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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 01/19/2015 Cor us Christi 1201 Leopard Street t4'" 1 1 p Corpus Christi,Tx 78401 y.. cctexas.corn Tj44e•�� ' Meeting Minutes Corpus Christi Business and Job Development Corporation Monday,January 19,2015 3:00 PM City Council Chambers A. President Bart Braselton to call the meeting to order. President Braselton called the meeting to order. B. Call Roll President Braselton 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 C. MINUTES 1. Approval of Regular Meeting of December 15, 2014. President Braselton referred to approval of the minutes.Mr.Guerra made a motion to approve the minutes,seconded by Dr.Gulley and passed unanimously. D. CLOSED SESSION ITEMS: (ITEMS 2-3) President Braselton referred to the days executive sessions.The Board 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 Govind Development, LLC 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 discussion and possible action in open session. President Braselton referred to Item 2.Emily Martinez,Corpus Christi Regional Economic Development Corporation(CCREDC),stated that the purpose of this item is to recommend approval of a request for Type A funds to Govind Development LLC(Project Arizona)in the amount of$915,000 over a five-year period for the expansion of an engineering services company,with a capital investment of$1 million,the retention of 206 full-time jobs and the addition of 44 new jobs at an average annual salary of$87,200.Ms.Martinez stated that the recommendation from the CCREDC is to approve$305,000 in year 1 and Corpus Christi Page 1 Printed on 2/11/2015 INDEXED Corpus Christi Business and Job Meeting Minutes January 19,2015 Development Corporation $152,500 in years 2,3,4 and 5 for a total amount of$915,000. Dr.Gulley made a motion to approve a grant in the amount of$915,000 to Govind Development,LLC,with one-third of the amount the first year and the remaining amount evenly dispersed over the next four years for the creation of 44 jobs and the retention of 206 jobs,and appropriating$915,000 from the Unreserved Fund Balance Fund No.1140 Economic Development Fund,and changing the FY2014-2015 Operating Budget,seconded by Ms.Opel and passed.City Secretary Huerta announced that Mr.Hamilton abstained from the vote on this item. 3. Closed session pursuant to Section 551.087 of the Texas Government Code to discuss confidential commercial or financial information pertaining to Sam Kane Beef Processors, LLC 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 discussion and possible action in open session. President Braselton referred to Item 3.Emily Martinez,CCREDC,stated that the Type A Board approved an incentive agreement to Sam Kane Beef Processors LLC in the amount of$3 million over a five-year period,with year one being paid out in June 2014 in the amount of$600,000,leaving$2.4 million balance. Ms.Martinez explained that as a result of the market,it is very difficult to handle business at the facility and in an effort to continue to keep those additional jobs that were originally agreed upon.Mr.Waters has requested that the Type A Board consider expediting the additional$2.4 million payment immediately to continue operating the facility and keep the beef industry moving forward in Texas.Ms.Martinez stated that the return on investment should be 23.6%over a four and one-half year period and Mr.Waters has agreed to have 710 employees by summer 2015 with the addition of 70 jobs by end of year 5. Mr.Guerra made motion to amend the business incentive agreement with Sam Kane Beef Processors LLC to grant the remaining$2.4 million of a$3 million grant at once for the creation of 70 additional jobs and the retention of 739 jobs on the condition that no non-taxable capital distributions will occur over the remaining term of the agreement,seconded by Mr.Hamilton and passed. F. PRESENTATION ITEMS: (ITEM 8) 8. Update - Financial Reports President Braselton deviated from the agenda and referred to Item 8.Director of Financial Services Constance Sanchez presented the sales tax report for November;the cash flow statements;the commitment reports;and the pro forma report and detail of expenditures for the economic development fund. Board members spoke regarding the following topics:the decline 1n oil prices affecting the sales tax;administrative costs on the estimated cash flow statements;the transfer to visitors facility actuals in the arena fund;and the current balance for major business incentives. Corpus Christi Page 2 Printed on 2/11/2015 Corpus Christi Business and Job Meeting Minutes January 19,2015 Development Corporation