2004-07-26 PEARLAND ECONCOMIC DEVELOPMENT CORPORATION REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT
CORPORATION ("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND, TEXAS,
HELD MONDAY, JULY 26, 2004, 5:30 P.M., IN THE 2ND FLOOR CONFERENCE ROOM, CITY
HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
I. The meeting was called to order at 5:37 p.m. with the following present.
BOARD MEMBERS
Secretary
Board member
Board member
Board member
Lucy Stevener
Helen Beckman
Felicia Kyle
Steve Saboe
Board member Ed Thompson
Not in attendance: Due to a conflict in schedule, Chairman Randy Ferguson and Board
Member George Sandars were unable to attend the meeting.
EX -OFFICIO BOARD MEMBERS
City of Pearland Bill Eisen
City of Pearland Mayor Tom Reid
Chamber of Commerce Carol Artz
STAFF MEMBERS
Executive Director Fred Welch
Marketing Manager Will Benson
Manager of Business
Retention and Expansion Karen Dickson
Administrative Assistant Janice Vega
Minutes of a Regular Meeting
July 26, 2004
Page 2
With the Secretary's concurrence, Items B and C under New Business were moved
up on the agenda.
VII. New Business
B. Board Member Helen Beckman made the motion, seconded by Board Member Steve
Saboe to adopt a resolution authorizing publication of Notice of Public Hearing and
Right to Petition and Authorizing Certain Other Matters Relating Thereto. Public
Hearing will be set for October 11, 2004.
Motion Passed: 5 — 0
C. Board Member Ed Thompson made the motion, seconded by Board Member Steve
Saboe to approve economic development incentives to Trigon Products in the amount
of $20,000.00 contingent upon receiving the certificate of occupancy.
Motion Passed: 5 — 0
II. Approval of Minutes: Board Member Felicia Kyle made the motion, seconded by Board
Member Helen Beckman to approve the minutes of the Regular Meeting of Monday, June
28, 2004.
Motion Passed: 5 - 0
II. Board Member Reports:
Steve Saboe — Attended a meeting to select the 2004 Industry of the Year.
Helen Beckman — Attended the Holiday Inn grand opening.
Lucy Stevener — No report
Felicia Kyle — No report
Ed Thompson — Attended the Holiday Inn grand opening.
V. Executive Director's Report
The Cardinal Project decision was for the Stafford area. There was too great of a
differential in tax savings between what Stafford has with no city property tax and what we
could muster with use of the Foreign Trade Zone and other cash concessions. The
difference over ten years was close to $5 million dollars based upon information given to
me by Cardinal.
Having two projects within the past six months seriously consider our site, even though
we have not begun construction, is very significant. The ORCA project is on hold not
cancelled. We are pursuing three additional projects at this time that have a longer
timeframe (2006 to 2007) for a building. Two of these projects are in the bio pharma
manufacturing area.
Regarding The Spectrum Project, our July 26th meeting is extremely important in terms of
moving forward with the sale of the sales tax bonds to support Phase I of The Spectrum.
The formal action required of the board is to post the public notice in the paper for a
Minutes of a Regular Meeting
July 26, 2004
Page 3
public hearing and concerning the sale of the bonds. This starts a 60 -day comment period
required by state law for the general public to comment either for or against the project.
The second Monday in October (October 11), the public hearing will be conducted
followed by a meeting of the PEDC Board. Formal action by the Board for the sale of the
bonds will be the action item for this meeting. Assuming the Board authorizes the sale of
up to $6.5 million in bonds, the item will go before City Council the same day for
concurrent approval.
With the approval of the sale of the bonds our financial advisor will be in a position to sell
the bonds. They will be funded (money to PEDC) most likely about three to four weeks
after the Board takes action. PEDC has already passed a reimbursement authorization,
which will allow PEDC to recover any funds expended, if we so desire, between April
(date of the authorization), and when we are fully funded. This will allow for the project to
be bid and construction to begin if time and work schedules permit. This is an important
event for the PEDC and City. Once construction is underway our development partners
with LNR, Colliers International and BioScience Capital will be aggressively seeking
tenants for the Phase I area. The City of Pearland has authorized the issuance of
Certificates of Obligation to pay for regional detention and expenses beyond our $6.5
million commitment. The City of Pearland's contribution in these areas will be another
$3.2 million. LNR's commitment for land purchase, infrastructure and site development is
an additional $8.5 million.
Although considerable energy is going forward on The Spectrum, I am very pleased with
the progress staff is making in attracting other firms to Pearland. Trigon Products is
interested in purchasing one of the buildings within the Planned Unit Development (PUD)
now before Planning and Zoning for Pauluhn Electric. The firm is in need of additional
manufacturing space and will relocate from South Houston to Pearland.
Trigon manufactures parts for a wide range of compressors and ships their products
throughout the United States. The Freeport Exemption on parts and inventory leaving the
state within 170 days will be very beneficial for them. They currently employ 31 people, 7
salaried and 24 hourly. They anticipate an additional 9 new employees within 5 years with
an additional payroll of $300,000 over their current $1.2 million. Trigon is a reseller or
manufacture of products. Sales tax impact on their product is minimal. Estimated sales
tax revenue from employees working at the facility is $250 per employee per year based
upon data from the Comptrollers office or $7750 per year. Most manufacturing jobs
indirectly create or retain up to 4 persons in support (retail and service) jobs within the
region.
The firm is seeking assistance of up to $30,000 for equipment relocation. This would
appear to be very reasonable and similar in nature to what was provided last year for
TyMetal Corp ($24,500 for moving). I do not believe the investment in the property (new
Minutes of a Regular Meeting
July 26, 2004
Page 4
investment) will hit the threshold for tax abatement or other city incentives. We have
funds remaining in the Industry attraction account to cover up to $30,000. 1 would urge
your consideration of this action pending successful acquisition of the property by Trigon
and receipt of a certificate of occupancy by the City of Pearland.
Karen has been visiting with communities in the region concerning how they use their
hotel motel funds and the composition of their CVB or Hotel/Motel committee. She will be
preparing a report to go forward to the City Staff on how to best administer the Hotel
Motel funds for the city. PEDC has stewardship over this fund. Karen is in charge of
administering the funds and working directly with whatever committee structure is
established through City Council. The fund is generating about $150,000 per year and will
increase now that the new Holiday Inn Express in running.
VI. Public Comments: Carol Artz, President of the Pearland Chamber of Commerce, gave
a quarterly report. Report submitted to file.
(New Business continued)
A. Excused Absence: Board Member Felicia Kyle made the motion, seconded by
Board Member Ed Thompson to excuse the absence of Chairman Randy Ferguson
and Board Member Helen Beckman from the Regular Meeting of June 28, 2004.
Motion Passed: 5 — 0
D. Public Hearing Date: Board Member Ed Thompson made the motion, seconded by
Board Member Helen Beckman to set the date of August 23, 2004 for a Public
Hearing and Board Meeting on the 2004/2005 PEDC Budget.
Motion Passed: 5 -0
VIII. Adjournment: Board Member Steve Saboe made the motion, seconded by Board
Member Helen Beckman to adjourn the meeting at 6:53 p.m.
Motion Passed: 5 - 0
Minutes app ved as submitted and/or
A.D., 2004.
corrected this 13 Awl day of
ATTEST:
ani Vega, Administr tive Assistant