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2009_03.17 EDC Agenda PacketBOARD D DIRECTORS KENNEDALE, TEXAS Notice is hereby given that a Regular Meeting will be held by the Kennedale Economic Development Corporation Board of Directors on the 17 day of March 2009 at 7:15 P.M., in the Kennedale Municipal Building Council Chambers located at 405 Municipal Drive, Kennedale, Texas, at which time the following subjects will be discussed to wit: (SEE ATTACHED AGENDA) Dated this 13 day of March 2009. By: Robert P. Mundy, President I, the undersigned authority, do hereby certify that the above Notice of Meeting of the Economic Development Corporation Board of Directors is a true and correct copy of said Notice and that I posted a true and correct copy of said Notice on the bulletin board of City Hall of said City in Kennedale, Texas, a place convenient and readily accessible to the general public at all times, and said Notice was posted on March 13, 2009 at 11:30 o'clock A.M., and remained so posted continuously for at least 72 hours preceding the scheduled time of said Meeting. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services such as interpreters for persons who are deaf or hearing impaired, readers, large print, are requested to contact the undersigned at (817) 483 -1296 five (5) work days prior to the meeting so that appropriate arrangements can be made. Dated this the 13 day of March 2009. By: Kathy Turner, Secretary to EDC CALL TO ORDER ROLL CALL I. REGULAR ITEMS a. Review and consider action to approve minutes: regular meeting dated January 20, 2009. b. Review and consider action to approve KEDC Financial Reports. C. Review and consider action to approve Independent Audit Report for year ended September 30, 2008. d. Discuss status of the TownCenter with the Developer, David Johnson, Cypress Properties. e. Discuss strategic direction of Kennedale's Economic Development Program. f. Discuss EDC staffing options. g. Review and consider action to authorize the EDC President to execute a contract with Orasi Development for Economic Development Services. h. Review and consider action to change date and time of future meetings. II. STAFF ANNOUNCEMENTS/REPORTS a. KEDC Executive Director Announcement/Reports 1. Tax Increment Financing District. 2. Municipal Management District. III. PRESIDENT/BOARD ANNOUNCEMENTS/REPORTS a. President Announcements /Reports 1. Report agenda items to be posted for future meetings. Page 1 of 2 IV. EXECUTIVE SESSION The Board of Directors will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, sale, exchange, lease, or value of real property. 1. Kennedale Parkway 2. New Hope Road b. The Board of Directors will meet in closed session pursuant to Section 551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee. V. RECONVENE INTO OPEN SESSION AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NECESSARY. VI. ADJOURNMENT Page 2 of 2 ' 3 M D ate: February 6, 2009 �, = ; ; S ubject: Review and consider approval of meeting minutes. Originated by : Kathy Turner, KEDC Secretary Summary: A draft copy of the meeting minutes dated January 20, 2009 are attached for your review and consideration. D ispositio n by KEDC Board of Directors: NI RAV 4be ',A 289 r4reffl"TOOT-17.10 We Y 20, 2009 NICIPAL BLDG. at 7:15 p.m. Members present: President, Robert Mundy, Vice - President, Beverly Hayes, Board of Directors, Darrell Erwin, Donnie Graham, Mark Yeary, and Rebecca Mowell. Members absent: Board of Director, Doug Parker. Staff present: Bob Hart, Executive Director, Mike Soab, KEDC Director, Salcura Moten - Dedrick, Treasurer, and Kathy Turner, Secretary. I. REGULAR ITEMS a. Review and consider action to approve minutes: regular meeting dated November 12, 2008. Rebecca Mowell moved to approve the meeting minutes dated November 12, 2008 as submitted, second by Darrell Erwin. Motion carried (6 -0). b. Review and consider action to approve KEDC Financial Reports. Beverly Hayes moved to approve the KEDC Financial Reports as presented, second by Donnie Graham. Motion carried (6 -0). Review and consider a Resolution supporting the filing of legislation to create a Municipal Management District for development of the TownCenter. Darrell Erwin moved to approve resolution supporting the filing of legislation to create a Municipal Management District for development of the TownCenter. Donnie Graham seconded the motion and all members present voted in favor. Motion carried (6 -0). d. Review and consider Public Art Projects and EDC's Sponsorship Role. Mike Soab, KEDC Director provided an update on the status for completion of the fiberglass locomotive engine paintings, and recommended that the unveiling of the finished models be presented during the Texas Independence Parade. Soab also reminded the Board that a contact person for the EDC /Public Arts needed to be appointed. Additionally, Soab advised that