E. AGENDA ITEM: (ITEM 4) 4. De-Obligate Funds From Various Type A Projects Motion to de-obligate$222,607.990 from Small Business Projects and $100,000 from the Artificial Reef Large Project to the Type A Fund 1140 for 2015. President Braselton deviated from the agenda and referred to Item 4.Mike Culbertson,CCREDC,stated that the purpose of this item is to de-obligate funds from large and small projects in the amount of$322,607.99 and return to the Type A fund.Mr.Guerra made a motion to approve Item 4,seconded by Mr. Hamilton and passed. F. PRESENTATION ITEMS: (ITEM 9) 9. Update - Reconciliation of Affordable Housing Funds President Braselton deviated from the agenda and referred to Item 9.Assistant City Manager Susan Thorpe stated that the purpose of this item is to provide an update on the Type A Housing Fund Reconciliation and available balance. Ms.Thorpe referred to a powerpoint presentation including the reconciliation process;the results of the reconciliation;recommended Type A Board action; recommended allocation among line items;the proposed monthly report for Finance and Housing and Community Development;and next steps. AGENDA ITEMS: (ITEM 7) 7. Amending the Affordable Housing Goals and Strategies Discussion and possible action to amend the existing Type A Affordable Housing Goals and Strategies. President Braselton deviated from the agenda and referred to Item 7.Director of Housing and Community Development Eddie Ortega stated that the board amended the Type A Affordable Housing Goals and Strategies to allow for a strategy for funding rental projects as an allowable cost.Board members spoke regarding the following topics:consideration to make homeownership a priority;the Board making decisions on affordable housing based on what is the best available opportunity for the community;possible limitations that could occur with prioritizing the funds;homeownership having tremendous value in the community;how the Corpus Christi Housing Authority project originally came forward;the Housing Authority project having a matching mechanism;concerns with other private rental projects presenting requests; when the original proposition was passed and the intent;consideration that developing priorities will cause challenges;and the bond language for affordable housing. Mr.Guerra made a motion to amend the Type A Affordable Housing Goals and Strategies,to increase affordable housing opportunities for stable families to live in quality housing on a long-term basis with a first priority on home Corpus Christi Page 3 Printed on 2/11/2015 Corpus Christi Business and Job Meeting Minutes January 19,2015 Development Corporation ownership and secondary priority on home rental,seconded by Mr.Hamilton and passed;Opel voting"No".(see Attachment A) F. PRESENTATION ITEMS: (ITEM 11) 11. Presentation -Habitat for Humanity President Braselton deviated from the agenda and referred to Item 11.Warren Andrich,President/CEO of the Corpus Christi Association of Realtors and Director of Habitat for Humanity,stated that the purpose of this item is to present information on why Corpus Christi needs Habitat for Humanity.Mr. Andrich referred to a powerpoint presentation providing background information on Habitat for Humanity;the value of Habitat for Humanity to the community;the homeownership process;the reason production is low;the direct incremental income to the City;how Habitat for Humanity ties into the Type A goals and strategies for affordable housing;and a request for allocation in the amount of$400,000.Mr.Andrich said this funding could bring 50 homes within the next three years. Carolyn Smith,Habitat for Humanity, responded to questions regarding funding for Habitat for Humanity. Board members asked questions regarding the following topics:whether other Habitat for Humanity organizations use public sales tax funds;the number of lots currently available for building;the timeframe it would take to develop the five(5)acres of potential land;consideration for annual funding;and whether the allocation request includes funding for administration and/or operational costs. E. AGENDA ITEMS: (ITEMS 5 and 6) 5. Funding Request by the Corpus Christi Housing Authority for the Rehabilitation of La Armada II Discussion and possible action on a funding request by the Corpus Christi Housing Authority for the rehabilitation of La Armada II, located at 1455 Southgate, Corpus Christi, TX 78415 (bordered by Rojo Drive and Port Avenue). President Braselton deviated from the agenda and referred to Item 5.Director of Housing and Community Development Eddie Ortega stated that the purpose of this item is to consider a funding request by the Corpus Christi Housing