1995-06-01 PEARLAND ECONOMIC DEVELOPMENT CORPORATION BOARD REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC
DEVELOPMENT CORPORATION BOARD, OF THE CITY OF PEARLAND, TEXAS,
HELD THURSDAY, JUNE 1, 1995 AT 11:30 A.M., IN THE FIRST FLOOR CONFERENCE
ROOM, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order at 11:47 a.m. with the following present:
President Dennis Frauenberger
Vice President Tricia Holland
Secretary Susan Lenamon
Board Member Connie Beaumont
Board Member Bob Lewis (arrived at 12:24 p.m.)
Board Member Stella Roberts
Board Member Charles Sones
City Manager Paul Grohman (arrived at 12:17 p.m.)
Assistant City Richard Burdine
Manager
Assistant City Glen Erwin
Manager
City Attorney Amy Motes McCullough
Assistant Director Wendy Standorf
Administrative Svcs.
Tritech Regional John Knox
Council
IMS Worldwide Ginger Sanders
Approval of Minutes. Board Member Charles Sones made the motion, seconded by Vice President
Tricia Holland to approve the minutes of the May 22, 1995 meeting as submitted.
Motion Passed 6 to 0.
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Adoption of Bylaws and Articles of Incorporation.
Board Member Charles Sones made the motion, seconded by Board Member Stella Roberts to adopt
the Bylaws and the Articles of Incorporation.
The Board was informed that the Articles and Bylaws could be amended as needed.
Motion Passed 6 to 0.
Staffing and Recruitment.
Board Member Charles Sones made the motion, seconded by Board Member Connie Beaumont to
defer this agenda item to a future agenda.
Motion Failed, no vote taken.
Assistant City Manager Richard Burdine informed the Board that the information for the Executive
Director of the Economic Development Corporation had gone out, but we do not know the
publication dates. It will appear in Texas City Management Association Prospects, which is
published every two weeks; the Texas Economic Development Council quarterly newsletter;
Southern Industrial Development Council publication; and Texas Association of Business and
Chamber of Commerce.
The Board requested a copy of the ad that was placed for the Executive Director of the Economic
Development Corporation.
Mr. Burdine advised that the clerical position and the special events coordinator position had not
to his knowledge been advertised at this time.
Mr. Burdine asked how the Board wanted to proceed with the applications that are received.
Vice President Tricia Holland stated the Personnel Department should do the initial weeding out of
applications to eliminate those that do not meet the qualifications.
Vice President Tricia Holland made the motion, seconded by Secretary Susan Lenamon to have staff
to put together an advertisement and job description for the position.
Motion Passed 6 to 0.
The Board advised staff they would like a copy of all of the job descriptions.
Vice President Tricia Holland amended her motion, seconded by Secretary Susan Lenamon to have
staff advertise and create job descriptions for all four positions.
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Motion Passed 6 to 0.
Update on Economic Development Prospects.
Assistant City Manager Richard Burdine informed the Board of the motel prospect. The owners of
the Best Western in Alvin are looking at a site behind the Taco Cabana. They do not have a
restaurant so they are looking for a site with 24 hour restaurant available and it will have 44 rooms.
The taxable value of the motel in Alvin is at $1 million.
They anticipate around $600,000 in gross revenues per year, with an estimated opening in the Spring
of 1996. They anticipate 10 full time j ob equivalents. The gross revenues of $600,000 will generate
approximately $6,000-$42,000 depending on the percentage the City adopts for hotel/motel tax G%
7%).
Vice President Tricia Holland asked if the City or the City Council determined how the hotel/motel
tax revenue was to be spent.
Mr. Burdine stated that the law is very stringent on how the income can be spent. It has been
misused around the state in the past. It can be used for tourism promotion, convention operation and
historic preservation, with the idea being putting more "heads in beds".
Mr. Burdine told the board he would get a copy of that law to the board.
Board Member Stella Roberts stated that there is still a supply of SBA 504 loan money available.
