05/22/2000-4A-Minutes-RegularMINlUTES: 4A CORPORATION
MAY 22, 2000
PRESENT: Frank Ballard, Carroll McNeill, Mike James, Vickie Jenkins, Richard Muir
OTHERS
PRESENT: City Manager Jack Smith, City Secretary Rose Chavez, Woodrow Barton
1. Frank Ballard Called Meeting to Order.
2. a)
b)
CONSENT AGENDA
Approve Minutes: April 24, 2000
Disbursements.
Mike James made motion to approve the consent agenda. Carroll McNeill seconded.
Motion carried unanimously.
3. Officer Appointments.
Motion was made by Carroll McNeill to appoint Frank Ballard President. Seconded
by Vickie Jenkins. Motion carried unanimously.
Discussion on appointment of Vice President.
Motion was made by Frank Ballard to appoint Carroll McNeill as Vice President.
Seconded by Richard Muir. Motion carried unanimously.
4. Consider and Possible Action on Future Economic Development.
City Manager indicated we still have not been advised on the status of the distribution
center. He indicated that the Denton County Economic Development had met with
LT. Governor Perry along with company representatives. It was ascertained that for
sure Sanger could get the Texas Capital Fund Grant of which is $750,000.00.
Councilman McNeill explained that if the company will bring their other grant
information up to date that they have with Texas, the City can then get a jumbo grant
of 1.5 million dollars. If that takes place it is a strong possibility that 4A does not
have to expend the full 1 million dollars for the land.
The City still has to put water, sewer, and electricity to the property.
City Manager explained that probably the grant must be through the 4A because the
City can not legally give away anything for any reason.
Discussion continued on the following issues: the grant, Dr. Wolski's requests, County
Commissioner's commitment on the project, and 4A funds.
City Manager indicated he had talked with Mr. Porter on Friday, and he is still in
negotiations with Alcoa for a site on his property that will employ 20-30 and possibly
40 employees.
Vickie Jenkins asked if the housing development which is to have a golf course is still
in the works?
City Manager indicated it was. City manager explained that there is a lot of areas
where they have to come before the City to get donations of land that are adjacent to
property owners that he might not get. There is financial incentive that he wants from
the City, that City Council might not grant. He indicated at this point in time he is
not sure what this person might be able to accomplish.
S. Consider and Possible Action Regarding Investment of 4A Funds.
Discussion.
Vickie Jenkins reported high yield in money market is 5.33%.
Carroll McNeill made the motion to open (maintain) a checking account for $2,000.00
and all the rest of the funds to be placed into a high yield money market at 5.33%.
Mike James seconded. Motion carried unanimously.
The account must maintain $50,000.00 to continue earning the same yield. IF account
goes lower it will reduce the interest rate; however, it will still earn more.
Discussion.
6. Any Other Such Matters.
A) City Manager reported McDonald's will break ground possibly same time as Sonic.
Discussed food sales at McDonald's and Sonic.
B) Vickie Jenkins discussed interest rate as compared to bonds, She indicated that
depending on the term, that the best thing to look at is 2.8% below Wall Street, which
would make it 6. 7% Wall Street Journal Prime, which is a little bit better. Vickie
indicated it is not a commitment, just simply a ballpark figure.
C) City Manager indicated that he did find out that if 4A buys land, then the bonds
will be tax exempt. If they help build a building then it would not be tax exempt.
Vickie Jenkins indicated the bank's rate is also tax exempt.
Discussion.
7. Meeting Adjourned.
Approved