Authority in the amount of$500,000 for the purpose of rehabilitation of La Armada II.The proposed project would return 93 vacant units to service, update internal plumbing and baths for the remaining 307 units,update the building facades and re-roof the entire complex.Gary Allsup,Corpus Christi Housing Authority,stated that it is important to consider rental housing as part of the solution for Corpus Christi's tremendous housing crisis. Board members asked questions regarding the following topics:the prognosis on the 307 remaining units should funding not be allocated; how long the funding will extend the life of the units;the cost to replace the units;other sources available for match funding to complete this project;the existing funds available from the Housing Authority;the maintenance program for Corpus Christi Page 4 Printed on 2/11/2015 Corpus Christi Business and Job Meeting Minutes January 19,2015 Development Corporation these units;whether there has been any funding provided by the City to the Housing Authority;and the lots owned by Thanksgiving Homes,a subsidiary of the Housing Authority. Ms.Opel made a motion to authorize$500,000 to the Corpus Christi Housing Authority to support the rehabilitation of La Armada II units,seconded by Mr. Hamilton.A brief discussion ensured regarding future funding opportunities and reprogramming funds.Ms.Opel made a motion to amend the motion by authorizing$350,000 in the first year and$150,000 in second year.Mr.Hamilton seconded the amendment The motion was passed unaimously. Due to another meeting scheduled in the Council Chambers,City Secretary Huerta stated that Items 6,10,12-16 would be postponed until the next meeting. 6. Oversight and Maintenance of Approved Projects Discussion with possible action regarding oversight and maintenance responsibility of projects approved by the Corpus Christi Business and Job Development Corporation. This item was postponed. F. PRESENTATION ITEMS: (ITEMS 10, 12 -16) 10. Update- Housing and Community Development Monthly Report This item was postponed. 12. Update - McGee Beach Nourishment Project This item was postponed. 13. Update - Miradores Improvements and the JOC Program This item was postponed. 14. Update -Capital Programs Monthly Project Report This item was postponed. 15. Update -Type A Projects This item was postponed. 16. Update -Communication Initiatives This item was postponed. G. EXECUTIVE DIRECTOR COMMENTS: Corpus Christi Page 5 Printed on 2/11/2015 Corpus Christi Business and Job Meeting Minutes January 19,2015 Development Corporation •Type A Board Agendas None. • Board/Council Meeting None. H. PUBLIC COMMENT None. I. IDENTIFY FUTURE AGENDA ITEMS None. J. ADJOURNMENT The meeting was adjourned at 5:59 p.m. Corpus Christi Page 6 Printed on 2/11/2015 Corpus Christi Business and Job Development Corporation Affordable Housing Goals and Strategies Originally approved 2006; revised Dec. 2014 The following Affordable Housing goals, strategies, and activities were developed in 2006 through a series of facilitated meetings that involved various representatives from development, real estate, general business, and the community at-large. This planning effort identified the activities in the City and Region on which to focus time, resources, and attention of the Corpus Christi Business and Job Development Corporation (4A- Board) and City administration. This developed listing of Goals and Strategies will provide specific guidelines and strategic actions and tasks that will be used as an evaluation tool for the annual award of allocated Affordable Housing funds made available through the 118th cent sales tax initiative. The 4A Board should establish specific performance targets with each annual funding allocation and utilize these developed goals and strategies in an annual review to ensure completion of funded projects per proposals and timelines. Revisions in December 2014 are consistent with HUD regulations and current economic conditions. DESIRED RESULTS FOR AFFORDABLE HOUSING: To increase affordable housing opportunities for stable families to live in quality housing on a long-term basis with a first priority on home ownership and secondary priority of home rental. GOAL 1: Increase the availability of affordable, accessible, and fair housing by sponsoring and supporting relevant legislation, regulation, and policy that would provide a direct benefit to the homebuyer: STRATEGY 1.1 Utilize resources/funding available for affordable housing programs to supplement the fees associated with infrastructure/construction costs and thus providing an economic incentive to builders and a direct benefit to homebuyers by sustaining