WEBVTT 00:00:00.000 --> 00:00:11.920 All right good morning my name is Marty Rivers I'm the chair of the Economic 00:00:11.920 --> 00:00:16.320 Development Partnership Board and we're going to call our meeting to order at 00:00:16.320 --> 00:00:27.480 1104 a.m. and our first item up for consideration is EDP 18-051 which 00:00:27.480 --> 00:00:34.160 is to elect our chairperson and vice-chairperson for the fiscal year 00:00:34.160 --> 00:00:39.920 2018-2019 there's an information sheet and our ordinance that are attached to 00:00:39.920 --> 00:00:48.040 your package. If anybody would like to make a motion I move Marty Rivers 00:00:48.040 --> 00:01:02.040 continue as our chair. I'll second that. We can do a joint motion if somebody 00:01:02.040 --> 00:01:08.080 wants to do that. Yes I will motion that John Baines stay our vice-chair. Second. 00:01:08.080 --> 00:01:16.520 We have a motion and a second to nominate Marty and John as chair and 00:01:16.520 --> 00:01:22.160 vice-chair respectively any further discussion? Nobody wants to jump out 00:01:22.160 --> 00:01:30.920 there. All right all those in favor say aye. Aye. Any opposed? Motion carries thank 00:01:30.920 --> 00:01:40.680 you and the big item today is EDP 18-042 which is to receive a report hold 00:01:40.680 --> 00:01:44.760 discussion and make a recommendation to the City Council regarding an incentive 00:01:44.760 --> 00:01:50.000 application from Tyson sales and distribution and Caroline will give us 00:01:50.000 --> 00:01:53.320 the report. 00:01:53.320 --> 00:02:05.080 Good morning Mr. chairperson and members of the board Caroline Booth director of 00:02:05.080 --> 00:02:09.760 economic development and I am going to be presenting a request to you today from 00:02:09.760 --> 00:02:18.440 Tyson sales and distribution for a project in Denton. Tyson foods is a very 00:02:18.440 --> 00:02:23.760 well-known company they have had 38 billion dollars in sales in fiscal year 00:02:23.760 --> 00:02:29.400 2017 and company-wide they do employ a hundred and twenty two thousand people. 00:02:29.400 --> 00:02:34.720 Tyson sales and distribution in particular as a division of Tyson foods 00:02:34.720 --> 00:02:39.280 provides refrigerated warehousing and distribution services for the company's 00:02:39.280 --> 00:02:44.920 brands which do include Tyson, Jimmy Dean, Hillshire Farms, Ball Park, State Fair and 00:02:44.920 --> 00:02:50.080 a number of other well-known brands. The company is based in Springdale, Arkansas 00:02:50.080 --> 00:02:55.400 and one thing that I have learned about Tyson in the course of working with them 00:02:55.400 --> 00:03:02.360 is that they are definitely as a company tuned in to sustainability and they 00:03:02.360 --> 00:03:06.880 identify five different areas of sustainability that they believe are 00:03:06.880 --> 00:03:11.400 interconnected but they do have some corporate sustainability initiatives 00:03:11.400 --> 00:03:17.040 that they felt was they wanted me to know about and to share with you all for 00:03:17.040 --> 00:03:24.160 example they do have a goal between 2015 and 2020 to reduce their overall water 00:03:24.160 --> 00:03:29.600 consumption by 12 percent as an effort to support their environmental 00:03:29.600 --> 00:03:34.960 sustainability pillar and a big thing that they do to to support their 00:03:34.960 --> 00:03:41.760 communities is providing hunger relief in the form of donating either cash gifts 00:03:41.760 --> 00:03:46.440 or in-kind gifts of product and they're hoping to achieve a goal of fifty 00:03:46.440 --> 00:03:51.040 million dollars worth of cash or in-kind donations to reduce hunger by 2020 they've 00:03:51.040 --> 00:03:55.120 already spent 45 million dollars on that effort so I've been impressed to learn 00:03:55.120 --> 00:03:59.320 about a little bit about their corporate culture and some of the things that they 00:03:59.320 --> 00:04:05.200 value as a business to talk specifically about the project that they're 00:04:05.200 --> 00:04:12.000 considering in Denton this at full build out would be a 350,000 square foot very 00:04:12.000 --> 00:04:16.040 highly automated refrigerated distribution center as you all are 00:04:16.040 --> 00:04:20.400 familiar we do have a number of refrigerated distribution facilities in 00:04:20.400 --> 00:04:25.920 Denton Target US cold storage and so on this particular facility would ship 00:04:25.920 --> 00:04:31.440 about 700 million pounds of product annually they're anticipating having a 00:04:31.440 --> 00:04:36.720 hundred full-time benefits eligible employees their average wage is 00:04:36.720 --> 00:04:42.880 anticipated to be just under $25 an hour which is about 12 percent higher than 00:04:42.880 --> 00:04:47.880 Denton County's average wage which is something that we reference specifically 00:04:47.880 --> 00:04:51.320 in the council adopted economic development incentive policy that we 00:04:51.320 --> 00:04:55.400 want to target employers who are providing average wages higher than the 00:04:55.400 --> 00:05:01.080 county's average the project in particular is gonna expand Tyson's 00:05:01.080 --> 00:05:06.160 service capacity to help enable company growth anticipate and serve the needs of 00:05:06.160 --> 00:05:11.520 their customers and improve reaction time to customer needs the facility as I 00:05:11.520 --> 00:05:16.920 said is going to be highly automated it's gonna contain automated storage and 00:05:16.920 --> 00:05:22.240 retrieval systems including stacker stacker cranes gantry robots they're 00:05:22.240 --> 00:05:26.360 gonna have a monorail system it sounds like it's gonna be very complex and I'll 00:05:26.360 --> 00:05:30.760 tell you a little bit more about the investment in the automated portion of 00:05:30.760 --> 00:05:35.760 the facility in a little bit as far as what their location considerations are 00:05:35.760 --> 00:05:39.880 for the project they're looking at workforce availability return on 00:05:39.880 --> 00:05:45.320 investment utilities infrastructure proximity to customers and ease of 00:05:45.320 --> 00:05:49.600 implementation of the project and if anybody's got questions as I'm going 00:05:49.600 --> 00:05:54.360 through this please ask me as I go along I did have a question yes sir John 00:05:54.360 --> 00:06:00.960 Baines a question was you referenced a item that was very interesting the hunger 00:06:00.960 --> 00:06:05.520 reduction going from 45 million to 50 mm-hmm are you able to elaborate on 00:06:05.520 --> 00:06:11.880 what they're doing to kind of address the so is it is it in our area or is it 00:06:11.880 --> 00:06:16.120 nationwide it's nice it's a nationwide corporate effort yes and if I wasn't 00:06:16.120 --> 00:06:21.800 clear they they have between this was a goal they established in 2015 to span 00:06:21.800 --> 00:06:29.320 the time period of 2015 to 2020 for that 50 million dollar total giving either 00:06:29.320 --> 00:06:33.420 cash or in kind and they've achieved 45 million dollars of that and it is 00:06:33.420 --> 00:06:44.280 nationally sure on the average hourly rate that takes in management everyone 00:06:44.280 --> 00:06:51.300 right yes do we know what the median hourly rate is then we can get that for 00:06:51.300 --> 00:06:56.080 you it was probably a part of the application but I don't have the number 00:06:56.080 --> 00:06:59.680 in front of me right now so we can find that out there's a breakdown on page 00:06:59.680 --> 00:07:06.480 17 of management maintenance and so it is in the packet thank you thanks Marty 00:07:06.480 --> 00:07:15.160 and one other question on the project sites is Denton a viable selection are 00:07:15.160 --> 00:07:20.160 they looking at Indiana Arkansas Utah and Denton right I mean I will get to 00:07:20.160 --> 00:07:26.820 that right now the short answer is yes the company has been considering sites 00:07:26.820 --> 00:07:32.080 in three other states as you can see up there the Denton site is absolutely 00:07:32.080 --> 00:07:37.960 viable very competitive it's important to note that the land sale for the 00:07:37.960 --> 00:07:42.000 Denton site has not closed yet that's that's always something that we want to 00:07:42.000 --> 00:07:46.240 make sure that everyone's aware of is the stage and of the land acquisition 00:07:46.240 --> 00:07:51.200 process so they are not closed they're in in contract negotiations Denton is 00:07:51.200 --> 00:07:56.640 the sole Texas site and as you can see from the map the proposed site is 00:07:56.640 --> 00:08:02.760 outlined in red they have the option of taking that entire site or they may just 00:08:02.760 --> 00:08:10.800 take the northern portion of the site that has not been settled on yet any more 00:08:10.800 --> 00:08:14.840 questions about site or yes ma'am 00:08:14.840 --> 00:08:20.840 natural are those natural ponds in this type flood area over here are there any 00:08:20.840 --> 00:08:26.920 ESA's on the property no there are no ESA's on that property and this is this is a little 00:08:26.920 --> 00:08:33.040 bit of an older aerial because US cold storage is now right in this area so 00:08:33.040 --> 00:08:41.880 that was a man-made stockpond I'll go over the fiscal information with you the 00:08:41.880 --> 00:08:48.440 current conditions are that the land has an AG exemption so you can see that 00:08:48.440 --> 00:08:54.320 because of that land certified valuation is low and the estimated total tax 00:08:54.320 --> 00:09:02.800 revenue that it's generating is a big whopping $23.08 a year what we have done 00:09:02.800 --> 00:09:08.840 to estimate the ad valorem valuation annual revenue is there in the chart 00:09:08.840 --> 00:09:16.200 below that we're estimating with their capital