05/27/2009-4A-Agenda Packet-Regular,.
AGENDA
4A SANGER, TEXAS INDUSTRIAL DEVELOPMENT CORPORATION
WEDNESDAY, MAY 27, 2009
1:00 P.M.
502ELM
1. Call Meeting to Order.
2. Approval of Minutes: April 7, 2009
3. Authorize City Manager to Sign Loan and Closing Documents for Property Located
at 103 Bolivar Street, Sanger, Texas.
4. Review Financials.
5. Adjournment.
This facility is wheelchair accessible and accessible parking spaces are available. Requests
for accommodations or interpretive services must be made 48 hours prior to this meeting.
Please contact the City Secretary's office at (940) 458-7930 for further information.
•
MINUTES: SANGER TEXAS INDUSTRIAL DEVELOPMENT
CORPORATION
April 7, 2009
MEMBERS
PRESENT: Bill Fuller, Vickie Jenkins, Gary Bilyeu, and Carroll McNiell
MEMBERS
ABSENT: Fred Yeatts
OTHERS
PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez,
Steve Watkins with Elk River Investments
1. Call Meeting to Order.
President Fuller called meeting to order.
2. Approval of Minutes: February 10, 2009
Motion was made by Gary Bilyeu to approve the minutes as presented. Seconded
by Carroll McNeill. Motion carried unanimously.
3. Presentation by Elk River Investments on Marketing Options at 103 Bolivar.
The City Manager advised that as they have discussed before, in the purchasing of
the property at 103 Bolivar, it is important to get some professionals to market and
help manage that property. He has met with Elk River Investments several times.
They have some good ideas to market this property, re-develop the vacant property
around it, encourage companies to come to Sanger, and create jobs. Mr. Watkins
with Elk River Investments will make a presentation concerning marketing options
at 103 Bolivar.
Steve Watkins with Elk River Real Estate in Denton addressed the Board and
advised his company was founded about four years ago by John Pierson. Mr.
Pierson worked 7 years for Wiseman Group and 12 years for Staubauch Company.
He discussed Mr. Pierson's involvement and expertise in acquisitions during his
employment with these investment groups. Elk River investment portfolio of
properties is worth about $300 million. They are currently involved in a third-party
brokerage where they can represent other parties and their properties.
Mr. Watkins continued to discuss the marketing_ of the property located at 103
Bolivar. He presented a flyer that included · a property summary of the
warehouse/building as if they were representing the property. He indicated this was
an abbreviated version of what they would create in marketing this property. The
•
information was not 100% accurate, but it is what they could obtain from the
property tax rolls and what they could locate. This would give the members an idea
of the representation of the marketing capabilities that they have. They would
compile a profile of this property that would be marketed in the Metroplex and
nationwide for potential users to see. They would also use some of the contacts they
have on a national level. One of the advantages of this property is the rail access.
The potential uses included the warehouse, distribution, and light manufacturing.
Another advantage was the improvements to 2nd Street. He discussed that their
focus would be on a single-tenant user with the option to subdivide the property to
where it makes economic sense. Mr. Watkins continued to discuss the possibilities
for economic development for all of the surrounding property and the excellent
opportunity for smaller office warehouse-type properties in this location. Once they
have a tenant then they can facilitate the demand for the smaller properties.
Discussion continued that Elk River will assist with the purchase of the building,
leasing of the building, and assist with potential development. Their capabilities
include construction management, management of the property and the tenants,
whether it is one or several. Their company will be actively marketing the property
at all times.
Gary Bilyeu indicated it is important to have someone with their expertise that can
provide a service for the City and bas the capability to be able to market this
property throughout the country.
City Manager indicated the City bas something to offer that we did not have before.
In the past if people called with an inquiry, he would put them in contact with a
private property owner. In becoming a property owner, it is important to hire a
professional group that can market this property. He is convinced that Elk River
can do a great job. They also have other property in Sanger.
Discussion continued concerning the property, which consists of 4 acres, and with
the lumber yard it totals 5 acres. Mr. Watkins discussed the possibilities for the
different types of commercial development. There was discussion concerning the
City's ownership of the lumber yard and future development. Mr. Watkins
discussed rental rates for commercial structures.
Carroll McNiell indicated that when they started this program there were seven
vacant properties in downtown Sanger. He is concerned with the number of dollars.
The Board does have a reserve and income, but due to the economy, will this have
an impact on the market.
Mr. Watkins discussed the economy factor and market demands. Discussion
continued concerning development of the surrounding properties and the
competition with downtown •
•
City Manager indicated some of things they have talked about have been to sell
some of this property, do a long term ground lease on the property, and for private
investors to build the buildings. He sees those buildings not as competing with
downtown, but bringing more people to downtown to where they could shop or dine
in existing businesses. The priority is to get the building leased and creating some
jobs.