affordability. TASK 1.A Support Building Codes for cost effective construction (e.g. the omission of garages and allowing single-loaded driveways in affordable housing construction, and reducing the costs of development/construction fees associated with affordable housing projects) TASK 1.B Support Development Codes and Zoning Regulations (e.g. platting, allowing alternative housing in residential zoned districts) • TIME FRAME: On-going with the initiation of these efforts in October 2006 RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Development Services, Planning Commission, City Council, Association of General Contractors, Builders Association, Coastal Bend Council of Governments Affordable Housing Committee EXPECTED OUTCOMES: To attract and retain builders for the construction of affordable housing and securing the price of affordable housing by reducing the construction and development costs and streamlining permitting processes. GOAL 2: Increase the availability of affordable, accessible, and fair housing to the citizens of the City Corpus Christi: STRATEGY 2.1 Provide purchase/payment assistance to potential homebuyers and assistance for development of affordable rental property TASK 2.A Support programs that provide assistance for homebuyers to buy down interest rates on affordable housing loans/mortgages TASK 2.B Support programs that provide assistance for homebuyers with down payment and closing costs on affordable housing TASK 2.0 Support programs and services that reduce loan amounts on affordable housing TASK 2.D Support programs that provide assistance for the development and sustainability of affordable and accessible rental property TIME FRAME: On-going RESPONSIBLE ORGANIZATIONS: 4A Board, City of Corpus Christi Community Development, Corpus Christi Community Development Corporation, City Council, Coastal Bend Council of Governments, Community Housing Development Organizations (CHDO), Private and Public Financial Institutions, Non-Profit Housing Counseling Organizations, and Real Estate Industry EXPECTED OUTCOMES: To increase homeownership for single-family residences and the availability of affordable rental property, which will contribute to the overall re-vitalization and quality of life in existing neighborhoods • GOAL 3: Concentrate efforts for affordable housing in target locations STRATEGY 3.1 Support and prioritize infill housing projects in existing neigh- borhoods TASK 3.A Increase the inventory of foreclosed residential lots for increased infill housing projects TASK 3.B Review and identify vacant lots for potential purchase for infill and neighborhood revitalization projects. Utilize foreclosed property at City cost. STRATEGY 3.2 Support rehabilitation projects/programs/services in existing neighborhoods. TASK 3.0 Continue to provide low interest/forgivable loans and grants to homeowners for emergency, minor and major rehabilitation projects. STRATEGY 3.3 Support new development/construction and rehabilitation of affordable housing projects for single family ownership and rental housing. TASK 3.D Provide loans and grants to assist in development, construction and rehabilitation of properties for affordable rental housing. TIME-FRAME: On-going RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Nueces County, Private and Public Financial Institutions, Non-profit Housing Counseling Organizations, Community Housing Development Organizations, Corpus Christi Community Development Corporation EXPECTED OUTCOMES: To increase home ownership of single-family residences in established and new neighborhoods. To increase availability of affordable rental housing in established and new neighborhoods. To improve the overall quality of life in existing neighborhoods. GOAL 4: To increase the participation and availability of Builders, Manufacturers, and Suppliers for affordable housing projects. STRATEGY 4.1 Support the use of industrialized (modular) and other alternative housing in existing neighborhoods. . • , TASK 4.A Research and solicit qualified builders, manufacturers, and suppliers of alternative housing products. TASK 4.B Solicit the support of Economic Development Agencies, the Association of General Contractors and the Builders Association for affordable housing construction alternatives. TIME FRAME: On-going with the initiation of the research to begin November 2006 RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Coastal Bend Council of Governments Affordable Housing Committee, and Community Housing Development Organizations (CHDO), Associations of Builders and Contractors EXPECTED OUTCOMES: The availability of affordable housing options will be increased and varied.