Sep 23, 2024 Economic Development Corp. (Type A)

[1. CALL TO ORDER]

[00:00:06]

HAVE YOUR ATTENTION UP HERE.

WE'LL GO AHEAD AND CALL TO ORDER THE MEETING OF THE BURLINGTON ECONOMIC DEVELOPMENT TYPE A CORPORATION.

FIRST ITEM ON OUR AGENDA IS CITIZEN APPEARANCES.

DO WE HAVE ANYONE HERE THAT WOULD LIKE TO ADDRESS THE ECONOMIC DEVELOPMENT CORPORATION TONIGHT? AND I SEE NO SUCH REQUEST.

NEXT UP ON OUR AGENDA IS ITEM 3A TO CONSIDER APPROVAL OF THE MINUTES FROM THE AUGUST 19TH, 2024 ECONOMIC DEVELOPMENT CORPORATION TYPE A MEETING.

[3.A. Consider approval of the minutes from the August 19, 2024 Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary)]

I GUESS THIS IS GOING TO BE AN ORAL MOTION.

ORAL MOTION. I MAKE A MOTION TO APPROVE THE MINUTES.

OKAY. MOTION BY SCOTT, SECOND BY ANDERSON.

ALL THOSE IN FAVOR? AND THAT MOTION PASSES BY UNANIMOUS VOTE.

NEXT UP IS ITEM 3B TO CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING A LAND PURCHASE CONTRACT WITH BURLESON HIGHPOINT INVESTMENTS, LLC FOR A TEN ACRE TRACT

[3.B. Consider approval of a resolution authorizing a land purchase contract with Burleson Highpoint Investments, LLC for a 10-acre tract located in Highpoint Business Park on Vantage Drive near FM 917. (Staff Contact: Alex Philips, Economic Development Director)]

PRESENTED BY ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR.

THANK YOU, MR. PRESIDENT AND COUNCIL MEMBERS.

LAND PURCHASE CONTRACT OUT AT HIGH POINT BUSINESS PARK.

THIS IS A TEN ACRE PARCEL.

IT'S ADJACENT TO A 30 ACRE PARCEL JUST TO THE NORTH.

THAT'S ALSO UNDER CONTRACT WITH A NEW DEVELOPMENT THAT SHOULD BE HOPEFULLY COMING FORWARD IN THE NEXT 30 TO 60 DAYS FOR Y'ALL'S VIEW AND APPROVAL, HOPEFULLY.

DUE DILIGENCE, DUE DILIGENCE PERIOD FOR THIS CONTRACT IS 90 DAYS.

AND THAT GIVES STAFF THE THE TIME TO CONDUCT A PHASE ONE ENVIRONMENTAL AND A GEOTECH REPORT.

EARNEST MONEY ON THE PROPERTY ON THE CONTRACT IS $50,000.

CLOSING WOULD OCCUR PRIOR TO THE END OF THE YEAR.

THIS WOULD BE AN ASSET FOR THE EDC TO MARKET FOR ANOTHER COMPANY, OR IT COULD BE AN EXPANSION FOR THE NEIGHBORING BUSINESS THAT IS SLATED TO COME IN.

PART OF THE CONTRACT DETAILS IF THE ADJACENT DEVELOPMENT DID NOT MOVE FORWARD, THEN THE EDC WOULD NOT MOVE FORWARD WITH THE PURCHASE OF THIS TEN ACRE TRACT.

THE ADJACENT DEVELOPMENT WILL RECEIVE A TEN YEAR FIRST RIGHT OF REFUSAL ON SEVEN OF THE TEN ACRES.

IF THE EDC RECEIVES A CONTRACT IN THAT TIME, THE ADJACENT DEVELOPMENT WOULD HAVE 30 DAYS TO PURCHASE THE PROPERTY OR DECLINE THE FIRST RIGHT.

SO OUR REQUESTED ACTION TONIGHT IS TO APPROVE THE RESOLUTION TO AUTHORIZE STAFF TO PURCHASE THE PROPERTY OR DENY THE RESOLUTION.

HERE TO ANSWER ANY QUESTIONS.

ALEX, IS THIS PARCEL AT 917? OR IS IT OFF 917? IT'S JUST OFF OF 917.

THERE IS SOME PROPERTY THAT FACES 917, LIKE A THERE'S A LITTLE COMMERCIAL MECHANIC SHOP THERE AT 917 AND VANTAGE.

AND THEN THIS, THIS PARCEL IS ON THE BACKSIDE OF THAT.