investments a total valuation of 00:09:16.200 --> 00:09:21.720 a little over fifty one million dollars when the project is complete and then 00:09:21.720 --> 00:09:27.800 you can also see moving down the columns that the estimated tax increment 00:09:27.800 --> 00:09:33.480 reinvestment zone the West Park hers revenue is 40% that's estimated a little 00:09:33.480 --> 00:09:42.120 over $52,000 a year the city's portion the other 60% is $268,000 for a total 00:09:42.120 --> 00:09:48.760 gross revenue of $320,000 a year it's critically important to point out at 00:09:48.760 --> 00:09:52.840 this point that the business personal property investment and all that 00:09:52.840 --> 00:09:57.720 automation inside the facility is going to equate to about 30 million dollars 00:09:57.720 --> 00:10:02.160 that is a hugely significant amount of investment in business personal 00:10:02.160 --> 00:10:09.040 property and that revenue created by that particular category of property is 00:10:09.040 --> 00:10:14.480 not captured by the TERS so all of that revenue hundred eighty nine thousand 00:10:14.480 --> 00:10:18.400 seven hundred dollars in annual revenue will go straight into the city's general 00:10:18.400 --> 00:10:22.960 fund and 40% of that is not diverted into the TERS does anybody have any 00:10:22.960 --> 00:10:30.720 questions about that okay that makes this a unique project as far as the 00:10:30.720 --> 00:10:36.280 incentive request Tyson is asking for a tax abatement specifically an abatement 00:10:36.280 --> 00:10:41.320 to offset development costs and to enable their application for Denton 00:10:41.320 --> 00:10:45.720 County tax abatement and the Texas enterprise zone program grant from the 00:10:45.720 --> 00:10:50.900 state as far as the priority considerations under the city's economic 00:10:50.900 --> 00:10:55.880 development incentive policy the project meets these following four things 00:10:55.880 --> 00:11:01.720 investment in business in the community expanding the tax base increasing jobs 00:11:01.720 --> 00:11:06.240 with wages above Denton County's average and generating significant new customer 00:11:06.240 --> 00:11:12.680 's for municipal utilities this is a little bit hard to see but it is in your 00:11:12.680 --> 00:11:20.720 backup this is our full analysis of the particular projects and what staffs 00:11:20.720 --> 00:11:26.200 recommendation is as far as an incentive we start with the assumptions up there on 00:11:26.200 --> 00:11:30.880 the top that include the revenue generated by the different categories of 00:11:30.880 --> 00:11:36.120 the project and then what the annual Denton municipal electric economic 00:11:36.120 --> 00:11:41.440 growth rider demand charge would be and we have talked about the DME economic 00:11:41.440 --> 00:11:45.160 growth rider before and I will touch more specifically on it in a couple of 00:11:45.160 --> 00:11:52.000 different and a couple of slides ahead the first line here depicts the TERS 00:11:52.000 --> 00:11:55.920 revenue from the land and improvements only not from the business personal 00:11:55.920 --> 00:12:02.120 property that's the top line there and we are looking at this on a 10-year time 00:12:02.120 --> 00:12:08.040 horizon because that allows us to compare apples to apples for different 00:12:08.040 --> 00:12:12.240 projects when we're looking at what the return on investment is even though 00:12:12.240 --> 00:12:17.840 we're recommending a six-year tax abatement we have information here that 00:12:17.840 --> 00:12:21.680 goes beyond that to a 10-year total and some of y'all will be familiar with 00:12:21.680 --> 00:12:27.720 having seen this type of analysis in the past again it's it's for uniform 00:12:27.720 --> 00:12:33.920 comparison of projects over that uniform horizon of 10 years does anyone have any 00:12:33.920 --> 00:12:37.400 questions about any of this I'm gonna highlight some of these numbers on the 00:12:37.400 --> 00:12:42.200 next slide but I just wanted to put this up there for y'all to see I'm the slow 00:12:42.200 --> 00:12:46.480 one in the bunch I'm gonna ask you a couple of questions here on that first 00:12:46.480 --> 00:12:59.640 line it says TERS fund 40% at 52,000 is the estimated revenue estimated revenue 00:12:59.640 --> 00:13:06.000 and then the 47 represents what down below on the next one okay the 47 is the 00:13:06.000 --> 00:13:10.280 25% tax abatement on the business personal property only that we're 00:13:10.280 --> 00:13:16.040 proposing for the incentive so that's that's 47 is 25% of the business 00:13:16.040 --> 00:13:27.400 personal property revenue only up above the is that the 189 yes 189-700 okay I 00:13:27.400 --> 00:13:31.460 was just trying to get my numbers together there thank you okay anybody 00:13:31.460 --> 00:13:37.600 else before we go on to next slide that has bigger numbers more specific yes 00:13:37.600 --> 00:13:43.360 did the other places that were in competition with have the electrical 00:13:43.360 --> 00:13:48.920 incentives that we have as far as I know no I've seen the list of incentive 00:13:48.920 --> 00:13:53.480 programs that they have and they're more traditional either tax-based or based on 00:13:53.480 --> 00:14:00.040 a cash grant upfront from either state level or city level economic development 00:14:00.040 --> 00:14:07.280 corporations so those are pretty unique to our city I don't this case the other 00:14:07.280 --> 00:14:12.600 locations don't have municipal electric companies okay so cities that have 00:14:12.600 --> 00:14:18.320 municipal electric companies often have programs like economic growth rider but 00:14:18.320 --> 00:14:27.000 the competitor cities and the other places don't have municipal electric okay 00:14:27.000 --> 00:14:33.840 so just to reiterate staff's analysis and our recommendation is for a 25% tax 00:14:33.840 --> 00:14:38.400 abatement on the revenue from business personal property only for a term of six 00:14:38.400 --> 00:14:45.040 years that is a total abatement to Tyson of 284 thousand five hundred and fifty 00:14:45.040 --> 00:14:52.400 dollars the city stands to gain eight hundred and fifty three thousand dollars 00:14:52.400 --> 00:14:58.400 of revenue on the remaining 75% of the business personal property only and so 00:14:58.400 --> 00:15:02.120 the total revenue to the city again on business personal property only over 00:15:02.120 --> 00:15:10.120 that ten-year horizon so this one sorry I'm not talking into the microphone is 00:15:10.120 --> 00:15:15.660 one point six million dollars total over ten years on BPP only any questions 00:15:15.660 --> 00:15:23.680 about that has this been discussed with them at all with Tyson yes yes we told 00:15:23.680 --> 00:15:29.160 them what we were proposing as a staff recommendation so was this was the did 00:15:29.160 --> 00:15:36.160 it pique their interest yes okay thank you okay here's a little bit more 00:15:36.160 --> 00:15:42.640 information about the economic growth rider as I mentioned before significant 00:15:42.640 --> 00:15:46.760 consumers of municipal utilities are a recruitment target under the city's 00:15:46.760 --> 00:15:52.720 policy and the reason for that is because large customers in sectors like 00:15:52.720 --> 00:15:57.680 manufacturing or refrigerated storage and distribution they use energy 00:15:57.680 --> 00:16:02.640 consistently around the clock and the benefit of that is that this type of 00:16:02.640 --> 00:16:07.960 steady industrial users allows DME to purchase power at a lower price and 00:16:07.960 --> 00:16:12.240 receive excuse me a better rate of return overall because of that 00:16:12.240 --> 00:16:17.640 consistent use and that helps keeps rate helps keep rates steady for all rate 00:16:17.640 --> 00:16:23.320 payers across the city in all different kinds of user categories so DME's 00:16:23.320 --> 00:16:27.520 economic growth rider is a recruitment tool to secure that particular type of 00:16:27.520 --> 00:16:36.220 desirable customer so what that is again there's a little bit of a review the DME 00:16:36.220 --> 00:16:41.480 EGR is a five-year sliding scale reduction in the demand charge available 00:16:41.480 --> 00:16:45.840 to qualifying commercial and industrial customers only so you have to you have 00:16:45.840 --> 00:16:51.360 to have a certain level of demand to be qualified for that Tyson's demand is 00:16:51.360 --> 00:16:56.640 anticipated to be two megawatts per year which would solidly qualify them and 00:16:56.640 --> 00:17:02.160 we estimate the total reduction in their demand charges to be slightly under 00:17:02.160 --> 00:17:10.360 $500,000 over that five-year time frame you also heard me mention that Tyson is 00:17:10.360 --> 00:17:14.640 planning to apply for an incentive from the county and for the state as well 00:17:14.640 --> 00:17:21.240 it's critical to remember that a city incentive is necessary for Tyson to move 00:17:21.240 --> 00:17:26.400 forward with applications to both of those bodies in particular Denton County 00:17:26.400 --> 00:17:30.640 will only consider granting a tax abatement to an applicant that has 00:17:30.640 --> 00:17:35.240 received a tax abatement from a city first and then the Texas Enterprise Zone 00:17:35.240 --> 00:17:40.400 program is a state refund based on capital investment and job creation in 00:17:40.400 --> 00:17:45.320 economically distressed areas which this area they're considering does count as 00:17:45.320 --> 00:17:48.840 economically distressed and local incentives are required for that 00:17:48.840 --> 00:17:56.560 program as well is Denton considered economically distressed that particular 00:17:56.560 --> 00:18:03.840 part of Denton is thank you sure so to wrap up