05/08/2003-4A-Minutes-RegularI
MINUTES: 4A CORPORATION
MAYS,2003
PRESENT: Richard Muir, Vickie Jenkins, Bill Fuller, Carroll McNeill
ABSENT: Gordon Lurry
OTHERS
PRESENT: City Manager Jack Smith, City Secretary/ Assistant City manager Rose Chavez,
Assistant City Secretary Samantha Renz, Mayor Tommy Kincaid, Councilman
Mike James, Diana Cruz, Paul Vineyard,
1. Richard Muir called meeting to order.
2. a)
b)
CONSENT AGENDA
Approve Minutes: December 9, 2002
Disbursements
Carroll McNeill moved to approve the minutes as presented, Vickie Jenkins seconded,
Motion carried unanimously.
3. Citizen's Input.
None.
4. Consider and Possible Action on Aiding Miguelito's Restaurant in Bringing a Gas Line
to their Proposed Site in Sanger.
City Manager, Jack Smith, indicated he was the one who instigated this coming to the
4A Board. Diana Cruz has approached Oncor about bringing a line to the Miguelito's
site in Sanger. She was quoted a price of over $40,000.00. He contacted Oncor and
they gave him a subcontractor wlw gave him a -quote-of $33, 480 for a four in-ch line.
Miguelito's needs a two inch line and Oncor will pay for the upgrade to the four inch
line. The two inch line would be around $27,000.00.
Vickie Jenkins asked if Miguelito would be tire only one benefitting from tire line.
City Manager explained that all of the properties from F.M. 455 up to the Miguelito's
site will be able to tie into this line. It will be a help to any one wanting to use natural
gas.
Discussion~
Richard Muir indicated there has been many gas extensions in the past few years. Be
asked bow these extensions were paid for.
City Manager indicated be did not know.
Discussion.
Diana Cruz, owner of Miguelito's, indicated she would love to come back to Sanger.
She indicated that she could PROVIDE tax statements and utility bills. She would
employ 50 to 60 people. She bas 3000 square feet in Krum, and would build a little
under 5000 square feet in Sanger.
Richard Muir asked if the request was for a grant or a loan.
Ms. Cruz indicated she was requesting a grant.
Carroll McNeill indicated he would like to see some of the sales reports.
Ms. Cruz submitted the tax reports and indicated that they paid close to seven thousand
dollars in sales taxes per month last year, and between two and three thousand dollars
per month in utilities. This location will have more seating than the Krum location.
Discussion.
Bill Fuller asked how long tM -extension will be.
Carroll McNeill indicated 2480 feet.
City Manager indicatffl it will end at Miguelito's.
Mayor indicated he did not feel that Oncor would even-consider jumping in on this-if
they did not feel it would make them money. They are offering to pick up around seven
thousand dollars for .over sizing it~
Discussion regarding 4A-regulations.
Vickie Jenkins indicated if they look at bringing the debt back to $850,000.00, there
would be about $239,000.00 available, with approximately $95,000.00 in reserve. The
payments would be the same. They voted previously to keep a year reserve in the bank
in case the sales tax dropped off they would be able to service the debt. They have
reduced the debt a lot. The sales tax averages $11,500.00 per month, and the note debt
is about $7500.00, the board could borrow back up to $850,000.00 without increasing
the monthly payment.
Carroll McNeill asked if it would be possible to increase that amount looking at the
history of deposits.
Vickie Jenkins indicated they could present it to a bank that way.
Discussion regarding the sewer line on the east side of the highway.
They would not pay for the line across the property, but a tap fee will be paid.
Richard Muir indicated he wanted to be equitable about what they do and put money
in areas that will be to the good of as many as possible.
End discussion on this item.
5. Consider and Possible Action on Proposal from Paul Vineyard Regarding Possibly
Locating Babe's Chicken in Sanger
Paul Vineyard, owner of Babe's Restaurant, addressed the board regarding this item.
He introduced two of his employees, and showed a chart of his request. He indicated
they were asking the board to give them the staying power if they need it. They will be
acquiring a loan, and would request that the 4A Board commit to loaning them the
funds to pay the first years interest payments, and fhe principal and interest the second
year. The interest for year one, would be $17,000.00. The second year the principal
and interest would be about $61,000.00, and this would be paid back to the 4A board
at 7% interest. This would be an increase to the board of over $11,000.00 dollars.
Discussed possible income to the city.
Bill Fuller asked how the money would be spent.
Mr. Vineyard indicated it would help with operating cost.
Bill Fuller asked if they would be buying supplies locally.
Mr. Vineyard indicated he would not be buying his chicken or some of his other
-supplies locally.
Vickie Jenkins asked what the expected 'Open date would be if they approved the loan
at this time.
Mr. Vineyard indicated they have asked Mr. Springer for five months to remodel. It
-could be the ffld -of this year -or beginning-of next year.
Vickie Jenkins asked Diana Cruz how far out she was.
Ms. Cruz indicated this was her last bid arul she plans t-o begin as soon as the gas
situation is taken care of.
Vickie Jenkins asked when they would have to pay for the line.
City Manager indicated they could start as soon as construction was started.
Discussed that gas line installation was fairly quick.
Vickie Jenkins indicated they could probably reserve that amount of money by not
applying as much to the current loan.
Discussion.
Carroll McNeill indicated that he felt the sewer line installation was top priority at this
time.
Richard Muir asked if it would be equitable to give one a loan and one a grant.
Carroll McNeill indicated that the gas line will benefit other individuals/organizations,
and that Mr. Vineyards reguest will only benefit him.
Bill Fuller asked if the gas line would service just the highway frontage.
Mayor indicated a four inch line will be able to run feeders to the east, and service
properties back behind it.
Discussion regarding both requests.
Discussion regarding securing of easements.
Richard Muir asked Ms. Cruz if they would keep both of their restaurants.
Ms. Cruz indicated that the lease is up in December in Krum. If it does not go well with
both, she would close the one in Krum.
Carroll McNeill indicated he would vote to do the sewer line at a ceiling of 150,000.00,
approve $66,000.00 for Ba-bes and $27,000.00 paid thru cash accrual for Miguelito's,
and if needed they could borrow an additional $216,000.00.
Vickie Jenkins moved to approve the $27,280.00 to install the gas line to Miguelito's
contingent upon Oncor's upgrading the sewer line to 4n and construction beginning on
Miguelito's before the gas line construction starts. Bill Fuller seconded. Motion
carried unanimously.
Carroll McNei11 moved that the board enter an agreement to loan funds to Paul
Vineyard D.B.A. Babes Restaurant and that it begin upon the first amortization of his
bank note, and after completion of the building and that in year one they make interest
payments and that in year two they pay Principal and Interest with accumulation at the
end ofyear1wo to not exceed $61,100.00, and a maximum three year pay off and that
Mr. Vineyard sign personally and corporately and that there be a lien against the
equipment. Vickie Jenkin-s -seconded. Motion carried unanimously.
6. Meeting adjourned.
Approved