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HomeMy WebLinkAbout1997-11-04 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES NOVEMBER 4, 1997 The Board of Directors of the Euless Development Corporation met on Tuesday, November 4, 1997, in the Municipal Complex Conference Room of Building A, 201 North Ector Drive, Euless Texas. Board of Director Members Present Mayor Mary Lib Saleh, Chairman Council Member Bobby Baker, Vice Chairman Mayor Pro Tem Charles Miller Council Member Carl Tyson Citizen Member Ed Denari Citizen Member Letty Lynn Maloney City Manager Tom Hart, President Assistant City Manager Joe Hennig, Vice President Director of Economic Development David Witcher, Second Vice President Finance Director Loretta Getchell City Secretary Susan Crim, Secretary Members Absent Citizen Member Sonja Adams Visitors Glenn Porterfield CALL TO ORDER The meeting was called to order at 4:00 p.m. by Chairman Mary Lib Saleh. APPROVAL, MINUTES OF AUGUST 5, 1997 AND AUGUST 12, 1997 MEETINGS Upon motion by Letty Lynn Maloney and second by Bobby Baker for an amendment to the August 5, 1997, minutes to reflect that Vice Chairman Bobby Baker was present, the minutes of the August 5, 1997 meeting and the August 12, 1997 meeting were approved by unanimous vote. EULESS DEVELOPMENT CORPORATION NOVEMBER 4, 1997 PAGE 2 INTRODUCTION OF BOARD MEMBER APPOINTEE City Manager Tom Hart introduced Glenn Porterfield who was recently appointed to the Euless Development Corporation Board of Directors effective January 1, 1998. Mr. Hart stated that Ed Denari worked very hard to get the half cent sales tax approved by the voters and has been a member of the Board since the inception of the Corporation. Mr. Denari chose not to apply for reappointment at this time, and Mr. Hart thanked Mr. Denari for his hard work and years of service to the City. STATUS OF EULESS TOWN CENTER SHOPPING CENTER LOAN AGREEMENT City Manager Tom Hart stated that one of the ways the Corporation had used the Economic Development portion of the Half Cent Sales Tax had been for an interest free, $150,000 loan to the Prudential Company as an incentive for improvements to the Euless Town Center. Economic Development Director David Witcher stated that the agreement had been for Prudential to upgrade the Town Center Shopping Center, bring in new tenants and increase sales tax receipts. As of October 1, 1997 the loan became due and the specific amount of increase in sales taxes would determine the amount of the $150,000 loan to be repaid to the Corporation. It had been determined that approximately $59,000 will be repaid. Mr. Witcher also stated that Prudential has sold the shopping center to a corporation in California. Mr. Denari stated that the objective of the agreement had been to revitalize the shopping center and that had been accomplished. Mr. Denari asked what specific line item would contain the repaid loan amount. Finance Director Getchell stated it would be in the Capital (Miscellaneous Projects) line item of the Economic Development portion of the Corporation budget. Mr. Denari asked if there were any other projects under consideration. Mr. Hart responded that an offer was pending on the sale of the Western Hills Inn. A large corporation is looking at it and there is a possibility the Corporation might want to offer them a $350,000 incentive for improvements to the facade and parking lot. REVIEW OF FINANCIAL REPORT, QUARTER ENDING SEPTEMBER 30, 1997 Mr. Hart reviewed the Corporation's financial report for the quarter ending September 30, 1997. He stated that the Library budget has a $27,000 remaining balance that can be used for future needs of books, furniture, fixtures, etc. The $635,000 balance in the Parks budget can be used to acquire additional land and continuing work on Phase One of the Athletic Complex. Existing Park projects will be indefinitely continuing line items. The match for a State Trail Grant is unspent but will need to be paid in the future. Mr. Hart said that as sales tax receipts allow and as additional future grants are received, the City will continue work on other phases of the Athletic Complex. EULESS DEVELOPMENT CORPORATION NOVEMBER 4, 1997 PAGE 3 Mr. Hart stated the Economic Development budget balance of approximately $700,000 does not include the $59,000 repayment from the Town Center Loan Agreement. He stated that debt payments have been paid to date. Revenues have been increasing healthily over the first four years of existence of the Corporation Mr. Hart reported, and the ending capital project balance is $1,362,511. In reviewing the Operating Budget for Fiscal Year 1996-1997, Mr. Hart pointed out that receipts were $2,007,917, expenditures were $1,874,219 with an undesignated fund balance of $603,898 and a bond reserve of $935,203. He stated his goal has always been to maintain at least $500,000 in the debt payment reserve and the current balance is well above that. UPDATE ON CURRENT PROJECTS Mr. Hart pointed out the beginning fund balance of the Half Cent Sales Tax Fund Operating Budget is $1,539,101 and expected revenues for Fiscal Year 1997-1998 are $2,085,315 including interest income. Proposed expenditures are $1,674,686 with an additional undesignated contingency of $250,000, one time projects of$222,675, and a debt reserve of $935,203 the expected ending balance at the end of Fiscal Year 1998 would be $541,852. Ms. Maloney asked about increases in personnel in the Parks Department. Mr. Hart stated that the Athletic Complex will be opening and any new personnel required by new facilities can be paid with the Half Cent Sales Tax monies. Mr. Denari recommended the Board consider an audit of programs over the last four years to verify that all of the budgeted activities comply with State law. Mr. Tyson pointed out that new legislation now requires Development Corporations report annually to the State on the activities of the Corporation. Chairman Saleh suggested we have the auditor who prepares the City's annual audit do an extended review of the Euless Development Corporation along with the audit being currently conducted. Mr. Hart directed Finance Director Getchell to secure a letter from the City's auditor to verify that the activities of this Board have been in compliance with State law. Mr. Denari motioned to have the Corporation presented with a comprehensive compliance review of Corporation activities from its inception through September 30, 1997, with the method to be determined and cost not to exceed $1,500. The motion died for lack of a second. EULESS DEVELOPMENT CORPORATION NOVEMBER 4, 1997 PAGE 4 Mr. Denari motioned to have City Manager Hart investigate the cost of a full comprehensive compliance report and to describe what the report would include to verify this Corporation's activities from inception through September 30, 1997. Upon second by Ms. Maloney, the motion carried by unanimous vote. REPORT OF THE PRESIDENT Mr. Hart reported the City Council will be reviewing an entryway signage program at their next meeting. Mr. Hart stated that with approximately a ten percent increase in revenues in the Half Cent Sales tax receipts during Fiscal Year 1999, and if the City receives another State grant they have applied for, the City will be able to begin Phase Two of the Athletic Complex during Fiscal Year 1999. Vice Chairman Baker cautioned the Board about long term bonding of future projects as opposed to cash flowing a greater part of those projects. Mr. Denari commended Mr. Hart and the City staff for the great work they are doing and said the new library exists today because of their leadership. Chairman Saleh stated she is interested in public art at City facilities and would like to see the City of Euless leap forward over other cities in the area of cultural progress. Mr. Denari stated he believes the City of Euless is a prime target to be a corporate headquarter city. SCHEDULE NEXT REGULAR MEETING The next regular meeting was scheduled for Tuesday, February 3, 1998, at 4:00 p.m. ADJOURN There being no further business before the Corporation, the meeting was adjourned at 5:50 p.m. APPROVED: Mary Lib Ialeh, Chairman ATTEST: Su . n Crim, -ecretary