HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 07/20/2015 Corpus Cor Christi 1201 Leopard Street p Corpus Christi,Tx 78401 a ( f cctexas.corn Meeting Minutes Corpus Christi Business and Job Development Corporation Monday,July 20,2015 4:00 PM City Council Chambers A. President Bart Braselton to call the meeting to order. President Braselton called the meeting to order at 4:06 p.m. 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 June 15, 2015 President Braselton referred to approval of the minutes.Ms.Opel made a motion to approve the minutes,seconded by Mr.Guerra and passed unanimously. D. FINANCIAL REPORT 2. Financial Report as of May 31, 2015. President Braselton referred to Item 2.Director of Financial Services Constance Sanchez presented the sales tax report;cash flow statements;the commitment reports;and the pro forma report for the economic fund.Board members spoke regarding the following topics:sales tax projections for the end of the year;the registration payment to Morehead/Dotts/Rybak;the committed but unpaid affordable housing projects;the balance of the major business incentive projects;the anticipated date to expend the funds allocated to M&G Group;the performance requirements to pay out the balance for Schlitterbahn Waterpark;the small business projects budget;and the multi-year commitments. E. CLOSED SESSION ITEMS: (NONE) F. AGENDA ITEMS: (ITEMS 3 -7) 3. Proposed Short Term Communication Plan Corpus Christi Page 1 Printed on 9/14/2015 INDEXED Corpus Christi Business and Job Meeting Minutes July 20,2015 Development Corporation Discussion with possible action regarding a short term communication plan. President Braselton referred to Item 3.Director of Communications Kim Womack provided business card to the board members for them to use to promote the Type A fund.Ms.Womack stated that the purpose of this item is to provide information on the City resources that are available to the Type A Board to utilize for communication planning.Ms.Womack presented information on the following communication tools:CCTV;City e-news;banner displays; news releases;an op-ed piece;the Miradors'events;the stadium and arena placement;development of a social media calendar;development of a short promotional video;and the Movies in the Park event.Ms.Womack also provided a brief update on the website.Board members spoke regarding: future question and answers feedback and the website changes.Ms.Opel made a motion to adopt the short term communication plan as presented, seconded by Mr.Hamilton and passed unanimously. Enactment No: 4. Homebuyer Assistance Program Funding Guidelines (Tabled on 6/15/15) Discussion and possible action to propose Homebuyer Assistance Program Funding Guidelines. President Braselton referred to Item 4.Director of Housing and Community Development Eddie Ortega stated that the purpose of this item is to amend the Homebuyer Assistance Program Guidelines.Staff was directed to provide options to reduce the amount of funds received to allow assistance to more qualified homebuyers.Mr.Ortega provided an overview of the staff recommendations from the May 18,2015 and the recommendations provided from the meeting with the Coastal Bend Real Estate Coalition(CBREC).Warren Andrich,CBREC,addressed questions regarding the CBREC's recommendations.Caren Childers spoke regarding the difference between down payment assistance and deferrable loans to buy down the purchase price. Board members spoke regarding the following topics:clarification on the recommendations from the CBREC regarding the gap analysis;a guaranteed 30 day pre-qualification/construction inspection period,the maximum down payment assistance rate from$20,000 to$10,000;staffs ability to guarantee a 30 to 45 day pre-qualification/construction inspection period;other programs available;whether there are better ways to utilize and leverage the affordable housing assistance funds;the amount of assistance provided last year; determining the maximum down payment assistance amount;ways to pre-qualify applicants;training programs; buy down versus down payment assistance;the HOME program funds available;the recommendation for closing costs;and appreciation for the partnership between the CBREC and staff. Mr.Guerra made a motion to amend staffs recommendation to provide assistance to be utilized for down payment assistance not to exceed$10,000, seconded by Ms.Opel and passed unanimously.(NOTE:Approval of this motion eliminates the language"3.5%=$5,000"from staffs recommendation Corpus Christi Page 2 Printed on 9/14/2015 Corpus Christi Business and Job Meeting Minutes July 20,2015 Development Corporation on Item 2 and the$5,000 on Item 3.)Ms.Opel made a motion to amend staffs recommendation on Item 3 to remove the language"If HOME funds are exhausted,Type A Homebuyer Assistance funds will be utilized for closing cost with a maximum amount of total assistance not to exceed$5,000", seconded by Dr.Gulley and passed unanimously.Mr.Guerra made a motion to accept staffs recommendation as amended,seconded Ms.Opel and passed unanimously. 