OKAY. AND OUR PROSPECT ANTICIPATES THE LIKELIHOOD THAT THEY WILL WANT THAT PROPERTY FOR FUTURE EXPANSION.

[INAUDIBLE] THAT IS ONE OF THE OPTIONS FOR THEM.

ONE OF THE OPTIONS. THAT'S ONE OF WHY THEY WANT THE FIRST RIGHT JUST IN CASE THEY DO WANT TO EXPAND.

IF THEY MOVE FORWARD CLOSE ON THEIR 30 ACRES, IF WE GET A PROSPECT THAT WANTS THAT SEVEN ACRES, SEVEN ACRE TRACT THAT WOULD BE LEFT OR TEN ACRE TRACT, THEN THAT WOULD BE SOMETHING FOR THEM TO DECIDE ON IF THEY WANT TO EXERCISE THEIR RIGHT TO PURCHASE IT FROM US OR DECLINE IT, AND THEN WE CAN MOVE FORWARD WITH A DIFFERENT PROSPECT. OKAY.

ANYONE ELSE QUESTIONS? SO ALEX POTENTIALLY GO AHEAD LARRY GO AHEAD.

POTENTIALLY WE WILL HAVE TO SIT ON THIS FOR SEVEN YEARS, WORST CASE SCENARIO RIGHT.

WORST CASE SCENARIO.

YES. OKAY. THANK YOU.

AND DO WE HAVE A PLAN FOR IF THEY WERE TO EXERCISE THEIR RIGHT, THEY'D LEAVE US WITH THREE ACRES.

THREE ACRES FOR FUTURE MUNICIPAL USE IF WE WANTED OR EDC USE.

YES, SIR. OKAY. THANK YOU.

ALL RIGHT.

NO OTHER QUESTIONS I'LL TAKE A MOTION ON THIS ITEM.

MOVE TO APPROVE. SECOND.

ALL RIGHT. I HAVE A MOTION BY ADAM TO APPROVE AND A SECOND BY LARRY.

ALL THOSE IN FAVOR? AND THAT MOTION PASSES BY UNANIMOUS VOTE.

[3.C. Consider approval of a Performance Agreement between The Burleson 4A Economic Development Corporation and the Bethany Special Utility District for infrastructure to support industrial development in the City of Burleson, Texas. (Staff Contact: Alex Philips, Economic Development Director)]

AND ONCE AGAIN, THIS WILL BE PRESENTED BY ALEX PHILLIPS.

THANK YOU, MR. PRESIDENT COUNCIL MEMBERS.

THIS IS AN AGREEMENT WITH BETHANY WATER.

THEY ARE LOCATED ON THE SOUTH WEST SIDE OF 35 AND 917 IS THEIR DISTRICT, THEIR SOURCE FOR MULTIPLE WELLS ALONG WITH JOHNSON COUNTY SPECIAL UTILITY DISTRICT.

THEIR CURRENT CAPACITY IS 1.9 MILLION GALLONS PER DAY, BUT THEY HAVE OVER A MILLION GALLONS AVAILABLE PER DAY FROM THEIR

[00:05:09]

THEIR INFRASTRUCTURE NEEDS SOME IMPROVEMENTS, AND THEY'RE LOOKING TO IMPROVE SOME OF IT.

ALL THE DESIRED INDUSTRIAL PROSPECTS THAT WE HAVE, YOU KNOW, CONSIDERED SITES WITHIN THEIR DISTRICT THEY PASS ON IT DUE TO THE LACK OF WATER PRESSURE FOR FIRE SUPPRESSION RESTRICTING BUILDINGS TO JUST 6000FT².

THERE HAS BEEN MULTIPLE ADJACENT INDUSTRIAL COMPANIES OVER THE YEARS THAT HAVE EXPRESSED A DESIRE TO EXPAND IF THE FIRE SUPPRESSION PRESSURE WAS THERE.

BETHANY HAS STUDIED THE NECESSARY UPGRADES TO SERVE INDUSTRIAL USERS IN THE AREA.

THE TOTAL COST FOR BETHANY TO UPSIZE THE LINE FOR THOSE PROPERTIES ON THE 35 CORRIDOR IS A LITTLE BIT OVER $3 MILLION.

BETHANY IS COMMITTED TO CONTRIBUTE $800,000 TOWARDS THE PROJECT.

