Loading...
EDCPacket5.25.21 ECONOMIC DEVELOPMENT CORPORATION AGENDA BOARD OF DIRECTORS REGULAR MEETING MAY 25, 2021 AT 6:00 PM CITY COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE MEMBERS OF THE PUBLIC MAY JOIN IN PERSON OR VIRTUALLY BY VISITING www.cityofkennedale.com/joinmeeting AND/OR BY DIALING 1-877-853-5257 (TOLL-FREE) AND USING ACCESS CODE 76060–76060 I. CALL TO ORDER II. ROLL CALL III. EXECUTIVE SESSION The Board may consult with its attorney pertaining to any matter in which the duty of its attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion of any item posted on the agenda. The Board will also meet in closed session pursuant to §551.072 of the Texas Government Code to deliberate the purchase, lease, or value of real property: A. Discussion regarding the Development Agreement for TownCenter B. Sale of 13-acre EDC-owned property on Linda Road, known as Lot1A2, Block 1 of the Harris Corporation Addition C. Lease Agreement regarding 1170 E. Kennedale Pkwy IV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED V. REPORTS AND ANNOUNCEMENTS A. Chamber of Commerce Report B. Board member reports and announcements C. Staff reports and announcements VI. REGULAR ITEMS A. Elect a Vice President of the Economic Development Corporation Board B. Consider approval of the minutes from the March 23, 2021 regular meeting C. Review and accept the KEDC Financial Report for March 2021 D. Review and accept the KEDC Financial Report for April 2021 E. Discuss and consider approval of lease extension for Red's Roadhouse 1170 E. Kennedale Parkway F. Authorize the Executive Director to make an application for the rezoning of the 13 -acre EDC on Linda Road, known as Lot 1A2, Block 1 of the Harris Corporation Addition, from Industrial (I) to Neighborhood Village (NV) G. Authorize the Executive Director to negotiate, finalize and execute a lease agreement with Etron, Inc. for the lease of 201 W Kennedale Parkway, Building 1 in T ownCenter, and forward the same to City Council for its approval VII. ADJOURNMENT CERTIFICATION I DO HEREBY CERTIFY THAT THE MAY 25, 2021 ECONOMIC DEVELOPMENT CORPORATION AGENDA WAS POSTED INSIDE THE MAIN ENTRANCE OF CITY HALL (405 MUNICIPAL DRIVE), IN A PLACE CONVENIENT AND READILY ACCESSIBLE TO THE GENERAL PUBLIC AT ALL TIMES; AND THAT SAID AGENDA WAS POSTED AT LEAST SEVENTY-TWO (72) HOURS PRECEDING THE SCHEDULED TIME OF SAID MEETING, IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE. _____________________________ LESLIE E. GALLOWAY, CITY SECRETARY In compliance with the Americans with Disabilities Act (ADA), the City of Kennedale will provide for reasonable accommodations for persons attending meetings. This facility is wheelchair accessible and accessible parking spaces are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meeting by calling 817-985-2104 or (TTY) 1-800-735-2989. CREATED 5/22/2021 9:50 AM POSTED ___________ (DATE) ___________ (TIME) STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: EXECUTIVE SESSION ITEM III.A. SUBJECT Discussion regarding the Development Agreement for TownCenter ORIGINATED BY George Campbell, City Manager Melissa Dailey, Director of Planning & Economic Development SUMMARY The Executive Director and Director of Planning and Economic Development will give a verbal report regarding proposed changes to the current development and management agreement RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: EXECUTIVE SESSION ITEM III.B. SUBJECT Sale of 13-acre EDC-owned property on Linda Road, known as Lot1A2, Block 1 of the Harris Corporation Addition ORIGINATED BY George Campbell, City Manager Melissa Dailey, Director of Planning & Economic Development SUMMARY The Executive Director and Director of Planning and Economic Development will provide a verbal report regarding a development proposal for this 13-acre site. Board discussion and direction are appreciated. RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: EXECUTIVE SESSION ITEM III.C. SUBJECT Lease Agreement regarding 1170 E. Kennedale Pkwy ORIGINATED BY Melissa Dailey, Director of Planning & Economic Development SUMMARY RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REPORTS AND ANNOUNCEMENTS ITEM V.A. SUBJECT Chamber of Commerce Report ORIGINATED BY George Campbell, City Manager SUMMARY At this time, Executive Director George Campbell, a member of the Kennedale Area Chamber of Commerce (KACC) Board of Directors, may provide updates and announcements from the