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HomeMy WebLinkAbout1996-08-07 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES AUGUST 7, 1996 The Board of Directors of the Euless Development Corporation met on Wednesday, August 7, 1996, in the Council Chambers, Euless Municipal Complex, 201 North Ector Drive, Euless, Texas. Members present included: Mayor Mary Lib Saleh, Chairman of the Board of Directors Council Member Charles Miller Council Member Carl Tyson Citizenmember Sonja Adams Citizenmember Edward Denari Citizenmember Letty Lynn Maloney City Manager Tom Hart, President Assistant City Manager Joe Hennig, Vice President Director of Economic Development Tom Cox, Second Vice President Finance Director Diana Ortiz, Treasurer City Secretary Susan Crim, Secretary Deputy City Secretary Cathy DiMaggio, Assistant Secretary Members absent included: Mayor Pro Tern Bobby Baker, Vice Chairman of the Board of Directors Other staff present included: Director of Community Services Rick Herold CALL TO ORDER The meeting was called to order at 4:06 p.m. by Chairman of the Board of Directors, Mary Lib Saleh. APPROVAL OF MINUTES OF MARCH 25, 1996 MEETING Upon motion by Mr. Denari and second by Mr. Miller, the Minutes of the March 25, 1996 meeting were approved as presented by unanimous vote. UPDATE REPORT ON CURRENT PROJECTS City Manager Tom Hart stated that he-wished to begin the update on current projects with a financial update on the 37-month program which will end September 30, 1996. The 37-month plan was designed over several months to include the initial bond sale and interest earnings EULESS DEVELOPMENT CORPORATION MINUTES AUGUST 7, 1996 PAGE 2 and monthly cash flow to accomplish several projects. Mr. Hart noted that more projects have been realized than were anticipated at the beginning of the budget planning process. Mr. Hart said that it is projected that this year's half cent sales tax collections will amount to approximately $1,660,000. Sales tax collections for the first eleven months of this fiscal year are up 9.8%. Discussion took place on monthly fluctuations in sales tax collections which may result from some businesses paying sales tax on a quarterly basis or on an annual basis. Finance Director Diana Ortiz distributed an updated report of the half cent sales tax collections for FY 96. Community Services Director Rick Herold reported that the Parks at Texas Star would be under construction soon. The project was awarded to Architectural Utilities, Inc. and Assistant City Engineer Andrea Baxter will oversee this project as well as the golf course clubhouse. The design for the hike and bike trail has been completed and construction should begin late this year and will connect FM 157 and State Highway 360 with a 12-foot all-purpose concrete path. The project will take approximately five to six months to complete. Several upgrades are currently being undertaken in the park system including new playground equipment at Trailwood Park, an outdoor basketball court and renovations to tennis courts. City Manager Tom Hart asked Mr. Herold about plans for the Senior Citizen Project funds. Mr. Herold responded that the senior citizens have several ideas, but no decisions have been made at this time. Mr. Tyson asked that the Board be provided with cost estimate to complete these projects. City Manager Hart said that the financial reports which were provided in the agenda packet did contain this information and he will point out the figures Mr. Tyson requested as they come to them in the financial spreadsheets. Mr. Hart noted that if Mr. Tyson would like to see these figures reported in a different manner, staff would do so. Economic Development Director Tom Cox gave an update on economic development projects. Mr. Cox reviewed an agreement with Prudential with regard to Town Centre, whereby Prudential had the opportunity to choose one 12-month period within a 30-month time frame to achieve a $15 million sales increase. Prudential has opted to choose October 1, 1996 to September 31, 1997. If this sale increase is achieved, there will be a significant increase in sales tax. If this sales increase is not realized, Prudential will be required to make a payment to the City on October 1, 1997. A MacFrugal's store will be starting construction within the next 45 days and will be the last major anchor store in the Town Centre. Several businesses in the Town Centre have expanded during the past year and there are several businesses expected to open in the near future including a communications store, an optical store and a consumer credit store. There is a strong possibility of two hotels being built in the city, one near the LaQuinta and one on State Highway 121 near the Mansions by the Vineyard Apartment complex. Mr. Tyson asked if the possibility was still being considered to move the entrance ramp to State Highway 183 further west. Mr. Hennig replied that this was an option in an early draft of the State Highway 183 widening project, but there is no assurance that the ramp will be changed. Chairman EULESS DEVELOPMENT CORPORATION MINUTES AUGUST 7, 1996 PAGE 3 Saleh added that at a recent meeting with the Texas Department of Transportation, it was indicated that several projects had been running behind and,therefore,the State Highway 183 widening project may be many years in the future. Board Member Sonja Adams entered the meeting at 4:40 p.m. Mr. Cox reported that the first Tuesday in September, Western Hills will be sold to satisfy tax liens and the city will be placing a bid on the property at that time. Mr. Denari said that it seems that Euless and the HEB area would be