BASTROP ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS Minutes of Monthly Meeting, September 16, Main Street, Bastrop, Texas

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1 BASTROP ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS Minutes of Monthly Meeting, September 16, Main Street, Bastrop, Texas The Bastrop Economic Development Corporation (BEDC) met on Monday, September 16, 2013, at 6:30 p.m. in the BEDC Boardroom at 903 Main Street for the Regular Monthly Meeting. Board members present were: Steve Mills, Gary Gutierrez, Gary Schiff, Dr. Neil Gurwitz, Mayor Terry Orr, Willie DeLaRosa, and Mike Talbot (ex-officio). Board Member Pat Crawford was absent. Staff members present: Dave Quinn, Angela Ryan, and JC Brown, BEDC Attorney. Others in attendance: Nancy Wood, Jamie Howard, Lenny Adams, Carlos Liriano, and Seanna Roysden. ANNOUNCEMENTS 1. Call to Order Steve Mills, Chairman of the Board, called the meeting to order at 6:31 p.m. 2. Public Comments None. 3. Presentations None. 4. Announcements None. EXECUTIVE DIRECTOR S INFORMATIONAL UPDATE REPORT - Items for update, discussion and possible action: A. Meetings, Events and Travel attended/upcoming 1. RECA s 13th Annual Mid-Year Economic Forecast, August 22 Mr. Quinn attended the Real Estate Council of Austin (RECA) conference where Dr. Ray Perryman spoke. He reported that Texas and the Austin area were doing well, and the limiting factors in the coming years will be the global economy and investment in education and transportation. 2. IEDC 2013 Annual Conference, Philadelphia, October 7-9 Mr. Quinn will be traveling to Philadelphia to attend the International Economic Development Council (IEDC) Annual Conference. 3. Opportunity Austin s 10th Annual Showcase Austin, October Mr. Quinn explained that each year, Opportunity Austin has their Annual Showcase where they host site selectors and show them around the area. He will be attending this year. B. Update on BEDC Projects and/or Business: 1. Main Street Program Update (Nancy Wood) Ms. Wood reported that two new businesses have opened in the R.A. Green Mercantile. She said the City Council has designated a portion of the Main Street Program area as a Culinary District, which will allow the local restaurants to receive support and training. Ms. Wood said they are looking at having some food-related events in the next year. The Entrepreneur Team will be having a competition for business plans on November 14 th. There are currently six contestants, and Big Austin has offered to contribute toward the prize package for the winner. Ms. Wood said she and Mr. Quinn attended a conference in Marble Falls that discussed the arts as economic development. 2. Update on JAMCo/Industrial Park Infrastructure Project Mr. Quinn reported he and Mr. Talbot met with Public Works and JAMCo. The size of their proposed building has increased from 31,000 square feet to 40,000 square feet. JAMCo had questions about 09/16/13 BEDC Board Meeting Minutes Page 1 of 5

2 the timeline on the infrastructure improvement and screening/fencing, because they would like to install a chain-link fence. The Board discussed what changes needed to be made to their agreement. Ms. Brown explained that due to the added project expenses, JAMCo s share of the costs will increase in the claw-back agreement; the proportionality component of the claw-back provision in the agreement would remain the same. She asked if the Board wished to increase JAMCo s commitment related to the number of employees they would hire and retain in Bastrop, in light of the significantly increased financial contribution that the BEDC was agreeing to make for JAMCo s expanded Project. After a lengthy discussion, Ms. Brown was directed to update the agreement with JAMCo to reflect the increased scope of the project, the increase in the size of their building, and that the BEDC has increased their expenditure on the project. The number of employees expected to be hired by the company will remain at 50. Ms. Brown stated that she would work with Mr. Talbot and Mr. Quinn and bring the amended agreements back to the Board for their review and approval. No further action was required. 3. Update on higher education options for Bastrop Mr. Quinn said he had invited Seanna Roysden, a freelance consultant, to speak to the Board about how the Hutto community was able to build a higher education center. Ms. Roysden was formerly with the Hutto Economic Development Office, and she spoke about the process they went through to build the East Williamson County Higher Education Center (EWCHEC), which offers classes through Temple College, Texas State Technical College, and (beginning in 2014) Central Texas A&M. She explained that the junior college system in Texas is based on ISD boundaries and are assigned by the state legislature. To be considered in-district, the voters in the ISD have to pass a tax for the junior college. If no tax has been passed, the community is out-of-district. Hutto is within Temple College s service area. Bastrop is in ACC s service district. To change that, Bastrop would first have to obtain approval from ACC as well as the junior college they want to be under, and then go to the state legislature and request to be moved to another service area. Ms. Roysden explained that Texas State Technical College (TSTC) has a state-wide mission, and they do not have taxing authority, but in order for them to come to a community they have to be invited by the junior college system. Their semester hours are typically more expensive. She said that when they began the process of putting together a plan for the Temple College campus in Hutto, TSTC did not come onboard right away. Ms. Roysden stressed that the EWCHEC was a very unique project, a combination higher education center, and that the process was very community-driven. She said TSTC purchased the building and the land, and the building is leased by Temple College, which is funded through a branch maintenance tax paid by those within Hutto ISD. Ms. Roysden said that the cost of the 57 acre campus was $18 million for the building and $3 million for the land, part of which was donated and the rest sold to them at a reduced rate. Hutto ISD, Hutto EDC, and the City of Hutto each agreed to pay $125,000 a year for 25 years, and there is also a branch maintenance tax, capped at five cents, that brings in about $600,000 a year and can be spent only on maintenance of that campus. Hutto is now considered a taxing entity and they receive in-district rates. Ms. Roysden explained this tax is different from the standard junior college tax. She said that anyone in Hutto can attend classes at any of the branches; however, compared to ACC, there are fewer options available. Mr. Quinn reiterated that in order for Bastrop to have this type of higher education facility, we would need to either have ACC s approval or lobby to be removed from ACC s territory. ACC s in-district semester hours are $67 versus $246 for out-ofdistrict. Carlos Liriano of Lost Pines Toyota asked to speak to the Board regarding the need for higher education in Bastrop. He said as an employer, he feels higher education is crucial 09/16/13 BEDC Board Meeting Minutes Page 2 of 5