WE'RE PROPOSING TO MATCH THAT CONTRIBUTION OF $800,000, FUTURE AREA DEVELOPMENT WILL BE RESPONSIBLE FOR THE REMAINDER OF THE COST AS THEIR COST SHARE.

THIS WILL INCREASE PRESSURE FOR THAT FIRE FLOW AND NOT CAPACITY THOUGH.

SO WE PUT A PERFORMER IN HERE JUST AS A PERSPECTIVE COMPANY THAT WE'VE HAD IN THE PAST, LOOK AT ONE OF THE SITES IN BETHANY'S DISTRICT.

IT WAS A DISTRIBUTION CENTER OF 350,000FT².

IT WAS GOING TO BE $35 MILLION CAPITAL INVESTMENT.

AS YOU CAN SEE, THE $800,000, THE RETURN ON INVESTMENT BE 122% OVER TEN YEARS AND 420% IN GENERAL FUND OVER 20 YEARS.

AND THAT PAYBACK PERIOD BE BACK IN YEAR FIVE.

AND THAT'S JUST ONE DEVELOPMENT THAT WOULD COME IN POTENTIALLY IF IT DID.

YOU CAN SEE WHERE IT KIND OF PAYS FOR ITSELF.

SO THE PERFORMANCE AGREEMENT TERMS THE EDC COMMIT $800,000 TOWARDS WATERLINE PROJECT.

WE'LL ONLY MAKE PAYMENT ONCE THE LINE IS COMPLETE AND VERIFIED TO PROVIDE SUFFICIENT PRESSURE.

BETHANY WATER MUST COMPLETE THE PROJECT WITHIN FIVE YEARS TO RECEIVE THE CONTRIBUTION AND PAYMENT WILL BE MADE AFTER TESTING VERIFIES THE PRESSURE IS SUFFICIENT FOR FIRE SUPPRESSION. SO THE REQUESTED ACTION TONIGHT IS TO EITHER APPROVE THE PERFORMANCE AGREEMENT BETWEEN BURLINGTON 4A AND BETHANY SPECIAL UTILITY DISTRICT OR DENY THE PERFORMANCE AGREEMENT HERE TO ANSWER ANY QUESTIONS.

QUESTIONS, ANYONE? I'VE GOT A QUESTION.

THIS CAME OUT TO $1.6 MILLION OF THE $3 MILLION THAT'S NEEDED WE'LL NEED $1.4 MILLION FROM DEVELOPERS.

YES, SIR. IN YOUR PROFESSIONAL OPINION, ARE WE GOING TO BE ABLE TO GET THAT $1.4 MILLION, OR ARE WE GOING TO HAVE TO PICK IT UP? NO, SIR. THERE WILL BE DEVELOPERS THAT HAVE CONTRIBUTED TO PROJECTS FOR INFRASTRUCTURE IMPROVEMENTS IN THEIR OWN DEVELOPMENTS BEFORE, AND WE CAN SEE THEM DOING THAT ON THIS ONE FOR SURE.

THE FIRST BUSINESS THAT DEVELOPS, OF COURSE, WON'T WANT TO FUND THE $1.4.

YES, SIR. WILL WE BE ABLE TO PROVIDE ENOUGH PRESSURE TO THEM FOR FIRE SUPPRESSANT, OR WOULD YOU HAVE TO HAVE 3 OR 4 BUILDINGS COME IN? SO I WILL.

JOSH WITH DUNAWAY, ONE OF THE CONSULTANTS THAT LOOKED AT WATER FLOWS AND DID STUDIES FOR THIS PROJECT, TO LET HIM ANSWER THAT.

YEAH. IF WE CAN GO. HI JOSH WRIGHT, DUNAWAY.

CAN WE GO BACK TO THE SLIDE THAT HAD THE IMAGE OF THE VARIOUS LINES? THERE YOU GO. YEAH. SO IT'S A LITTLE DIFFICULT TO SEE, BUT THE CURRENT PROJECT IS GOING FROM THE PIN AT THE BOTTOM RIGHT LEFT HAND SIDE, WHICH IS PLANT SIX BETHANY SAID THAT'S WHERE THE ELEVATED 500,000 GALLON STORAGE TANK IS.

WE NEED TO GET WATER FROM THAT ELEVATED TANK TO THE FRONTAGE ROAD.

SO THIS CURRENT PROJECT, WHICH IS ESTIMATED RIGHT AT $1.6 MILLION FOR THE CONSTRUCTION OF THE PROJECT, WE'LL TAKE THE A 12 INCH WATER LINE FROM THAT ELEVATED TANK TO THE FRONTAGE ROAD.

