Aug 15, 2023 Economic Development Corp. (Type A)

[00:00:01]

THANK YOU. GOOD AFTERNOON, EVERYONE.

[1. CALL TO ORDER ]

SO I WILL CALL THE MEETING TO ORDER.

FIRST ON OUR AGENDA IS ITEM NUMBER TWO FOR CITIZEN APPEARANCES.

THIS IS AN OPPORTUNITY FOR EACH PERSON IN ATTENDANCE TO SPEAK TO THE BOARD ON AN ITEM NOT POSTED ON THE AGENDA.

DO WE HAVE ANY SUCH REQUESTS? I SEE NONE. SO WE'LL MOVE ON TO ITEM 3A, WHICH IS TO CONSIDER APPROVAL OF THE MINUTES FROM THE JULY 24TH, 2023 ECONOMIC DEVELOPMENT CORPORATION TYPE

[3.A. Consider approval of the minutes from the July 24, 2023 Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary) ]

SO I WILL LET YOU ALL STUDY THE MEETING MINUTES AND DETERMINE IF THEY ARE IN LINE WITH YOUR UNDERSTANDING.

AND IF SO, I'LL BE READY FOR A MOTION.

I MOVE TO APPROVE THE MINUTES.

A MOTION BY RUSSELL.

SECOND. SECOND BY SCOTT.

ALL THOSE IN FAVOR PLEASE SIGNIFY.

AND THAT ITEM PASSES BY UNANIMOUS VOTE.

[Items 3.B. & 3.C. ]

ALEX. THANK YOU, PRESIDENT AND 4A MEMBERS.

ALEX PHILIPS, ECONOMIC DEVELOPMENT DIRECTOR FOR THE CITY OF BURLESON BRINGING FORWARD CRAFTMASTER AS WE APPROVED THE AGREEMENT EARLIER THIS YEAR.

WE'RE JUST GOING THROUGH THE NEXT PERFORMANCE MEASURES, JUST KIND OF GIVE YOU AN UPDATE, A SYNOPSIS FROM WHAT IS WHAT THEY'RE BRINGING.

CRAFTMASTERS TO PURCHASE ABOUT 62 ACRES IN TWO PHASES, LOCATED IN HOOPER BUSINESS PARK FOR THE CAMPUS HEADQUARTERS, THE HEADQUARTERS EXPANSION COFFEE SHOP AND STUDENT EXPERIENCE CENTER. THE PROPOSING THAT CORPORATE CAMPUS CONSTRUCTION TRADE SKILLS WITH ENROLLMENT OF 5,000 STUDENTS MINIMUM BY 2031 PHASED IN SIX EQUAL PORTIONS THAT CAPITAL INVESTMENT BE 90 MILLION BY 2026 TAX YEAR.

THE CORPORATE HEADQUARTERS EXPANSION OF A MINIMUM OF 400 NEW EMPLOYEES WITH AN AVERAGE WAGE OF 54,000 BY 2031 PHASED IN OVER THAT SAME SIX YEAR PERIOD BEGINNING IN 2026.

AND THAT HEADQUARTERS WOULD ADD AN ADDITIONAL $25 MILLION CAPITAL INVESTMENT.

THEY'RE ALSO DOING A PART OF A RESIDENTIAL COMMUNITY OF AT LEAST 100 SINGLE FAMILY UNITS ON A PROPERTY CLOSE TO THE TRADE SCHOOL TRAINING PROGRAM, CAPITAL INVESTMENT OF THAT WOULD BE $35 MILLION.

CAPITAL INVESTMENT AT THEIR FULL BUILD OUT AGAIN IS $150 MILLION INTO THE COMMUNITY.

THIS IS KIND OF THEIR FTE AND ENROLLMENT BUILD UP THE AVERAGE SALARY THERE SAYS 68.

THAT'S A TYPO WITH THE AVERAGE SALARY FOR THESE JOBS WILL BE $54,000.

IT IS THE CAMPUS IS THE LARGEST PHASE IN SIZE AND IN THE CAPITAL INVESTMENT AS WELL.

