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HomeMy WebLinkAbout1999-02-16 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES FEBRUARY 16, 1999 The Board of Directors of the Euless Development Corporation met on Tuesday, February 16, 1999, in the Building A Conference Room of the Municipal Complex, 201 North Ector Drive, Euless Texas. The following persons were in attendance: Mayor Mary Lib Saleh, Chairman Council Member Bobby Baker, Vice Chairman Mayor Pro Tern Charles Miller Council Member Carl Tyson Citizen Member Lefty Lynn Maloney Citizen Member Sonja Adams Citizen Member Glenn Porterfield City Manager Tom Hart, President Deputy City Manager Joe Hennig, Vice President Director of Economic Development David Witcher, Second Vice President Finance Director Loretta Getchell, Treasurer City Secretary Susan Crim, Secretary Director of Community Services Rick Herold Council Member Glenn Walker CALL TO ORDER The meeting was called to order at 4:05 p.m. by Chairman Mary Lib Saleh. APPROVAL. MINUTES OF AUGUST 4. 1998 MEETING Upon motion by Bobby Baker and second by Glenn Porterfield, the minutes of the August 4, 1998, meeting were approved by unanimous vote. ACCEPTANCE OF FISCAL YEAR 1998 ANNUAL AUDIT Finance Director Loretta Getchall introduced Kerry Caves and Brad Jay of Weaver and Tidwell, L.L.P. They presented the Financial Report for the Euless Development Corporation for the year ended September 30, 1998. Mr. Caves stated that the audit was conducted in accordance with generally accepted auditing standards and received an Unqualified Opinion, the highest possible rating. There were no material weaknesses noted. EULESS DEVELOPMENT CORPORATION February 16. 1999 Page 2 Charlie Miller questioned the amount of $247,257, an operating transfer to the City of Euless. Tom Hart stated $110,000 was for Phase I of the Athletic Complex, $100,000 was for the beginning engineering and plan for Phase II of the Athletic Complex, and the remaining $37,257 was for debt service. Upon motion by Sonja Adams and second by Bobby Baker, the Fiscal Year 1998 Audit of the Euless Development Corporation was accepted by unanimous vote. REVIEW OF FINANCIAL REPORT. QUARTER ENDING DECEMBER 31. 1998 Joe Hennig reported that sales tax receipts are in line with budgeted projections and operating expenditures are slightly below budget. He stated that a business located in another city had been reporting their sales tax to the State Comptroller as though they were in the City of Euless. The tax paid to the City of Euless incorrectly will have to be returned to the State for payment to the correct city. The Euless Development Corporation portion for the last four years is $416,329. The impact for the current year will be approximately $90,000 and future year impact can be expected to be approximately $150,000. He also reported that a business located in the City of Euless has been paying its sales tax to another city, and when that business is audited it may be found to owe sales tax to the City of Euless. Loretta Getchell explained the extreme confidentiality of the sales tax reports and how difficult it is to determine the correctness of the reports. She recommended using the Euless Development Corporation=s contingency to repay the sales tax overpayment over the next 10 years. Tom Hart commented that the most significant thing the City of Euless has done in recent years was the passage of the half-cent sales tax and consequently the formation of the Euless Development Corporation. He said the Board has definitely used the sales tax for the type of projects the citizens were told would be undertaken, and the half cent sales tax was the catalyst that let the City purchase Softball World and construct the golf course even though the sales tax did not fund those projects. Mr. Hart reported the Board has a good contingency fund and the ability to proceed with some additional good projects. He said he felt he was leaving the City with a great staff. UPDATE ON CURRENT PROJECTS Joe Hennig reported that the mall developer is still very encouraged that his project will evolve even though the school district is no longer a part of the Tax Increment Financing District, and therefore that funding vehicle is probably no longer feasible. David Witcher distributed draft copies of the DFW Airport Master Plan being developed for their properties located in the City of Euless. EULESS DEVELOPMENT CORPORATION February 16, 1999 Page 3 David Witcher announced that the Dallas Stars are negotiating with City officials to build a $9,650,000 ice skating facility at the Parks at Texas Star. He distributed a draft of the letter of intent for the project and stated that the project would be similar to the Stars facility in Las Colinas. Rick Herold stated that the most exciting thing about the project is that it can be done without deleting any fields from the Parks at Texas Star. He said a $500,000 concession B restroom facility will be a part of the project and it will be available for use by the entire Parks at Texas Star complex. Bobby Baker pointed out that the Stars chose the City of Euless for their first project because of the development at the Parks at Texas Star. Joe Hennig stated that $4 B 500,000 worth of infrastructure improvements are included that the City would have had to construct in Phase II of the athletic complex. Mr. Hennig said there would be two debt issuances, one for an estimated $9,000,000 for the building. The City would sell that debt and the building would be leased back to the Star s-so they will pay 100% of the cost. At the end of the time period the City would own the building. The second debt sale would be approximately $1,000,000 to pay for some parking spaces, entrance ways, fencing, landscaping and irrigation, all of which would have been included in Phase II. Charlie Miller requested the City Attorney make sure that at the end of 20 years the Stars would not be able to retain sales operations. Rick Herold pointed out that Euless residents would have discounted rates at the Stars facility. Glenn Porterfield asked if the debt would be sold through the Euless Development Corporation or the City of Euless. Joe Hennig replied that the bond counsel is still determining that question. Lefty Lynn Maloney expressed concern about Pipeline Road handling the traffic for the increased activities at the Parks at Texas Star. Rick Herold replied that the activities would be scheduled so that there would not be a heavy concentration of traffic at any one time. Joe Hennig reported that a major project is being studied for a property along State Highway 121 and that the anchor business must make a decision by May 1. The site has problems with a bridge and access roads. The City will be coming to the Euless Development Corporation with recommendations to participate in the road and bridge infrastructure. EULESS DEVELOPMENT CORPORATION February 16, 1999 Page 4 ADJOURN There being no further business before the Corporation, the meeting was adjourned at 5:30 p.m. APPROVED: ‘ 1.12.21 <dyLIC2itek____ Mary Lib S eh Chairman ATTEST: san Crim Secretary