Chamber. RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REPORTS AND ANNOUNCEMENTS ITEM V.B. SUBJECT Board member reports and announcements ORIGINATED BY George Campbell, City Manager SUMMARY At this time, any member of the EDC Board of Directors may offer updates to the Board. RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REPORTS AND ANNOUNCEMENTS ITEM V.C. SUBJECT Staff reports and announcements ORIGINATED BY George Campbell, City Manager Melissa Dailey, Director of Planning & Economic Development SUMMARY At this time, Executive Director George Campbell, Director of Planning and Economic Development Melissa Dailey, and/or any other staff member may offer updates to the Board. RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.A. SUBJECT Elect a Vice President of the Economic Development Corporation Board ORIGINATED BY George Campbell, City Manager SUMMARY Following the resignation of Johnny Trevino, it is now appropriate that the Board elect another member to serve as Vice President. Any member is eligible for such appointment. Board discussion and consideration is requested. RECOMMENDATION ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.B. SUBJECT Consider approval of the minutes from the March 23, 2021 regular meeting ORIGINATED BY Rosie Ericson, Board Secretary SUMMARY Please see the attached minutes for your approval. RECOMMENDATION ATTACHMENTS 1.2021_03.23 EDC Minutes - DRAFT WM - LG 2021_03.23 EDC Minutes - DRAFT WM - LG.doc ECONOMIC DEVELOPMENT CORPORATION MINUTES REGULAR MEETING VIA VIDEOCONFERENCE MARCH 23, 2021 AT 6:00 PM MEMBERS OF THE PUBLIC MAY JOIN BY VISITING WWW.CITYOFKENNEDALE.COM/JOINMEETING AND/OR BY DIALING 1-877-853-5257 (TOLL-FREE) AND USING ACCESS CODE 76060 –76060 I. CALL TO ORDER President Mark Yeary called the meeting to order at 6:05 p.m. II. ROLL CALL Participating via VideoConference: President Mark Yeary, Place 6; Julie Jacobson, Place 1; Marcel Terry, Place 2; Andrew Schaffer, Place 3; Darold Tippey, Place 4 (joined meeting at 7:07 p.m.); Councilmember Josh Altom, Place 5; April Coltharp, Place 7 (left meeting at 7:03 p.m.); Absent: None; Staff Participating via VideoConference: City Manager and EDC Executive Director George Campbell, Director of Planning and Economic Development Melissa Dailey, Director of Finance and Information Technology Lakeita Sutton, Board Secretary Rosie Ericson III. EXECUTIVE SESSION Immediately following roll call, President Yeary adjourned into Executive Session at 6:05 p.m. A. PURSUANT TO §551.071 — Consultation with the Corporation’s Attorney pertaining to any matter in which the duty of the Corporation’s Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion of any item posted on the agenda, legal issues regarding the Open Meetings Act, and the following: 1. TownCenter Lease Agreement with V-FIT Martial Arts 2. Review and discuss Kennedale Town Center development and management agreements B. PURSUANT TO §551.072 — Deliberation regarding the purchase, exchange, lease, or value of real property 1. Discuss potential development of 13-acre EDC-owned property on Linda Road C. PURSUANT TO §551.087 — (1) Deliberation regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body Page 2 of 3 EDC MINUTES | MARCH 23, 2021 seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1): 1. Discuss potential development of 13-acre EDC-owned property on Linda Road IV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED The Board reconvened into Open Session at 7:16 p.m. V. REGULAR ITEMS A. Consider approval of the minutes from the December 17, 2020 regular meeting Motion to Approve. Action Approve the minutes from the December 17, 2020 regular meeting. Motion by Tippy Seconded by Yeary. Motion passed 3-2-0, with Altom and Jacobson Abstaining. B. Review and accept the KEDC Financial Report for December 2020 There was some discussion regarding the items listed on page one of the financials. Motion to Approve Action Approve the KEDC Financial report for December 2020 as presented. Motion by Tippey, Seconded by Terry. Motion passed 4-1-0, with Jacobson Abstaining. C. Review and accept the KEDC Financial Report for January 2021 There was some discussion regarding the items listed on page one of the financials. Motion to Approve. Action Approve the KEDC Financial Report for January 2021 as presented. Motion by Tippey, Seconded by Terry. Motion passed 4-1-0, with Jacobson abstaining. D. Review and accept the KEDC Financial Report for February 