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
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D ate: February 6, 2009
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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:
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Y 20, 2009
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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.
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� 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
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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
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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:
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Date: March 11, 2009
Subject: Discuss status of the TownCenter with the Developer, David Johnson, Cypress Properties.
Originated by: Bob Hart, City Manager
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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.
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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.
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® 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
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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
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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)
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" 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.
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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
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