HomeMy WebLinkAbout1998/07/15-Minutes-HEDC Highlights of the
Wednesday, July 15, 1998
Economic Development Committee Meeting
I. Standing Items
None
H. New Business
A. Update of Convention and Visitors Bureau Contract
David Yett, Assistant City Attorney explained to the Committee that contract
negotiations are continuing with the CVB. He stated that most issues have been
resolved and that only the amount of"buy down" funds to be used at the
Convention Center was still pending. He explained that it should be completed in
the next couple of weeks.
Chairman Wentworth asked that a special meeting of the Committee be called in
early August in order to review the contract. He stated that he would like for the
contract to be presented to the City Council by August 18 '.
B. Update on Southside/Medical District TIF
Jay Chapa, Economic Development Coordinator gave the Committee an overview
of the process in formally establishing the Southside TIF. He explained that the
next step is to formally name the board members for the TIF. The other taxing
units allowed under state law to appoint board members have provided the City
with recommendations for the board. Staff asked that the committee name
appointments to the board in order to take a resolution to the full City Council for
appointment.
The Committee directed staff to allow Councilmembers McCloud and Hirt to
provide recommendations for the board appointments since the TIF is located in
their districts. Once these recommendations are obtained, a resolution will be
presented to the full City Council.
C. Presentation of Proposed Section 108 EDI Grant Application for Heritage
Park Center
Richard Tucker, Community Development Coordinator gave an overview of a
li proposed Heritage Park Center development project. This project located on East
Rosedale between I35W and Evans Avenue would include the development of a
hotel and redevelopment of historic building located in the area. Mr. Tucker
explained that the proposal calls for the use of Section 108 loans and an EDI grant
to provide incentives for a hotel developer to locate at the site. The EDI grant
would be used to acquire land, demolish existing structures and construct a
parking facility to serve the proposed hotel and retail/commercial activity to be
located in the redeveloped historic buildings. The Section 108 loans would be
offered to a hotel developer and any other entrepreneurs interested in commercial
ventures in the area.
The committee recommended that the proposal be presented to the City Council
for consideration at the next City Council meeting.
D.Presentation of Tag Abatement Audit Findings
Jay Chapa, Economic Development Coordinator presented the findings of the tax
abatement audit for the 1997 calendar year to the committee. The findings
showed that 10 of the 15 companies audited had met all commitments and that
overall the program has exceeded commitment levels in employment and supply
and service contracts.
Individual presentations on the five companies not meeting all commitments were
presented. The first, Southwest Office Systems, located in the CentrePort
development, did not complete construction of the project by the date specified in
the agreement but did meet all other commitments. SOS requested an amendment
to the agreement to change the completion date since no benefit has yet been
accrued. The committee voted to recommend the amendment to the City
Council.
Tech Data, Bank One, Star Uniform and Menasco Aerosystems were deficient in
commitments made to contract with M/WBE vendors. The committee voted to
reduce the abatements of Tech Data, Bank One and Star Uniform by 50% for its
1998 taxes. Tech Data's abatement is reduced from 25% to 12.5%; Bank One's
abatement is reduced from 100%to 50%; and Star Uniform's abatement is
reduced from 100%to 50%.
A representative of Menasco Aerosystems was present and requested that an
amendment to the agreement be considered to reduce the overall supply and
service amounts. He stated that the commitment level was too high and that the
company would be deficient every year if not changed. The committee voted to
reduce the abatement to zero for 1998 and instructed staff to negotiate an
amended agreement with an incentive based structure and a lower abatement
amount.
The committee instructed staff to present the findings to the full Council with
their recommendations for action to the various agreements.
III. Adjourn