2021 There was some discussion regarding the items listed on page one of the financials. Motion to Approve. Action. Approve the KEDC Financial Report for February 2021. Motion by Tippey, Seconded by Terry. Motion passed 4-1-0, with Jacobson abstaining. E. Elect a vice president of the Economic Development Corporation Board Motion to Postpone Action Postpone election of a vice president until the next EDC regular scheduled meeting to have full attendance of the members. Motion to Postpone. Motion by Altom, Seconded by Jacobson. Motion passed unanimously. VI. REPORTS AND ANNOUNCEMENTS A.Chamber of Commerce Report None at this time. B. Board member reports and announcements Page 3 of 3 EDC MINUTES | MARCH 23, 2021 None at this time. C. Staff reports and announcements None at this time. VII. ADJOURNMENT Motion to Adjourn. Action Adjourn. Moved by Altom, Seconded by Jacobson. Motion passed unanimously. President Yeary adjourned the meeting at 7:39 p.m. APPROVED:ATTEST: ___________________________ ___________________________ EDC PRESIDENT, MARK YEARY ROSIE ERICSON, BOARD SECRETARY STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.C. SUBJECT Review and accept the KEDC Financial Report for March 2021 ORIGINATED BY Lakeita Sutton, Director of Finance and Information Technology SUMMARY RECOMMENDATION ATTACHMENTS 1.2021_03 EDC Monthly Financials 2021_03 EDC Monthly Financials.pdf 2.03_2021 Sales Tax Update-EDC 03_2021 Sales Tax Update-EDC.pdf MONTHLY INFORMATION FINANCE DIRECTOR LAKEITA SUTTON ADDITIONAL INFORMATION CATEGORY DESCRIPTION YTD BEGINNING CASH BALANCE - FUND 15 (Operating Cash)811,173$ BEGINNING CASH BALANCE - FUND 95 (Required Reserves)125,712$ 936,885.00 BEGINNING AVAILABLE CASH - TOTAL 811,173 TOTAL REVENUES MINUS EXPENDITURES FOR MONTH 41,715$ ENDING CASH BALANCE - FUND 15 (Operating Cash)854,539$ ENDING CASH BALANCE - FUND 95 (Required Reserves)125,715$ ENDING CASH BALANCE - TOTAL 980,254$ UNAVAILABLE CASH - EARMARKED RESERVES FOR LEVERAGE NOTE (Required Reserves)125,715$ TOTAL UNAVAILABLE CASH 125,715$ AVAILABLE CASH 854,539$ *Due to prior period adjustments, beginning cash balance plus monthly income will not always be an exact match for ending cash balance CASH POSITION FUND 15 - OPERATING FUND (EDC INVOICES AND REVENUE ARE RECEIVED IN THIS FUND) FUND 95 - RESERVE FUND FOR DEBT REQUIREMENTS FUND 19 - CAPITAL BOND FUND (CLOSED IN FY 18) Rental Fees, MMD Tax and Rental Insurance are reported on the Accrual Basis of Accounting, while all other revenues and expenditures are reported on the Cash Basis. This procedure has been in effect for several years, but can be changed should the Board wish. KENNEDALE ECONOMIC DEVELOPMENT CORPORATION ANNUAL PROGRAM OF SERVICES MARCH 2021 1. $44,334 in Sales Tax Revenue MONTH Y-T-D Y-T-DREVENUESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetMMD TAX CURRENT YEAR 35,000$ -$ -$ 35,000$ -$ -$ SALES TAX 420,148 44,334 197,379 47.0% 400,141 42,654 3,095 0.8%INVESTMENT INCOME FUND 15 2,000 12 292 14.6% 4,000 478 3,095 77.4%INVESTMENT INCOME FUND 95 500 2 46 2,000 102 917 MISCELLANEOUS INCOME 30,000 2,967 17,074 56.9% 30,120 2,994 12,519 41.6%INSURANCE REIMBURSEMENT - - - - LAND PROCEEDS - - 150,368 RENTAL FEES - SHOPPING CTR 236,792 19,534 126,607 53.5% 180,000 20,131 119,972 66.7%RENTAL INSURANCE - - - - - - SALES OF ASSETS - - - - - PROCEEDS-DEBT/LOAN/LEASE - - - - - TOTAL REVENUES 724,440$ 66,849$ 341,398$ 47.1% 801,629$ 66,359$ 139,598$ 17.4%EXPENDITURESADMINISTRATION 218,387 17,292 83,333 38.2%169,377 13,087 78,061 46.1%DEBT SERVICE 306,132 4,655 176,121 57.5%323,570 4,881 83,834 25.9%TOWN SHOPPING CENTER82,495 3,187 36,828 44.6%79,651 3,188 40,770 51.2%TOWN CENTER REDEVELOPMENT - - - - - - TOTAL EXPENDITURES 607,014$ 25,134$ 296,282$ 48.8% 572,598$ 21,156$ 202,665$ 35%Total Revenues Over (Under) Exp 117,426$ 41,715$ 45,116$ 229,031$ 45,203$ (63,067)$ Other Financing Sources (Uses):Operating Transfer to/from General Fund - - - - - - Total Other Financing Sources (Uses):- - - - - - Net Change in Fund Balance 117,426$ 229,031$ Fund Balance Oct 1 898,805 669,774$ Ending Fund Balance 1,016,231$ 898,805$ AVERAGE DAILY EXPENDITURES 1,663$ 1,569$ Number of Days In Reserve611 573Fund Balance as a % of Expenditures167% 157%PAGE 2FY 2020-21 FY 2019-2020 FY 2019-2020BUDGETACTUALBUDGETFY ACTUALREVENUES AND EXPENDITURES - BUDGET AND ACTUALFY 2020-2021 WITH PRIOR YEAR COMPARISONFOR THE MONTH ENDED MARCH 31, 2021CURRENT FISCAL YEAR PRIOR FISCAL YEAR FY 2020-21 MONTH