12.21.05 PEDC MinutesProsper
ECONOMIC
DEVELOPMENT
CORPORATION
UNAPPROVED MINUTES
Regular Meeting of the Economic
Development Corporation
121 W. Broadway Street, Prosper, Texas
Wednesday, December 21, 2005 - 7:00 p.m.
1. Call to Order/Roll Call
Meeting was called to order by PEDC President Ray Smith at 7:00 p.m. All members were present,
except Bob Luckock and Dan Tolleson. Also in attendance was PEDC Executive Director Karen
Gandy.
2. Approval of Minutes:
Minutes were approved as submitted. Motion made by Ray Smith; seconded by Mike Wadsworth.
Motion carried 3-0.
3. Approval of Financial statements:
Financial statements for the month ending October 31, 2005 and November 30, 2005 were approved as
submitted. The Board also approved the transfer of funds from the operational account at Prosper
State Bank to the Tex Pool account as requested by Ms. Gandy. Motion was made by Ray Smith;
seconded by Mike Wadsworth Motion carried 3-0.
4. Comments from Citizens:
No citizens were present.
5. Discuss and provide recommendation to Town Council on the following request from Centex
Homes d/b/a CTX Builders:
A. Possibly establishing and designating a reinvestment zone for commercial/industrial tax
abatement pursuant to Chapter 312 of the Texas Tax Code and discuss and provide
recommendation on the terms and conditions of such Agreement. The zone would consist of
the 50.8086 acre tract of land located on the south side of Prosper Trail approximately 1,700
feet west of Coleman Street in the Town of Prosper.
B. Possibly establishing an economic development program under Chapter 380 of the Local
Government Code and possibly approving an economic development program grant
agreement with Centex Homes d/b/a CTX Builders Supply.
C. Possibly approving reimbursement agreements for certain construction projects costs and
reduction of certain development fees.
In attendance at the meeting and representing CTX Builders Supply's incentive application were
Robert Graham, Chief Financial Officer; Greg Packer, Attorney for Centex Homes; Robert
Schneeberg, P.E., Engineer with Gonzalez & Schneeberg; Robert Carlin and Michael Hardage,
Real Estate Brokers.
Ms. Gandy provided a brief overview of CTX's incentive application. Mr. Graham then explained
why CTX is interested in Prosper, what their current situation is at their Carrollton location, what
the timing is for development of the Prosper site and why the financial assistance is important to
their future operations. He provided pictures of other sites and discussed their overall operation,
including their desire to expand the component manufacturing/assembly of roof, floor and wall
components and possibly add windows and doors in the future.
Minutes for Prosper EDC Meeting - December 21, 2005 Page 1 of 2
Many of the Board's questions were regarding construction of the access road and rail spur. It was
reported that the original owner would be required to construct the access road and extend utilities
to the site. CTX was concerned about having to extend natural gas to the site from Prosper Trail.
Robert Graham reported that the rail spur could cost anywhere from $350,000 - $720,000,
dependent upon the design of the spur and whether one or two switches would be required. They
believe that due to escalating construction costs the sooner the spur is installed the better. They
were also concerned about the impact construction of the rail spur would have on the tax situation.
The EDC Board asked what CTX's cxpectations were rcl ardiTIg funding for the rail spur. Mr.
Graham said that CTX was flexible on funding of the rail spur and indicated that reimbursement
was OK (which appeared to be the Board's preference). The EDC Board discussed making it a
condition of approva I that all agreements were non -transferable (i.e., no future assigns).
Mike Wadsworth motioned and Jim Campbell seconded the motion to approve graining 50% tax
abatement of real property for 5 years (beginning from the date of occupancy); 50% tax abatemcnt
of personal property for 5 years (beginning from the date of occupancy); rebating % of 1% of sales
tax for 5 years (beginning from the date of occupancy); reimbursing CTX $50,000 per year for 5
years for a maximum of $250,000 for costs associated with the design and construction of a rail
spur connecting the site with the BNSF rail line; promptly processing all necessary entitlements;
expediting all Plant engineering and design approvals, both discretionary and ministerial in nature
and completing plan checks within 14 calendar days from submittal; and providing a 25%
reduction in all applicable development impact fees and processing fees. Motion carried 3-0.
The Board indicated that CTX needed to take up the request for reimburscnncnt for public
improvements, including the street and any future extension, sewer, water, storm drainage, street
lights, electrical, and traffic signal improvements, with the Town Council.
6. Staff Updates and action taken:
A. Current and pending construction and utility projects: No discussion occurred regarding the
staff updates provided in the Board packets.
B. Local Option Election: Ms. Gandy reported to the Board that the petition campaign was
successful, no additional signatures were required, and the Town Council ordered a Special
Election be held in May 2006 for the purpose of a Local Option Election to legalize the sale of
mixed beverages in restaurants by food and beverage certificate holders only.
7. Recessed into Closed Session.
The Board recess into closed session at 8:05pm.
In compliance with Section 551, Texas Government Code, to wit: To discuss information that the
EDC has received from business projects that the EDC seeks to locate, stay or expand in the Town and
with which the EDC is conducting economic development negotiations.
8. Board reconvened into regular session at 8:35 p.m. No action taken as a result of closed session.
9. Direction to staff to schedule topics for discussion at a future meeting.
Board member Mike Wadsworth suggested that the Board discuss the future of downtown at an
upcoming meeting.
10. Adjourned at 8:42 p.m.
Bob Luckock, Secretary
Date:
Minutes for Prosper EDC Meeting - December 21, 2005 Page 2 of 2