with options and staff 00:18:03.840 --> 00:18:09.800 recommendation we have three options a 25% tax abatement on business personal 00:18:09.800 --> 00:18:14.480 property only for a term of six years plus the DME economic growth rider if 00:18:14.480 --> 00:18:19.400 the company qualifies you also have the option to consider a different percentage 00:18:19.400 --> 00:18:25.120 or term of tax abatement the EGR again if they qualify and then the third 00:18:25.120 --> 00:18:29.640 option would be to not offer them a tax abatement they could still receive the 00:18:29.640 --> 00:18:34.160 EGR if they're qualified but that would preclude them from applying for a tax 00:18:34.160 --> 00:18:40.000 abatement from Denton County the staff recommendation is option one for a total 00:18:40.000 --> 00:18:45.240 incentive of seven hundred and thirty four thousand four hundred and thirty six dollars over 00:18:45.240 --> 00:18:49.600 six years for the abatement portion of that over five years for the economic 00:18:49.600 --> 00:18:55.480 growth rider and I am happy to take any more questions to help you with your 00:18:55.480 --> 00:19:15.560 discussion question yes sorry you had a question so on the on the chart the 00:19:15.560 --> 00:19:20.360 majority of the people working they're going to make $20 an hour and the one 00:19:20.360 --> 00:19:24.640 listed is a little bit higher than that that said it was about the average wage 00:19:24.640 --> 00:19:32.400 so what is the average wage it is 22 let's see 00:19:32.400 --> 00:19:44.200 $22 and seven cents so the majority of the people that are going to hire the 00:19:44.200 --> 00:19:59.620 higher number is going to make less than that so is that your your estimations 00:19:59.620 --> 00:20:03.720 then on it having a higher than average is just the average of what they're 00:20:03.720 --> 00:20:14.840 proposing all the employees I just got a comment so 700 million pounds of frozen 00:20:14.840 --> 00:20:20.080 food that's a lot of weight and so I think about that's about 14,000 00:20:20.080 --> 00:20:26.480 trailers over the course of a year are gonna be on that road and that's only if 00:20:26.480 --> 00:20:30.200 they use the rail spurs if they don't then that would be double that amount so 00:20:30.200 --> 00:20:33.700 I just something to consider for like when the council considers it it's not 00:20:33.700 --> 00:20:37.200 nice to see several million pounds that's that's a big number but the real 00:20:37.200 --> 00:20:43.840 impact is 14,000 trucks and trailers on that road over that same 10-year period 00:20:43.840 --> 00:20:47.440 I would imagine that there would be some maintenance that would have to be at 00:20:47.440 --> 00:20:53.880 least considered as an offset to that amount of traffic so we are excuse me 00:20:53.880 --> 00:20:57.760 working closely with our various departments engineering development 00:20:57.760 --> 00:21:02.160 services to ensure that the proper traffic studies are done that we're 00:21:02.160 --> 00:21:06.600 anticipating appropriately for the increased truck traffic that this 00:21:06.600 --> 00:21:10.160 project and a number of other coming projects are going to bring so 00:21:10.160 --> 00:21:14.560 absolutely a good thing to bring up and consider just to make sure that 00:21:14.560 --> 00:21:20.160 everybody knows that we work together to anticipate those needs in this 00:21:20.160 --> 00:21:25.560 particular area and infrastructure is being upgraded to account for that 00:21:25.560 --> 00:21:32.080 yeah and on that note I actually made a comment on my notes here for that we're 00:21:32.080 --> 00:21:37.520 talking about ways to reduce transit from companies because of the air 00:21:37.520 --> 00:21:42.080 quality and so this is going to be adding several more but my question was 00:21:42.080 --> 00:21:47.640 more about the transit was it going to be by train trucks you know their 00:21:47.640 --> 00:21:51.920 primary method of transport is going to be trucks but they do have rail spur 00:21:51.920 --> 00:21:59.480 access and of course that makes it an option for them to move goods that way 00:21:59.480 --> 00:22:06.600 as well but their primary method is going to be trucks so do they plan on 00:22:06.600 --> 00:22:15.960 using the rail spur I guess that's they're not going deep into that yet 00:22:15.960 --> 00:22:21.000 again they're they're considering it as an option but it's not it wasn't a 00:22:21.000 --> 00:22:26.240 primary driver for their location decision to have rail access which gets 00:22:26.240 --> 00:22:31.800 to my question if they don't plan on using that today extensively and there 00:22:31.800 --> 00:22:35.160 I mean I guess it's up to the land seller but if you're selling land that's 00:22:35.160 --> 00:22:38.960 on the rail that's a long section of the rail spur then they're taking that up 00:22:38.960 --> 00:22:43.800 not using it that somebody that needs it and it is up to the seller who also owns 00:22:43.800 --> 00:22:52.440 the rails for one more question so when we offer this incentive to this wide 00:22:52.440 --> 00:22:59.600 receiver do you think we'll be able to sign them I certainly hope so I feel 00:22:59.600 --> 00:23:07.600 positive about it okay thank you so how did we arrive at 25% over six years 00:23:07.600 --> 00:23:13.760 that's consistent with what we have been offering to the last couple of folks 00:23:13.760 --> 00:23:17.400 who have come and applied for incentives 00:23:17.400 --> 00:23:27.520 they deal with animals and there's some not so pleasant incidents that have 00:23:27.520 --> 00:23:32.680 happened in their facilities for animal cruelty have they made a statement or 00:23:32.680 --> 00:23:37.520 talk to you about about any of that no because this facility is is only going 00:23:37.520 --> 00:23:42.920 to be storage and transportation of already processed food so it's not going 00:23:42.920 --> 00:23:46.760 to involve any kind of live animals in this facility so we haven't discussed 00:23:46.760 --> 00:24:01.720 that on the state incentive somebody slept since we've talked about this but 00:24:01.720 --> 00:24:05.360 at one time the state if we were competing with other states the state 00:24:05.360 --> 00:24:09.200 would kick in money to help attract those is that still available and an 00:24:09.200 --> 00:24:14.560 option it is available but this project isn't going to qualify for that 00:24:14.560 --> 00:24:18.520 particular program hot-tacker 00:24:18.520 --> 00:24:36.280 other questions or comments I'm not necessarily in favor of option one I'd 00:24:36.280 --> 00:24:41.560 like to see a little bit of different term and I think that the EGR is is 00:24:41.560 --> 00:24:46.600 really great for us to have and I'm pretty sure they would qualify for that 00:24:46.600 --> 00:24:55.360 with the amount of energy that they're gonna use less tax incentive and more 00:24:55.360 --> 00:25:06.640 regional no no not that's that's already said I just with it with the amount of the higher the 00:25:06.640 --> 00:25:10.800 higher wages only going to a few a few of the workers and 60 of them they're 00:25:10.800 --> 00:25:16.760 making less than average I just kind of have a you know and then the company's 00:25:16.760 --> 00:25:21.960 reputation and I really appreciate that they do plant that they have higher 00:25:21.960 --> 00:25:27.800 goals of helping those that are food insecure and sustainability and that's 00:25:27.800 --> 00:25:39.600 why I'm willing to work on the terms a little bit but only on the calculation 00:25:39.600 --> 00:25:45.640 of average wages because Steve meant medium wage which is a little bit 00:25:45.640 --> 00:25:52.520 different but we're using average for all of our incentive requests so I mean 00:25:52.520 --> 00:25:59.880 whether see everybody's point there's 60 people to make $20 an hour out of 60 00:25:59.880 --> 00:26:06.480 percent of the employees make less than then the Denton County average but the 00:26:06.480 --> 00:26:12.040 fact is the average is still 20 almost $25 an hour and that's how we calculate 00:26:12.040 --> 00:26:15.500 that for everybody that comes through there so looking at that differently 00:26:15.500 --> 00:26:21.320 would not necessarily be fair not that everything's fair but that's how we 00:26:21.320 --> 00:26:25.080 calculate it if we need to look at it differently than I would like the city 00:26:25.080 --> 00:26:28.920 needs to or we would need to make a request to use median or something 00:26:28.920 --> 00:26:33.800 different if you have three high paying people and the thousand low paying 00:26:33.800 --> 00:26:38.040 people and you know that average might be different so I'm just saying it's 00:26:38.040 --> 00:26:43.080 we're doing it the same way consistently with it and it does state in the policy 00:26:43.080 --> 00:26:48.360 that we're looking at average wages for the county so it would make sense that 00:26:48.360 --> 00:26:52.320 when we request that information and calculate it we're using the average 00:26:52.320 --> 00:27:01.320 instead of the median so that I guess my point is like based on how we have it 00:27:01.320 --> 00:27:13.200 written they qualify for that higher higher wage has so on the EGR does the 00:27:13.200 --> 00:27:16.760 public utility board have to approve that and make the recommendation of 00:27:16.760 --> 00:27:21.960 council or how's that work no sir they don't that is the EGR is adopted each 00:27:21.960 --> 00:27:28.840 year when the rate schedules are adopted so it's in the rate book and if the 00:27:28.840 --> 00:27:34.360 company qualifies under the terms that are set forth in the rate book they 00:27:34.360 --> 00:27:40.500 qualify for it and there's no further approval