Y-T-D Y-T-DREVENUESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetMMD TAX CURRENT YEAR 35,000$ -$ -$ 35,000$ -$ -$ SALES TAX 420,148 44,334 197,379 47.0% 400,141 42,654$ 3,095 0.8%INVESTMENT INCOME 2,000 12 292 14.6% 4,000 478 3,095 77.4%MISCELLANEOUS INCOME 30,000 2,967 17,074 56.9% 30,120 2,994 12,519 41.6%INSURANCE REIMBURSEMENT - - - - LAND PROCEEDS - - - 150,368 150,368 150,368 RENTAL FEES - SHOPPING CTR 236,792 19,534 126,607 53.5% 180,000 20,131 119,972 66.7%RENTAL INSURANCE - - - - - SALES OF ASSETS - - - - - PROCEEDS-DEBT/LOAN/LEASE - - - - - TOTAL REVENUES 723,940$ 66,847$ 341,352$ 47.2% 799,629$ 216,625$ 289,049$ 36.1%EXPENDITURESADMINISTRATION 218,387 17,292 83,333 38.2% 169,377 13,087 78,061 46.1%DEBT SERVICE 306,132 4,655 176,121 57.5% 323,570 4,881 83,834 25.9%TOWN SHOPPING CENTER 82,495 3,187 36,828 44.6% 79,651 3,188 40,770 51.2%TOWN CENTER REDEVELOPMENT -$ - - - - - TOTAL EXPENDITURES 607,014$ 25,134$ 296,282$ 48.8% 572,598$ 21,156$ 202,665$ 35.4%Total Revenues Over (Under) Exp 116,926$ 41,713$ 45,070$ 227,031$ 195,469$ 86,384$ Other Financing Sources (Uses):Operating Transfer to / from General Fund - - - - - - Total Other Financing Sources (Uses):- - - - - - Net Change in Fund Balance 116,926$ 227,031$ Fund Balance Oct 1 770,219 543,188$ Ending Fund Balance 887,145$ 770,219$ AVERAGE DAILY EXPENDITURES 1,663$ 1,569$ Number of Days In Reserve533 491Fund Balance as a % of Expenditures146% 135%PAGE 3FY 2019-2020 FY 2019-2020BUDGETACTUALBUDGETFY ACTUALREVENUES AND EXPENDITURES - BUDGET AND ACTUALFY 2020-2021 WITH PRIOR YEAR COMPARISONFOR THE MONTH ENDED MARCH 31, 2021CURRENT FISCAL YEAR PRIOR FISCAL YEAR EDC ADMINFY 2020-21 Y-T-D Y-T-DEXPENDITURESOriginalBudgetMar-21 Mar-21 % BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetPRINTED SUPPLIES 2,000$ -$ -$ 0.0% 2,000$ -$ - 0.0%GENERAL OFFICE SUPPLIES 50 - - 0.0% 50 - - 0.0%POSTAGE 50 - - 0.0% 50 - - 0.0%SUPPLIES TOTAL2,100 - - 0.0%2,100 - 0.0%ADVERTISING 1,200 - - 1,200 - - ASSOCIATION DUES/PUBLICATIONS 3,500 - - 0.0% 3,395 1,125 1,125 33.1%TRANING/SEMINARS 250 - 1,170 468.0% 250 - - 0.0%LEGAL SERVICES 15,000 3,349 7,990 53.3% 14,925 1,400 3,850 25.8%AUDIT SERVICES 4,250 4,250 4,250 100.0% 4,250 869 4,250 100.0%SPECIAL SERVICES 42,838 - 3,224 7.5% 975 - 146 15.0%FILING FEES - ENGINEERING SERVICES- - TRAVEL 100 - - 100 0.0%ENGINEERING SERVICES - - - - ADMIN CHARGE-GENERAL FUND 116,318 9,693 58,159 50.0% 116,318 9,693 58,159 50.0%FUNCTIONAL GRANT 32,831 - 8,540 26.0% 25,864 - 10,531 40.7%LAND - SUNDRY TOTAL216,287 17,292 83,333 38.5%167,277 13,087 78,061 46.7%TOTAL EDC ADMIN EXPENDITURES 218,387$ 17,292$ 83,333$ 38.16%169,377$ 13,087$ 78,061$ 46.1%PAGE 4CURRENT FISCAL YEAR PRIOR FISCAL YEARFY 2019-20 FY 2019-2020BUDGETACTUALBUDGETFY ACTUAL EDC DEBT SERVICEFY 2020-21 MONTH Y-T-D Y-T-DEXPENDITURESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% Budget2007 $1.2M TAX BOND INTEREST 42,048$ -$ 21,024$ 50.0% 46,566$ -$ 23,214$ 49.9%2007 $1.2M TAX BOND PRINCIPAL 70,000 - - 0.0% 65,000 - - 0.0%2011 $1.7M TX LEVERAGE INT 9,196 771 4,787 52.1% 18,122 1,308 8,354 46.1%2011 $17.M TX LEVERAGE PRIN 46,680 3,884 23,151 49.6% 41,982 3,573 21,316 50.8%2020 $1.26M GO REFUNDING PRIN 115,000 - 115,000 100.0%2020 $1.26M GO REFUNDING INT 23,208 - 12,159 52.4%TRANSFER OUT-DEBT SERV FUND - - - 151,900 - 30,950 20.4%TOTAL EDC DEBT EXPENDITURES306,132$ 4,655$ 176,121$ 57.5% 323,570$ 4,881$ 83,834$ 25.9%EDC TOWNCENTER SHOPPING CENTERFY 2020-21 MONTH Y-T-D Y-T-DEXPENDITURESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetBUILDING MAINTENANCE 54,195$ 2,065$ 19,448$ 35.9% 54,951$ 2,552$ 25,577$ 46.5%ELECTRIC SERVICES 5,700 340 2,337 41.0% 5,700 136 2,189 38.4%INSURANCE - PROPERTY 13,000 - 9,979 76.8% 13,000 - 9,976 76.7%SPECIAL SERVICES 9,600 782 5,064 52.8% 6,000 500 3,028 50.5%TOTAL EDC TOWNCENTER EXPENDITURES82,495$ 3,187$ 36,828$ 44.6% 79,651$ 3,188$ 40,770$ 51.2%EDC TOWNCENTER REDEVELOPMENTFY 2020-21 MONTH Y-T-D Y-T-DEXPENDITURESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetENGINEERING SERVICES -$ -$ -$ -$ CONSTRUCTION - - - - TOTAL EDC TOWNCENTER REDEVELOPMENT EXPENDITURES-$ -$ -$ -$ -$ -$ PAGE 5FY 2019-20 FY 2019-20FY 2019-20 FY 2019-20CURRENT FISCAL YEAR PRIOR FISCAL YEARCURRENT FISCAL YEAR PRIOR FISCAL YEARBUDGETACTUALBUDGETACTUALBUDGETFY ACTUALBUDGETFY ACTUALFY 2019-20 FY 2019-20CURRENT FISCAL YEAR PRIOR FISCAL YEARBUDGETACTUALBUDGETFY ACTUAL EDC BOND RESERVE FUNDMONTH Y-T-D Y-T-DREVENUESOriginalBudgetMar-21 Mar-21% BudgetOriginalBudget