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HomeMy WebLinkAbout1999-03-18 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES MARCH 18, 1999 The Board of Directors of the Euless Development Corporation met on Thursday, March 18, 1999, in the Treaty Room of the Texas Star Conference Centre, 1400 Texas Star Parkway, 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 Letty Lynn Maloney Citizen Member Glenn Porterfield City Manager Joe Hennig, 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 Citizen Member Sonja Adams was not present. CALL TO ORDER The meeting was called to order at 7:50 a.m. by Chairman Mary Lib Saleh. Mayor Saleh announced that Tom Hart, who served as President of the Euless Development Corporation, recently resigned as City Manager to accept that position with the City of Grand Prairie. She recognized Joe Hennig, who was appointed City Manager in Euless, and reported that the Bylaws designate the City Manager as President of the Board. APPROVAL, MINUTES OF FEBRUARY 16, 1999 MEETING Upon motion by Bobby Baker and second by Lefty Lynn Maloney, the minutes of the February 16, 1999, meeting were approved by unanimous vote. PROPOSED PROJECT AT TEXAS STAR President Joe Hennig reported that a press conference would be held Monday, March 22 at 1:30 p.m. to announce that the Dallas Stars Hockey Club plans to build a facility at Texas Star Athletic Complex with an estimated value of$10 million. It will contain two recreational EULESS DEVELOPMENT CORPORATION March 18, 1999 Page 2 ice rinks, will be approximately 100,000 square feet in area and will be constructed in a manner consistent with the Parks at Texas Star masterplan drawings. An archway entrance, landscaping and irrigation will be included. The City of Euless is negotiating an agreement with The Stars to allow them to use approximately six acres of land for the construction of the project. A twenty-year lease would be executed with the option of exercising two consecutive five-year renewal options. Mr. Hennig stated that half cent sales tax of approximately one million dollars could be used for some parking facilities at the Star Center. The parking area would be used by the Star Center as well as the City for other events. Restroom and concession facilities will be a part of the complex and will also be available for use at other Texas Star events. Lefty Lynn Maloney asked how the Stars Hockey Club can guarantee they can make enough money to continue this sport for twenty years. Mr. Hennig replied that one of their purposes with this facility is to generate interest in the sport of hockey. The Stars Corporation owns other sport franchises that will be profit making and that will help support this operation in the same way this operation will help support their other business interests. Mr. Hennig stated the Stars would provide two years expenses, including debt, operating costs, utilities, etc., up front through an irrevocable letter of credit. Director of Community Services Rick Herold stated that the facility could be adapted for other athletic events, theatre or coliseum type uses. --- Mr. Hennig stated that approximately one million people will use the facility each year. High school teams will use it for practice and free skating time will be available. Council Member Bobby Baker pointed out that people will pay for the time they use it much the same as when they use a bowling alley. He also stated that Dr. Pepper is participating in the contract with the Stars Hockey Club and that will be additional assurance of success. Rick Herold stated that Euless residents will receive discount rates. Mayor Pro Tem Charlie Miller asked if the Stars default, would all retailing rights revert to the City of Euless. Director of Economic Development David Witcher stated that they would. CONSIDERATION OF MATTERS INCIDENT AND RELATED TO APPROVING PUBLIC HEARING ON PROJECT TO BE UNDERTAKEN President Hennig stated that the attorneys are still working on the documents necessary to finalize the financial process of the Stars Hockey Club ice skating facility at Texas Star. He stated that a meeting may need to be called in the next few weeks to approve the documents. Mayor Pro Tern Miller asked what the advantages were of bypassing bid laws for the facility. Mr. Hennig replied that time and money were the primary reasons. He stated that during construction the City would have a full-time person onsite (paid for by the Stars) to monitor construction. EULESS DEVELOPMENT CORPORATION March 18, 1999 Page 3 Mayor Pro Tern Miller asked what contractors would be used if the project was not bid. Mr. Hennig stated that the contractors the Stars have been using are reputable contractors. WILSHIRE PARK PROJECT President Hennig reported that the staff is recommending to the City Council that some half cent sales tax contingency funds be used on the completion of the Wilshire Park Project. The staff is also looking for other sources of funding within the budget. Letty Lynn Maloney asked if any of the contingency fund was being used to make up for the shortfall in sales tax recently discovered when a Grapevine firm was found to be paying sales tax to the City of Euless. Mr. Hennig replied that approximately $100,000 of it would be. Director of Finance Loretta Getchell stated that the sales tax loss has been less than first anticipated when we learned of the sales tax paid to the City of Euless by mistake. Mayor Pro Tern Miller asked what the expected sales tax annual receipts would be. Ms. Getchell replied $1.850 million. Mr. Miller asked how capital project allocated funds are planned to be used and if there is some money budgeted for the Trails that may be available. Mr. Hennig said he recommended they leave those funds alone for the present. - Mr. Miller asked the status of existing park projects. Director of Community Services Rick Herold reported the following amounts are budgeted but could be deferred and the monies transferred to the Wilshire Park Project: Disk golf, $15,000; Portable restrooms, $7,500; Miscellaneous safety upgrades, $5,000; Adopt-a-Spot sign project, $3,000; Midway Recreation Center game area flooring, $10,000; and Contingency, $23,350, for a total of $63,850. Mayor Pro Tern Miller asked which projects have been completed. Mr. Herold responded that the following items were either already in progress or too great a need to recommend delaying: Picnic tables, $50,000; Benches, $10,000; Trash receptacles, $15,000; and three playgrounds, $75,000. Mayor Pro Tem Miller recommended using money designated for the Trails project for the Wilshire Park Project rather than reducing the contingency fund. Mr. Hennig stated that he would have a firm recommendation at the next meeting for the funding of the Wilshire Park Project. Mayor Pro Tem Miller stated that at least part of the money should come from the economic development portion of the half cent sales tax budget, because the failure of the Patel project was the cause for the expenditure. Lefty Lynn Maloney stated that the citizens were told the purpose of the half cent sales tax was for projects like the Trails and that she wants to be sure this Board remembers that promise to the citizens. EULESS DEVELOPMENT CORPORATION March 18. 1999 Page 4 Rick Herold reported that TV Channel 4 did a live broadcast from Texas Star earlier in the day highlighting the World=s Strongest Man event to be held in Euless on Saturday. He also reported the Summer musical will be Bye Bye Birdie, a new Athletic Coordinator has been hired and the Dixie World Series and Men=s Mixed World Series will be held in Euless this summer. Mr. Hennig stated the City needs a new hotel. ADJOURN There being no further business before the Corporation, the meeting was adjourned at 9:00 a.m. APPROVED: (-71\dia Mary Lib S Ieh Chairman ATTEST: san Crim §ecretary