so there so that we're not 00:27:40.500 --> 00:27:44.440 really making a recommendation on that part of it that's just that's correct I 00:27:44.440 --> 00:27:49.640 feel like it's important to present a full picture of the incentives that a 00:27:49.640 --> 00:27:54.040 company could stand to receive from the city and that is an incentive even though 00:27:54.040 --> 00:27:59.160 it's not a tax-based incentive and they do automatically qualify for it but it 00:27:59.160 --> 00:28:07.880 is still expenditure of city funds to incentivize a company mr. Evers please 00:28:07.880 --> 00:28:12.940 I've got just a little off of the line of questioning but can you tell me how 00:28:12.940 --> 00:28:18.480 they came to us was it something that one of the departments did how did they 00:28:18.480 --> 00:28:24.120 find it Tyson reached out to my department directly thank you mm-hmm 00:28:24.120 --> 00:28:30.400 is that the one through the state or anybody they just called that's correct 00:28:30.400 --> 00:28:46.360 this is a bothersome question or a comment in negotiation sometimes you can 00:28:46.360 --> 00:28:50.440 just kind of go with the first blush or we can kind of do a little back and 00:28:50.440 --> 00:28:59.000 forth so with all the discussion on the wages it does seem a little low and the 00:28:59.000 --> 00:29:03.320 question then is are we in a position to ask them to bump it a little bit you 00:29:03.320 --> 00:29:08.120 know to make it a little more attractive for our community so I can definitely 00:29:08.120 --> 00:29:15.320 give them that feedback anybody else feel anything on that I guess I would 00:29:15.320 --> 00:29:23.600 hate to turn them away no this is consistent with I'd like to compare what 00:29:23.600 --> 00:29:26.480 incentives we give to other people what those numbers were I don't have that in 00:29:26.480 --> 00:29:34.840 front of me so I don't know well US cold storage we gave them a similar package 00:29:34.840 --> 00:29:40.160 and I don't have on I can't remember exactly what their wages were so it may 00:29:40.160 --> 00:29:48.000 be the same and my impression would be that that rate is going to be they're 00:29:48.000 --> 00:29:52.760 going to be competing with a lot of people for those same employees at that 00:29:52.760 --> 00:29:57.960 wage that would be my impression I brought up the median simply because I 00:29:57.960 --> 00:30:04.320 do think that it was a better impression of just what the workforce work base is 00:30:04.320 --> 00:30:09.720 really looking at I wasn't aware that we had traditionally I should have the 00:30:09.720 --> 00:30:14.240 tradition looked at an average but I do think there's a difference in just in 00:30:14.240 --> 00:30:18.440 the perspective of that the optics 00:30:18.440 --> 00:30:26.440 that was just a comment rather than a suggestion 00:30:37.200 --> 00:30:43.680 only we're comparing to Denton County average that's average didn't county no 00:30:43.680 --> 00:30:49.280 matter how many people are CEOs or factory workers or whatever so it's 00:30:49.280 --> 00:31:07.120 really is apples and apples anybody like to make a motion I make 00:31:07.120 --> 00:31:13.400 the motion that we accept the recommendation of the staff with this 00:31:13.400 --> 00:31:21.960 particular economic incentive got a motion and a second any further 00:31:21.960 --> 00:31:32.280 discussion I guess I'll admit to say if you look at the team your average what 00:31:32.280 --> 00:31:37.000 we're expecting on five million dollars revenue to the city and just the 25 00:31:37.000 --> 00:31:45.040 percent abatement on business personal property it's really a pretty small 00:31:45.040 --> 00:31:50.800 incentive package for such a large company coming to town so all those in 00:31:50.800 --> 00:32:16.800 favor say aye motion carries all right good discussion that still has to go to 00:32:16.800 --> 00:32:22.000 City Council that's correct we are slated to do a work session with City 00:32:22.000 --> 00:32:31.760 Council on the 27th of November for this item good job on that thank you all 00:32:31.760 --> 00:32:39.720 right the next item is it EDP 18-054 we're going to get an update on our 00:32:39.720 --> 00:32:43.320 annual marketing plan from the Chamber of Commerce Office of Economic 00:32:43.320 --> 00:32:52.880 Development Adam Gavresky will give the report today 00:32:52.880 --> 00:33:00.080 hi everyone I'm here to give the chambers economic development annual 00:33:00.080 --> 00:33:04.360 marketing plan overview and review of what we're what our plans are for the 00:33:04.360 --> 00:33:18.160 18-19 19 year things we're going to be going over is the number one the 00:33:18.160 --> 00:33:22.280 timeline for print and digital ad buys we don't do a whole lot of advertising 00:33:22.280 --> 00:33:25.880 there are 10 to 15 different economic development things that we can 00:33:25.880 --> 00:33:29.680 advertise and we choose our our top two that are more targeted towards the 00:33:29.680 --> 00:33:35.160 state advertisement and towards the DFW regional advertisement so that all the 00:33:35.160 --> 00:33:38.040 brokers and real estate people in the area have our contact information and 00:33:38.040 --> 00:33:42.040 and our ad and keep them up to date on things that we're doing through that 00:33:42.040 --> 00:33:47.600 through that visual ad maintenance and updates to didn't EDP comm is our 00:33:47.600 --> 00:33:52.400 current website that we're using to generate traffic to and promote our 00:33:52.400 --> 00:33:58.520 community number three is platforms and schedule of social media and planned 00:33:58.520 --> 00:34:05.480 marketing trips the first ad that we do per year is the site selection magazines 00:34:05.480 --> 00:34:09.680 Texas wide open for business guide such selection magazine is it's a 00:34:09.680 --> 00:34:13.560 international publication for economic development it goes out to site 00:34:13.560 --> 00:34:19.840 locators and company executives and this particular issue has a Texas polybag 00:34:19.840 --> 00:34:23.920 edition so it's all Texas communities so we advertise in that to make sure that 00:34:23.920 --> 00:34:30.160 we keep keep on top of everyone's radar we also do an ED directory listing 00:34:30.160 --> 00:34:33.600 inside selection magazine and this is in their annual economic development guide 00:34:33.600 --> 00:34:40.000 that gives the context for each individual community and then the other 00:34:40.000 --> 00:34:43.200 main advertisement that we do is the Dallas regional chambers economic 00:34:43.200 --> 00:34:45.280 development guide so this is the one that goes out to all the brokers and 00:34:45.280 --> 00:34:54.360 real estate people within the DFW Metroplex one other small insertion that 00:34:54.360 --> 00:34:58.880 we do it's not an ad it's just it's kind of a little insertion that we buy that 00:34:58.880 --> 00:35:01.800 goes in the in the middle of this magazine it's in business expansion 00:35:01.800 --> 00:35:07.080 journal and the web banner on the side that you see is a it's an economic 00:35:07.080 --> 00:35:10.360 development marketing company a small boutique marketing company in the DFW 00:35:10.360 --> 00:35:15.080 area that represents us at certain trade shows and things like that we have a 00:35:15.080 --> 00:35:18.680 small web banner on their website as well and they generate 30,000 traffic 00:35:18.680 --> 00:35:25.400 hits per per month and that directs directly to our website maintenance and 00:35:25.400 --> 00:35:31.560 updates to didn't EVP calm we we have a checkpoint list of about here and how 00:35:31.560 --> 00:35:37.120 many items do you think 35 things that we go through every single month so we 00:35:37.120 --> 00:35:41.560 keep that all that data up-to-date on the didn't need p.com website so it's 00:35:41.560 --> 00:35:45.600 important to keep all demographics and all building the sites and everything 00:35:45.600 --> 00:35:48.400 accurate on that website and it's so that's we put in a lot of effort and 00:35:48.400 --> 00:35:51.560 work so that all the sites to let site selectors and brokers and real estate 00:35:51.560 --> 00:35:54.560 people that go to that website have all that data in case they choose not to 00:35:54.560 --> 00:35:58.840 call us directly and then also photo updates we can't we are constantly 00:35:58.840 --> 00:36:02.480 keeping up-to-date photos on the website and refreshing those making sure that 00:36:02.480 --> 00:36:09.400 they're high resolution and things like that platforms the schedule of social 00:36:09.400 --> 00:36:15.160 media LinkedIn is what we start we use LinkedIn to target the site selectors 00:36:15.160 --> 00:36:20.520 brokers and realtors across the entire country and worldwide for that matter we 00:36:20.520 --> 00:36:25.720 update that bi-monthly or send out a bi-monthly advertisement through LinkedIn 00:36:25.720 --> 00:36:30.000 Facebook is we kind of we use that more for advertising to the local community 00:36:30.000 --> 00:36:33.000 and keeping them up-to-date on things that are going in on an economic 00:36:33.000 --> 00:36:37.280 development from the chamber from the city or whatever is going on at that 00:36:37.280 --> 00:36:42.400 moment but we try to post at least one item weekly I think we're doing probably 00:36:42.400 --> 00:36:46.640 a little bit more than that but at least one weekly and then Twitter we do weekly 00:36:46.640 --> 00:36:50.200 as well and this goes to everybody who are our current followers and site 00:36:50.200 --> 00:36:54.240 selectors and real estate people and also quite a few people in the in the 00:36:54.240 --> 00:37:02.300 community as well mark last item is marketing trips we we have a few that 