Vickie Jenkins asked if Elk River will assist in the purchase of the building, and is
this is why their service fee is 1 ½ percent.
Mr. Watkins indicated that they would assist in the purchase and the 1 ½ percent
represents their fee.
Vickie Jenkins then asked if the building is leased, will there be an additional fee for
this.
Mr. Watkins indicated this property will be marketed, and most likely there will be
a broker who will represent their tenant. The leasing fee for industrial-type
properties is 4 ½ percent and this goes to the broker who brings in the deal. The
listing broker will be paid a fee of 2 ½ percent. Mr. Watkins discussed how the fee
is calculated and that it is paid up front at the lease signing or upon occupancy.
Discussion continued regarding the leasing of the property and the fees.
President Fuller indicated the Board is not out any money until they bring in the
client, the exception would be if there is a convention where they can market the
property. At this time, they may come and ask for cost participation for those
expenses.
City Manager explained that the agreement they have to consider is for Excel Realty
to act as their broker in buying their property. There is not an agreement that has
been negotiated for the marketing of the property. The presentation was to allow
Excel Realty Investments the opportunity to make a presentation to the members.
4. Update on Purchase of 103 Bolivar.
The City Manager provided an update concerning the purchase of the property at
103 Bolivar. The contract has been received by their broker; changes were made,
and it was faxed back to them on Tuesday. He has contacted him by e-mail and he
is still waiting for the contract to get back. He has also met with the bank and has
provided all the information that they were requiring for the loan. It is all moving
forward.
It was discussed that the bank will take the real estate as collateral on the loan •
President Fuller asked if the property has had a commercial inspection or has the
building inspector looked at the property.
The City Manager advised that the Building Inspector and the City Engineer have
been through the building on more than one occasion. There was a Phase I Study
done two years ago when another company was looking at purchasing the property.
They did find some mold in the building and that was remediated. The building
was retested and he has all the documentation. Most of the due diligence stuff has
been done.
Vickie Jenkins asked if they will require a commercial appraisal.
City Manager indicated he did not have an answer from them concerning the
appraisal, but they will use the survey that was done a year ago.
Vickie Jenkins indicated the cost for the appraisal is about $2500.00.
It was discussed that the total cost for the property is $825,000, with 20% down of
$165,000 leaving the balance to finance for a 15-year loan at 4.6% interest. The
monthly estimated payments of $5,084.00.
5. Consider and Approve a Professional Services Agreement Between the Sanger 4A
Economic Development Board and Elk River Realty LLC, Authorizing Elk River to
Act as the City's Broker in the Purchase of Property at 103 Bolivar.
Motion was made by Vickie Jenkins to approve the professional service agreement
between Sanger 4A Economic Development Board and Elk River Reality LLC,
authorizing Elk River to act as the City's broker in the purchase of property at 103
Bolivar. Seconded by Carroll McNiell. Motion carried unanimously.