SO JUST KIND OF GIVE YOU WHERE WE'RE AT IN THE INCENTIVE OUTLINE.

AUGUST 31ST.

BY THE END OF THIS MONTH, WE HAVE TO BE UNDER CONTRACT ON THESE TWO DIFFERENT PHASES THAT'S IN FRONT OF THE BOARD TODAY.

AT THE SAME TIME, ONCE THIS KIND OF GETS STARTED, THIS KIND OF KICKS OFF THE WRAPPING UP THE SEWER DESIGN ON THE CITY SIDE AND THE EDC SIDE.

AND THAT WILL START CONSTRUCTION LATER THIS YEAR AS WELL, AS WELL AS THE RETENTION POND OUT AT HOOPER BUSINESS PARK WILL BE COMING FORWARD HOPEFULLY AROUND THE END OF THE YEAR AS WELL.

PROSPECT TO COMPLETE THE PREDEVELOPMENT MEETING WITH THE CITY, WHICH THEY'VE ALREADY ACTUALLY ACCOMPLISHED, BUT THEY'RE STAYING IN GOOD CONTACT WITH OUR TEAM ENGINEERING TEAM LOOKING AT CIVIL AND BUILDING PLANS.

THEY HAVE TO SUBMIT THEIR APPLICATION FOR PLATTING AND ZONING BEFORE DECEMBER 1ST OF THIS YEAR, SUBMIT THEIR BUILDING PLANS OF AT LEAST 190,000FT² FOR THE DEVELOPMENT FOR THE CAMPUS AND CRAFTMASTERS HEADQUARTERS BY END OF MARCH OF NEXT YEAR.

PHASE ONE, THEY HAVE TO CLOSE ON IT BEFORE THE END OF MAY.

AND THAT WILL BE COME WITH A DOWN PAYMENT OF $125,000 AND THAT AT THAT SAME TIME BUILDING PERMIT WITHIN 30 DAYS OF THE BUILDING PERMIT ISSUANCE, THE EDC TO PROVIDE A CASH GRANT OF $500,000.

SO EARLIER THIS YEAR, LIKE I SAID, JUNE 20TH, THE 4A AND THE CITY COUNCIL APPROVED THE AGREEMENT FOR CRAFTMASTERS.

THESE ARE THE NEXT PERFORMANCE AGREEMENTS OR PERFORMANCE MEASURES TO BE MET WITHIN THAT 380.

PHASE ONE IS FOR APPROXIMATELY 54 ACRES IN THE AMOUNT OF 2.5 MILLION.

[00:05:01]

JUST TO KIND OF GIVE EVERYBODY AN UPDATE AS WELL OR REMINDER, PHASE ONE IS TO BE CLOSED BY THE END OF MAY OF NEXT YEAR WITH $125,000 DOWN PAYMENT.

UPON PAYING CAMPUS AND CRAFTMASTERS HEADQUARTER CONSTRUCTION EXPENDITURES IN THE AMOUNT EXCEEDING $4 MILLION DOLLARS, THE EDC WILL PROVIDE A CASH GRANT OF 2.5.

ONCE THAT 2.5 INCENTIVE HAS BEEN PAID TO CRAFTMASTERS, IT WOULD TRIGGER THAT 90 DAY TIME CLOCK FOR CRAFTMASTERS TO PAY THE BALANCE OF THE LAND PURCHASE OF THAT 2.375.

SO AND THEN PHASE TWO IS TO BE CLOSED ON OR BEFORE AUGUST 31ST OF 2028.

SO THE ACTIONS IN FRONT OF YOU HAVE APPROVED THE RESOLUTION FOR THE LAND SALE CONTRACT FOR PHASE ONE, THE AMOUNT OF 2.5 OR DENY, AND THEN PHASE TWO TO FOLLOW THAT AS WELL, TO PROVE OR TO DENY I'M HERE TO ANSWER ANY KIND OF QUESTIONS.

THEY'LL HAVE TO BE TWO SEPARATE VOTES ON EACH ITEM.