00:37:02.300 --> 00:37:06.400 are operations funded out of the city general fund budget that comes to the 00:37:06.400 --> 00:37:10.920 development and some that are private funded which is the majority and 00:37:10.920 --> 00:37:14.960 operations funded or perfect they also fund professional development forums 00:37:14.960 --> 00:37:20.560 which we do for per year want something to do estate and into their international 00:37:20.560 --> 00:37:24.440 economic development forums and in target marketing and then private the 00:37:24.440 --> 00:37:29.840 private funding funds all target marketing aside from that the the two 00:37:29.840 --> 00:37:33.200 that are funded through operations that are professional development there they 00:37:33.200 --> 00:37:37.260 are listed again the Texas Economic Development Council so it's it's we do 00:37:37.260 --> 00:37:39.360 two of those per year it's where everybody in the state gets together and 00:37:39.360 --> 00:37:41.560 then we get to hear the governor's office come in and speak then we meet 00:37:41.560 --> 00:37:45.120 with regional representatives and everybody from the state that comes and 00:37:45.120 --> 00:37:48.960 everybody that they invite as well the International ED Council is similar 00:37:48.960 --> 00:37:53.240 except for it's it's open to economic developers worldwide it's it's mostly 00:37:53.240 --> 00:37:56.840 within the United States but you'll have people people from all different states 00:37:56.840 --> 00:38:01.900 and governors and everybody else that shows up to those things and then target 00:38:01.900 --> 00:38:07.460 marketing a few items that are funded through operations team Texas it's a 00:38:07.460 --> 00:38:11.200 state team Texas a statewide Martian marketing initiative and it's a pay to 00:38:11.200 --> 00:38:16.400 play initiative there's about 110 communities right now currently us being 00:38:16.400 --> 00:38:20.640 one of those so we were planning to do two trips with team Texas through the 00:38:20.640 --> 00:38:23.920 operations budget and those are typically through target market trade 00:38:23.920 --> 00:38:28.800 shows such as trade shows that would be fun that would be within our target 00:38:28.800 --> 00:38:32.460 market so Fabtech is one that we just did for instance which is metal forming 00:38:32.460 --> 00:38:38.960 fabrication welding high-energy users and then those high-paged high-paying 00:38:38.960 --> 00:38:43.600 advanced manufacturing types of operations so two of those advanced 00:38:43.600 --> 00:38:48.080 manufacturing expo is coming up in January it's it's one that I've done 00:38:48.080 --> 00:38:53.280 every year for a few years now and it's your advanced manufacturing companies a 00:38:53.280 --> 00:38:55.680 lot of them are centered in New York which is why I like it because you get 00:38:55.680 --> 00:38:59.240 to meet with a lot of those companies that are you know hopefully looking to 00:38:59.240 --> 00:39:04.800 jump ship in their future and we try to meet with them and and tell them did it 00:39:04.800 --> 00:39:08.480 message and what we have available to them as well Southern Economic 00:39:08.480 --> 00:39:12.400 Development Council one of those is planned through the professional or I'm 00:39:12.400 --> 00:39:15.280 sorry to the operations budget DFW marketing team we have two of those trips 00:39:15.280 --> 00:39:21.160 planned DFW marketing team is a regional collaboration that is run through the 00:39:21.160 --> 00:39:26.840 Dallas regional chamber and I think there's about 13 16 counties now that 00:39:26.840 --> 00:39:32.480 they cover didn't Tarrant wise and all the way out to Rockwell County I think 00:39:32.480 --> 00:39:37.200 even up as far as Kaufman County but we have the option they take usually seven 00:39:37.200 --> 00:39:40.880 to ten I'm sorry five to seven communities when we when we do a 00:39:40.880 --> 00:39:44.400 traveling mission to let's say one of the larger major metros such as Chicago 00:39:44.400 --> 00:39:49.200 LA or Atlanta and we go visit with brokers consultants seal all executives 00:39:49.200 --> 00:39:52.720 and disappointments that they set up for us we go and present ourselves as a as a 00:39:52.720 --> 00:39:57.040 as a region and then we get our elevator speech to to present our community as 00:39:57.040 --> 00:40:00.500 well so I think those are definitely important they've been very beneficial 00:40:00.500 --> 00:40:07.920 and so two of those are requested as well net car is the North Texas 00:40:07.920 --> 00:40:12.400 Commercial Association of realtors expo this is something that we've done for 00:40:12.400 --> 00:40:15.680 the past five years here and my predecessor might have done it a few 00:40:15.680 --> 00:40:19.080 years before that but I've done for five years we have actually have a booth it's 00:40:19.080 --> 00:40:23.520 down in Dallas so it's all the Dallas in Fort Worth real estate people that come 00:40:23.520 --> 00:40:28.360 to the same it's very well attended we always get anywhere from 60 to 100 new 00:40:28.360 --> 00:40:31.080 contacts from our contacts that we that we already know and then some new ones 00:40:31.080 --> 00:40:34.040 but we always come back with 60 to 100 cars we follow up with we send them our 00:40:34.040 --> 00:40:37.800 market materials and brochures and you know we're calling on them we get we 00:40:37.800 --> 00:40:40.680 always get a few leads from this thing it's one of the one of the best things 00:40:40.680 --> 00:40:46.000 we do I think in the year and then so those were all through the operations 00:40:46.000 --> 00:40:50.480 budget then to private to the private budget it's all target marketing area 00:40:50.480 --> 00:40:55.480 development forums I have two of those budgeted for these are forums that are 00:40:55.480 --> 00:41:00.240 hosted in a given region but they typically this area development is a 00:41:00.240 --> 00:41:03.360 magazine but they actually host these consultant forums and they'll bring in 00:41:03.360 --> 00:41:09.480 anywhere from 18 to 25 consultants per per event and then we get to go and 00:41:09.480 --> 00:41:13.120 network with them and we get we get one-on-one meetings with each and every 00:41:13.120 --> 00:41:16.400 one of them to give them our marketing materials and tell them about new 00:41:16.400 --> 00:41:19.240 updates that we have buildings and sites that we have going on and and the 00:41:19.240 --> 00:41:21.840 brokers that in real estate people that come to these things are all people that 00:41:21.840 --> 00:41:26.360 work national projects so they are people that would work a project in the state 00:41:26.360 --> 00:41:33.480 of Texas at some point the consultant connect forum which is they call it the 00:41:33.480 --> 00:41:38.280 economics forum but they do one of those per year they started doing it three 00:41:38.280 --> 00:41:42.280 years ago I've done it all three years it's a great form similar to economic 00:41:42.280 --> 00:41:46.720 development or the area development forum there's always 20 20 plus 00:41:46.720 --> 00:41:50.560 consultants there and we do the same thing it's one-on-one meetings and you 00:41:50.560 --> 00:41:53.160 give them your materials and tell them about buildings and sites and new 00:41:53.160 --> 00:41:56.280 updates that you have within the city and it's always important we try to keep 00:41:56.280 --> 00:41:59.880 our real estate in front of them so all new buildings any new spec buildings 00:41:59.880 --> 00:42:05.360 that are coming up or any properties that we're trying to push and new we tell 00:42:05.360 --> 00:42:07.400 them about new products that we have coming in and new products that we've 00:42:07.400 --> 00:42:11.680 landed in the last few years and I think that helps drive interest to our to our 00:42:11.680 --> 00:42:17.440 community IMC two of those plan for that's the International Asset Management 00:42:17.440 --> 00:42:22.800 Council this is mainly comprised of it's it's really half economic developers and 00:42:22.800 --> 00:42:26.640 then the rest are comprised of company executives that handle real estate 00:42:26.640 --> 00:42:31.280 within a within a firm for instance we got we recruited Penske trucks from this 00:42:31.280 --> 00:42:35.080 from this particular from one of these actually a couple years ago is a smaller 00:42:35.080 --> 00:42:40.040 operation but about 15 to 20 jobs we met them here and they ended up locating 00:42:40.040 --> 00:42:43.760 here so it's it's typically somebody like Penske or Coca-Cola or Frito-Lay who 00:42:43.760 --> 00:42:48.680 would have their real estate people at these things so we kind of eliminates 00:42:48.680 --> 00:42:51.840 the middleman the real estate brokers that we would typically market to and go 00:42:51.840 --> 00:42:56.680 straight to to these firms another Southern Economic Development Councils 00:42:56.680 --> 00:43:00.600 annual meet the consultants forum we have budgeted through here through 00:43:00.600 --> 00:43:04.260 private we had one through operations one through private the site selectors 00:43:04.260 --> 00:43:08.420 guild is another one similar to these two the first consultants forums that I 00:43:08.420 --> 00:43:11.960 mentioned except for this one is the one of the larger ones so there's typically 00:43:11.960 --> 00:43:16.880 40 to 50 brokers and consultants and for them for these consultants get invited 00:43:16.880 --> 00:43:20.400 to the site selectors guild they have to work there's a threshold they have to 00:43:20.400 --> 00:43:24.200 meet of annual projects that they work on and products they've located with 00:43:24.200 --> 00:43:27.120 their with capital investment based a new job so they have to