6. Review Financials.
City Secretary gave a brief review of sales tax collections.
7. Adjournment.
President Fuller adjourned the meeting.
4A DEPOSITS
20001 2001 I 2002 I 2003 I 2004 I 2005 I 2006 I 2007 I 2008 I 2009
I
JAN. I $81083.931 $81937.431 $101348.82 I $101188.221 $251847.62 I $131993. 78 I $16,264.50 I $161691.41 I $171436.571 $22,880.041
[ I
FEB. I $91763.371 $111840.64 I $141870.781 $141840.341 $171485.761 $21?79.91 I $211513.62 I $191601. 101 $221071.091 $231228. 79 I
r I
I
MARCH I $101384.631 $81984.181 $9,209.151 $121446.361 $13,382.911 $141254.431 $161620.931 $161472.341 $191892.63 I $241179.62 I
l
APRIL I $81416.521 $91517.251 $91195.021 $91202.141 $12,224.771 $141166.101 $171198.171 $151482.00 I $181511.54 I $161279.44 I
[ I
MAY 1 $101323.151 $141946.441 $101623.561 $151125.041 $201311.371 $201556.141 $171428.361 $26.767.831 $221166.33 I $24z744.75
JUNE I $71953.661 $101131.01 I $111911.061 $141358.11 I $181276.941 $151585.541 $231063.99 I $17,172.671 $19,338.741
I
JULY I $71642.301 $12/84.181 $101597.471 $111370.28 I $161692.361 $161914.661 $171896.761 $191127.61 I $20?03.081
C
I
AUGUST I $101854.25 I $17I035.ool $141962.171 $161132.421 $191354.71 I $201375.581 $241003.151 $241581.421 $251288.44 I
SEPT. I $71103.501 $1 \612.081 $121928.161 $131140.49 I $15.725.621 $161977.991 $19.746.741 $261990.121 $211583.44 I
OCT. I $101136.271 $281586.96 I $13,940.441 $111426.721 $161084.641 $171074.51 I $11,042.71 I $241397.631 $211510.39 I
I
NOV. I $111975.61 I $16,166.11 I $14,246.901 $171184.881 $22.700.731 $201661.061 $241265. 79 j $221846.791 $241645.13 I I I ,
DEC. I $7,860.371 $101397.06 I $101198.24 I $121570.11 I $161179.851 $191822.071 $171830.91 I $171961.61 I $19,213.551 I
TOTAL $110,497.56 $160,938.94 $143,031.77 $157,985.11 $214,267.28 $212,161.77 $226,875.69 $248,092.53 $252,360.93
•
5-20-2009 03: 21 PM
41 -4A CORPORATION
REVENUE SUMMARY
4A REVENUES
TOTAL REVENUES
EXPENDITURE SUMMARY
75-4A EXPENSES
*** TOTAL EXPENDITURES ***
** REVENUES OVER(UNDER) EXPENDITURES
TOTAL OTHER FINANCING SOURCES (USES)
•
C I T Y O F S A N G E R
FINANCIAL STATEMENT
CURRENT
BUDGET
222,500.00
222,500.00
81,400.00
81,400.00
141,100.00
0. 00
o.oo
0 .00
AS OF: MAY 31ST, 2009
CURRENT
PERIOD
24,909.88
24,909.88
o. 00
0.00
24,909.88
o.oo
0. 00
0.00
Y-T-D % OF
ACTUAL BUDGET
185,364.25
185,364.25
61,957.77
61,957.77
123,406.48
0.00
0.00
o.oo
83.31
83. 31
76 .12
76.12
87.46
0.00
0.00
0.00
Y-T-D
ENCUMB.
0. 00
0.00
0.00
0.00
0.00
0.00
o.oo
0.00
PAGE:
BUDGET
BALANCE
37,135.75
37,135.75
19,442.23
19,442.23
17,693.52
o.oo
0.00
0.00
5-20-2009 03:21 PM
41 -4A CORPORATION
RE'
REVENUES
4A REVENUES
00-4000 LOAN PROCEEDS
00-4425 STATE SALES TAX
00-4800 INTEREST INCOME
00-4940 DONATIONS
00-4950 PRIOR YEAR INCOME
00-4985 TRANSFERS OUT FR 4A TO GF
TOTAL 4A REVENUES
TOTAL REVENUES
•
CITY OF SANGER
FINANCIAL STATEMENT
CURRENT
BUDGET
o.oo
240,000.00
7,500.00
0. 00
0.00
25,000.00)
222,500.00
222,500.00
AS OF: MAY 31ST, 2009
CURRENT
PERIOD
0.00
24,744.75
165.13
o.oo
0. 00
0. 00
24,909.88
24,909.88
Y-T-D % OF
ACTUAL BUDGET
0. 00 0. 00
176,681.71 73.62
8,682.54 115.77
0.00 0.00
0.00 0.00
o.oo o.oo
185,364.25 83.31
185,364.25 83.31
Y-T-D
ENCUMB.
o.oo
o. 00
0. 00
0.00
o.oo
o.oo
0.00
0.00
PAGE:
BUDGET
BALANCE
0.00
63,318.29
1,182.54)
0.00
o.oo
25,000.00)
37,135.75
37,135.75
5-20-2009 03: 21 PM
41 -4A CORPORATION
75-ENSES
DEP T EXPENDITURES
C I T Y O F S A N G E R
FINANCIAL STATEMENT
CURRENT
BUDGET
AS OF: MAY 31ST, 2009
CURRENT
PERIOD
Y-T-D % OF
ACTUAL BUDGET
Y-T-D
ENCUMB.
