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10.15.2014 PEDC MinutesProsper ECONOMIC DEVELOPMENT CORPORATION MINUTES Meeting of the Prosper Economic Development Corporation 170 N. Preston Rd., Suite 50 Prosper, Texas 75078 Wednesday, October 15, 2014 - 6:00 p.m. Call to Order and Announce a Quorum is Present Board President Jim Wicker called the meeting to order at 6:06 p.m. Board members present were Mayor Ray Smith, Reno Jones, Gary Jackson, Jordan Simms, and David Bristol. Board member Roger Thedford was absent. PEDC Executive Director Robert Winningham and Economic Development Specialist Garrett Weaver were also present. Guest John Herring was also in attendance. 1. Comments from Citizens (The EDC may receive input from citizens only on topics that are not listed on the meeting agenda) Citizen John Herring commended the Prosper EDC Board and staff for doing a great job in serving the community. 2. Election of PEDC Board Officers Ray Smith recommended that the Board officer positions not change but noted that the Secretary position has been phased out of most Commissions and Boards. Robert Winningham noted that the Secretary position may be required per the PEDC Board's By-laws. Jim Wicker asserted that such issue was discussed in which case the Secretary position shall remain in place. Wicker added that the Bylaws may need to be amended in the future. Ray Smith made the motion to elect Jim Wicker as Board President, David Bristol as Vice President, Jordan Simms as Secretary, and Reno Jones as Treasurer. The motion was seconded by Jordan Simms and was unanimously approved by all Board members present. 3. Approval of Minutes from the Regular Meeting on September 17, 2014 Ray Smith moved to approve the September 2014 Regular Meeting Minutes. The motion was seconded by Reno Jones and was unanimously approved by all Board members present. 4. Approval of PEDC Financial Reports for September 2014 and Take Any Additional Action Necessary Reno Jones presented the September 2014 Financials. Jones noted that the PEDC had a good month with tax revenue of approximately $82,000. Jones also noted that office expenses were approximately $4,600 and that approximately $38,000 went to the PEDC cash balance. Jim Wicker asked if it would be possible to expand the Sales Tax column to show a percentage change of month -to -month revenue. Robert Winningham responded that such addition to the Financials should be possible. David Bristol noted that the balance sheet nearly reached $2.5 million for the month ended. Bristol congratulated the Board and staff for achieving such an increase and attributed that to prudent management of the budget and expenses. Winningham added to Bristol's comment by noting a 20-percent increase in the overall cash balance over the prior year. David Bristol moved to approve the September 2014 Financial Reports. The motion was seconded by Jordan Simms and was unanimously approved by all Board members present. 5. Approval of the PEDC Quarterly Investment Report for Period Ending September 30, 2014 Reno Jones presented the PEDC Quarterly Investment Report. Jones noted that the report looked good and that he had already signed off on it. David Bristol questioned if the investments are protected by the FDIC. Ray Smith commented that the investments are collateralized up to 102-percent and must be kept in the bank. Jones concluded the report by noting the yield for the quarter was approximately 1.33-percent. David Bristol moved to approve the PEDC Quarterly Investment Report. The motion was seconded by Reno Jones and was unanimously approved by all Board members present. PEDC Minutes —page 2 October 15, 2014 �_. 6. Review of Incentive Commitments s Garrett Weaver presented the PEDC Incentive Commitments spreadsheet. Weaver outlined all of the changes to the document per the Board's previous direction. Weaver showed the increase in the cash balance over the 2014 Fiscal Year and showed projections for the next three Fiscal Years in accordance with financial commitments that the PEDC has agreed to or may agree to in the future. Jim Wicker inquired about the Matthews Southwest commitment displayed on the spreadsheet, noting that it should be contingent upon infrastructure improvements being made and should not be reflected on the revenue. Ray Smith asked if off -site or on -site infrastructure is included in the improvements. Wicker replied that the agreement requires on -site infrastructure to which, to his knowledge, has not begun yet. Jordan Simms inquired about the maximum exposure to the PEDC for this commitment.. David Bristol responded that the PEDC's maximum exposure would be $3 million plus interest. Simms commented that projections should be made so that the PEDC can insure that it has enough funds available to payout such commitments, thereby reducing exposure. Bristol questioned if the initial $500,000 provided to the project was included in the maximum exposure to which Wicker replied affirmatively. Bristol believed that such commitments should be encumbered. Wicker added that commitments should remain on the cash flow spreadsheet as to keep them in mind when making decisions in the future. Bristol questioned the source from which the $46,196 figure was derived. Weaver responded that it was provided from Schedule 11 of the Project and Financial Plan for TIRZ No. 2 which was accepted and adopted by Town Council on May 14, 2013. Wicker added that staff should attach assumptions as notes to the document in the future to make things clearer to which staff acknowledged. Discussion concluded with no action being taken. 9. Town of Prosper Report: Update on Various Activities and Projects by the Town Mayor Ray Smith gave an update on various projects and issues for the Town of Prosper. 10. Executive Director's Report: Administrative and Marketing Activities of the PEDC and Upcoming Events PEDC Executive Director Robert Winningham presented updates on projects in which the PEDC staff is working. Winningham provided an update on the progress of Hwy 380 construction and highlighted all of the events where the PEDC is being represented over the next month, to which all Board members were invited to attend. Gary Jackson requested an update on the efforts to attract Toyota headquarters employees to Prosper. Winningham reported that the Toyota employee relocation effort is very active and that a website was created by Prosper resident and webdesigner Rich Johnson as an informational guide aimed at employees looking in the Prosper area. Jim Wicker added that Prosper could add some jobs as a by-product of the Toyota development. Reno Jones asked about Don Lookadoo's development and how leasing activity is progressing. Wicker added by asking how the PEDC is assisting Don Lookadoo in making his development successful. Winningham responded that PEDC staff has been sending Lookadoo prospects and have included his office building on the PEDC website under its Inventory Page. Winningham added that Lookadoo's leasing efforts have been successful and that Lookadoo has already signed some tenant leases. 7. 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 6:37 p.m. to discuss: • Retail Development ■ Office Development • Road Improvements in West Prosper PEDC Minutes —page 3 October 15, 2014 Board President Jim Wicker reconvened the meeting into Open Session at 7:22 p.m. 8. Reconvene into Open Session and take any action necessary as a result of Closed Session deliberations No action taken. 11. Confirm Next Regularly Scheduled PEDC Board Meeting on November 19, 2014 It was determined that the next regularly scheduled Board meeting will be held on November 19, 2014. 12. Convene into Closed Executive Session: Pursuant to Texas Government Code, Section 551.074; Deliberation of Personnel Matters related to the following: Board President Jim Wicker called the meeting into Executive Session at 7:23 p.m. to discuss: Annual Review of PEDC Executive Director Board President Jim Wicker reconvened the meeting into regular session at 9:06 p.m. 13. Take Any Action Necessary as a Result of Executive Session No action taken. 14. Adjourn The PEDC Board meeting adjourned at 9:07 p.m. with a motion from Ray Smith and seconded by David Bristol. The motion was passed unanimously. Jordan SiffwPEDC Secretary Date Note: Agenda items were conducted in the above order per the Board President's discretion