MONTH Mar-20Y-T-DMar-20Y-T-D% BudgetINVESTMENT INCOME 500 2 46$ 2,000 102 917$ TOTAL REVENUES 500$ 2$ 46$ 2,000$ 102$ 917$ EXPENDITURESADMINISTRATION -$ - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ Total Revenues Over (Under) Exp 500$ 2$ 46$ 2,000$ 102$ 917$ Net Change in Fund Balance 500$ -$ 2,000$ Fund Balance Oct 1 128,586 126,586$ Ending Fund Balance 129,086$ 128,586$ PAGE 6FY 2020-21 FY 2019-2020 FY 2019-2020BUDGETACTUALBUDGETFY ACTUALREVENUES AND EXPENDITURES - BUDGET AND ACTUALFY 2020-2021 WITH PRIOR YEAR COMPARISONFOR THE MONTH ENDED MARCH 31, 2021CURRENT FISCAL YEAR PRIOR FISCAL YEAR Year October November December January February March April May June July August September Total FY2021 35,291 57,626 44,861 45,645 62,176 44,334 289,933$ FY2020 45,962 39,056 45,450 36,037 64,105 42,654 37,725 49,804 44,467 40,078 45,748 49,172 540,258$ FY2019 31,048 38,679 39,362 88,360 45,433 36,033 34,603 46,432 38,783 43,510 36,757 47,143 526,144$ FY2018 34,607 38,169 28,985 31,808 54,501 31,672 41,253 43,121 36,295 41,089 39,590 29,697 450,787$ FY2017 29,583 38,719 27,285 29,652 35,265 26,215 29,043 33,374 26,747 33,648 16,530 28,850 354,908$ FY2016 31,046 39,712 32,662 25,293 38,669 29,196 26,505 38,181 27,906 28,195 29,231 30,459 377,055$ FY2015 23,985 31,479 27,515 24,594 35,857 24,104 27,064 39,783 42,821 55,252 48,766 59,232 440,453$ FY2014 21,990 29,867 31,661 22,458 32,594 23,228 26,412 31,319 25,832 23,976 28,866 22,659 320,861$ FY2013 33,617 31,297 23,446 20,135 30,003 20,791 20,318 32,020 21,136 22,435 27,973 26,025 309,197$ EDC Sales Tax By Month 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 October November December January February March April May June July August September Sales Tax vs. Five-Year Average FY 2021 Five Year Average STAFF REPORT TO THE BOARD OF DIRECTORS Date: May 25, 2021 Agenda Item No: REGULAR ITEMS - D. I. Subject: Review and accept the KEDC Financial Report for April 2021 II. Summary: III. Recommendation: IV. Alternative Actions: V. Attachments: 1.2021_04 EDC Monthly Financials 2021_04 EDC Monthly Financials.pdf 2.04_2021 Sales Tax Update-EDC 04_2021 Sales Tax Update-EDC.pdf MONTHLY INFORMATION FINANCE DIRECTOR LAKEITA SUTTON ADDITIONAL INFORMATION CATEGORY DESCRIPTION YTD BEGINNING CASH BALANCE - FUND 15 (Operating Cash)854,539$ BEGINNING CASH BALANCE - FUND 95 (Required Reserves)125,715$ 980,254 BEGINNING AVAILABLE CASH - TOTAL 854,539 TOTAL REVENUES MINUS EXPENDITURES FOR MONTH (66,327)$ ENDING CASH BALANCE - FUND 15 (Operating Cash)801,728$ ENDING CASH BALANCE - FUND 95 (Required Reserves)125,668$ ENDING CASH BALANCE - TOTAL 927,396$ UNAVAILABLE CASH - EARMARKED RESERVES FOR LEVERAGE NOTE (Required Reserves)125,668$ TOTAL UNAVAILABLE CASH 125,668$ AVAILABLE CASH 801,728$ Rental Fees, MMD Tax and Rental Insurance are reported on the Accrual Basis of Accounting, while all other revenues and expenditures are reported on the Cash Basis. KENNEDALE ECONOMIC DEVELOPMENT CORPORATION ANNUAL PROGRAM OF SERVICES APRIL 2021 1. $30,071 in Sales Tax Revenue *Due to prior period adjustments, beginning cash balance plus monthly income will not always be an exact match for ending cash balance CASH POSITION FUND 15 - OPERATING FUND (EDC INVOICES AND REVENUE ARE RECEIVED IN THIS FUND) FUND 95 - RESERVE FUND FOR DEBT REQUIREMENTS FUND 19 - CAPITAL BOND FUND (CLOSED IN FY 18) MONTH Y-T-D Y-T-D REVENUES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget MMD TAX CURRENT YEAR 35,000$ -$ -$ 35,000$ -$ -$ SALES TAX 420,148 30,071 227,449 54.1%400,141 37,726 226,343 56.6% INVESTMENT INCOME FUND 15 2,000 9 301 15.1%4,000 218 3,312 82.8% INVESTMENT INCOME FUND 95 500 1 47 2,000 45 961 MISCELLANEOUS INCOME 30,000 3,304 20,379 67.9%30,120 464 12,983 43.1% INSURANCE REIMBURSEMENT - - - - LAND PROCEEDS - - 150,368 RENTAL FEES - SHOPPING CTR 236,792 19,543 146,151 61.7%180,000 10,480 130,452 72.5% RENTAL INSURANCE - - - - - - SALES OF ASSETS - - - - - PROCEEDS-DEBT/LOAN/LEASE - - - - - TOTAL REVENUES 724,440$ 52,928$ 394,327$ 54.4%801,629$ 48,933$ 374,051$ 46.7% EXPENDITURES ADMINISTRATION 218,387 20,516 103,849 47.6%169,377 9,769 87,830 51.9% DEBT SERVICE 306,132 95,679 271,800 88.8%323,570 184,964 268,799 83.1% TOWN SHOPPING CENTER 82,495 3,060 39,888 48.4%79,651 6,146 46,916 58.9% TOWN CENTER REDEVELOPMENT - - - - - - TOTAL EXPENDITURES 607,014$ 119,255$ 415,537$ 68.5%572,598$ 200,879$ 403,545$ 70% Total Revenues Over (Under) Exp 117,426$ (66,327)$ (21,210)$ 229,031$ (151,946)$ (29,494)$ Other Financing Sources (Uses): Operating Transfer to/from General Fund - - - - - - Total Other Financing Sources (Uses):- - - - - - Net Change in Fund Balance 117,426$ 229,031$ Fund Balance Oct 1 898,805 669,774$ Ending Fund Balance 1,016,231$ 898,805$ AVERAGE DAILY EXPENDITURES 1,663$ 1,569$ Number of Days In Reserve 611 573 Fund Balance as a % of Expenditures 167%157%PAGE 2 REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FY 2020-2021 WITH PRIOR YEAR COMPARISON FOR THE MONTH ENDED APRIL 30, 2021 CURRENT FISCAL YEAR PRIOR FISCAL YEAR FY 2020-21 FY 2019-2020 FY 2019-2020 BUDGET ACTUAL BUDGET FY ACTUAL FY 2020-21 MONTH Y-T-D Y-T-D REVENUES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget MMD TAX CURRENT YEAR 35,000$ -$ -$ 35,000$ -$ -$ SALES TAX 420,148 30,071 227,449 54.1%400,141 37,726$ 226,343 56.6% INVESTMENT INCOME 2,000 9 301 15.1%4,000 218 3,312 82.8% MISCELLANEOUS INCOME 30,000 3,304 20,379 67.9%30,120 464 12,983 43.1% INSURANCE REIMBURSEMENT - - - - LAND PROCEEDS - - - 150,368 - 150,368 RENTAL FEES - SHOPPING CTR 236,792 19,543 146,151 61.7%180,000 10,480 130,452 72.5% RENTAL INSURANCE - - - - - SALES OF ASSETS - - - - - PROCEEDS-DEBT/LOAN/LEASE - - - - - TOTAL REVENUES 723,940$ 52,927$ 394,280$ 54.5%799,629$ 48,888$ 523,458$ 65.5% EXPENDITURES ADMINISTRATION 218,387 20,516 103,849 47.6%169,377 9,769 87,830 51.9% DEBT SERVICE 306,132 95,679 271,800 88.8%323,570 184,964 268,799 83.1% TOWN SHOPPING CENTER 82,495 3,060 39,888 48.4%79,651 6,146 46,916 58.9% TOWN CENTER REDEVELOPMENT -$ - - - - - TOTAL EXPENDITURES 607,014$ 119,255$ 415,537$ 68.5%572,598$ 200,879$ 403,545$ 70.5% Total Revenues Over (Under) Exp 116,926$ (66,328)$ (21,257)$ 227,031$ (151,991)$ 119,913$ Other Financing Sources (Uses): Operating Transfer to / from General Fund - - - - - - Total Other Financing Sources (Uses):- - - - - - Net Change in Fund Balance 116,926$ 227,031$ Fund Balance Oct 1 770,219 543,188$ Ending Fund Balance 887,145$ 770,219$ AVERAGE DAILY EXPENDITURES 1,663$ 1,569$ Number of Days In Reserve 533 491 Fund Balance as a % of Expenditures 146%135%PAGE 3 REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FY 2020-2021 WITH PRIOR YEAR COMPARISON FOR THE MONTH ENDED APRIL 30, 2021 CURRENT FISCAL YEAR PRIOR FISCAL YEAR FY 2019-2020 FY 2019-2020 BUDGET ACTUAL BUDGET FY ACTUAL EDC ADMIN FY 2020-21 Y-T-D Y-T-D EXPENDITURES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget PRINTED SUPPLIES 2,000$ -$ -$ 0.0%2,000$ -$ - 0.0% GENERAL OFFICE SUPPLIES 50 - - 0.0%50 - - 0.0% POSTAGE 50 - - 0.0%50 - - 0.0% SUPPLIES TOTAL 2,100 - - 0.0%2,100 - 0.0% ADVERTISING 1,200 - - 1,200 - - ASSOCIATION DUES/PUBLICATIONS 3,500 - 1,170 33.4%3,395 - 1,125 33.1% TRANING/SEMINARS 250 - - 0.0%250 - - 0.0% LEGAL SERVICES 15,000 1,105 9,095 60.6%14,925 - 3,850 25.8% AUDIT SERVICES 4,250 - 4,250 100.0%4,250 - 4,250 100.0% SPECIAL SERVICES 42,838 1,141 4,365 10.2%975 76 222 22.8% FILING FEES - ENGINEERING SERVICES - - TRAVEL 100 - - 100 0.0% ENGINEERING SERVICES - - - - ADMIN CHARGE-GENERAL FUND 116,318 9,693 67,852 58.3%116,318 9,693 67,852 58.3% FUNCTIONAL GRANT 32,831 8,577 17,117 52.1%25,864 - 10,531 40.7% LAND - SUNDRY TOTAL 216,287 20,516 103,849 48.0%167,277 9,769 87,830 52.5% TOTAL EDC ADMIN EXPENDITURES 218,387$ 20,516$ 103,849$ 47.55%169,377$ 9,769$ 87,830$ 51.9% PAGE 4 CURRENT FISCAL YEAR PRIOR FISCAL YEAR FY 2019-20 FY 2019-2020 BUDGET ACTUAL BUDGET FY ACTUAL EDC DEBT SERVICE FY 2020-21 MONTH Y-T-D Y-T-D EXPENDITURES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget 2007 $1.2M TAX BOND INTEREST 42,048$ 21,023$ 42,047$ 100.0%46,566$ 23,283$ 46,496$ 99.8% 2007 $1.2M TAX BOND PRINCIPAL 70,000 70,000 70,000 100.0%65,000 65,000 65,000 100.0% 2011 $1.7M TX LEVERAGE INT 9,196 761 5,549 60.3%18,122 1,294 9,649 53.2% 2011 $17.M TX LEVERAGE PRIN 46,680 3,895 27,045 57.9%41,982 3,587 24,904 59.3% 2020 $1.26M GO REFUNDING PRIN 115,000 - 115,000 100.0% 2020 $1.26M GO REFUNDING INT 23,208 - 12,159 52.4% TRANSFER OUT-DEBT SERV FUND - - - 151,900 91,800 122,750 80.8% TOTAL EDC DEBT EXPENDITURES 306,132$ 95,679$ 271,800$ 88.8%323,570$ 184,964$ 268,799$ 83.1% EDC TOWNCENTER SHOPPING CENTER FY 2020-21 MONTH Y-T-D Y-T-D EXPENDITURES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget BUILDING MAINTENANCE 54,195$ 1,864$ 21,312$ 39.3%54,951$ 4,910$ 30,487$ 55.5% ELECTRIC SERVICES 5,700 414 2,751 48.3%5,700 736 2,925 51.3% INSURANCE - PROPERTY 13,000 - 9,979 76.8%13,000 - 9,976 76.7% SPECIAL SERVICES 9,600 