5. Notice of Funding Availability -Request for Proposal for FY2015-16 Affordable Housing Project Discussion with possible action directing Housing and Community Development(HCD) staff on whether to initiate a Notice of Funding Availability(NOFA)through a Request for Proposal (RFP)of FY 2015-16 affordable housing projects. President Braselton referred to Item 5.Director of Housing and Community Development Eddie Ortega stated that the purpose of this item is to discuss and receive direction on whether the Type A Board would like staff to initiate a Notice of Funding Availability(NOFA)through an Request for Proposal(RFP) for FY2015-2016 affordable housing projects.Mr.Ortega said$500,000 is allocated for affordable housing opportunities.The Board previously committed$150,000 to the Corpus Christi Housing Authority and staff will be coming to the Board with a request for staff reimbursement.Mr.Ortega said next fiscal year's funding will be approximately$300,000. Board members spoke regarding the following topics:how directing funding to an RFP process would impact the previous action taken on Item 4,how the RFP projects would work;and whether these funds would create an additional inventory of affordable homes or infill lots.No action was taken. 6. Approving Fiscal Year 2016 Seawall Capital Improvement Program Budget Motion to approve the Fiscal Year 2016 Seawall Capital Improvement Program Budget and recommend City Council approval and appropriation of funds. President Braselton referred to Item 6.Director of Capital Programs Jeff Edmonds stated that the purpose of this item is to approve the FY2016 Seawall Capital Improvement Program Budget.Mr.Edmonds provided an overview of the capital projects: projects previously approved by the Type A Board, projects that are an expansion of a project previously approved by the Type A Board,and projects related to seawall protection or eligible for use of Type A funds.Board members spoke regarding the following topics:the previously approved transfers to the seawall fund;the accumulation of recurring seawall maintenance funds;the minimal repairs required for the barge dock;whether $7.95 million is required for FY15-16;the completion of the FEMA study; whether approval of the seawall capital budget is required to approve the budget; if staffs recommendation is a conservative estimate; investments that need to be made that are necessary to improve the seawall;a detailed report on the$7.7 million for FY14-15;the ability to adjust project funding;the reason the recurring seawall maintenance funding recommendation doubled;concern with allocating funding for projects not identified;and funding only the Corpus Christi Page 3 Printed on 9/14/2015 Corpus Christi Business and Job Meeting Minutes July 20,2015 Development Corporation projects that are currently committed.There was a consensus of the Board to have a report on the$7.7 million for FY14-15 and the recommended$7.95 million for FY15-16.No action was taken. 7. Approving Fiscal Year 2016 Operating Budget Motion to approve the Corporation's Fiscal Year 2015-2016 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 Baseball Stadium Debt Service Fund#1141. President Braselton referred to Item 7.Assistant Director of Management and Budget Eddie Houlihan presented the FY2015-2016 operating budget for the seawall,arena,and business/job development funds and debt service funds; the programs and projects;and a list of the services provided in relation to the administrative fee.Board members spoke regarding the following topics:the arena funding for capital projects;the proposed FY2016 funding for small business projects;a breakdown of the"other"program funding in the business&job development fund;the allocation for the Corpus Christi Housing Authority;the buyers assistance allocation proposed for FY2016;the need for additional details to better understand the budget information;the breakdown of administrative fee charges; removal of the transfer to seawall funds in the amount of$7.9 million;and the removal of the administrative fees until additional information is received. Mr.Guerra made a motion to amend the FY2016 Operating Budget to decrease $172,000 for administrative fees and reduce the seawall fund by$7.9 million, seconded by Dr.Gulley and passed unanimously. Enactment No: G. PRESENTATION ITEMS: (ITEMS 8 -11) 8. Update-Facilities & Property Management Sale of Seven Surplus City Properties President Braselton referred to Item 8.Director of Facilities&Property Management Carlos Gonzalez stated that the purpose of this item is to provide a presentation on the sale of seven city properties.Mr.Gonzalez provided information on the seven(7)properties'description,location,and zoning.Mr. Gonzalez said the properties located on 502 18th Street,508 18th Street,and 2034 Mary Street are eligible to be used for affordable,low-income housing. Board members spoke regarding the following topics:the Anchor Street property being set aside for the U.S.Navy;acquiring additional lots within the area of 18th and Marguerite Streets;Council approval of the sale of surplus properties;the legal process for the Type A Board to acquire properties for affordable housing;ways to facilitate the construction of affordable housing; innovative approaches to address affordable housing;the sale of park lands; and future surplus properties.There was a consensus of the Board to request that to the City Council set aside the properties located on 502 18th Street,508 18th Street and 2034 Mary Street for the Type A Board to consider the viability Corpus Christi Page 4 Printed on 9/14/2015 Corpus Christi Business and Job Meeting Minutes July 20,2015 Development Corporation of these lots for affordable housing. 