Jan 22, 2024 Economic Development Corp. (Type A)

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TYPE A ECONOMIC DEVELOPMENT CORPORATION.

[1. CALL TO ORDER]

TODAY. FIRST ITEM ON OUR AGENDA, OH, IS CITIZEN APPEARANCES.

DO WE HAVE ANYONE THAT WOULD LIKE TO ADDRESS THE TYPE A ECONOMIC DEVELOPMENT? ALL RIGHT. I SEE NO SUCH REQUEST.

NEXT ON OUR LIST IS ITEM THREE A TO CONSIDER APPROVAL OF THE MINUTES FROM DECEMBER 11TH, 2023

[3. A. Consider approval of the minutes from the December 11, 2023, Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary)]

IF YOU'VE HAD A MOMENT TO LOOK AT THEM, I'LL TAKE A MOTION.

MOTION TO APPROVE. OKAY, OKAY.

I HAVE A MOTION BY JOHNSON, A SECOND BY ANDERSON TO APPROVE ALL THOSE IN FAVOR.

THAT MOTION PASSES WITH UNANIMOUS VOTE.

NEXT UP IS ITEM THREE B, WHICH IS TO CONSIDER APPROVAL OF A PERFORMANCE AGREEMENT BETWEEN THE BURLESON FOR ECONOMIC DEVELOPMENT CORPORATION AND 1611

[3. B. Consider approval of a Performance Agreement between the Burleson 4A Economic Development Corporation and 16:11 Sports, LLC. for a development located at 224 East Renfro Street in Burleson, Texas. (Staff Presenter: Alex Philips, Economic Development Director)]

THIS WILL BE PRESENTED BY ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR.

GOOD EVENING, PRESIDENT AND BOARD MEMBERS ALEX PHILLIPS WITH THE ECONOMIC DEVELOPMENT CORPORATION, HERE WITH PROJECT 1611.

THEY WERE FOUNDED IN 2017 AND FOURTH OPENED THE SECOND LOCATION IN 2021.

1611 INDOOR GOLF CLUB OFFERS FULL SERVICE BAR AND KITCHEN, TRACKMAN BAYS, A BIG TILT PUTTING GREEN AND DOZENS OF BIG SCREEN TVS.

IT CATERS TO THE GOLFER THAT WANTS TO IMPROVE THEIR GAME, AS WELL AS THE WEEKEND GOLFER WHO LOVES THE GAME WITH FRIENDS.

1611 ALSO PROVIDES AN ATMOSPHERE WITH LAID BACK, FUN, ENERGETIC MODERN DAY COUNTRY CLUB FEEL.

THIS WAS WAS A GREAT ONE FOR US TO RECRUIT.

WE HAD FUN WITH THIS ONE.

PROSPECT WILL TAKE OVER THE DOLLAR GENERAL SPACE NEXT TO CITY MARKET.

THAT'S APPROXIMATELY 8000FT².

THE USE WOULD PROVIDE OLD TOWN WITH ITS FIRST ENTERTAINMENT USE.

PROSPECT WOULD RELOCATE THEIR CORPORATE HEADQUARTERS FROM FORT WORTH TO BURLESON AS THEY CONTINUE TO EXPAND THROUGHOUT THE METROPLEX.

THEY PROVIDE THAT ATMOSPHERE WITH LAID BACK AGAIN, FUN, ENERGETIC PLACE TO GO.

THE LAYOUT HERE WOULD INCLUDE EIGHT BAYS, LARGE PUTTING GREEN ENTRANCE, FULL SERVICE BAR AND GRILL, LARGE PRIVATE BAY FOR BIRTHDAY PARTIES AND MEETINGS.

PROSPECT WOULD ALSO BE UPDATING THE FACADE OF THE BUILDING.

THE CEO AND OF THE BUSINESS AND TWO OTHER FULL TIME EMPLOYEES WOULD BE RELOCATING TO THE NEW CORPORATE HEADQUARTERS HERE IN BURLESON.

YOU SEE THE FACADE IMPROVEMENT FROM DOLLAR GENERAL AS IT IS TODAY TO THE PROPOSED.