the EDC commissioned Kennedale High School to paint a Railroad theme mural on the exterior wall of the TownCenter Kennedale's Ace /Subway's free standing building fronting Kennedale Parkway. He said the project is running behind currently due to the paintings of the locomotives, but reminded the Board a payment of $1,000.00 to begin the project had been made with $4,770.00 due upon completion. (!.L'if, � The board required no action, as it was information purposes only. e. Review and consider action to change date and time of future meetings. After a brief discussion and no recommendations to move meeting date, President, Mundy advised regular meeting scheduled for Tuesday, February 17, 2009 would stand. a. President, Robert Mundy will present retiring Economic Development Director, Mike Soab with a plaque. President, Robert Mundy presented retiring EDC Director, Mike Soab with large book clock on behalf of the Board of Directors thanking him for his service and moving the City forward. a. KEDC Director Announcement/Reports 1. Departing comments by ED Director. Mike Soab, EDC Director presented departing comments relative to new private (( investments, increased revenue streams to pay for city services and employees, building Kennedale Parkway's curb appeal, and increasing city revenues. 2. Update on grants for 08/09 and on upcoming grant prospects. — No updates were provided. No further discussion, President, Robert Mundy recessed the meeting for a short break at 8:00 p.m. President, Robert Mundy reconvened into open session at 8:06 p.m., and announced that the Board would recess into executive session at 8:07 p.m. a. President Announcements /Reports 1. Report agenda items to be posted for future meetings. No report on agenda items were noted at present. a. The Board of Directors will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, sale, exchange, lease, or value of real property. 1. Discuss the parameters for a development agreement with David Johnson for development of the TownCenter. 291 b. The Board of Directors will meet in closed session pursuant to Section 551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee, RECONVENE O AND TAKE ACTION PURSUANT O SESSIOV. President, Robert Mundy reconvened into open session at 9:15 p.m. a. Review and consider action to approve Resolution granting a 120 -day extension of the feasibility period agreement with David Johnson for development of the TownCenter. Darrell Erwin moved to approve a resolution granting a 120 -day extension of the feasibility period agreement with David Johnson for development of the TownCenter, second by Rebecca Mowell. Motion carried (6 -0). There being no further discussion, President Mundy asked for a motion to adjourn. Mark Yeary so moved, and Beverly Hayes seconded the motion with all members present voting in favor. Motion carried (6 -0). Meeting adjourned at 9:19 p.m. APPROVED: President, Robert Mundy ATTEST: Kathv Turner, Secretary Date: March 13, 2009 Subject: Review and consider action to approve KEDC Financial Reports. Originated by: Kathy Turner, City Secretary Summary: Attached for your review is the EDC Income Statement and Revenue and Expense Report for the month ending December 31, 2008. Operating Revenues Operating Expenditures Operating Incomel(Loss) Nonoperating Revenues /(Expenses) Interest Earnings Transfers -In (Transfers -Out) Net Operating Income/ (Loss) Beginning Fund Balance (as of Oct. 1st) Available Funds Ending Fund Balance BU DGET Dec-08 532,211 50,434 t 50,000 (53,388) T - 1 (184,487) (2,954) $ (77,001 1,482 4,710 (457,996) (1,472) (72,290) 1,496,399 $ 1,143,931 $ 1,424,109 141A" 1 ��l �V'�, 1l��� ' PaV� et�h���✓ TV W4 FY07-08 FY07-08 YTD FY08-09 FY08-09 YTD EST ACTUAL December-07 PERCENT BUDGET December-08 FUND BALANCE CARRY FORWARD: I 4963991 REVENUES SALES TAXES 331,269 72,311 21.83% 357,011 86,988 INVESTMENT EARNINGS 48,455 18,416 38.01% 60,000 4,710 FUND 95 INVESTMENT EARNINGS - - #DIV/01 - - RENTAL INCOME 212,403 17,271 8.13% 175,200 20,498 OTHER INCOME 0.00% - TRANSFERS IN - 0.00% - TOTAL EDC REVENUES 592,127 $ 107,998 18.24% $ 582,211 $ 112,196 EXPENSES PERSONNEL COSTS 110,172 21,937 19.91% 108,109 22,092 SUPPLIES 9,107 1,432 15.72% 21,600 1,337 MAINTENANCE 30 - 0.00% 1,000 - SERVICE 640,642 16,932 2.64% 527,371 116,034 UTILITIES 978 353 36.06% 600 43 GRANTS/ INCENTIVES 104,231 - 0.00% 100,001 - TOWNCENTER 47,770 2,978 0.00% 74,210 4,330 CAPITAL 112,164 39,847 36.63% 207,316 40,652 TRANSFER OUT 100,000 - - TOTAL EDC EXPENDITURES $ 1,124,993 $ 83,478 7.42% 1,040,207 184,487 REVENUES IN EXCESS OF EXPENSES (457,996) ENDING FUND BALANCE: 1 1,038,4031 �V'�, 1l��� ' PaV� et�h���✓ TV W4 Date: March 13, 2009 Agenda Item o: I -c. Subject: Review and consider action to approve Independent Audit Report for year ended September 30, 2008. Originated by: Kathy Turner, City Secretary Summary: Auditors will be present to review Independent Audit Report for the year ended September 30, 2008, and provide answers to any questions should they arise. Recommendation: :.. 