NO MATTER HOW MANY TIMES I HEAR THE STORY OF CRAFTMASTERS REPEATED, IT'S LIKE LISTENING TO SWEET HOME ALABAMA.

I'VE HEARD IT SO MANY TIMES, BUT IT STILL SOUNDS STILL SOUNDS JUST AS GOOD AS IT DID THE FIRST TIME.

ANYBODY HAVE ANY QUESTIONS ABOUT THE ITEM TODAY? AND I HAVE NONE EITHER.

WITH THAT SAID, I WILL TAKE A MOTION ON ITEM 3B.

THE FIRST ITEM PERTAINING TO THE 54 ACRE PURCHASE.

MOVE TO APPROVE THE LAND SALE CONTRACT FOR PHASE ONE.

SECOND, THE EMOTION.

THE MOTION. SECOND THE EMOTION.

[LAUGHTER] THE MOTION. A LOT OF THAT.

ALL RIGHT. I HAVE A MOTION BY ADAM.

AND A SECOND TO THE EMOTION BY LARRY.

[LAUGHTER] ALL THOSE IN FAVOR. I SEE ALL HANDS GO UP.

NONE OPPOSED. THAT MOTION PASSES BY UNANIMOUS VOTE.

WE ALSO NEED A SECOND VOTE ON ITEM 3C TO CONSIDER APPROVAL OF RESOLUTION FOR THE EIGHT ACRE PURCHASE.

MOVE TO APPROVE. SECOND.

MOTION BY JOHNSON, SECOND BY ANDERSON TO APPROVE.

ALL THOSE IN FAVOR.

AND I SEE ALL HANDS GO UP.

NONE OPPOSED THAT MOTION PASSES BY UNANIMOUS VOTE.

THANK YOU. NEXT UP IS ITEM 3D TO CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE BURLESON 4A ECONOMIC DEVELOPMENT

[3.D. Consider approval of a resolution adopting the Burleson 4A Economic Development Corporation FY2023-2024 annual budget. (Staff Presenter: Martin Avila, Finance Director) ]

AND I'M ASSUMING YOU'LL TAKE A LITTLE MORE TIME THAN YOU DID ON YOUR PRESENTATIONS THIS MORNING.

MARTIN IS THAT RIGHT? [LAUGHTER] YES, IT IS. THAT WAS VERY GOOD, BY THE WAY.

WELL, THAT TOOK A LOT LONGER THAN JUST MY PRESENTATION THIS MORNING.

MY APOLOGIES FOR THAT.

THIS PRESENTATION IS COVERING THE 4A PROPOSED BUDGET.

THIS MORNING, THE CITY MANAGER PRESENTED THE PROPOSED BUDGET FOR YOU TO THE CITY COUNCIL AND IT INCLUDED THIS PARTICULAR 4A FUND AS WELL.

SO ONE OF THE THINGS A LOT OF THE SLIDES ARE PRETTY SIMILAR TO THAT.

AND SO AGAIN, KIND OF GIVING A FOCAL POINT OF THE BUDGET HIGHLIGHTS FOR, 4A.

AGAIN, THE PROPOSED BUDGET FOR 2024 IS $10.3 MILLION DOLLARS.

SALES TAX, WE'RE EXPECTING TO BE AT ABOUT 7.5.

AGAIN, THE SALES TAX AS WE'RE ENDING THIS PARTICULAR FISCAL YEAR, WE DO HAVE A 6% ASSUMPTION COMPARED TO PREVIOUS YEAR, AND THEN WE'RE GOING AT 3% GOING FORWARD.

IT DOES ALSO TAKE INTO ACCOUNT THE LAND SALE THAT ALEX TALKED ABOUT IN REGARDS TO THE CRAFTMASTERS OF THE $2.3 MILLION DOLLARS.

AND AGAIN, THERE'S ALSO OTHER REVENUES WITHIN THE 4A VERY SMALL BUT IT INCLUDES THE PROJECT USE SALES.

IT INCLUDES THAT SPONSORSHIPS TICKET SALES FOR PROJECT YOU IT'LL HAVE SOME LEASES, SOME RENTALS ALONG WITH INTEREST EARNINGS AS WELL.