IT'S A MASSIVE UPGRADE FOR THAT CENTER, COMING INTO OLD TOWN ON RENFRO.

HERE'S SOME MORE RENDERINGS FROM THE INSIDE OF KIND OF WHAT THE FINISH OUT WOULD LOOK LIKE, UPSCALE FINISH OUT, INSIDE.

THE PROSPECT OBLIGATIONS, EXECUTE A LEASE WITH THE PROPERTY OWNER BY THE END OF MARCH FOR A TERM OF SIX YEARS.

COMMENCE THE REMODEL OF THE SPACE, INCLUDING THE FACADE IMPROVEMENTS DEPICTED IN THE PRESENTATION, BY THE END OF JUNE OF THIS YEAR.

RELOCATE THE CORPORATE HEADQUARTERS TO BURLESON WITH ALL EXECUTIVE STAFF BY THE END OF THE YEAR, RECEIVED THE CO AND OPEN TO THE PUBLIC BY THE END OF THE YEAR.

MAKE A MINIMUM CAPITAL INVESTMENT OF $2 MILLION DURING THE TERM.

1611 SHALL NOT OPERATE A CORPORATE HEADQUARTERS SPECIFIED IN THE AGREEMENT.

IN COLLIN, DALLAS, DENTON, ELLIS, HILL HOOD.

ANOTHER ONE IN JOHNSON COUNTY, PARKER, ROCKWALL, SOMERVELL OR TARRANT COUNTY.

THE OBLIGATIONS AND CLAWBACK.

OBLIGATIONS 1611, TO RECEIVE AN INCENTIVE PAYMENT FROM THE 4 A OF $250,000.

ONCE THE FOLLOWING IS COMPLETED AND VERIFIED.

THE CO FOR THE DEVELOPMENT.

OPERATING THE DEVELOPMENT ON THE PROPERTY.

BEING OPEN TO THE PUBLIC.

MAKING THAT CAPITAL INVESTMENT OF NO LESS THAN $2 MILLION INTO THE PROPERTY AND THEY WOULD RECEIVE THAT $250,000 CHECK.

THE CLAWBACK, FOLLOWING THE OPENING DATE, THE PROPERTY IS CONVERTED TO A USE OTHER THAN CORPORATE HEADQUARTERS AND GOLF SIMULATOR ENTERTAINMENT CENTER.

1611 SHALL REPAY THE EDC AN AMOUNT EQUAL TO THE TOTAL AMOUNT OF INCENTIVES, LESS $50,000 FOR EVERY FULL YEAR 1611 OPERATED THE CORPORATE HEADQUARTERS HERE ON THE PROPERTY.

SO FOR EVERY YEAR THEY'RE OPEN, WE WOULD DECREASE THAT 250 TO WHAT WOULD BE OWED IF THEY WENT OUT OF BUSINESS OR HAD A CORPORATE HEADQUARTERS SOMEWHERE ELSE.

HERE'S THE PERFORMA.

YOU CAN SEE THAT BREAK EVEN YEAR IS YEAR FIVE.

TEN YEAR. RETURN ON INVESTMENTS 130%.

20 YEAR RETURN IS 438%.

SO TO NOT THE ACTION IN FRONT OF YOU IS TO APPROVE THE PERFORMANCE AGREEMENT BETWEEN BURLESON FOUR A AND 1611 OR DENY THE PERFORMANCE AGREEMENT.

HERE TO ANSWER ANY QUESTIONS.

WE HAVE REPRESENTATIVES FROM 1611 HERE IN THE AUDIENCE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE ABOUT THE BUSINESS AS WELL.

DOES ANYONE HAVE QUESTIONS? ALEX, THIS IS GREAT. I DON'T HAVE ANY QUESTIONS.

IS IT GOING TO BE JUST ONE? IS THERE GOING TO BE RETAIL GOLF SALES GLOVES, GOLF BALLS ANYTHING IN THERE? THEY HAVE SOME MERCHANDISE, BUT NOT A TON.