meet a 00:43:27.120 --> 00:43:32.520 threshold so that's one of the best best times to do for the year in a type one 00:43:32.520 --> 00:43:35.800 marketing trips we have two of those budgeted for that's where I typically go 00:43:35.800 --> 00:43:40.420 alone and I'll go to a major metro area Atlanta Chicago or LA and I'll preset my 00:43:40.420 --> 00:43:43.240 own appointment so I'll be calling brokers and companies that we've been 00:43:43.240 --> 00:43:46.840 working on in the past or companies that I know that are relocating or 00:43:46.840 --> 00:43:50.600 expanding and then we go make our own personal appointments face-to-face with 00:43:50.600 --> 00:43:57.240 them and then two more of the team Texas industry targeted shows that I mentioned 00:43:57.240 --> 00:44:03.220 before budgeted through this one that concludes that my presentation is there 00:44:03.220 --> 00:44:06.680 any questions or feedback 00:44:06.680 --> 00:44:14.840 okay we can you remind me or what is your marketing budget for separate from 00:44:14.840 --> 00:44:19.280 the trade show budgets that you attend or is it all one it's separate it's 00:44:19.280 --> 00:44:22.540 separate we have a separate we keep a separate line up for the print and what 00:44:22.540 --> 00:44:28.320 did do you know I don't know what the total is I know for the for the one ad 00:44:28.320 --> 00:44:34.720 we we spend around three grand a year the other one is about 4,000 so I think 00:44:34.720 --> 00:44:39.240 we're spending about 7,000 for the year I'm just down the ads are you talking 00:44:39.240 --> 00:44:43.800 about for the total marketing I don't know the exact number right now I can 00:44:43.800 --> 00:44:47.080 get that for you and email it to you are you talking about through operations 00:44:47.080 --> 00:44:51.720 funded or both yeah just what you spend on on marketing total marketing yeah we 00:44:51.720 --> 00:45:00.680 can do that I have a question please Adam can you describe your your operation 00:45:00.680 --> 00:45:06.960 as Spartan or are you are you incorporating your wish list here where 00:45:06.960 --> 00:45:11.200 are we in the spectrum I mean I think we're aggressive aggressive very 00:45:11.200 --> 00:45:14.760 aggressive okay yes okay so there's more and more aggressive communities and in 00:45:14.760 --> 00:45:19.080 the Metroplex okay I mean as far as our spending are we being our spending yes 00:45:19.080 --> 00:45:24.120 where we're aggressive where we're aggressive okay we are we're doing the 00:45:24.120 --> 00:45:27.680 things that that make the most give us the Mustang for our buck okay I mean 00:45:27.680 --> 00:45:30.600 there's a there's a ton of other things that we could be doing but these are the 00:45:30.600 --> 00:45:35.920 things that prove beneficial and you know there's a handful of us that do 00:45:35.920 --> 00:45:39.000 these things you know it's San Antonio Dallas Fort Worth they're doing all in 00:45:39.000 --> 00:45:44.000 Plano and there's a reason why there's a slight you know there's typically 15 to 00:45:44.000 --> 00:45:47.440 20 of us that are all seem to all be doing the same thing but I mean there's 00:45:47.440 --> 00:45:49.480 a ton of things you can choose from these are the things that are proven 00:45:49.480 --> 00:45:52.800 effective these are where the big brokers and big real estate people are 00:45:52.800 --> 00:45:58.160 going sometimes in budgets people come in with a just a bare minimums wish list 00:45:58.160 --> 00:46:01.360 but this is more of a no it's not bare minimum there's a bare minimum I wouldn't 00:46:01.360 --> 00:46:06.520 be doing this much stuff we're doing more than than what is expected so thank 00:46:06.520 --> 00:46:09.200 you very much absolutely 00:46:09.560 --> 00:46:21.160 something that we can identify that we've done in our marketing plan that 00:46:21.160 --> 00:46:27.440 would have brought them to us directly I think my marketing perspective well it's 00:46:27.440 --> 00:46:30.280 the marketing I think I think all these companies are hearing about us 00:46:30.280 --> 00:46:36.200 especially food related products such as Tyson US cold storage Winko foods target 00:46:36.200 --> 00:46:39.320 I think they're all hearing about us you know through marketing in various means 00:46:39.320 --> 00:46:44.040 Tyson for instance they were working with a broker called bins wanger which 00:46:44.040 --> 00:46:47.320 is out of Dallas homes Davis is something I've been talking to for years 00:46:47.320 --> 00:46:50.360 and years so they were working through a broker and consultant but then they had 00:46:50.360 --> 00:46:54.840 their company with the folks with Tyson calling Caroline and calling I guess 00:46:54.840 --> 00:46:58.080 there are other states and stuff like that the broker is you know doing the 00:46:58.080 --> 00:47:01.840 site selection work while the company was doing the standard work did that 00:47:01.840 --> 00:47:08.040 answer your question I mean the marketing yes we do have a cluster here 00:47:08.040 --> 00:47:13.920 of food especially refrigerated distribution and like Adam said when 00:47:13.920 --> 00:47:20.880 these large projects start gathering in a community word gets around so but 00:47:20.880 --> 00:47:25.640 every that's always the challenging thing about I mean I think about economic 00:47:25.640 --> 00:47:29.880 development in general and particularly the marketing side of it is you're out 00:47:29.880 --> 00:47:37.040 there planting seeds and it can take it can take years for them to bloom and also 00:47:37.040 --> 00:47:42.080 you never know how word gets around it's a pretty small tight-knit group of 00:47:42.080 --> 00:47:49.520 people so all of the things that Adam does lead to outcomes you know whether 00:47:49.520 --> 00:47:54.240 it's a clear direct line from one thing to the next or it's a little bit more 00:47:54.240 --> 00:47:57.960 roundabout you know all of the things that he does all the things that my 00:47:57.960 --> 00:48:02.560 office does it works together to create these opportunities so that's a little 00:48:02.560 --> 00:48:06.480 bit more of a philosophical answer we have you know we have a specific target 00:48:06.480 --> 00:48:09.600 markets that we go after the advancing me I know food related products aren't a 00:48:09.600 --> 00:48:12.080 specific target market but they fall under that advanced manufacturing 00:48:12.080 --> 00:48:18.120 category I do actually target market the food related brokers and consultants on 00:48:18.120 --> 00:48:21.120 I constantly look at the CB Richard Ellis website or the grub and Alice new 00:48:21.120 --> 00:48:23.400 more tonight Frank look at their websites and they have global food 00:48:23.400 --> 00:48:26.640 properties groups and they have a director within that group who I've been 00:48:26.640 --> 00:48:31.680 reaching out to and sending out fires to you and calling and not just from that 00:48:31.680 --> 00:48:36.440 not from Dallas also but from you know Orlando from Atlanta Chicago LA New 00:48:36.440 --> 00:48:40.920 York New Jersey each each one of these firms has people that work food related 00:48:40.920 --> 00:48:44.360 products some that just weren't distribution only some that work high 00:48:44.360 --> 00:48:52.240 tech and office projects and stuff like that so thank you sure I think talk 00:48:52.240 --> 00:48:57.800 about the budget might be good to remind everybody on the chamber side that Adams 00:48:57.800 --> 00:49:03.600 budget has to get presented to the Denton Chamber Board and he gives a 00:49:03.600 --> 00:49:08.080 presentation of those folks so he's doing this on both sides citywide and 00:49:08.080 --> 00:49:12.560 that so it he comes up with it it gets talked about at the chamber board then 00:49:12.560 --> 00:49:16.760 it gets presented to the city on the total budget so right we get to see that 00:49:16.760 --> 00:49:20.040 several times and it's keep in mind it's a completely separate budget from the 00:49:20.040 --> 00:49:22.480 chamber so economic development is completely separate separate bank 00:49:22.480 --> 00:49:25.560 accounts we don't pull funds from chamber chamber doesn't pull funds from 00:49:25.560 --> 00:49:29.300 us completely separate economic development accounts and we do have a 00:49:29.300 --> 00:49:31.840 we have two separate accounts within our economic development accounts so we have 00:49:31.840 --> 00:49:35.900 the private and the operations funds that comes from the city the private is 00:49:35.900 --> 00:49:40.520 what all of you guys give us through private investment individual companies 00:49:40.520 --> 00:49:48.000 within the community Marty didn't the joint agreement was was ratified or 00:49:48.000 --> 00:49:53.140 approved for the next calendar year the city okay it has it's been approved as 00:49:53.140 --> 00:49:57.160 part of that 2018-19 contract with the city that's we have to give an annual 00:49:57.160 --> 00:50:01.400 marketing presentation on our plans for the next year and we do that our fiscal 00:50:01.400 --> 00:50:07.880 year started October 1st so we have to do it every November it's hard it's 00:50:07.880 --> 00:50:10.760 hard I've been doing this a while it's hard for me to keep up with all the 00:50:10.760 --> 00:50:16.840 acronyms and there's lots to hear that and be reminded what all we're doing out 00:50:16.840 --> 00:50:22.560 there and it does Caroline said it does take a long time to meet somebody three 00:50:22.560 --> 00:50:26.560 years ago at one of the conferences and remember that we're on the map and it's 00:50:26.560 --> 00:50:30.800 at the same time we do have a little bit of a snowball effect going here with the 00:50:30.800 --> 00:50:40.320 food distribution