0 . I - MOV& C ,�, V (V t Ali A, Date: March 11, 2009 Subject: Discuss status of the TownCenter with the Developer, David Johnson, Cypress Properties. Originated by: Bob Hart, City Manager f (y /PAL �,Z1 � � �`� � � � ,� g ® ® m �0 O a ® ®R � � m .� J9 I �!! ' �.Jj. � ' 1 /1 Mr 11 IRS O EWE ^ R '-�t p tl i � #� i Set- 4 f �� `\ W7 F0 Date: March 11, 2009 Subject: Discuss strategic direction of Kennedale's Economic Development Program. Originated by: Bob Hart, City Manager Summary: The City is currently engaged in a strategic planning effort encompassing some element of a sound economic development program including business development, transportation, beautification, communications, city events, and land use. Further, the condition of the national and regional economy will influence the direction of EDC activity. This item is on the agenda in such a way as to explore ideas and perhaps reach consensus on those areas with you may wish to explore further. Base information, which may assist you in this discussion, includes: ® Existing industrial businesses: ® Existing support business community: ❑ Celltex Site Services Lp ❑ Covad Communications Co ❑ Eagle Pipeline Const Co ❑ Maven Llc ❑ Driver Pipeline Co Inc ❑ Gin-Spen Inc ❑ Allied Drilling Co ❑ Circle C Construction Page 1 of 2 Double Seal Ring Co Llc Alliance Contractors Llc Fancon Construction C R Folmar & Son Concrete R E Watson & Associates Inc Price Rubber Corp Ace Industrial Services American Bearing Co Montgomery Manufacturing Co Taber Enterprises Inc Texas Fastener & Supply Co Grizzly Glass & Mirror Texas Tile Contractors M J Pipeline Inspection Rebs Concrete Construction J R's Machine Shop U M Abrasives Inc Suburban Sheet Metal Ltd Precision Components Int Inc Petersen Machine Ace Rubber Products Metroplex Tooling & Mfg Inc Strowd Machine & Tool Co • Potential development of Oak Crest area • Commuter rail stop • Industrial zoned land • Village Creek development opportunities • TownCenter development including Kennedale Parkway changes • Planned road improvements • Kennedale Parkway/Eden Road business development • Regional retail activity and expansion • Future land use plans • Creation of potential retail sites .. 1 Page 2 of 2 X7 ,: Date: March 11, 2009 Subject: Discuss EDC staffing options. Originated by: Bob Hart, City Manager Summary: Following the retirement of Mike Soab, it is necessary to discuss desired skill sets and differing organizational opportunities in filling the EDC director position. This agenda item is on the agenda to explore alternatives and reach a consensus on a preferred route rather than a final decision. The following outline is provided to initiate the discussion from the city organizational perspective: 1. Hire an EDC director 2. Engage an economic development consulting firm to provide the services of an EDC Director 3. Utilize the executive director as EDC Director and hire a city staff person to support the city manager function 4. Hire a combined EDC Director and Planning Director Each option has strengths and weaknesses with consideration influenced based on the strategic direction of the EDC and City. = . • $ MKI4 iq�� 711111 11 i 7 nZWOM Date: March 13, 2009 Subject: Review and consider action to authorize the EDC President to execute a contract with Orasi Development for Economic Development Services. Originated by: Kathy Turner, City Secretary Summary: Attached for the board's consideration is an agreement between the KEDC and Orasi Development for economic development services. Bob Hart, City manager will address the agreement and answer any questions that may arise. - - • . • Kennedale Economic Development Corporation Comprehensive Operations Assistance Agreement This Agreement, made and entered into this day of 2009, by and between the Kennedale Economic Development Corporation, hereinafter called "EDC," and Orasi Development, hereinafter called "Firm," or " Orasi," both of which parties hereto understand and agree as follows: WHEREAS, EDC desires to obtain the services of Orasi Development to assist the EDC in promoting economic development in the City of Kennedale in the manner set forth herein; WHEREAS, Orasi Development desires to provide economic development services for the EDC on the terms outlined herein; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and hereinbefore stated, the patties hereto agree as follows: Section 1. Duties EDC: The Firm agrees to perform the following functions, services and duties on behalf of the a. Comprehensive Operations Assistance Services • Meeting with the EDC and City of Kennedale staff to obtain and review all necessary documents to assess the City's development situation. • Developing and implementing an action plan for