782 5,846 60.9%6,000 500 3,528 58.8% TOTAL EDC TOWNCENTER EXPENDITURES 82,495$ 3,060$ 39,888$ 48.4%79,651$ 6,146$ 46,916$ 58.9% EDC TOWNCENTER REDEVELOPMENT FY 2020-21 MONTH Y-T-D Y-T-D EXPENDITURES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget ENGINEERING SERVICES -$ -$ -$ -$ CONSTRUCTION - - - - TOTAL EDC TOWNCENTER REDEVELOPMENT EXPENDITURES -$ -$ -$ -$ -$ -$ PAGE 5 CURRENT FISCAL YEAR PRIOR FISCAL YEAR BUDGET ACTUAL BUDGET FY ACTUAL BUDGET FY ACTUAL FY 2019-20 FY 2019-20 BUDGET ACTUAL BUDGET FY ACTUAL FY 2019-20 FY 2019-20 FY 2019-20 FY 2019-20 CURRENT FISCAL YEAR PRIOR FISCAL YEAR CURRENT FISCAL YEAR PRIOR FISCAL YEAR BUDGET ACTUAL EDC BOND RESERVE FUND MONTH Y-T-D Y-T-D REVENUES Original Budget Apr-21 Apr-21 % Budget Original Budget MONTH Apr-20 Y-T-D Apr-20 Y-T-D % Budget INVESTMENT INCOME 500 1 47$ 2,000 45 961$ TOTAL REVENUES 500$ 1$ 47$ 2,000$ 45$ 961$ EXPENDITURES ADMINISTRATION -$ - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ Total Revenues Over (Under) Exp 500$ 1$ 47$ 2,000$ 45$ 961$ Net Change in Fund Balance 500$ -$ 2,000$ Fund Balance Oct 1 128,586 126,586$ Ending Fund Balance 129,086$ 128,586$ PAGE 6 REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FY 2020-2021 WITH PRIOR YEAR COMPARISON FOR THE MONTH ENDED APRIL 30, 2021 CURRENT FISCAL YEAR PRIOR FISCAL YEAR FY 2020-21 FY 2019-2020 FY 2019-2020 BUDGET ACTUAL BUDGET FY ACTUAL Year October November December January February March April May June July August September Total FY2021 35,291 57,626 44,861 45,645 62,176 44,334 30,071 320,004$ FY2020 45,962 39,056 45,450 36,037 64,105 42,654 37,725 49,804 44,467 40,078 45,748 49,172 540,258$ FY2019 31,048 38,679 39,362 88,360 45,433 36,033 34,603 46,432 38,783 43,510 36,757 47,143 526,144$ FY2018 34,607 38,169 28,985 31,808 54,501 31,672 41,253 43,121 36,295 41,089 39,590 29,697 450,787$ FY2017 29,583 38,719 27,285 29,652 35,265 26,215 29,043 33,374 26,747 33,648 16,530 28,850 354,908$ FY2016 31,046 39,712 32,662 25,293 38,669 29,196 26,505 38,181 27,906 28,195 29,231 30,459 377,055$ FY2015 23,985 31,479 27,515 24,594 35,857 24,104 27,064 39,783 42,821 55,252 48,766 59,232 440,453$ FY2014 21,990 29,867 31,661 22,458 32,594 23,228 26,412 31,319 25,832 23,976 28,866 22,659 320,861$ FY2013 33,617 31,297 23,446 20,135 30,003 20,791 20,318 32,020 21,136 22,435 27,973 26,025 309,197$ EDC Sales Tax By Month 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 October November December January February March April May June July August September Sales Tax vs. Five-Year Average FY 2021 Five Year Average STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.E. SUBJECT Discuss and consider approval of lease extension for Red's Roadhouse 1170 E. Kennedale Parkway ORIGINATED BY Melissa Dailey, Director of Planning & Economic Development SUMMARY The current lease of Red’s Roadhouse located at 1170 E. Kennedale Parkway expired on November 30, 2020, pursuant to the Fourth Amendment to the lease agreement approved by the Board on November 18, 2019. The current tenant, the Pennington Family Limited Partnership (Red’s Roadhouse) has requested that the Board extend the lease by 12 months. The request is, therefore, to extend the lease to November 30, 2021. The Fifth Amendment extending the lease for Board consideration has been prepared and is attached hereto. The Executive Director is satisfied that the extension of the lease arrangements continues to meet the intent of the use of the property for economic development purposes as identified in the deed from the Bloxom Foundation and the Purchase and Sale and Lease agreements with the Pennington Family Limited Partnership. The amount of the lease was increased in 2018 to $2,500 per month and no increase in rent is proposed as a condition of this extension. Neither the original Purchase and Sale Agreement nor the Lease Purchase Agreement have been attached to this report but are available in the City Manager’s office should any Board member wish to review or discuss those documents. An Executive Session item for the discussion of this lease of 1170 E. Kennedale Parkway has also been posted on the agenda should there be a desire to discuss the terms of the lease in closed session. Board discussion and consideration is respectfully requested. RECOMMENDATION Approve ATTACHMENTS 1.Reds Fifth Amendment Reds Fifth Amendment.docx FIFITH AMENDMENT TO LEASE PURCHASE AGREEMENT This Fifth Amendment to Lease Purchase Agreement (“Amendment”) is made