2019_09.24 EDC - Mintues)c
KENNEDALE
Kennedale Economic
Development Corporation
wv cityofkennedale.com
ECONOMIC DEVELOPMENT CORPORATION MINUTES
BOARD OF DIRECTORS REGULAR MEETING
SEPTEMBER 24, 2019 AT 7:00 PM
CITY COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
I. CALL TO ORDER
President Mark Yeary called the meeting to order at 7:00 p.m.
II. ROLL CALL
Present: President Mark Yeary, Place 6; Johnny Trevino, Place 1; Cesar Guerra, Place 2;
Andrew Schaeffer, Place 3; Darold Tippey, Place 4; Mayor Pro Tern Lee, Place 5; Absent: April
Coltharp, Place 7; Staff: City Manager and EDC Executive Director George Campbell, Director of
Planning and Economic Development Melissa Dailey, Director of Finance and Information Technology
Lakeita Sutton, and City Secretary and Communications Coordinator Leslie E. Galloway
III. WORK SESSION
A. Discussion of properties owned by the EDC
Director of Planning and Economic Development Melissa Dailey gave a brief overview of each
property owned by the EDC, including lot size, zoning, existing improvements, and
recommendations for development or sale. Properties discussed included: 1109 W Kennedale
Parkway; 6701/6713 Oak Crest Drive W and 6704/6708 Lindale; 6820 Oak Crest Drive W;
5411 W Kennedale Parkway; 201 E Kennedale Parkway; and 7215, 7224, and 7227 Bloxom
Park Road. Dailey noted that the recommendations were based on generating tax revenue
and encouraging additional high -quality development.
Following brief discussion of each property, the consensus of the board was to direct staff to
issue a Request for Qualifications (RFQ) for the potential development of 1109 W Kennedale
Parkway, 6701/6713 Oak Crest Drive W, and 6704/6708 Lindale; to offer 6820 Oak Crest
Drive W for sale for use as a single-family home; to obtain an appraisal for 7215, 7224, and
7227 Bloxom Park Road in preparation to offer it for sale; and to create a conceptual plan for
TownCenter and surrounding areas for redevelopment focused on enhancing connectivity,
walkability, and sense of place.
In response to a request from President Yeary, Dailey stated that Code Compliance staff
would aim to prohibit vehicles from parking on the unimproved lot at 1109 W Kennedale
Parkway.
V. REGULAR ITEMS
A. Consider approval of the minutes from the July 23, 2019 regular meeting
Motion To Approve, Action Approve the minutes from the July 23, 2019 regular meeting.
Moved By Tippey. Seconded By Trevino. Motion passes unanimously.
B. Consider approval of the minutes from the August 19, 2019 regular meeting
Motion To Approve, Action Approve the minutes from the August 19, 2019 regular meeting.
Moved By Trevino. Seconded By Tippey. Motion passes unanimously.
C. Review and accept the KEDC Financial Report for July 2019
In response to a question from Mayor Pro Tem Lee, Finance Director Lakeita Sutton stated
that the EDC has three funds —Operating, Capital Bond, and Reserve — and that, earlier this
year, the monies (�$28,000 to $30,000) from the Capital Bond Fund had been used to
establish a separate bank account for the EDC, but that the monies from the other two funds
had never been transferred. Sutton added that all EDC transactions were still being paid and
received by the City's pooled cash, rather than through this separate EDC account; but that
fees were being charged by the bank, due to the balance being below the minimum
requirement. There was some discussion regarding the EDC's combined cash position.
In response to a question from President Yeary, Sutton stated that for staff to begin conducting
transactions through this separate bank account significant coordination with the audit firm
would be necessary; and that it was her understanding that the auditors would prefer the use
of the pooled cash method. President Yeary noted that the establishment of a separate bank
account was done at the direction of the City Council. Sutton recommended closing the newly -
established EDC account and reversing that transaction in the accounting books. President
Yeary stated that the Board could request that the Council reverse the decision to maintain a
separate bank account for the EDC; and Mayor Pro Tern Lee stated that she would discuss
with the Mayor placement of such an item on an upcoming agenda for Council's consideration.
In response to a question from Johnny Trevino regarding the large increase in investment
income, Sutton stated that it was simply an under -budgeted projection.
Motion To Approve. Action Approve the KEDC Financial Report for July 2019. Moved By
Tippey. Seconded By Trevino. Motion passes unanimously.