attracting new development and redevelopment to the City through the EDC. • Assisting the EDC and City staff in strategic planning related to economic development. • Assisting the EDC and City staff in any current incentive negotiations and in any future incentive requests. • Assisting efforts in business and industrial retention. • Evaluating and developing a marketing message and proposing various marketing materials, e.g, community profile, maps, aerials, etc., as necessary. If Orasi is chosen for design and production of marketing materials, the EDC and Orasi will need to have an agreement on costs related to design and production. • Performing site evaluations. • Meeting with the EDC and City staff for the purpose of submitting reports regularly to the EDC. • Representing the City at various local real estate events. • Proactively contacting developers, real estate brokers, retailers, restaurants, targeted industries, hotels and other industry professionals to attract new investment to the community. C:\Documeni •Lnd Set6�s \blivt \Local S \T «enr got r� Internet Files \OLKt 3C \ED Cousultnni- FN.do /12/09) Pagel D�! W:\KetuiedaleWgreemeuts\E DC Considtuat.doc ® Advising and assisting with policy initiatives related to economic development. b. Other Duties Orasi has the ability, resources, relationships and personnel to perform the following duties: • Web site design. • Design and production of newsletters, print advertisements, and other marketing materials. • Developing incentive packages such as a Tax Increment Financing District and /or Public Improvement District. • Retention and expansion programs. • Economic base analysis. • Demographic research/retail site analysis. • Event coordination. • Represent the City at Trade Shows. If the EDC would like to expand the scope of duties to be performed by Orasi, a written amendment agreed to by both the EDC and the Firm can be added to this contract. Section 2. Term The term of this Agreement shall begin , 2009 and shall continue until terminated by either party as provided below, Section 3. Compensation month. The EDC agrees to pay Orasi for services rendered pursuant hereto a fee of $3,500 per The Firm shall also be reimbursed for any reasonable business expenses incurred while performing duties for the EDC. Such business expenses include but are not limited to copies, computer expenses, direct EDC advertising expenses, special data and/or demographic purchases, hotel room and meals when required to be away from the Dallas /Fort Worth region, materials required to produce reports and presentations, postage and long distant telephone services required to conduct related economic development consulting. The Firm shall get permission from EDC prior to making such expenditures. Section 4. Indemnification The EDC shall be responsible for expenses (including attorney's fees) and amounts paid in settlement actually and reasonably incurred in connection with the defense of any civil, criminal or administrative action, suit or proceeding in which Orasi is made a party or with which Orasi is threatened, by reason of being or because of any act as the Firm within the course C: \Doqnnemts Settin \bh NI... 5etiinos \ eill wa lnieme Files \OLK 136 \CDC ConsullmU -PN.do (03 /12/09) Paget C el : W:\ICenaedaleWgreementa\E D C Con idtant.doc and scope of its duties under this Agreement if Orasi's actions were taken in good faith and in a manner which was reasonably believed to be in or not opposed to the best interest of the EDC; and with respect to any criminal action or preceding, had no reasonable cause to believe its conduct was unlawful. Notwithstanding the foregoing, Orasi shall not be entitled to reimbursement for (1) any matter in which Orasi or its officers or employees shall be adjudged to be liable for negligence or misconduct in the performance of their duties, or (2) any matter in which Orasi fails to notify the EDC of a claim within a reasonable time or fails to cooperate in the defense of such claim, but only to the extent that the defense of such claim is prejudiced by its failure to give notice or to cooperate. Section 5. General Provisions a. The text herein shall constitute the entire Agreement between the parties. b. If any provision, or any portion thereof, contained in the Agreement is held to be unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. C. This Agreement supersedes all other agreements, either oral or in writing, between the parties to this Agreement, with respect to acquisition of the services of the Firm by the EDC. This Agreement contains the entire understanding of the parties and all of the covenants and agreements between the parties. d. Any extension or modifications of the term, scope and provisions of this Agreement shall be separately negotiated by the Firm and the City. Service provisions and fixed hourly rates for specific economic