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YEAH. WAS IT CONSIDERED TO OFFER A TIMED OUT PAYMENT OF THE INCENTIVES, SAY, 50,000 A YEAR FOR FIVE YEARS? IT WAS AT FIRST, BUT WITH THEIR HOW THEY'RE FINANCING AND WITH IT THE WAY THEY NEEDED THE MONEY TO GET IN AND GET IT CONVERTED OVER, IT WAS NEEDED MORE UP FRONT THROUGH THE FINANCING WITH THE BANK THAN IT WAS OVER TIME.

OKAY. I DON'T HAVE ANY OBJECTION TO IT.

I LIKE I LIKE THE FACT THAT WE'RE GETTING IT.

IT'S A GREAT, GREAT FACILITY.

I THINK IT COULD BE THE START OF SOMETHING, A NEW PHASE OF THINGS IN OLD TOWN THAT YES, SIR.

THE POSSIBILITIES GO ON AND ON.

SO I THINK IT'S GREAT.

AND I'M GLAD YOU GUYS ARE INTERESTED IN BEING HERE.

LIKE I SAID, THE ONLY THING THAT MAKES ME A LITTLE BIT NERVOUS IS THE WAY THAT WE'RE PUTTING ALL OUR MONEY UP FRONT WITH THE HOPE OF A CLAWBACK IF THIS DOESN'T WORK OUT.

BUT THIS IS THE THIRD FACILITY I BELIEVE I'VE READ.

YEAH, THIS WILL BE THE THIRD FACILITY THAT THEY'VE OPERATED.

AND OTHER CITIES ARE CHOMPING AT THEIR HEELS OF WANTING TO BE THERE.

AND WE WANTED TO BE FIRST IN LINE BEFORE IT WENT SOMEWHERE ELSE.

THAT'S THAT'S VERY REASSURING TO KNOW.

SO YEAH, I'M I'M TOTALLY ON BOARD.

THIS IS, THIS IS GOOD.

ANY OTHER COMMENTS? SOMEWHAT A LITTLE BIT UNRELATED.

SORT OF THE PARKING LOT.

YES, SIR. TALKING WHEN THIS GETS DONE IS THE PLAN ALSO THAT THE LANDLORD WOULD TO DO THE WHOLE PARK? LANDLORD IS GOING TO BE DOING SOME OF THE PARKING LOT IN FRONT OF THEIR BUILDING, NOT THE FULL CITY MARKET.

OKAY. PLUS, IF WE NEED OVERFLOW, THERE'S ABILITY TO GET A SHARED USE AGREEMENT WITH B AND G, AS WELL, BECAUSE THE HOURS THAT THEY RUN IN THE EVENINGS, THERE WON'T BE ANY. THERE'LL BE PLENTY OF AVAILABLE OPEN PARKING AT B AND G.

OKAY. ALL RIGHT.

I MOVED TO APPROVE.

ALL RIGHT. I SECOND THE MOTION.

ALL RIGHT. I HAVE A MOTION BY ADAM, A SECOND BY LARRY.

ALL THOSE IN FAVOR? ALL RIGHT. AND THAT ITEM PASSES BY A UNANIMOUS VOTE.

THANK YOU. WELCOME TO BURLESON, GUYS.

LOOK FORWARD TO SEEING THINGS HAPPEN.

THANK YOU.

ALL RIGHT, THEN, WITH THAT BEHIND US, NEXT ITEM ON OUR AGENDA TONIGHT IS ITEM FOUR, VOTER REQUEST FOR FUTURE AGENDA ITEMS. ARE THERE ANY MEMBERS? ALL RIGHT. I SEE NO SUCH REQUEST.

HAVE WE INDEED FOR EXECUTIVE SESSION THIS EVENING? NO, SIR. NO, WE DO NOT.

OKAY, THEN I WILL, ADJOURN THE MEETING OF THE 4A ECONOMIC DEVELOPMENT CORPORATION AT 4:39 P.M..

THANK YOU ALL.

* This transcript was compiled from uncorrected Closed Captioning.