industry it is pretty high-tech so anyway thank you Adam you 00:50:40.320 --> 00:50:45.320 make have you else anything to ask good presentation thank you thank you thank 00:50:45.320 --> 00:50:53.440 you we have the minutes to approve from our September 12th meeting it was 00:50:53.440 --> 00:51:00.320 previously distributed and happens to be on page 47 in your booklet so we need to 00:51:00.320 --> 00:51:04.360 approve those if somebody wants to make a motion I move to accept the minutes as 00:51:04.360 --> 00:51:13.960 presented we have a motion and a second any discussion 00:51:13.960 --> 00:51:36.280 absent motion and a second to approve the minutes as amended any further 00:51:36.280 --> 00:51:44.400 discussion all those in favor say aye aye any opposed the minutes are approved 00:51:44.400 --> 00:51:58.200 and we have staff reports does Caroline so I will let you guys know that you are 00:51:58.200 --> 00:52:04.880 not seeing a monthly report from city's economic development side in your packet 00:52:04.880 --> 00:52:09.320 here because we're gonna be revamping the reports that we present to you based 00:52:09.320 --> 00:52:15.320 on the city's new strategic plan and our new departmental strategic plan which 00:52:15.320 --> 00:52:19.520 are still in process of being finalized right now we want to make sure that 00:52:19.520 --> 00:52:25.840 we're reporting to all of you on all of the strategic aspects that we're working 00:52:25.840 --> 00:52:30.440 on during the year so we're still tracking our activity and you'll be 00:52:30.440 --> 00:52:36.560 seeing that in a beautiful new report as soon as we can get those strategic plans 00:52:36.560 --> 00:52:43.720 finalized the thing that I would like to let you all know about is Christina 00:52:43.720 --> 00:52:49.280 Davis is going to stand up at the podium and tell us about this year's shop 00:52:49.280 --> 00:53:05.120 holiday campaign quickly this year for the shop small Saturday last year we had 00:53:05.120 --> 00:53:10.520 a wonderful turnout with people shopping and visiting but one of the components 00:53:10.520 --> 00:53:14.040 of the feedback that I received from the businesses is that they want to focus on 00:53:14.040 --> 00:53:17.800 what they do best in that serving their customers and so what we decided to do 00:53:17.800 --> 00:53:22.000 this year is this really focus strongly on our education campaign for the 00:53:22.000 --> 00:53:26.640 community and instead of just focusing on one day or one single event we're 00:53:26.640 --> 00:53:31.040 spreading it out from November 1st to December 31st so we've updated our 00:53:31.040 --> 00:53:36.480 economic development website for this shop Denton texas.com website and our 00:53:36.480 --> 00:53:41.840 Facebook page and every day you'll see a wonderful new post for me just giving 00:53:41.840 --> 00:53:44.960 you a little tidbits of information about why it's important to shop local 00:53:44.960 --> 00:53:50.860 and about any special events or special programming that's happening through the 00:53:50.860 --> 00:53:55.840 community as far as retail or service industries they might have so I hope 00:53:55.840 --> 00:53:59.720 that you will check out the Facebook page and see what's happening in the 00:53:59.720 --> 00:54:04.480 community and if you have any questions or any suggestions I'd love to hear them 00:54:04.480 --> 00:54:12.800 Christina also wrote the cover story for this upcoming citizen update newsletter 00:54:12.800 --> 00:54:18.480 that everybody gets in their mailboxes we all seen that if you live in Denton so 00:54:18.480 --> 00:54:23.680 it is about the shop small program so that goes directly to all of the folks 00:54:23.680 --> 00:54:29.000 within the community so we're hoping to see a big turnout and good participation 00:54:29.000 --> 00:54:36.640 in the longer long period instead of the one-day event. That's a good reminder too 00:54:36.640 --> 00:54:41.200 I know when we're posting those things on Facebook and LinkedIn or whatever just 00:54:41.200 --> 00:54:49.280 to remind everybody to follow economic development and why I can spread the 00:54:49.280 --> 00:54:58.040 word and share all those good things that just helps. Adam anything 00:54:58.040 --> 00:55:08.960 on the chamber activity? I am okay thank you. This way your started October 1st so 00:55:08.960 --> 00:55:13.040 it blocks our slate clean for new starting the new new projects year we 00:55:13.040 --> 00:55:20.240 had eight eight total prospects for the month of October we had two different 00:55:20.240 --> 00:55:25.040 companies one is product Tom Collins which I'll go into in the next bracket 00:55:25.040 --> 00:55:29.960 and then project give as well and I know now both of them are talking with the 00:55:29.960 --> 00:55:33.560 city but both of them are looking to do speculative industrial developments 00:55:33.560 --> 00:55:36.520 which we're seeing a trend for right now don't think it's gonna stop for a while 00:55:36.520 --> 00:55:40.640 even once these three or four close on their products I think we're gonna see 00:55:40.640 --> 00:55:44.440 it's still a trend of people coming in to do build these industrial speculative 00:55:44.440 --> 00:55:49.160 buildings and then we'll in turn have to still go market to fill those spaces but 00:55:49.160 --> 00:55:52.860 you know people are seeing the dollar signs on building these big 00:55:52.860 --> 00:55:56.400 spec industrial develops and leasing out the space so that you can subdivide the 00:55:56.400 --> 00:56:00.680 space so for instance product Tom Collins is going to look at building 1.5 00:56:00.680 --> 00:56:04.520 million square feet of spec industrial space on the 104 acre site at the 00:56:04.520 --> 00:56:09.080 corner of 380 and Western Boulevard directly across from where Lee Ramsey and 00:56:09.080 --> 00:56:14.840 Brandon Martino are doing the Westgate business park now under that 1.5 million 00:56:14.840 --> 00:56:18.040 square feet one one building in particular will be 1 million square feet 00:56:18.040 --> 00:56:20.800 and the other two will be you know make up the other five thousand five million 00:56:20.800 --> 00:56:24.680 square feet but that will be the largest square footage size building we have in 00:56:24.680 --> 00:56:28.280 dip right now Winkle Foods is eight hundred sixty thousand square feet so 00:56:28.280 --> 00:56:31.640 we'll have a one million square footer sitting there that's just one that came 00:56:31.640 --> 00:56:36.600 into a site in the last month but can I add something about the spec 00:56:36.600 --> 00:56:44.200 development so all told we have three million square feet of speculative 00:56:44.200 --> 00:56:49.000 industrial space that is in various stages of land acquisition from letter of 00:56:49.000 --> 00:56:55.800 intent to actual contract negotiation right now that is going to fill up the 00:56:55.800 --> 00:57:03.480 remaining large tracks in West Park in the West Park Ters and then that tracked 00:57:03.480 --> 00:57:08.240 outside of the West Park Ters in Westgate business park so we have been 00:57:08.240 --> 00:57:15.400 having internal discussions about where do we go with industrial development when 00:57:15.400 --> 00:57:20.760 that space is not available anymore and so we've been the natural place is sort 00:57:20.760 --> 00:57:27.920 of north and west of I-35 and 380 so just so that you guys are aware those 00:57:27.920 --> 00:57:31.400 conversations are happening and we'd like to bring some information back to 00:57:31.400 --> 00:57:35.840 you about that when we have some more details to share with you as you all are 00:57:35.840 --> 00:57:41.600 probably aware the city is updating the development code update updating the 00:57:41.600 --> 00:57:47.520 future land use plans updating zoning regulations so there are a lot of moving 00:57:47.520 --> 00:57:52.880 pieces right now but we are thinking about and planning for the future where 00:57:52.880 --> 00:57:57.100 that's where that is going to go so it's good to have those open lines of 00:57:57.100 --> 00:58:03.240 communication I think a couple of items on that too one where once these sites 00:58:03.240 --> 00:58:06.400 are under contracting these they're building these buildings we're not done 00:58:06.400 --> 00:58:09.360 so we still have to go fill these buildings so we're gonna have you know 00:58:09.360 --> 00:58:12.400 like she said three million square feet of industrial speculative space that we 00:58:12.400 --> 00:58:16.000 still have to go and fill which is hopefully a good handful of projects but 00:58:16.000 --> 00:58:19.360 and it might even be more than three million now a couple new ones that are 00:58:19.360 --> 00:58:23.560 that are looking here and then there's a there's some more land up on the north 00:58:23.560 --> 00:58:26.920 side of you know north of 380 that you know we'd have to get private developers 00:58:26.920 --> 00:58:31.140 to come in and because we don't have the 4a and 4b funds to for the city to go 00:58:31.140 --> 00:58:33.800 and purchase land and develop it we'd have to bring in developers in the 00:58:33.800 --> 00:58:38.880 future to try to develop those sites as well so anyway it's a work in progress 00:58:38.880 --> 00:58:41.520 it's a good thing to have it'll be a good thing to have those sites on those 00:58:41.520 --> 00:58:45.960 buildings on the ground so product Tom Collins I went over a product Gibb is 00:58:45.960 --> 00:58:48.760 another one that's looking to do speculative industrial space he's 00:58:48.760 --> 00:58:51.560 looking at three different sites I mentioned Collins is looking at they're 00:58:51.560 --> 00:58:55.160 gonna they're under contract right now on 104 acre