development projects and other such special projects above and beyond the basic services may be jointly agreed upon by the EDC and the Firm. Section 6. Termination pf Agreement for Cause If, through any cause, either party shall fail to fulfill in a timely and proper manner any of its obligations under this Agreement, or if either party shall violate any of the covenants, agreements or stipulations of this Agreement, the other party shall thereupon have the right to terminate this Agreement by giving written notice to the party of cause. In that event, all finished or unfinished documents, data, studies, surveys and reports prepared by Orasi shall be delivered to the EDC and shall become the property of the EDC upon compensation equal to the current month. Section 7. Other Terminations Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof, at least thirty (30) days before the effect date of such termination. It is mutually agreed that if this Agreement is terminated by the EDC as provided herein, all finished and unfinished documents, charts and studies prepared by the Firm in the performance of this Agreement shall become the sole C•Wocuntems and Settin ;s \bhari \Local Seltivas \Temrmv luternet Fil \OLKl36 \ENC Consuh FN.dOCm /12/09) Page 3 — Deleted: WAKeanedaleWgreements�E AC Consultant.dm property of the EDC and shall be delivered to the EDC by the Firm upon receipt of compensation for the last month of work completed. Section S. Assignability Orasi shall not assign any interest in this Agreement and shall not transfer any interest in the same without the prior written consent of the EDC. Section 9. Confidentiality Any reports, information, data, etc. given to or prepared or assembled by the Firm under this Agreement shall not be made available to any individual or organization by the Firm without the prior written approval of the EDC. Section 10. Use of Documents Orasi shall have the right to retain a copy of all documents prepared and to use them in the future as examples of work performed. However, the Firm shall not show any document that contains proprietary or confidential information or where it has expressly been determined, where it is legally permissible, that it is in the public interest that it not be so made available. In Witness Whereof, the parties by their duly authorized officers have caused this Agreement to be executed as of the date written above. Kennedale Economic Development Corporation By: Robert Mundy, President Attest: Bob Hart, City Manager Orasi Development (signature) (signature) By: (signature) Jack Thompson, President Attest: Notary Public (signature) Deleted. WAKennedale\Agreements\E DC Cons ultant.doc tL.W.cun and Seltinas \b \Loeal Sett nas \Temuormy late Files \OLIU36 \EDC Consultant -FN.do (03 /1 Page 4 t I Cr it " 7XI MI, Date: March 11, 2009 /_�: F1T�ii11 � C•�i1 Subject: Review and consider action to change date and time of future meeting, if needed. Originated by: Kathy Turner, Secretary Summary: Discussion will take place to see if there is a need to schedule any upcoming workshops and /or special meetings, as well as discuss April 21, 2009 regular meeting date to see if there is a need to reschedule. J� -Z �'�+ - 0 J Recommendation: Date: February 13, 2009 Subject: Staff Announcements/Reports Originated by: Kathy Turner, Secretary EDC Summary: Board of Directors will receive announcements /reports from the following: a. KEDC Executive Director f 1. Tax Increment Financing District. - 2. Municipal Management District. ) nuad r - MrT livasisUffi - IU M., Date: February 13, 2009 Subject: President Announcements /Reports Originated by: Kathy Turner, KEDC Secretary Summary: President Announcements/Reports 1. Report agenda items to be posted for future meetings. • • ' c • • . • • 1 - • MW , Date: February 13, 2009 Subject: Executive Session. Originated by: Kathy Turner, KEDC Secretary Summary: a. Board of Directors will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, sale, exchange, lease, or value of real property. 1. Kennedale Parkway 2. New Hope Road. b. The Board of Directors will meet in closed session pursuant to Section 551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee. , Date: February 13, 2009 Subject: Reconvene into open session and take action necessary pursuant to executive session. Originated by: Kathy Turner, Secretary to EDC CITY OF KENNEDALE, TEXAS OFFICE OF THE CITY SECRETARY KEDC ROLL CALL DATE: MARCH 17, 2009 sl START TIME: PM END TIME: PM ROLL CALL: PRESENT ABSENT PRESIDENT ROBERT MUNDY - P4 VICE PRESIDENT BEVERLY HAYES - P3 BOARD OF DIRECTOR DARRELL ERWIN - PI BOARD OF DIRECTOR vi DOURG PARKER - P2 BOARD OF DIRECTOR DONNIE GRAHAM - P5 BOARD OF DIRECTOR MARK YEARY - P6 BOARD OF DIRECTOR REBECCA MOWELL - P 7 CITY STAFF PRESENT: PRESENT ABSENT CITY MANAGER BOB HART CITY SECRETARY KATHY TURNER SAKURA M. DEDRICK DIR. OF FINANCE .ti w�. �, � ,_;