Loading...
07.22.2015 PEDC MinutesProsper MINUTES Meeting of the Prosper Economic Development Corporation ECONOMIC 170 N. Preston Rd., Suite 50 DEVELOPMENT Prosper, Texas 75078 CORPORATION Wednesday, July 22, 2015 - 6:00 p.m. Call to Order and Announce a Ouorum is Present Board President Jim Wicker called the meeting to order at 6:00 p.m. Board members present were Mayor Ray Smith, Gary Jackson, David Bristol, Jim Wicker, Jordan Simms, Roger Thedford and Reno Jones. PEDC Executive Director Robert Winningham, Assistant Director Garrett Weaver and Economic Development Assistant Sam Blatt were also present. 1. Comments from Citizens (The EDC may receive input from citizens only on topics that are not listed on the meeting agenda) There were no comments from citizens. 2. Approval of Minutes from the Regular Meeting on June 17, 2015 David Bristol moved to approve the June 17, 2015 Regular Meeting Minutes. The motion was seconded by Ray Smith and was unanimously approved by all Board members present. 3. Approval of PEDC Financial Reports for June 2015 and Take Any Additional Action Necessary Treasurer Reno Jones presented the June 2015 Financials. Jones pointed out a change in the format of the Financials, noting that the Statement of Revenues and Expenditures cover page now included a comparison of current year-to-date totals to the previous year's year-to-date totals. David Bristol noted that there was no longer a monthly total on the Statement of Revenues page and requested that it be added back to the report. Jones noted that sales tax received for the month was approximately $84,000 and was slightly lower than sales tax receipts from the same time last year. Jones also noted the $50,000 expenditure in the Project Incentives line item for first payment of the West Prosper Road Improvements agreement. Jim Wicker noticed correlated trends from year-to-year and was interested in seeing the numbers for July and noted that the trailing twelve (12) months of revenue was slightly higher than $1 million which is better than previous years. Jordan Simms moved to approve the June 2015 Financial Reports. The motion was seconded by Gary Jackson and was unanimously approved by all Board members present. 4. Consider and Take Action to Amend the PEDC FY2015 Budget for the Purpose of Allocating Funds Toward Construction of the West Prosper Road Improvements Project Jim Wicker started discussion by addressing the possible need for a budget amendment to cover the remaining payments for the West Prosper Road Improvements as it was not allocated in the FY2015 Budget. Robert Winningham commented that state statute requires an amendment for new funds to be added exclusive of an existing budget and noted that the above was corroborated by PEDC Attorney Pete Smith. Jim Wicker questioned if the Board is required to have Town Council approval or if they could proceed forward without it. Winningham replied that, by Texas Local Government Codes, city councils must approve individual projects but can bypass this by approving an EDC's entire budget. Wicker requested that Winningham double check the State Code and PEDC Articles of Incorporation, and to possibly seek attorney interpretation. Wicker surmised that under the scenario described, the PEDC technically would not be able to approve any projects if they are not budgeted and the PED budget was not approved by Town Council. Jordan Simms added that percentage rebates would not work either. Wicker agreed and added that, under those circumstances, the PEDC would need to go back to Town Council for re -approval of the budget for each new project. This needed to be double-checked. PEDC Minutes —page 2 July 22, 2015 Ray Smith believed that the PEDC was an independent corporation and had a separate Tax ID but also .� acknowledged that the Town Council ultimately approves all Boards and Commissions in the community. Winningham added that staff will further investigate state statutes and the PEDC's Articles of Incorporation. David Bristol noted that payment does not need to be made until after construction plans have been approved. Winningham confirmed that construction plans have not been approved yet. Bristol added the Board should not take action until the construction plans have been approved per the contract. Smith agreed and proposed tabling the item until construction plans have been approved. Ray Smith moved to table action on Amending the PEDC FY2015 for the Purpose of Allocating Funds Toward Construction of the West Prosper Road Improvements Project. The motion was seconded by Roger Thedford and was unanimously approved by all Board members present. 