01/06/2009-4A-Minutes-RegularI
MINUTES: SANGER TEXAS INDUSTRIAL DEVELOPMENT
CORPORATION
January 6, 2009
MEMBERS
PRESENT: Bill Fuller, Vicky Jenkins, Gary Bilyeu, Fred Yeatts, and Carroll McNiell
OTHERS
PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez
1. Call Meeting to Order.
President Fuller called meeting to order.
2. Approval of Minutes: July 22, 2008.
Carroll McNiell made a correction to the minutes as follows:
Item 2 -correct the motion to read Carroll McNiell.
Vickie Jenkins made the motion to approve the minutes as corrected. Seconded by
Gary Bilyeu. Motion carried unanimously.
3. Update on Water and Wastewater Master Plan.
The City Manager proceeded with an update on the water and wastewater master
plan study. ·He indicated the Board had approved to fund a portion of this cost in a
previous meeting. He also advised the City Council approved the firm of KSA
Engineering to conduct the studies. They will start sometime this month and it will
be completed in June 2009. There were three firms that were interviewed to
conduct the study and KSA seemed to have more experience with smaller cities.
The other two fmns had expertise with larger cities and their prices were reflected
in their fees.· The total cost for the studies will be about $93,000 instead of the
estimated $80,000 which he anticipated. The price range of the other two firms was
over $150,000.00. The additional funds to cover this cost have been budgeted in the
City's General Fund Budget. He will have some preliminary reports for the April
meeting, and for the July meeting he should have the completed fmal studies.
KSA will look at all the existing infrastructure for water and wastewater in the City
and will look at the needs of the future, both in upgrading existing and new
infrastructure. They will also take a look at the wastewater: plant to get an idea of
, the initial size the plant needs to be. Currently, the plan is for 2-million gallon
capacity. It could be that the study could indicate a different projection on the size
of the plant.
President Fuller asked for the current capacity of the plant.
City Manager indicated the City is currently license at 980,000 gallons a day and the
City averages around 700,000 a day.
4. Discussion on Purchasing Warehouse Property for Economic Development
Purposes.
City Manager discussed that he would like to get the Board's opinion concerning
property that can possibly be used as an economic marketing tool. He advised that
the gentleman who is the owner of the We-Package It Plant contacted him before
Christmas on the possibility of the City having any interest in this building. The
building has been for sale for two years and currently there are not any prospects.
The building is listed for 1.25 million with a realtor, and the owner indicated to him
that he is willing to take significantly less than this for the building. The City
Manager advised that the City at one time was looking to purchase this building for
municipal purposes, and this was the reason the owner contacted him. He did advise
the owner that there might be some interest in the building from an economic
development standpoint. This is where he needs input from the Board on how to
proceed.
The City Manager continued and advised there are a lot of cities who develop
Industrial Parks, whether it is raw land or spec buildings, to market and use them
as a market incentive. This is done by selling the property below market price,
financing the property at a lower interest rate, or leasing the building below market
lease rates. As the company progresses, the lease can increase. It is a tool that a
lot of Economic Development Boards use to get people in their cities. This is a
marketing tool the City does not have. Currently what is offered are monetary
incentives and tax abatements. Recently, the City was on the short list for a
company to relocate to the City; however, this company went to Burleson. They had
an Industrial Park owned by Economic Development and their offer to this
company was free land. The City does not have anything like this in place. The
purchase of this building at a decent price would be an opportunity to start a baby
step toward an Industrial Park. This would be a marketing tool to entice some
type of manufacturer or warehouse-type business to locate in Sanger. The City of
Ardmore has done this for 15 or 20 years. Their Economic Development
Corporation owns several buildings in Ardmore. They have actually become a
revenue source for Economic Development. The tenants have been leasing those
buildings long enough that the lease payments have become a cash flow for
Economic Development. This does not occur overnight, but it happens over time.
The City already owns the lumber yard, and if they could purchase this
building and possibly purchase the additional two houses north of this property, it I
would give the City significant property to market.
,'
I
Vickie .Jenkins inquired on the size of the building and the acreage.
City Manager advised it is 51,000 square feet and has 4 ½ acres.
Discussion on the rail spur and the benefit this would be as a marketing tool
The City Manager asked the board members for direction on how they would like
for him to proceed in the purchase of land or buildings as economic incentive
as they move forward.
Vickie Jenkins inquired on the condition of the building.
The City Manager discussed the condition of the building and the improvements
that have been made. It was discussed if the building does not change use or more
than 50% remodel is not done, it will not be required to have a sprinkler system for
fire protection. The purchase of the property is not to make a profit but to use it as
an incentive for the purpose of creating jobs.
Discussion continued.
It was the consensus of the Board for the City Manager to proceed on contacting
Mr. Gaffke concerning the significant less price he is asking for this property. The
City Manager advised he will contact the members by e-mail regarding any
information.
5. Review Financials.
6.
City Secretary gave a brief review on the current and the year end financial reports
for revenues and expenditures; sales tax collected in 2007 and for 2008; which was
followed by an overview of the balances in money markets and certificate of deposit
accounts. A discussion continued concerning the interest rates that went into effect
January 1, 2009.
Brief discussion followed concerning the $25,000 transfer to General Fund and how
that . is appropriated. The funds are utilized within the Economic Development
budget in the General Fund and for 2008 the budget was $70,000. It also
compensates the City for the City Manager and the City Secretary's, time dedicated
for Economic Development.
Discussion followed concerning the type of sales that impact local sales tax.
Adjournment.
President Fuller declared meeting adjourned.