an ideal location for corporate headquarters. Mr. Denari said he would like to see the location of three or four corporate headquarters included in future economic development goals for the City of Euless. Mr. Cox agreed and said the State Highway 121 area is being considered as an overlay district which would contain enhanced zoning and stringent requirements to be set aside for corporate development. Mr. Denari also stated he would like to see the City of Euless become the location of choice for telecommunications businesses. Mr. Hart said the library project is fundamentally completed, with some automation still to be completed and landscaping to be redone. Mr. Tyson commented that he had noticed a problem with drainage on the amphitheater floor. Mr. Herold said this is being addressed with the contractor and a retainage amount is being held pending satisfactory completion of the project. FINANCIAL UPDATE ON CURRENT FISCAL YEAR Mr. Hart reviewed the remaining balances in Library, Parks and Economic Development and discussed each of the projects within these categories. Mr. Hart pointed out that the spreadsheet titled "37 Month Fund Summary as of June 1996" contained an "Estimated to Complete" column for each of the projects. Mr. Hart stated that $300,000 is needed for the athletic complex project and recommended that $170,000 from the library project be transferred to the athletic complex. Mr. Hart explained that $100,000 was left over from Restricted New Positions because of staggered hiring and $70,000 remained in Contingencies. Another $115,000 will be transferred from the Parks fund to the Athletic Complex, ($75,000 of this $115,000 came from Additional Land Acquisition). Mr. Hart reported that the Parks budget was up $1.5 million from the last quarterly report because another$1.5 million bond sale is anticipated. Mr. Hart reviewed the line items and pointed out that $740,000 has been paid back to the golf course and is shown on the Revenues section of the "37 Month Fund Summary." The $740,000 has been redistributed to the line items ($340,000 land loan; $221,000 golf development loan and $180,000 among several line items). Mr. Miller requested a breakdown of the expenditures from Existing Park Projects and asked that the Board be kept informed of the expenditures and proposed projects to be completed ,.., with the $501,000 from this line item on a quarterly basis. Mr. Hart commented that $1,000,000 from the General Fund bond sale has gone into the Athletic Complex as well as a $500,000 fund transfer from the General Fund and a $500,000 EULESS DEVELOPMENT CORPORATION MINUTES AUGUST 7, 1996 PAGE 4 grant. All of these funds combined with the Half Cent Sales Tax Fund of approximately $7,000,000 bring the total to $9,000,000 that has been either expended for projects, is currently being used for projects in progress or is in the bank for projects. Ms. Maloney commended staff for their hard work in building the aforementioned projects. Ms. Maloney said she would like to speak on behalf of the women employed by the city and asked that while these projects are being built that the image of the city be considered with regard to how the employees are cared for, particularly those who are marginally paid. Mr. Denari responded that the city has a responsibility to administer the city within federal guidelines, including equal employment opportunities and grievance procedures, both within the scope of the expenditure of half cent sales tax funds and other city funds. Mr. Hennig commented that the staffing of the library was accomplished in a way that was felt to be most efficient and cost effective and was certainly in no way discriminatory and federal guidelines were strictly adhered to. Mr. Hennig said that the employees hired for athletic complex and golf course maintenance have also been hired on a part-time basis. Ms. Maloney stated that statistics show that women still make less money than men for the same work and although the city follows federal guidelines this is not the same thing as being an exemplary employer in regards to attracting and retaining employees. Mr. Hennig replied that employee turnover in the city is the lowest in the area. Mr. Hart said that the majority of Economic Development funds have been expended on the incentive for the Town Centre. Two projects which are planned for this year are the Main Street Revitalization project and the signage project on State Highway 10 and Airfield Drive. Funds for the Main Street Revitalization project will come from the following sources: $100,000 from Projects, $200,000 from Capital Improvement Projects (CIP), $100,000 from General Fund and $100,000 from Water and Sewer. The golf course and athletic complex signage program on State Highway 10 and Airfield Drive will be funded with $100,000 from Incentives. Mr. Hart stated he would like to make the Board aware that he had been approached by a developer regarding the possibility of building a bridge across Bear Creek at Mid-Cities and State Highway 121 to eventually allow a north/south traffic flow between Glade Road and Mid-Cities Boulevard/Cheek-Sparger. Mr. Hart reviewed revenues for the 37-month period, including sales tax collections, bond proceeds, interest income and loan repayment. The projected fund balance as of September 30, 1996 is $1,417,000, of which $809,000 is mandated for debt reserve. Mr. Hart said there would then remain an unrestricted reserve of $607,000 to begin FY 96-97. Sales tax collection for FY 96-97 is projected at$1,756,008, with interest income of$65,000, for a total of$1,821,008. Proposed expenditures for FY 96-97, including debt