1998-11-02 PEARLAND ECONCOMIC DEVELOPMENT CORPORATION REGULAR MEETING MINUTESMINUTES OF REGULAR MEETING OF THE PEARLAND ECONOMIC
DEVELOPMENT CORPORATION ("PEDC") BOARD OF DIRECTORS OF
THE CITY OF PEARLAND, TEXAS, HELD MONDAY, NOVEMBER 2, 1998,
4:00 P.M. IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE,
PEARLAND, TEXAS.
I. The meeting was called to order at 4:02 p.m. with the following present:
BOARD MEMBERS
Chairman Dennis Frauenberger
Vice President Stella Roberts
Secretary Susan Lenamon
.Board Member Calvin Collier
Board Member Charlie Philipp
Board Member Connie Beaumont
Not in attendance — Due to a conflict in schedule, Board Member Bill Berger was
unable to attend.
EX -OFFICIO BOARD MEMBERS
Chamber of Commerce Lucy Stevener
Billye Everett
TriTech John Knox
Not in attendance: Due to a conflict in schedule, Ex -Officio member Mayor Tom Reid
unable to attend.
STAFF MEMBERS
Executive Director
Asst. Executive Director
Administrative Asst.
Glen Erwin
John R. Bowman
Perla N. Lehman
Also in attendance: Council Member Helen Beckman and Asst. Director of
Finance Cindy Soto.
Minutes of Regular Meeting of
November 2, 1998 (Cont.)
Page 2
II. Approval of Minutes: Board member Charlie Philipp made the motion, seconded
by Secretary Susan Lenamon to approve the minutes of October 5, 1998 as
submitted.
Motion passed: 6 to 0
III. Board Member Reports: Board Member Calvin Collier commented on the
success of the City Facilities Festival that took place on October 10, 1998. Mr.
Collier also presented the board with a copy of the official Pearland North 35
Committee letterhead stating that the committee's goal was to make Hwy. 35 the
best looking highway in any city.
Chairman Dennis Frauenberger informed the board that because of some
unforeseen circumstances he was unable to attend the council meeting of October
19, but John Bowman conducted the presentation he was originally scheduled for
regarding an incentive package for Prospect #9801 on his behalf to the City
Council.
IV. Executive Director & Staff Reports: Executive Director informed the board
that there would be no update on the McHard Rd./Overpass project at this time,
but would have a written report sent out to them. Assistant Executive Director
John Bowman gave a detailed report regarding current projects and prospects.
Mr. Bowman also informed the board that the incentive package for Prospect
#9801 presented on October 19,1998 had been approved by council.
V. NEW BUSINESS
A. Excused Absence - Board member Connie Beaumont made the motion to
excuse board member Bill Berger from the Regular meeting of July 20,
1998 and the Workshop of September 17, 1998. This motion was
seconded by Chairman Dennis Frauenberger.
Motion Passed: 4 to 2
B. Excused Absence - Vice President Stella Roberts made the motion,
seconded by Board member Charlie Philipp to excuse Secretary Susan
Lenamon from the Regular meeting of October 5, 1998.
Motion Passed: 5 — 0
Abstained: 1 (Ms. Lenamon)
Minutes of Regular Meeting of
November 2,1998 (Cont.)
Page 3
C. Approval of Resolution - Secretary Susan Lenamon made the motion,
seconded by board member Connie Beaumont to approve the following
resolution as presented:
RESOLUTION
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
PEARLAND ECONOMIC DEVELOPMENT CORPORATION,
AMENDING THE AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PEARLAND ECONOMIC DEVELOMENT
CORPORATION AND THE PEARLAND/HOBBY AREA CHAMBER
OF COMMERCE.
Motion Passed: 4 — 2
At this time, (5:05 p.m.) Chairman Dennis Frauenberger adjourned for a recess.
The meeting reconvened at 5:10 p.m.
D. Approval of Resolution - Secretary Susan Lenamon made the motion to
approve, seconded by Board Member Charlie Philipp to approve the
following resolution as amended and submitted to record.
RESOLUTION
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
PEARLAND ECONOMIC DEVELOPMENT CORPORATION
RECOMMENDING AMENDMENTS TO THE CORPORATE
BYLAWS OF THE PEARLAND ECONOMIC DEVELOPMENT
CORPORATION.
Motion Passed: 6 - 0
VI. OTHER BUSINESS
None
VII. Adjournment — Board member Connie Beaumont made the motion to
adjourn and was seconded by Secretary Susan Lenamon.
Motion Passed: 6 to 0
Time: 5:27 p.m.
Minutes of.Regular Meeting of
November 2,1998 (Cont.)
Page 4
Minutes approved as submitted and/or corrected this day
of , A.D., 1999.
Dennis Frauenberger, President
ATTEST:
Perla N. Lehman, Administrative Assistant
FEASIBILITY STUDY
THIRD COAST PACKAGING, INC.