and entered into as of the day of , 2021, by and between the KENNEDALE ECONOMIC DEVELOPMENT CORPORATION, a Texas corporation (“Landlord”), and PENNINGTON FAMILY LIMITED PARTNERSHIP and/or its assigns (“Tenant”). WHEREAS, Landlord and Tenant entered into that certain Lease Purchase Agreement effective November 1, 2011 (the “Agreement”), for the lease of certain real property in the City of Kennedale, Tarrant County, Texas (the “Premises”, as defined in the Agreement); and WHEREAS, Landlord and Tenant previously entered into an Amendment to Agreement of Lease Purchase Agreement (“First Amendment”) which extended the Term of the Agreement to November 30, 2017, raised the rent and late fee charge, and provided that all other terms of the Agreement remained in full force and effect; and WHEREAS, Landlord and Tenant previously entered into a Second Amendment to Lease Purchase Agreement (“Second Amendment”) which extended the Term of the Agreement to November 30, 2018, raised the rent, made the Tenant liable for ad valorem taxes, and provided that all other terms of the Agreement remained in full force and effect; and WHEREAS, Landlord and Tenant previously entered into a Third Amendment to Agreement of Lease Purchase Agreement (“Third Amendment”) which extended the Term of the Agreement to November 30, 2019, raised the rent, and provided that all other terms of the Agreement remained in full force and effect; and WHEREAS, Landlord and Tenant previously entered into a Fourth Amendment to Agreement of Lease Purchase Agreement (“Fourth Amendment”) which extended the Term of the Agreement to November 30, 2020, raised the rent, and provided that all other terms of the Agreement remained in full force and effect; and WHEREAS, the parties desire to further amend the Agreement as provided below. NOW, THEREFORE, in consideration of the mutual rights and obligations set forth below and in the Agreement, Landlord and Tenant hereby agree as follows: 1.Extension of the Term. Section 2(a) of the Agreement is hereby amended by extending the Term to November 30, 2021. 2.Effect of Amendment. All other terms and conditions of the Agreement, First Amendment, Second Amendment, and Third Amendment and Fourth Amendment, with the exception of the terms modified by this Amendment, shall remain in full force and effect. 3. Effective Date. This Amendment is effective as of December 1, 2020. [Signature Page Follows] LANDLORD: KENNEDALE ECONOMIC DEVELOPMENT CORPORATION _______________________________________________ By: Mark Yeary, President TENANT: PENNINGTON FAMILY LIMITED PARTNERSHIP, a Texas limited partnership By:Pennington Family, LP, Inc., a Texas corporation, its General Partner By: _ Adlai Pennington, President STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.F. SUBJECT Authorize the Executive Director to make an application for the rezoning of the 13-acre EDC on Linda Road, known as Lot 1A2, Block 1 of the Harris Corporation Addition, from Industrial (I) to Neighborhood Village (NV) ORIGINATED BY Melissa Dailey, Director of Planning & Economic Development SUMMARY The 13-acre property on Linda Road owned by the Kennedale Economic Development Corporation (KEDC) is currently zoned Industrial (I). The property is surrounded on three sides by residential uses; and a light industrial use is located to the west of the property. City staff has been in communications with a potential developer that is proposing a development consistent with Neighborhood Village (NV) zoning. The NV district is established to provide an area with a mix of uses to fulfill the daily needs of residents within a short walking distance of the surrounding neighborhoods. Staff believes that a development consistent with NV zoning would result in a development that is more compatible with the surrounding neighborhoods than the current industrial zoning. NV zoning will also facilitate a quality development that results in the property generating property and sales tax revenue. RECOMMENDATION Approve ATTACHMENTS STAFF REPORT TO THE BOARD OF DIRECTORS MEETING DATE: MAY 25, 2021 AGENDA ITEM NUMBER: REGULAR SESSION ITEM VI.G. SUBJECT Authorize the Executive Director to negotiate, finalize and execute a lease agreement with Etron, Inc. for the lease of 201 W Kennedale Parkway, Building 1 in TownCenter, and forward the same to City Council for its approval ORIGINATED BY Melissa Dailey, Director of Planning & Economic Development SUMMARY RECOMMENDATION ATTACHMENTS