3 for getting businesses to locate here, because they may have difficulty finding qualified employees, and that we need a better-trained workforce in order to support those businesses. Mr. Liriano said he is also concerned that our students don t have the option to attend college in Bastrop, and we may be losing quality employees, because once they attend college elsewhere, they don t return to the Bastrop community. 4. Update on amendments to BEDC Restrictive Covenants Mr. Quinn reported that the committee had met and were continuing to work on the changes. 5. Update on the possible expansion of The Coghlan Group Mr. Quinn said he and Mr. Talbot had met with Mr. Coghlan and looked at possible incentives. 6. Update on Strategic Plan implementation Mr. Quinn reported that it looks like Bastrop County will receive the broadband connectivity certification, and there will be an event to receive the award. Mr. Quinn stated he is chairing the Bastrop Chamber of Commerce s Education Committee, and they re working to promote BISD. He said they will be working with employers to identify ten clusters that fall under our four target industries, and have champions at both the school district and the businesses. Mr. Quinn said the goal is to produce a better workforce, something that was a key part of the Strategic Plan. 7. Update on Construction Projects in the City of Bastrop Mr. Quinn said the list of projects is included in the board packets. A. CONSENT AGENDA A.1 Approval of meeting minutes of the Regular Board Meeting of August 19, Mr. Gutierrez made the motion to approve the minutes as submitted, Mr. Schiff seconded, and the motion passed. B. PUBLIC HEARINGS None. C. OLD BUSINESS C.1 Consideration, discussion and possible action on appointment of BEDC Board Member and/or staff to Bastrop Main Street Board. Mrs. Ryan pointed out that it was not required for BEDC s representative on the Main Street Board to be a Board Member, and she volunteered to be BEDC s representative. Mr. Schiff made the motion to appoint Angela Ryan as BEDC s representative to the Main Street Board, Mr. Gutierrez seconded, and the motion passed. C.2 Consideration, discussion and possible action on the full application for a Mega Grant by Charlie Amos for renovations on his building at 1008 Main Street in the amount of $25,000 (preapproved 03/18/13). Ms. Wood reported that Mr. Amos has submitted all the necessary paperwork, and the total of the project is expected to be over $100,000. Mr. Gutierrez made the motion to approve the mega-grant for renovations to the building at 1008 Main Street, Mr. Schiff seconded, and the motion passed. D. NEW BUSINESS D.1 Consideration, discussion and possible action on acceptance of the Bastrop Economic Development Corporation s financial summary report for period ending August 31, Mr. DeLaRosa made the motion to accept the financials as submitted in the Board s packet, Mr. Schiff seconded, and the motion passed. 09/16/13 BEDC Board Meeting Minutes Page 3 of 5