PHASE II. EXPANSION
We have completed an economic impact analysis, examining the local impact of the
Phase II Expansion of Third Coast Packaging, Inc. The company is located in the city of
Pearland and the Pearland Independent School District. This memorandum transmits
findings of economic, tax and employment impact, as they will benefit the City of
Pearland and other local jurisdictions.
The prospect has requested a five (5) year abatement from the City of Pearland and a
$35,000 grant for infra structure improvements. The grant is structured as follows:
Water Line extension =
$ 5,000 (EDC)
Drainage Improvement =
$15,000 (EDC)
Drainage Improvement =
$15,000 (City)
Assumptions:
• Capital Investment (Taxable) - $1,200,000.00
• Inventory Value - $1,000,000.00
• New Employees 25
• Annual Payroll = $ 950,000.00
Abatement request — Total of 5 years.
Years 1-2-3 at 75% and years 4-5 at
50%.
• Cost/Benefit analysis calculated for 7 years which is the normal term of City
of Pearland abatements.
• Current year tax rates used throughout the study period.
• No direct sales tax: prospect is primarily a service company.
• Factor of 3.5 used in calculating annual indirect sales tax.
• Incremental cost of public service estimated to be $215 per year.
• Cost of water line extension - $5,000.00
• Cost of drainage improvements - $30,000.00
(One half of cost shared by City)
3519 LIBERTY DRIVE 9 PEARLAND, TEXAS 77581 • (281) 485-2411 • FAX (281) 485-6988 • TOLL FREE (800) 240-3684
Feasibility Study
Page 2
Costs:
The estimated cost of public service, grants and abatement were used to determine total
cost of this project.
These costs were estimated to be $92,205.00 for the study period.
Benefits:
Ad Valorem taxes after abatement, inventory taxes and indirect sales tax were used to
calculate benefits to the City of Pearland. Brazoria County and Pearland Independent
School taxes were added to determine total benefits of the project.
Benefits to the City of Pearland for the study period were estimated to be $121,820.00.
The total benefits of the project was estimated to be $471,624.00.
,Conclusion:
Based on our analysis of the economic impact and the cost/benefit comparison we find
this project to be feasible and recommend approval of their request.
Total benefit to P.I.S.D. - $272,580.00. Total benefits to Brazoria County - $77,224.00
WALSH ENGINEERING, INC.
OF PEARLAND
December 1, 1998
WEI 96-72
Mr. Glen Erwin, Executive Director
Pearland Economic Development Corporation
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
RE: McHard Road: Mykawa Road to Main Street (S.H. 35)
Dear Mr. Erwin:
WILLIAM C. WALSH, P.E.
President
2010 E. Broadway, P.O. Box 760
PEARLAND, TEXAS 77588.0760
2811485-2404
The following is a construction progress report as of the end of November 1998, for
the referenced project.
1. All bridge columns are poured.
2. All column caps except one are poured.
3. All bents are poured.
4. Embankment is essentially complete.
5. Some of the retaining walls are up.
6. Most of the beams have been fabricated and are due to arrive at site in
December.
7. Contractor's Monthly Pay Estimate #6 was prepared. As of the end of
November approximately 32 % of contract time has elapsed and 43 % of work
performed.
8. Rain and mud days total up to 39 days of which 8 is for November.
9. Notified the contractor that McHard-Mykawa intersection will need to be
revised due to the fact that Mykawa Road bridge at Hickory Slough will not be
built concurrently. Walsh Engineering, Inc. will prepare revisions to plans to
show
CONSULTING ENGINEERS HOUSTON • PEARLAND
Mr. Glen Erwin
Page 2
all -asphalt intersection with adjustments to elevations and widths. (City intends
to build this intersection, in concrete, as part of the TxDOT-funded bridge work
at Hickory Slough.)
We hope above progress report will bring you and the Board up to date on this project.
Sincerely,
Mehran Bavarian, P.E.
Vice President/Chief Engineer
MB:lw
cc: John Hargrove, P.E.
Alan Mueller
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COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774-0100
December 10, 1998
Treasurer
City of Pearland
Post Office Box 2068
Pearland, Texas 77588
Dear Treasurer:
I am writing to let you know the reason your December 1998 sales tax allocation payment of
$483,607.17 is greater than normal.
The increase is due to an audit collection totaling $139,138.33. This should be considered as a
one time payment and that next year's sales tax allocation payment may reflect a decrease due to
this collection.
You should, however, be aware that state law allows taxpayers up to four years to file amended
information, which may result in adjustments to the original audit.
Please call me toll free 1-800-531-5441, extension 34539 if you have any questions or if I can be
of further assistance. My Austin number is 512/463-4539.
Sincerely
Foehne
T Allocation Section
Accounting Division
an equal opportunity employer 92.176-2 (6/97)