The applicant presents an application through a bank and the bank does the primary funding, usually
about 40%-50% of the loan with a first lien position. Then the SBA would do about 40%. This is
an employment incentive and this project may qualify for a 502 loan.
Mr. Burdine stated that the Best Western project is looking at a $1.5 million loan requirement.
Board Member Stella Roberts stated Jeff Sjostrom with HGAC should be able to provide us with
some information on this type of funding. She further stated that we'd probably see a bank more
anxious to do this type of loan since they would be taking a first lien position with an SBA
guarantee.
Mr. Burdine stated that the developers for the Best Western would like some assistance. They are
working with Harrisburg Bank. The developer indicated they would like a waiver of impact fees,
which would run approximately $12,000. We will not waive the impact fee, however, there could
be a reimbursement. Also, waiver of permit fees, which would run approximately $3,000, were
proposed, for a total of $15,000. These are just suggestions; they are looking for money.
The board was concerned that they would be setting a precedent when they gave money to this
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particular project, for any future projects.
Board Member Bob Lewis made the motion, seconded by Secretary Susan Lenamon to get
notifications made and set this particular public hearing for Tuesday, June 20, 1995 at 7:30 p.m.;
and set the regular public hearing schedule as the 3rd Monday at 7:00 p.m.
Motion Passed 7 to 0.
Mr. Burdine continued with the economic development prospects, informing the board of the IWL
prospects that are interested in the Pearland Industrial Park Subdivision near the Public Safety
Building (lot 3 block 2).
They will need to do a radio study for a "C" band license. Any site they choose, they will need to
get this license.
Mr. Burdine stated we should look at developing a 19.35 acre Industrial Park starting with this
project (they only need 5 acres). There is water and sewer available to this land.
Board Member Bob Lewis made the motion, seconded by Secretary Susan Lenamon to begin the
process on the Pearland Industrial Park Subdivision and set the public hearing for Tuesday, June 20,
1995 at 7:30 p.m.
Motion Passed 7 to 0.
Mr. Burdine stated that IWL is interested in looking at a Foreign Trade Zone.
Ginger Sanders with IMS Worldwide gave a presentation on Foreign Trade Zones to the board.
Covering application fees, which run approximately $30,000-$40,000; activation fees, which run
approximately $30,000-$40,000; and yearly fees, which run approximately $5,000-$25,000, and
who would be responsible to pay the fees.
Board Member Stella Roberts made the motion, seconded by Vice President Tricia Holland to have
staff research the Foreign Trade Zone matter before any further action is taken by the PEDC Board
and have staff report their findings at the next meeting.
Motion Passed 7 to 0.
Economic Development Priorities.
This has been discussed throughout the meeting.
State Law Requirements to Designate a Project.
Mr. Burdine stated that everything relates to accomplishing a project. To designate a project, you
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must publish a notice of intent 60 days before you spend any money and you have to hold a public
hearing. The rules in the state law are not very clear. Start the 60 day count after the public hearing
notice is published. After that 60 days you can begin expending the funds, assuming you don't get
a petition signed by 10% of the registered voters, which would trigger a referendum.
Other Business.
There was additional discussion on the staffing for the EDC.
Secretary Susan Lenamon made the motion, seconded by Vice President Tricia Holland to accept
applications for the Special Events Coordinator until June 30, 1995, motion modified to accept
applications until filled.
Motion Passed 7 to 0.
Adjournment.
Board Member Stella Roberts stated that we allocated funds to the Chamber at the last meeting, and
would like to see the board make a contract.
Next regular meeting date is July 6, 1995.
Secretary Susan Lenamon made the motion, seconded by Board Member Bob Lewis to adjourn the
meeting.
Adjourned 1:42 p.m.
Motion Passed 7 to 0. -/-J
Minutes approvedsubmitted a or corrected tl
ATTRST:
Wendy Stand�rf Assistant
Administrati-{ e Bervices
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