5. Consider and Take Action on FY2016 Budget Gary Jackson asked for clarification regarding the expenses under the Wellness Program -Employee Reimbursement budget item. Garrett Weaver responded that the Wellness Program -Employee Reimbursement budget is for employee Health Savings Accounts (HSA) for the purpose of paying for health care expenses. Town Council has given employees the option to elect such accounts during yearly health insurance open enrollment. David Bristol asked where the sales tax figure was derived from. Winningham responded that the sales tax number comes from the Finance Director and that it is the exact same as the Property Tax Relief fund. Jim Wicker noted that current sales tax revenue is already over $1.1 million and questioned if the projected FY2016 sales tax receipts should be increased. Wicker also questioned the reason for reducing the Legal Fees budget and increasing the Professional Services budget. Winningham replied that he wanted to decrease overall expenses and noted the increase to Professional Services was to cover for payments of additional reports such as the traffic count and area housing studies. He added that Legal Fees could be funded at the same level as FY2015. Ray Smith questioned if there have been any new revenue streams from businesses over the last year that can be noted. Winningham noted the Lookadoo building, extra retail space created at Prosper Town Center and a few new restaurants. Wicker added that new projects are expected to open next year and that revenue should increase. Wicker noted that in FY2013 the PEDC collected approximately $808,000 in revenue and revenue has increased by approximately $100,000 each year thereafter, amounting to an approximate ten percent (10%) increase year over year. Wicker also noted $48,000 in increased expenses and added that approximately half of the increased revenue going to added expenses would be too much and recommended scaling back expenses. Bristol added that annualized sales tax revenue is currently under $1 million, at around $975,000. Bristol also recommended eliminating the Hiring Cost budget item to which Winningham agreed. Ray Smith moved to table action on the FY2016 Budget until the next regularly scheduled Board meeting. The motion was seconded by Reno Jones and was unanimously approved by all Board members present. 6. Consider and Take Action on Recommendation of Tax Abatement Policy 2015 to the Prosper Town Council Robert Winningham presented the Policy and noted that there are no changes to the Policy from the last time it was recommended by the PEDC Board to the Town Council for approval. David Bristol moved to approve the Recommendation of Tax Abatement Policy 2015 to the Prosper Town Council as presented. The motion was seconded by Jordan Simms and was unanimously approved by all Board members present. PEDC Minutes — page 3 July 22, 2015 7. Discussion of Process for Attracting New Business and Development and Expansion of Existing Business, and Take Any Action Necessary Robert Winningham noted that he did not provide the Town Manager, Executive Director of Development and Community Services and the Director of Development Services adequate notice to participate in discussion on this agenda item at the Board meeting and therefore, they were unable to attend. Jordan Simms questioned what this agenda item would specifically address. Wicker explained that he has received feedback from developers and is concerned that Prosper is receiving a reputation of being difficult to work with and that Prosper could miss out on potential projects that could be benefit the Town. Ray Smith moved to table Discussion of Process for Attracting New Business and Development and Expansion of Existing Business. The motion was seconded by Gary Jackson and was unanimously approved by all Board members present. 8. Convene into Closed Executive Session Pursuant to Texas Government Code, Section 551.087; Deliberation of Economic Development Negotiations to Deliberate Commercial and Financial Information and Economic Incentives relating to the following: Board President Jim Wicker called the meeting into Executive Session at 6:50 p.m. to discuss: Retail Development Office & Corporate Development Business Retention & Expansion Board President Jim Wicker reconvened the meeting into Open Session at 7:04 p.m. 9. Reconvene into Open Session and Take Any Action Necessary as a Result of Closed Session Deliberations No action taken. 10. Town of Prosper Report: Update on Various Activities and Projects by the Town Mayor Ray Smith gave an update on various projects and issues pertaining to the Town of Prosper. Roger Thedford complimented the new light posts that were recently installed along Preston Road. 11. Executive Director's Report: Administrative and Marketing Activities of the PEDC and Upcoming Events PEDC Executive Director Robert Winningham presented updates on projects on which the PEDC staff is working. David Bristol asked if the EDC has a dedicated social media person. Winningham responded that Sam Blatt handles social media for the EDC and has done a good job with this effort. Jim Wicker asked if attendees for the Texas Health Resources groundbreaking have been confirmed. Blatt said the he believed that they have been confirmed but will double check. David Bristol asked about a potential summer intern, as noted in the Director's Report. Winningham responded that he will discuss the possibility and determine if an intern is needed. Wicker added that confidentiality is important and that should be considered when hiring. Winningham agreed that sensitivity to confidential information is important and will keep that in mind. PEDC Minutes — page 4 July 22, 2015 12. Confirm Next Regularly Scheduled PEDC Board Meeting on August 19, 2015 It was determined that the next regularly scheduled Board meeting will be held on August 19, 2015 pending any unforeseen circumstances. 13. Adjourn The PEDC Board meeting adjourned at 7:15 p.m. with a motion from David Bristol and seconded by Jordan Simms. The motion was passed unanimously. Jordan Vimms — PEDC Secretary Date rI