9. Update -Type A Guidelines President Braselton referred to Item 9.lain Vasey,Director of the Corpus Christi Regional Economic Development Corporation,provided an overview of the drafted changes to the Type A Guidelines.Board members spoke regarding the following topics:the language from Section 2 that limits the Board's ability to review all proposals submitted for funding and providing this information in a report;additional flexibility for the allocation of business incentives;five-year term restrictions;calculating economic impact only on direct and indirect revenues;the guiding principle for major employment projects;the designated authority change from Executive Director to the CCREDC;non-action by the City Council timeframe;grandfathering existing projects;the Type A Board's ability to take additional action on non-action by the City Council;an explanation on penalties;clear definition of primary jobs;and the flexibility to fund unique projects. 10. Update-Type A Projects President Braselton referred to Item 10.Mike Culbertson,Corpus Christi Regional Economic Development Corporation,was available to respond to questions on the Type A projects.There was no discussion on this item. 11. Update-Capital Programs Monthly Project Report President Braselton referred to Item 11.Director of Capital Programs Jeff Edmonds provided the capital programs monthly project report for the Salt Flats Levee Project/FEMA Mapping,the Barge Dock Project,and the Miradores Project.Assistant Director of Parks and Recreation Stacie Talbert Anaya provided a brief update on the McGee Beach Project.Boards members discussed the following topics: maintenance responsibility for the Miradores projects;the design for McGee Beach;the owner of the sand in the boat basin and if the sand can be utilized. H. EXECUTIVE DIRECTOR COMMENTS: •City Council Executive Sessions Executive Director Margie Rose stated that during the last meeting,the Board requested to have a representative from the Type A Board be present during future City Council executive session items regarding Type A projects.City Manager Ron Olson has indicated that would not be a problem. 4. Homebuyer Assistance Program Funding Guidelines (Tabled on 6/15/15) Discussion and possible action to propose Homebuyer Assistance Program Funding Guidelines. City Secretary Huerta requested that the Board return to the discussion on Item 4,Homebuyer Assistance Program Funding guidelines to provide clarity on the following guideline:To provide assistance in the amount of 3.5%for Corpus Christi Page 5 Printed on 9/14/2015 Corpus Christi Business and Job Meeting Minutes July 20,2015 Development Corporation down payment assistance,plus assistance to buydown the purchase price of a home,in an amount not to exceed$10,000.Ms.Opel made a motion to reconsider Item 4,seconded by Mr.Guerra and passed unanimously(Hamiliton and Gulley were absent).Ms.Opel made a motion to amend the guidelines approved in Item 4,to provide assistance in the amount of$10,000,in which 3.5%would be used for down payment assistance of the maximum price for the purchase of an affordable home at$142,850,and any unused balance remaining could be used for the buydown purchase of the home,seconded by Mr.Guerra and passed unanimously(Hamilton and Gulley were absent).There was a consensus of the Board to bring this item back within 90 days. PUBLIC COMMENT None. J. IDENTIFY FUTURE AGENDA ITEMS President Braselton referred to identifying future agenda items.Executive Director Rose identified the following items: FY2016 budget and possibly the Type A guidelines. K. ADJOURNMENT The meeting was adjourned at 7:50 p.m. Regardless of the agenda heading under which any item is listed,any word or phrase of any item listed on this agenda shall be considered a subject for consideration for purposes of the Texas Open Meetings Act and other relevant laws,and the Board of Directors may deliberate and vote upon any such subject and resolutions related thereto.Any descriptions of property or amounts stated in this agenda are descriptive and not restrictive,and property and amounts may be changed in the motions, actions or documents.In addition to other items listed in this agenda,policies and procedures of this corporation,legal analysis of any items,policies or procedures,and any items that are currently receiving funding from this corporation may be discussed and deliberated and these matters are added as subjects of discussion to this meeting. This agenda has been reviewed and approved by the attorney for the governing body,and the presence of any subject or description in the Executive Session portion of this agenda constitutes a written interpretation of Chapter 551 of the Texas Local Government Code by the attorney for this corporation indicating that said subject or description thereof may be legally discussed in a closed meeting. Corpus Christi Page 6 Printed on 9/14/2015