service,total$1,515,016, leaving a projected ending balance of $663,823, plus a reserve of $250,000. Mr. Hart reported that he has asked the City Council for $400,000 to finish out the golf course clubhouse and conference center from the balance of $913,823 ($663,823 plus $250,000), which would still leave a working capital of a little more than $500,000 in the Half Cent Sales Tax Operating Budget for FY 96-97. Mr. Hart recommended adding this $400,000 expenditure to the FY 96-97 budget. Mr. Miller asked if the $400,000 would be repaid to the Half Cent Sales Tax Fund. Mr. Hart replied that it was not his intention, but it is possible to repay it from hotel/motel tax revenue. EULESS DEVELOPMENT CORPORATION MINUTES AUGUST 7, 1996 PAGE 5 Mr. Denari stated that if there would be revenue produced from renting the golf course clubhouse and conference center, the Half Cent Sales Tax Fund should be repaid. Mr. Miller expressed concern that if these funds were not repaid, there may not be sufficient money for economic development incentives in the future when needed. He requested that the minutes reflect the intention of the Euless Development Corporation Board of Directors is that the $400,000 be put back into the Half Cent Sales Tax Fund from the hotel/motel tax revenues to allow the flexibility for this Board to be able to provide incentives to potential businesses in the future. PUBLIC HEARING - PARKS AT TEXAS STAR Chairman Saleh opened a public hearing at 5:50 p.m. for the purpose of hearing input from citizens on the Parks at Texas Star project. Mr. Hart stated that the first $1 million dollars in the athletic complex budget was from the original $8 million bond sale for initial infrastructure. The next$1.5 million from bonds to be sold will be used to build actual park improvements at the Texas Star Athletic Complex and will be reflected in the line item in the Parks section. These funds will be transferred from the sales tax to the athletic complex project for Phase I of the facility. Phase I of the project totals approximately $5 million. There were no citizens present who wished to speak regarding the Athletic Complex project. Mr. Denari asked if the City has clear title to the land. Mr. Hart explained that there was an original provision that the land must be used to build a golf course and this has been cleared from the land title and the only remaining concern is the rollback taxes which are owed on the property. Mr. Denari asked if the public hearing had been published in the newspaper. Chairman Saleh replied that the hearing was published in the newspaper. Chairman Saleh closed the public hearing at 5:52 p.m. APPROVAL OF REVISIONS TO THE 1995-96 FISCAL YEAR BUDGET Upon motion by Mr. Denari and second by Ms.Adams the revisions to the 1995-96 fiscal year budget were approved as presented by unanimous vote. APPROVAL OF THE 1996-97 FISCAL YEAR BUDGET Mr. Hart requested approval of the FY 1996-97 Half Cent Sales Tax Budget as presented with a notation that$400,000 will be budgeted from fund balance to be moved to the conference center/clubhouse with the understanding that the determination of repaying the $400,000 from hotel/motel tax revenues to be made at a later date. The Main Street project will come from the Project funds and the Airfield Drive/State Highway 10 signage project will come from Incentives funds. EULESS DEVELOPMENT CORPORATION MINUTES AUGUST 7, 1996 PAGE 6 Upon motion by Mr. Denari and second by Mr. Miller the FY 1996-97 Half Cent Sales Tax Budget was approved as presented with total revenues of$1,821,008 and total expenditures of $1,515,016 by unanimous vote with the following stipulations: 1) a $400,000 loan, in the form of a tax free note, to fund the conference center/clubhouse will be repaid by the Hotel/Motel fund if a determination is made by the Board at a later date to call such loan; 2) the Main Street project will be funded from the Projects fund and the Airfield Drive/State Highway 10 signage project will be funded from the Incentives fund. AUTHORIZATION OF SALE OF BONDS TO FUND PARKS AT TEXAS STAR PROJECT Mr. Hart reported that bond counsel had recommended that the Board take action to start the bond sale process. The actual bond sale will take place on August 27, 1996. Mr. Hart pointed out that with this bond sale, the debt payment will escalate to $931,000, but a good coverage ratio is being maintained. Upon motion by Mr. Miller and second by Mr. Denari the Board authorized a$1.5 million bond sale to fund the Parks at Texas Star project by unanimous vote. REPORT FROM BOARD PRESIDENT No further report was given by Board President Tom Hart. SCHEDULE DATE AND TIME OF NEXT MEETING A meeting was scheduled for August 27 at 3:30 p.m. to take formal action to sell bonds. It was agreed that quarterly meetings will be scheduled early in the second month following the end of a quarter. ADJOURN There being no further business before the Corporation, the meeting was adjourned at 6:06 p.m. ATTEST: APPROVED: 714 juc) ._ Susan Cri - , Secretary Mary Lib S leh, Chairman MINUTES\8-7-96.EDC Half Cent Sales Tax Fund FY 96-97 Operating Budget - Proposed Beginning Fund Balance, Oct. 1,1996 $607,831 Revenues: Sales Tax Collections $1,756,008 Interest Income $65,000 Total Revenues: $1,821,008 Expenditures: Parks Personnel ($149,010) Operating ($50,990) Capital $0 Subtotal ($200,000) Library Personnel ($256,288) Operating $0 Capital �0 Subtotal ($256,288) Economic Development Personnel ($36,826) Operating ($90,674) Capital �0 Subtotal ($127,500) Debt Service ($931,228) 51.14% Total Expenditures: ($1,515,010 Reserve ($250,000) Ending Balance, 9/30/97 $663,823 07/30/96