SO ALL THOSE COMBINED IS A PROPOSED BUDGET FOR REVENUES OF ABOUT $10.3 MILLION DOLLARS.

GOING INTO THE EXPENDITURE SIDE, TOTAL PROPOSED IS ABOUT 9.1 MILLION.

[00:10:03]

ECONOMIC INCENTIVES, $4.5 MILLION DOLLARS.

A BIG PART OF THAT IS CRAFTMASTERS ALSO INCLUDES ALLEY CATS, RETAIL CONNECTIONS, AND THEN YOU HAVE OTHER OPERATING COSTS OF ABOUT $1.3 MILLION DOLLARS, WHICH WILL BE SUPPLIES, OUTSIDE SERVICES.

AGAIN, ALSO PROJECT AS IT RELATES TO THE EXPENDITURE SIDE OF THAT, TRANSFERS ADMINISTRATIVE COSTS.

SO ALL OF THAT COMBINED PROVIDES THE 4A AS A PROPOSED EXPENDITURE OF $9.1 MILLION DOLLARS.

THIS KIND OF GIVES YOU A DIFFERENT LOOK AT THAT AS A THREE YEAR SUMMARY.

AND AGAIN, YOU GOT YOUR PERSONNEL COSTS, YOU GOT YOUR PURCHASES, SERVICES, MAINTENANCE AND REPAIRS.

SO YOU HAVE ALL OF THAT COMBINATION.

BUT A BIG PART OF OF WHAT 4A IS, IS IT HAS A BIG PART OF ECONOMIC INCENTIVES, WHICH IS A BIG, BIG PART OF WHAT THAT FUND DOES, AS WELL AS 4A DEBT TO SUPPORT SOME OF THAT CAPITAL AS WELL.

AND TAKING THAT INFORMATION AND DOING A FIVE YEAR PROJECTION IT WILL ALWAYS BE IT SEEMS LIKE AT THE END OF THE FIFTH YEAR, IT'S ALWAYS, YOU KNOW, YOU TRY TO FIGURE IT OUT.

YOU'RE GOING TO BE A THREE DIGITS OR YOU'RE GOING TO BE BELOW THAT RIGHT AT 95.

SO AGAIN, THERE'S A LOT OF OPPORTUNITIES IN THIS FUND.

IT CONTINUES TO GROW.

AND AGAIN, I KNOW ALEX IS EAGER TO FIND OTHER PROJECTS TO BE ABLE TO CONTINUE WITH THAT.

AND SO TODAY WE'RE ASKING THE BOARD TO RECOMMEND EITHER APPROVAL OF THE 4A PROPOSED BUDGET.

NOT RECOMMEND APPROVAL OF THE PROPOSED BUDGET AND STAFF RECOMMENDS APPROVAL.

ANY QUESTIONS? OBVIOUSLY WE DON'T INTEND FOR THE FUND BALANCE TO GO WHERE IT'S SHOWN TO GO ON THIS CHART, BUT I'M SURE ALEX IS GOING TO TAKE CARE OF THAT.

SO ANY OTHER QUESTIONS ANYONE? ALL RIGHT. I SEE NONE.

THEN WE'LL BE OPEN FOR A MOTION ON ITEM 3D.

MAKE A MOTION.

TO? I SECOND THE MOTION.

MOTION BY ANDERSON TO APPROVE.

SECOND BY SCOTT.

ALL THOSE IN FAVOR.

I SEE ALL HANDS GO UP.

SO THAT MOTION PASSES BY UNANIMOUS VOTE.

THANK YOU. THANK YOU.

THANKS, MARTIN. ITEM FOUR IS FOR EXECUTIVE SESSION.

HAVE WE A NEED FOR EXECUTIVE SESSION? NO, WE DO NOT. ALL RIGHT.

SO WITH THAT, I'LL TAKE A MOTION AND A SECOND TO ADJOURN.

OR DO WE NEED THAT? WE DON'T NEED A MOTION AND SECOND.

THAT'S JUST MEETING IS ADJOURNED. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.