SO ALL THE LINE THEN AND WE'VE DIVIDED THIS OUT WITH VARIOUS DEVELOPERS WHO HAD PROVIDED INTEREST IN GETTING WATER TO THE FRONTAGE OF THE HIGHWAY.

YOU CAN SEE THAT BEFORE WE HAD BROKEN IT OUT WHERE THEY WOULD BE RESPONSIBLE FOR THE 12 INCH LINE FROM THE TANK ALL THE WAY TO THE FRONTAGE ROAD.

AS LONG AS THAT WATER IS THERE, IT'S A SHORT DISTANCE TO THE VARIOUS DEVELOPMENTS ALONG THE FRONTAGE.

SO THERE'LL BE ONLY 100-200, MAYBE 300FT OF EXTENDING TO THEIR OWN PROPERTY ALONG THE FRONTAGE ROAD, WHICH IS ECONOMICALLY A LOT MORE VIABLE FOR THESE DEVELOPERS VERSUS BUILDING SOMETHING AND TRYING TO DIVVY IT UP AND SPLIT IT OUT ALL THE WAY BACK TO THE ELEVATED TANK.

SO HAVING THIS LINE IN PLACE WILL INCENTIVIZE THOSE DEVELOPERS TO GO AHEAD AND BUILD THE REST.

AND THESE DEVELOPERS, WE'VE AT LEAST 3 OR 4 HERE HAVE ALREADY HAVE ALREADY EXPRESSED INTEREST AND ARE WILLING TO PAY SOME AMOUNT, BUT NOT THE FULL 2 OR $3 MILLION THAT'S REQUIRED.

YEAH. SO THAT'S THAT'S HOW IT'S BROKEN DOWN.

IN MY PERSONAL CONVERSATIONS WITH THEM, I FOUND THAT THEY WERE VERY OPEN TO BEING ABLE TO TO SHARE A BIT, BUT JUST NOT WILLING TO, TO JUMP IN ON A BIG PROJECT.

[00:10:08]

OKAY, SO FROM THE PIN, AJ SAID TO GET IT TO THE SERVICE ROAD IS ABOUT $1.6 MILLION.

THAT'S RIGHT. SO IN THIS IMAGE IT'LL BE THE BLUE LINE AND THE DARK GREEN LINE.

DARK GREEN. AND BETHANY'S GOING TO PUT IN $800,000.

THAT'LL GET IT HALFWAY THERE.

WE'RE NOT GOING TO PUT IN THE MONEY IF WE PASS THIS UNTIL IT'S COMPLETED.

SO WHERE'S THE OTHER $800,000 GOING TO COME FROM TO COMPLETE IT BEFORE WE PUT IN OUR COST? AND WE HAVE THE MONEY IN HAND TO DO THE PROJECT SO WE CAN COVER THE UNTIL WE'RE FINISHED AND GET OUR REIMBURSEMENT.

SO YOU ALL ARE NOT AT RISK.

WE'LL WE'LL PAY FOR IT.

WE'LL GET IT CERTIFIED THAT IT'S OPERATIONAL.

AND THEN WE'LL THEN WE'LL TURN IT OVER TO EDC FOR THE COMPENSATION FOR HALF.

AND WE'LL COVER THE, WE'LL, WE'LL HAVE WE'LL BE HALF IN AND EDC WILL BE HALF.

OKAY, THE REIMBURSEMENT COMPLETES THE MATH THAT I WAS WORKING ON.

YES. SO I'M GOOD.

THANK YOU. THANK YOU.

GOOD QUESTIONS. THANKS.

ANYTHING ELSE? OKAY.

IF THERE ARE NO OTHER QUESTIONS, I'LL TAKE A MOTION ON THIS ITEM.

MOTION TO APPROVE.

I HAVE A MOTION BY ALEXA TO APPROVE AND A SECOND BY PHIL.

ALL THOSE IN FAVOR? AND THAT MOTION PASSES BY UNANIMOUS VOTE.

THANK YOU. NEXT ITEM ON OUR AGENDA IS ITEM 4 BOARD REQUEST FOR FUTURE AGENDA ITEMS OR REPORTS.

HAVE WE ANY? I SEE NONE.

HAVE WE A NEED FOR EXECUTIVE SESSION THIS EVENING? WE DO NOT THEREFORE, WE'LL CLOSE THE MEETING AT 4:28.

* This transcript was compiled from uncorrected Closed Captioning.