PAGE:
BUDGET
BALANCE
----------------------------------------------------------------------------------------------------------------------------------
52-SUPPLIES AND MATERIALS
75-5200 CHECK CHARGES
75-5205 FOOD
75-5210 OFFICE SUPPLIES
75-5215 TRAVEL & REGISTRATIONS
75-5220 DUES
75-5225 PUBLICATIONS/SUBSCRIPTIONS
75-5235 DUES & REGISTRATION
75-5240 TRAVEL
TOTAL 52-SUPPLIES AND MATERIALS
54-CONTRACT SERVICES
75-5410 INSURANCE
75-5420 CONTRACTUAL SERVICES
75-5425 LEGAL FEES
TOTAL 54-CONTRACT SERVICES
65-P JECTS
75-6500 PROJECTS
75-6505 LOAN PAYMENTS/20066800
TOTAL 65-PROJECTS
DEPARTMENT TOTAL
TOTAL EXPENDITURES * * *
OTHER FINANCING SOURCES (USES)
TOTAL OTHER FINANCING SOURCES (USES)
*** END OF REPORT***
o.oo
0. 00
200.00
0. 00
0. 00
200. 00
250.00
750.00
1,400.00
0.00
0. 00
o.oo
0 .oo
40,000.00
40,000.00
80,000.00
81,400.00
81,400.00
0. 00
0.00
0.00
o.oo
o.oo
0.00
o.oo
o.oo
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00
0. 00 o. 00
98.70 49.35
0. 00 0.00
0. 00 o.oo
o.oo 0.00
0.00 0.00
0.00 0.00
98.70 7.05
0.00 0.00
o.oo 0,00
_____ o_._o_o o.oo
0.00 0.00
10,000.00
51,859.07
61,859.07
61,957.77
61,957.77
0.00
25. 00
129.65
77.32
76 .12
76.12
0.00
0.00
0.00
0.00
0.00
o.oo
0.00
0.00
0. 00
0.00
0. 00
0.00
0.00
0.00
0.00
0.00
0. 00
0.00
0.00
0.00
0.00
o.oo
101.30
0.00
0.00
200.00
250. 00
750.00
1,301.30
0.00
0.00
0. 00
0. 00
30,000.00
11,859.07)
18,140.93
19,442.23
19,442.23
0.00
5-20-2009 03: 22 PM
41 -4A CORPORATION
ACCT# ACCOUNT NAME
ASSETS
41-00-1010 CASH
41-00-1011 SANGER TX,IND,DEV,CD.67516/4A
41-00-1012 MONEY MARKET (4A) INV.
41-00-1013 SANGER TX IND CORP CD#486639
41-00-1014 SANGER TX IND DEV, CD#568058
41-00-1053 RECEIVABLE-OTHER
41-00-1060 DUE FROM GENERAL FUND
41-00-1062 AMOUNT TO BE PROVIDED L-T-D
TOTAL ASSETS
LIABILITIES
41-00-2201 N/P GNB
TOTAL LIABILITIES
FUND BALANCE
020 FUND BALANCE
TOTAL BEGINNING FUND BALANCE
TOTAL EQUITY/FUND BALANCE
REVENUES
41-00-4000 LOAN PROCEEDS
41-00-4425 STATE SALES TAX
41-00-4800 INTEREST INCOME
41-00-4940 DONATIONS
41-00-4950 PRIOR YEAR INCOME
41-00-4985 TRA.NSFERS OUT FR 4A TO GF
TOTAL REVSNUES
EXPENDITURES
=======-----
41-75-5200 CHECK CHARGES
41-75-5205 FOOD
41-75-5210 OFFICE SUPPLIES
41-75-5215 TRAVEL & REGISTRATIONS
41-75-5220 DUES
5225 PUBLICATIONS/SUBSCRIPTIONS
5235 DUES & REGISTRATION
41-75-5240 TRAVEL
41-75-5410 INSURANCE
CITY OF SANGER
BASE TRIAL BALANCE
AS OF: MAY 31ST, 2009
*** MONTH TO DATE ***
DEBITS CREDITS
6,181.69
0,00
30,926.44
165,13
0. 00
0. 00
0, 00
0. 00
31,091.57 6,181.69
0,00
0.00 0.00
_____ o_._o_o ______ _
0.00 0.00 -------
0.00 0.00
0.00
24,744.75
165.13
0.00
0,00
0.00
0,00 24,909.88
0,00
0, 00
o. 00
0.00
0.00
0.00
0. 00
0.00
0,00
PAGE:
*** YEAR TO DATE
DEBITS
1,500.00
0,00
167,875.94
89,454.94
213,884.49
24,397.63
0,00
CREDITS
272,623.90 -------
769, 736,90 0.00
272,623, 90
0,00 272,623.90
373, 706,52
0.00 0.00 -------
0.00 373,706.52
0.00
176,681.71
8, 682. 54
0,00
0. 00
0,00 -------
0.00 185,364.25
0.00
0, 00
98.70
0,00
0,00
0.00
0,00
0.00
0.00
5-20-2009 03: 22 PM
41 -4A CORPORATION
ACCT# ACCOUNT NAME
EXPENDITURES (CONT)
41-75-5420 CONTRACTUAL SERVICES
41-75-5425 LEGAL FEES
41-75-6500 PROJECTS
41-75-6505 LOAN PAYMENTS/20066800
TOTAL EXPENDITURES
* * * TOTALS BALANCE w * *
*** END OF REPORT***
CITY OF SANGER
BASE TRIAL BALANCE
AS OF: MAY 31ST, 2009
*** MONTH TO DATE***
DEBITS
0.00
o.oo
0.00
CREDITS
_____ 0_._0_0 ______ _
o.oo 0.00
31,091.57 31,091.57
PAGE:
*** YEAR TO DATE
DEBITS
0.00
o.oo
10,000.00
51,859.07
61,957.77
831,694.67
CREDITS
0. 00
831,694.67