D. Review and accept the KEDC Financial Report for August 2019
Sutton stated that debt service payments typically take place in February and August and that,
during those months, the Board could expect to see expenses that exceeded revenues. She
also noted that the sales tax revenue for August exceeded the five-year average.
Motion To Approve. Action Approve the KEDC Financial Report for August 2019. Moved By
Guerra. Seconded By Trevino. Motion passes unanimously.
E. Consider the nomination and election of a Vice President
Motion
To
Approve. Action Approve the
nomination of
Johnny
Trevino
as Vice President.
Moved
By
Tippey. Seconded By Mayor
Pro Tem Lee.
Motion
passes
unanimously.
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ECONOMIC DEVELOPMENT CORPORATION BOARD MINUTES � SEPTEMBER 24, 2019
F. Discuss and consider approval of Lease Modification Agreement #5 between the Kennedale
Economic Development Corporation and Dolgencorp of Texas, Inc. for the lease of space in
Building 1 of Kennedale TownCenter
EDC Executive Director George Campbell stated that this amendment resulted from
Dolgencorp proactively seeking to extend the contract. He then pointed out all changes that
had been made to the agreement since it was distributed to the Board, noting that the most
significant proposed change (that staff was unsure would be accepted) would strip the EDC of
any financial responsibility related to maintaining the HVAC units, which — assuming approval
of item G on this agenda — would all be relatively new. There was a brief discussion of the
"Exclusive Use Covenant".
Motion To Approve. Action Approve EDC Executive Director George Campbell to accept
Lease Modification Agreement #5 between the Kennedale Economic Development
Corporation and Dolgencorp of Texas, Inc. for the lease of space in Building 1 of Kennedale
TownCenter either as written or once negotiated to the best position possible (not to be less
favorable to the EDC than the current agreement, in regards to HVAC maintenance). Moved
By Schaeffer. Seconded By Tippey. Motion passes unanimously.
G. Consider approval of the replacement of two of the air conditioning units at Dollar General
in TownCenter
President Mark Yeary pointed out that, on the 24 HOUR, LTD. bid, the amount to consider
would be the subtotal (as the EDC is exempt from sales tax). There was some discussion of
the capacity and type of the units, the appropriateness of the bid pricing, the reputation of the
company, and the need to complete this emergency repair as quickly as possible.
Motion To Approve, Action Approve EDC Executive Director George Campbell to contract
with 24 HOUR, LTD. for the replacement of two of the air conditioning units at Dollar General
in TownCenter for a cost of $20,939.00. Moved By Tippey. Seconded By Mayor Pro Tem
Lee. Motion passes unanimously.
V. REPORTS AND ANNOUNCEMENTS
A. Chamber of Commerce report
EDC Executive Director George Campbell stated that Director of Planning and Economic
Development Melissa Dailey had given a presentation at the most recent Chamber luncheon
about development projects currently underway. He announced the date of the next Chamber
Board meeting and luncheon.
B. Board member reports and announcements
There were no announcements at this time.
C. Staff reports and announcements
There were no announcements at this time.
VI. EXECUTIVE SESSION
THE BOARD DID NOT RECESS TO EXECUTIVE SESSION DURING THIS MEETING.
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ECONOMIC DEVELOPMENT CORPORATION BOARD MINUTES I SEPTEMBER 24, 2019
A. Discussion with City Attorney regarding legal issues associated with Economic
Development and Performance Agreement, Tax Abatement, and Chapter 380 Agreement with
Compressed Air Systems for project located at Harris Corporation Addition, Block 1 Lot 1A2
(Linda Road)
B. Economic Development and Performance Agreement, Tax Abatement, and Chapter 380
Agreement with Compressed Air Systems for project located at Harris Corporation Addition,
Block 1 Lot 1A2 (Linda Road)
VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
THE BOARD DID NOT RECESS TO EXECUTIVE SESSION DURING THIS MEETING.
VIII. ADJOURNMENT
Motion To Adjourn. Action Adjourn. Moved By Mayor Pro Tem Lee. Seconded By Trevino.
Motion passes unanimously.
President Yeary recessed the meeting at 8:24 p.m.
APPROVED: ATTEST:
ED P SIDEN K YEARY RO IE ERICSON, BOARD SECRETARY
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ECONOMIC DEVELOPMENT CORPORATION BOARD MINUTES � SEPTEMBER 24, 2019