2017_08.22 EDC Minutes)
KENNEDALE
Kennedaie Economic
ww.cit ofkCorporation nnedale.com
w ECONOMIC DEVELOPMENT CORPORATION
www.cityofkennedale.com
BOARD OF DIRECTORS - REGULAR MEETING
MINUTES
August 22, 2017
I. CALL TO ORDER
President Robert Mundy called the meeting to order at 7:02 p.m.
II. ROLL CALL
Present: Michael Johnson, Adrienne Kay, Rebecca Carlton, Robert Mundy, Pat Turner, Mark
Yeary
Absent: Ronald Whitley
Ill. MINUTES APPROVAL
A. Consider approval of the minutes from the July 25, 2017 regular meeting
Motion To approve the July 25, 2017 Economic Development Corporation regular meeting
minutes. Action Approve, Moved By Michael Johnson, Seconded By Rebecca Carlton.
Motion passed Unanimously
IV. REGULAR ITEMS
A. Review and accept the KEDC Financial Report for July 2017
Finance Director Brady Olsen provided an overview of the July financial report for the
Economic Development Corporation. He reported that July sales tax was up in comparison to
last year; adding that the demolition cost for the old Chicken Express building was also
reflected in this month's report. There was discussion regarding the charts and the format of
the report; and Brady reminded the Board that the repayment of sales tax that was incorrectly
paid to Kennedale is scheduled for repayment next month.
Motion To approve the July 2017 financial report for the Economic Development Corporation.
Action Approve, Moved By Rebecca Carlton, Seconded By Adrienne Kay.
Motion passed Unanimously
B. Discuss and approve the FY2017 -18 purposed Economic Development budget
Director Jack Thompson reported on the Economic Development Corporation (EDC) FY 2017-
2018 purposed budget. There was discussion regarding income sources, current debt, and
various administrative costs. President Mundy questioned why the EDC was paying the cost
of the City's annual membership fee to the Chamber of Commerce. There was lengthy
discussion regarding the pros and cons of continuing to cover that cost for the City.
An amendment to the motion to approve the proposed budget was made by Robert Mundy to
delete the cost of the City's annual Chamber of Commerce membership from the Economic
Development Board's budget for FY 2017 -18. The motion was not seconded.
Amendment Died
Motion To approve the FY 2017 -18 budget for the Economic Development Board.
Action Approve, Moved By Pat Turner, Seconded By Mark Yeary.
Motion passed Unanimously
C. Discuss and consider approval of gas /oil lease agreement with GHA Barnett, LLC
Director Jack Thompson informed the Board that he was contacted by GHA Barnett, LLC
regarding an oil and gas lease offer for the property at TownCenter. He provided Board
members with a copy of the lease offer and location maps. Jack stated that is was a standard
offer; a three (3) year lease with a two (2) year option, 20% for gas, and 20% for oil, with a
$1500 per net mineral acre signing bonus.
Vice - President Pat Turner stated that he had previously reviewed the offer and researched the
EDC's options; he listed several concerns in regard to the offer. He suggested that the EDC
Board team with the City in regard to their offer and negotiate a better deal.
Motion That Jack Thompson would work with the City to develop a counter offer to GHA
Barnett, LLC in regard to the oil and gas lease. Action Approve, Moved By Robert Mundy,
Seconded By Pat Turner.
Motion passed Unanimously
V. STAFF ANNOUNCEMENTS /REPORTS
A. TownCenter
B. Oak Crest
C. Chamber of Commerce
Director Jack Thompson reported on ongoing projects, stating that the martial arts studio was
open with a noticeable increase in traffic at TownCenter. He added that the baseball facility
was coming along slowly, and that there was interest in the remaining available space for that
building. He noted that the finally cost for the engineering fee and the new drive approach at
the old Chicken Express building will be approximately $10,000.
Jack informed the Board that Karmali Holding project is still on track; that he will be attending
the sales tax workshop in October; and that Ali Pennington requested to extend his lease at
Red's Roadhouse.
Jack reported for the Chamber, stating that the next Chamber luncheon would be held on
September 20th with Joe Barton providing a State of the Union presentation. Adding that in
September they will have a Coffee Chat event with Chick -fil -A sponsoring the food, and a
business after hours at Top Golf. Additional items of interest included the upcoming golf
tournament, scheduled for October 30th.
VI. EXECUTIVE SESSION
The Economic Development Corporation Board did not recess into Executive Session.
A. The Economic Development Corporation will meet in closed session pursuant to Section
551.072 of the Texas Government Code to deliberate the purchase, lease, or value of real
property
1. Hospitality Project
2. Oak Crest Development
3. TownCenter Property
VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
No action was taken; Executive Session was not held.
The next regularly scheduled meeting of the Economic Development Corporation will be
September 26, 2017.
VIII. ADJOURNMENT
Motion To adjourn. Action Adjourn, Moved By Rebecca Carlton, Seconded By Michael
Johnson.
Motion passed Unanimously
The meeting was adjourned at 8:10 p.m.
APPROVED:
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Presi ent Robe Mund
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ATTEST:
De uty Cittpecretary Kathy E. Moore