed to be discussed outside of a regularly scheduled meeting;and the code of ethics. Corpus Christi Page 3 Printed on 9/10/2014 Corpus Christi Business and Job Meeting Minutes August 11,2014 Development Corporation 8. Creation of a Strategic Plan Subcommittee Discussion of the creation of a subcommittee for the development of a Type A Strategic Plan, with possible action. President Braselton referred to Item 8. President Braselton stated that the purpose of this item is to discuss the development of a strategic plan to work with the City Council.President Braselton stated that the Board voted to have a workshop with the City Council at the last meeting.Ms.Opel said the intent of the board's motion was to meet with the City Council during a joint workshop session to discuss how to use the resources in the economic development fund and share ideas on how to build a strategic plan and set an outline for parameters.Mr.Hamilton suggested creating a subcommittee with two members of the board,two members from the Economic Development Corporation(EDC)and two staff members.Dr.Gulley recommended continuing with the joint workshop tobe all inclusive of the City Council,the Type A Board,the EDC and open to the public.Assistant City Manager Margie Rose said she has met with the City Manager and the goal is to come back during the September meeting with dates that can be mutually agreed upon between the board and the City Council.President Braselton stated that the workshop should be inclusive of the Board,Council,EDC and City staff. F. PRESENTATION ITEMS: (ITEMS 10 - 13) 10. Update -Capital Programs Monthly Project Report President Braselton referred to Item 10.Acting Director of Capital Programs Natasha Fudge presented the Capital Programs monthly project updates. 11. Update -Housing and Community Development Monthly Report President Braselton referred to Item 11.Director of Housing and Community Development Eddie Ortega presented the Housing and Community Development monthly report for July 2014.Board members asked questions regarding the reimbursement program;staff expenses for administering the affordable housing progrmas;and model block funding,specifically for Habitat for Humanity. Assistant City Manager Rose stated that staff will prepare a presentation to discuss the affordable housing programs for the September meeting. 12. Update -Type A Projects President Braselton referred to Item 12.Mike Culbertson with the Corpus Christi Regional Economic Development Corporation presented the monthly update on the small business programs and major business incentives.Mr. Culbertson also provided information on the M&G Resins USA,LLC project including the project timetable;key milestones;engineering and procurement; construction timetable;and permitting status. 13. Update - Proposed Use for Seawall Maintenance Funds Corpus Christi Page 4 Printed on 9/10/2014 Corpus Christi Business and Job Meeting Minutes August 11,2014 Development Corporation President Braselton referred to Item 13.Acting Director of Capital Programs Natasha Fudge stated that the purpose of this item is to propose utilizing unspent seawall maintenance funds to enhance the seawall by addressing the need for Mirador maintenance.Ms.Fudge presented pictures and details on the conditions of the Miradors and needed repairs.Board members asked questions regarding the estimated costs;whether the Selena statute is included in the repairs;whether the seawall funds can be spent for this purpose;and long term maintenance solutions. G. EXECUTIVE DIRECTOR COMMENTS: None. H. PUBLIC COMMENT None. I. IDENTIFY FUTURE AGENDA ITEMS President Braselton referred to identifying future agenda items.The following items were requested to be placed on a future agenda:a memo from Legal on the future wording of items as it relates to retention versus creation of jobs; and an update on the branding plan. J. ADJOURNMENT The meeting was adjourned at 5:38 p.m. Corpus Christi Page 5 Printed on 9/10/2014