side product Gibb is looking 00:58:55.160 --> 00:58:59.240 at three sites each one is over 30 acres it'll be smaller scale speculative 00:58:59.240 --> 00:59:04.280 industrial development for his project product Berg office is a company it's a 00:59:04.280 --> 00:59:06.840 lecture a local company they're in Denton County but they're over in 00:59:06.840 --> 00:59:10.080 crossroads right now and they want to expand into Denton they would bring in 00:59:10.080 --> 00:59:15.880 20 new jobs they're really just looking for a 5,000 square feet of office space 00:59:15.880 --> 00:59:22.360 to put into 20 offices for 20 people product Hunter is a broker that we're 00:59:22.360 --> 00:59:26.980 working on searching for 50 to 80 acre size to construct more industrial 00:59:26.980 --> 00:59:30.120 speculative space and this is one that we're that we don't have figured into 00:59:30.120 --> 00:59:33.680 that 3 that 3 million square feet already but they would be looking at 00:59:33.680 --> 00:59:37.280 doing another 600,000 square foot facility so even besides what we already 00:59:37.280 --> 00:59:40.360 have that we think that it's under contract currently at 3 million square 00:59:40.360 --> 00:59:44.600 feet we have three more in the lineup that are looking at other sites as well 00:59:44.600 --> 00:59:49.920 they just aren't under contract yet project Tomahawk consulting firm 00:59:49.920 --> 00:59:52.560 searching for a location for a corporate headquarters and manufacturing 00:59:52.560 --> 00:59:58.600 facility for their clients roughly 12 acres of land or an existing 40 to 100 00:59:58.600 --> 01:00:01.520 thousand square foot facility they're considering all options 40 to 100 01:00:01.520 --> 01:00:05.560 thousands of a large bracket but they're looking at options within that that 01:00:05.560 --> 01:00:11.480 bracket as well trips and marketing activity over the last month in October 01:00:11.480 --> 01:00:15.800 the Texas Economic Development Council had their annual conference which is a 01:00:15.800 --> 01:00:19.320 professional development forum which I went over that one earlier and then IEDC 01:00:19.320 --> 01:00:23.080 which is International Economic Development Council had had theirs as 01:00:23.080 --> 01:00:27.960 well in Carolina and I both attended that attended the team Texas board 01:00:27.960 --> 01:00:31.360 meeting I currently hold a board position on that board met with team 01:00:31.360 --> 01:00:35.640 Texas director to discuss future strategy and partnership team Texas once 01:00:35.640 --> 01:00:37.800 again the statewide marketing initiatives so we're doing a lot of 01:00:37.800 --> 01:00:40.800 marketing with them and I think we're trying to plan for trips this year to do 01:00:40.800 --> 01:00:46.280 with team Texas also met with the Fort Worth chamber representatives over at 01:00:46.280 --> 01:00:49.720 the Fort Worth chamber they have two new people that they brought in one from a 01:00:49.720 --> 01:00:53.280 regional group called Columbus 2020 and another group in Nashville that runs a 01:00:53.280 --> 01:00:56.480 regional organization those are the two new guys headed spearheading the 01:00:56.480 --> 01:00:59.120 economic development through the Fort Worth chamber they're trying to do a 01:00:59.120 --> 01:01:04.640 kind of regional approach for I-35 West communities we don't have a name for it 01:01:04.640 --> 01:01:08.880 so it's really just communities from a resort that has didn't as far south as 01:01:08.880 --> 01:01:13.000 Burleson all the communities on I-35 W which I think the main three players are 01:01:13.000 --> 01:01:17.040 Denton Fort Worth and Burleson at the moment but so we're just trying to 01:01:17.040 --> 01:01:19.840 figure out what to you know what we can do as a region in terms of you know 01:01:19.840 --> 01:01:26.280 marketing and maybe future marketing trips and stuff like that so attended 01:01:26.280 --> 01:01:31.080 site location partnerships reception and event with Chemex conference attendees 01:01:31.080 --> 01:01:34.760 which are the trade show held in Dallas they had DFW brokers and consultants at 01:01:34.760 --> 01:01:38.360 their at their reception reception so we met with 14 consultants that attended 01:01:38.360 --> 01:01:42.080 the event and they're all Dallas brokers so it's people that we work products 01:01:42.080 --> 01:01:47.440 with or looking to work products with and then it's had attempted the attended 01:01:47.440 --> 01:01:52.240 the Fabtech expo with team Texas it was last week so I don't have all the the 01:01:52.240 --> 01:01:54.560 numbers put together for all the leads that we told me to get but there were 01:01:54.560 --> 01:01:57.600 quite a few of them and I'll tell you those up and get those two in a report 01:01:57.600 --> 01:02:02.480 for next month as well and then many of you were at this at the reception that we 01:02:02.480 --> 01:02:05.600 did for our economic development private investors we held a reception last month 01:02:05.600 --> 01:02:11.560 it was held at didn't media company and we had 30 private investors in attendance 01:02:11.560 --> 01:02:17.040 my last item is upcoming upcoming marketing trips and activities we have 01:02:17.040 --> 01:02:22.120 the team Texas Advisory Board Council retreat on November 27 to 28 that's just 01:02:22.120 --> 01:02:26.920 in Dallas for two days we have a Dallas Fort Worth marketing teams lunch in with 01:02:26.920 --> 01:02:32.720 site selectors on November 29 there should be around 50 I think low DFW 01:02:32.720 --> 01:02:36.920 brokers and consultants at that luncheon and a consultant connects a economics 01:02:36.920 --> 01:02:40.840 development economics consultants form I'm sorry on December 3rd to 5th and I 01:02:40.840 --> 01:02:51.160 whatever what that is in my earlier presentation so that's a lot of stuff 01:02:51.160 --> 01:02:57.800 going on all right I guess that includes our staff reports the stands report is 01:02:57.800 --> 01:03:03.760 in the back of your package also and also send out the email any announcements 01:03:03.760 --> 01:03:08.040 from anybody for the good of the order 01:03:08.040 --> 01:03:16.760 currently which is why I'm staying in my lane over here and then secondly I just 01:03:16.760 --> 01:03:21.200 want to thank mr. Baines and mr. Rivers for continuing to service in the 01:03:21.200 --> 01:03:26.240 capacities that you've been nominated and voted it's a it's an honor for me to 01:03:26.240 --> 01:03:31.000 sit on this board with the group of people that are here and you two have 01:03:31.000 --> 01:03:34.760 done a fabulous job and you're in good hands and appreciate your experience and 01:03:34.760 --> 01:03:41.840 your willingness to continue thank you lastly I'd be remiss if I did not 01:03:41.840 --> 01:03:46.000 mention I am co-chair of the Reed's sorry again this year benefiting health 01:03:46.000 --> 01:03:49.840 services in North Texas which is December 1st at the home of Eugene and 01:03:49.840 --> 01:03:56.600 Carolyn corporon in Montecito and we have a different artist interpretation 01:03:56.600 --> 01:04:01.640 from University of North Texas Texas Women's University different artist in 01:04:01.640 --> 01:04:06.440 the area and DISD giving their versions of wreaths some other shopping 01:04:06.440 --> 01:04:10.600 opportunities but I have invitations for everyone today thank you so much for 01:04:10.600 --> 01:04:21.220 your time thank you I would love to hear just like it I'd love to hear information 01:04:21.220 --> 01:04:25.440 on our traffic studies that we're working on I guess out there in West 01:04:25.440 --> 01:04:31.320 Park or how about playing out and as we start looking at incentives for other 01:04:31.320 --> 01:04:37.000 projects or three men square foot of space come on that was the same thing I 01:04:37.000 --> 01:04:41.200 had is we have a lot we have two ways in and out of there and a lot of truck 01:04:41.200 --> 01:04:49.000 traffic and all that stuff so the staff could at some point in the future just 01:04:49.000 --> 01:04:53.440 kind of give us an update on maybe some plans out there to handle all that we 01:04:53.440 --> 01:05:00.640 have a similar topic I guess a number of years ago as far as utilities you know 01:05:00.640 --> 01:05:07.560 be able to handle all that at the same time on the industrial space what we're 01:05:07.560 --> 01:05:14.040 looking at down the road so where we can go with that so sorry Keely yes so we we 01:05:14.040 --> 01:05:19.840 talk a lot about what we did today that the average pay for workers and part of 01:05:19.840 --> 01:05:25.360 our job is to get jobs into Denton and we all know that there is a an issue 01:05:25.360 --> 01:05:30.200 with affordability and we do want the people we bring into our city to live 01:05:30.200 --> 01:05:37.600 here that's a goal and I found out recently about a Wells Fargo program 01:05:37.600 --> 01:05:42.640 neighborhood lift and I know that we have a lot of banking institutions in 01:05:42.640 --> 01:05:47.560 our city and I just would like a report or some kind of staff list of all the 01:05:47.560 --> 01:05:54.600 institutions that provide those type of programs for first-time home buyers and 01:05:54.600 --> 01:06:04.000 they help with down payment put that on the agenda well I mean just just in a 01:06:04.000 --> 01:06:10.560 note to us maybe in the back up just to have that information it would be really 01:06:10.560 --> 01:06:15.000 helpful especially if these companies are relocating and they can pass that 01:06:15.000 --> 01:06:25.360 information out to the people that they're relocating here anybody else all 01:06:25.360 --> 01:06:30.440 right thank you for being here we'll see you next month