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06/15/2006-4A-Minutes-RegularMINUTES: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: 4A SANGER, TX INDUSTRIAL DEVELOPMENT CORPORATION JUNE 15, 2006 President Richard Muir, Vickie Jenkins, Bill Fuller and Carroll McNeill Fred Yeatts Jack Smith City Manager. Rose Chavez City Secretary/Asst. City Manager, Cecile Carson, Economic Development Director 1. President Richard Muir called meeting to order. 2. Approve of Minutes: May 4, 2006 Minutes were approved as written. 3. Discuss Possible Infrastructure Assistance to Retail Development in the Downtown Area. Cecile Carson addressed this item and gave an overview of the 2005 updates of the Texas Economic Development Council. Ms. Carson discussed the four new items that were added for eligible projects. The one eligible project that is applicable is business related sewer utilities and site improvements which is now retail. The new information from the State Legislature is that 4A can expand sales tax proceeds for infrastructure improvements necessary to promote new or develop business enterprises in regards to roads, water, electric utilities, rail spurs, gas, drainage and related improvements and telecommunications and internet improvements. Ms. Carson discussed the improvements to downtown in regards to the meeting with Allen Nelson of Nelson Morgan Architects for a redesign of the transportation system on Bolivar Street to include new sidewalks, parking, and transportation through the downtown area. Cecile indicated that through discussions with the newly created Downtown Development Authority they are looking at different options for funding. As part of that project a request for related underground utilities, electric utilities and water utilities improvements may be submitted. Ms. Carson discussed the area that this encompasses which is about six city blocks. She also indicated that she hopes to have a plan update by July 13 th when the 4B has their scheduled meeting. 1) The note payable that 4A owes and balance needs to be down to about $150,000 to $200,000 before the board considers another big expense. 2) The amount the Board would entertain could be around $25,000 rather than $75,000. 3) The option would be if the tax dollars would increase by new development then the Board would consider a bigger amount. Discussion followed concerning sales tax revenues and to use these monies wisely. Ms. Carson discussed that the demand for Industrial Development in the United States is not progressing therefore adjustments are made to utilize funds to better economic conditions for the communities. Ms. Carson summarized that the only item to be considered for Main Street improvement is infrastructure improvements to downtown. President Muir indicated that the minutes of this meeting needed to reflect that the Downtown Group Association is pursuing funding from the 4A for an infrastructure project that will benefit the common good of downtown. Vickie discussed the balance of $389,560 of the Note Payable at Guaranty National Bank. The balance of the money market was at $187,346. 4. Discuss and Consider Incentive Criteria for the City of Sanger. Ms. Carson addressed this item and provided the board with samples of incentive packages from the City of Sachse and the City of Denision. The purpose was to for the City to provide guidelines for businesses concerning economic development incentives. Ms. Carson discussed the application process and the different terms and definitions. Discussed the recapture concerning default of an abatement agreement. Ms. Carson also discussed the requirements regarding the incentive package. Ms. Carson indicated that she is working on the proposal and in order to prepare a package she needs the 4A and 4B to make their recommendations and then it will be presented to the City Council for authorization. Ms. Carson indicated she is working with the Chamber of Commerce, and with an Economic Development Committee. Mr. Fuller and Mr. Jack Biggerstaff (Superintendent of SISD) serve on this Committee. The information and those resources will be used that represent all the entities thilt can be included in the incentive package which will be later presented to 4A and 4B for recommendations. Discussion on the incentives and terms of the package. Ms. Carson discussed the terms of the incentive package being somewhere between 3 to 5 years. Carol McNiell indicated that before funds are spent on infrastructure improvement in our downtown that some of the "mess" needs to be cleaned up. Ms. Carson explained that part of that is on the application for Main Street that is being proposed. This will include availability of grants as well as expertise from architects and planners. The Proposed Historical District will focus on all new construction criteria in the 1900 or 1920's. This would front Bolivar Street. She has also submitted a grant proposal to NCTCOG for the hiring of a Code Enforcement Officer to enforce code violation in our community. Ms. Carson advised that there is a community organization that supports downtown. President Muir inquired if this organization was planning to approach the 4A for funding and who are the members. Ms. Carson advised that the Downtown Development Association has members consisting of Downtown Merchants, Chamber of Commerce and Representatives. Ms. Vickie Jenkins inquired as to who appointed this committee. Ms. Carson advised that it was formed from self selected members and started with support from the Chamber of Commerce and as a committee they are forming a 501C status to have an independent status as a community organization. Ms. Carson indicated that she thought this Committee will also be approaching the 4B Board and seeking other sources of funding and will also pursue grant funding. The Texas Capital criteria is too difficult to meet this year, however, this is a possibility for next year. Discussion followed and concerns were expressed regarding the Note Payable that 4A is committed to pay. Ms. Carson discussed the donated architect services and possibly the services of an engineer. Discussion continued. President Muir indicated that this needs to benefit the common good of all the businesses in the downtown area. Discussion that before monies are spent that certain areas need to be cleaned up. Discussion followed concerning monies that have been spent by this board for boring under Interstate 35 for a sewer line. Concern was indicated that there has not been any development in the area that it was to benefit. The following issues were expressed by the Board: Discussion concerning what type of business will promote more economic development to qualify for the incentive package. Vickie Jenkins emphasized that the primary goal is not how much taxes a company pays but what it does for economic development. Ms. Carson again indicated she is working on the proposal and will use the resources from the team that has been organized, since they represent all the entities. Discussed incentives offered to businesses who sell retail versus grocery stores. Vickie Jenkins emphasized that the primary goal is not how much taxes a company pays but what it does for economic development for the entire community. City Manager indicated that the criteria needs to be considered regarding property tax valuation. 5. Discuss Amendments to By-Laws of the Corporation. Ms. Carson indicated in reviewing the by-laws there is no term limit; however, State Law requirement is a term of six years. The Board shall set meeting date, time and location at the Annual Meeting. The meeting date, time and location may be changed by the President with notice provided as set forth in the By-Laws. The Term of the Officer is not listed and suggestion was indicated, that a term be served from Annual Meeting to Annual Meeting. Ms. Carson indicated that the Attorney General opinion is that directors serve at the pleasure of City Council and serve as long as they wish to serve. If the Articles of Incorporation do not have a term then the term is six years. Recommendation by the Board for Ms. Carson to pursue this matter and present at next meeting. 6. List of Possible Future Agenda Items. 7. Adjournment. Approved