4 D.2 Consideration, discussion and possible action on a request from KKG Bastrop Investments, LLC, for an extension on their agreement to build on the property located in the Bastrop Business & Industrial Park, until March 1, Jamie Howard and Lenny Adams were at the meeting representing KKG Bastrop Investments. Mr. Quinn explained their current deadline is October 17 th, but the building will not be finished by that time. Mr. DeLaRosa made the motion to extend the project deadline to March 31, 2014, and that if it was not complete by that time, Mr. Mills and Mr. Quinn could make a decision about it, so that the Board would not have to consider the issue again. Mr. Schiff seconded, and the motion passed. D.3 Consideration, discussion and possible action on the proposed relocation of the BEDC office to City Hall. Mr. Quinn reported he and Mr. Talbot had a preliminary meeting about the unfinished space at City Hall, which is 1,980 square feet on the Chestnut side of the building. Mr. Quinn said that BEDC would need to finish out the entire space because of the A/C system installation, but that the City would need to use a portion of that space. He said they need to determine how much space BEDC will be using before designing a layout. Mr. Quinn reported it would be about $65 per square foot, so it would cost about $130,000 to $150,000 to finish out the space. The Board discussed whether or not a conference room would be needed, since the only room currently large enough for BEDC Board meetings is the Council Chambers. Mr. Schiff asked if BEDC could pay for the cost of improving the acoustics in the Council Chambers, and Ms. Brown replied yes, if BEDC would be meeting there. Dr. Gurwitz was concerned that the space is the last unused portion of City Hall, and there may be other departments that need to move there, especially as the City continues to grow. Mr. Talbot said that, at some point, there may be a need for the City s Director of Public Works to have an office at City Hall. Mr. DeLaRosa wanted to make sure the Board discusses the future use of the current office, so that the building would not stand vacant in the event that the BEDC moved to City Hall. After further discussion, Mr. Gutierrez made the motion to give authority to Mr. Talbot to work with an architect to design a plan and obtain a cost estimate to finish out the space at City Hall and to look into improving the acoustics in the Council Chambers to better accommodate BEDC meetings, and the Board will look at the costs before approving it. Mr. Schiff seconded, and the motion passed. D.4 Consideration, discussion and possible action on an amendment to the Bastrop Economic Development Corporation s FY2012/2013 budget, in the amount of $50,000 to fund engineering expenses for the JAMCo Project prior to the bond issuance. Mr. Talbot explained that the Board had already passed a Reimbursement Resolution, so that once the bond proceeds are received, the expenditures for the engineering work on the project can be replaced. Mr. Schiff made the motion to approve the budget amendment in the amount of $50,000, Mr. Gutierrez seconded, and the motion passed. D.5 Consideration, discussion and possible action on landscaping and monument signs for the entrance to the Bastrop Business & Industrial Park. Mr. Quinn stated that with the increased activity and prospect site visits in the Industrial Park, he felt it was time to discuss the possibility of landscaping and installing monument signs at the entrance. Mr. Quinn would like to fund it from the bond proceeds, if possible. He showed an artist s rendering of what the park entrance might look like. Mr. Talbot suggested including the names of the Industrial Park businesses on the monument sign and installing two flag poles for a United States flag and a Texas flag. The Board then discussed adding road signage pointing to the different businesses. It was decided that Mr. Quinn would contact the company who installed the wayfinding signage in Bastrop, and determine if they could do the entire project, how much it would cost, and bring several designs 09/16/13 BEDC Board Meeting Minutes Page 4 of 5

5 to the Board for consideration. Mr. Schiff made the motion to approve an amount up to $10,000 for the design work, Mr. Gutierrez seconded, and the motion passed. E. EXECUTIVE SESSION E.1 At 8:25 p.m., Mr. Mills convened the Bastrop Economic Development Corporation Board of Directors into a closed/executive session pursuant to the Texas Government Code, Chapter 551, to discuss the following: 1. Section (1)(A) and Section (2) - Consultations with Attorney: (1) threatened and/or contemplated litigation, and (2) matters upon which the Attorney has a duty and/or responsibility to report to the governmental body. 2. Deliberation about real property: Project Crane and/or potential sales, acquisitions, exchanges, leases, dispositions or values of real property. 3. Section Deliberation regarding economic development negotiations: Project Crane. 4. Section Personnel Matters: Periodic evaluation of Executive Director / BEDC staffing and performance. E.2 The Bastrop Economic Development Corporation Board of Directors reconvened from Executive Session at 8:45 p.m. Mr. Gutierrez made a motion to approve a one year extension on the agreement between the City of Bastrop, the BEDC, and Mike Talbot to continue services that were envisioned in the original agreement. Mr. Schiff seconded, and the motion passed. F. BOARD INPUT ON FUTURE AGENDAS Inviting input from the Board of Directors related to issues for possible inclusion on future agendas, related to (but not limited to) issues such as BEDC projects, property, economic development prospects, community events, and BEDC business. G. ADJOURNMENT Gary Schiff moved to adjourn and Gary Gutierrez seconded. The BEDC Board of Directors adjourned the meeting at 8:47 p.m. 09/16/13 BEDC Board Meeting Minutes Page 5 of 5