1
00:00:00,000 --> 00:00:03,580
 - All right, I believe we have a quorum.

2
00:00:03,580 --> 00:00:05,280
 - It looks really good.

3
00:00:05,280 --> 00:00:06,400
 - Yeah, I thought it did too.

4
00:00:06,400 --> 00:00:07,240
 - Is that accurate?

5
00:00:07,240 --> 00:00:08,080
 - Yeah, that's correct.

6
00:00:08,080 --> 00:00:09,880
 - Let's pick 'em up some time this week.

7
00:00:09,880 --> 00:00:12,300
 (indistinct)

8
00:00:12,300 --> 00:00:17,060
 - Yeah, it looked really good.

9
00:00:17,060 --> 00:00:18,200
 - It's just the veteran.

10
00:00:18,200 --> 00:00:20,080
 - That was a great tour.

11
00:00:20,080 --> 00:00:20,900
 - That's the best.

12
00:00:20,900 --> 00:00:21,820
 - That was a great tour.

13
00:00:21,820 --> 00:00:24,280
 - Oh, good, I feel like I want that truck.

14
00:00:24,280 --> 00:00:27,500
 - Okay, everyone, I've got 1103.

15
00:00:27,500 --> 00:00:31,080
 We do have a quorum, which is seven members plus,

16
00:00:31,080 --> 00:00:33,440
 and we'll go forward, good morning.

17
00:00:33,440 --> 00:00:34,520
 Welcome to this meeting

18
00:00:34,520 --> 00:00:36,840
 in the Economic Development Partnership Board.

19
00:00:36,840 --> 00:00:41,640
 It is Wednesday, November 13th, 2024, it's 1103.

20
00:00:41,640 --> 00:00:43,320
 We've established a quorum,

21
00:00:43,320 --> 00:00:45,600
 so the meeting is called to order.

22
00:00:45,600 --> 00:00:51,640
 We'll start with an opportunity to review minutes

23
00:00:51,640 --> 00:00:53,580
 from September 11th.

24
00:00:53,580 --> 00:00:56,440
 Are there any questions at this time?

25
00:00:58,500 --> 00:01:02,000
 If no questions, can I get a motion?

26
00:01:02,000 --> 00:01:03,000
 - So moved.

27
00:01:03,000 --> 00:01:05,560
 - We have, thank you, and second, thank you.

28
00:01:05,560 --> 00:01:08,580
 We have a motion and a second, any discussion?

29
00:01:08,580 --> 00:01:12,760
 Seeing none, all in favor signify by saying aye.

30
00:01:12,760 --> 00:01:13,840
 - Aye.

31
00:01:13,840 --> 00:01:15,000
 - Any opposed?

32
00:01:15,000 --> 00:01:15,840
 Same sign.

33
00:01:15,840 --> 00:01:20,100
 Hearing none, that passes, and we'll move into,

34
00:01:20,100 --> 00:01:26,480
 our next item is item B, ADP 24-088.

35
00:01:27,640 --> 00:01:29,520
 Three, receive a report, hold a discussion,

36
00:01:29,520 --> 00:01:32,040
 give staff direction regarding the meeting dates

37
00:01:32,040 --> 00:01:35,160
 and times for the calendar year 2025,

38
00:01:35,160 --> 00:01:38,540
 and let's take that forward, please.

39
00:01:38,540 --> 00:01:44,200
 - Hi, everyone, my name is Vanessa Sparsa.

40
00:01:44,200 --> 00:01:45,900
 I am the...

41
00:01:45,900 --> 00:01:48,700
 - Where are we?

42
00:01:48,700 --> 00:01:51,720
 - Board secretary. - Board liaison.

43
00:01:51,720 --> 00:01:55,320
 Whatever you'd like, I get your food, whatever you need.

44
00:01:55,320 --> 00:01:58,640
 These are the dates for 2025, and basically,

45
00:01:58,640 --> 00:02:00,280
 we just want everybody to take a look,

46
00:02:00,280 --> 00:02:05,280
 and as far in advance as you can let us know,

47
00:02:05,280 --> 00:02:07,660
 if you're not gonna be able to make a meeting,

48
00:02:07,660 --> 00:02:09,720
 just let us know, shoot me an email,

49
00:02:09,720 --> 00:02:13,800
 and then fill out your notification of absence form,

50
00:02:13,800 --> 00:02:15,900
 and get that signed.

51
00:02:15,900 --> 00:02:18,760
 Usually here, we don't have any of these

52
00:02:18,760 --> 00:02:22,360
 falling on any holidays, so we should be good,

53
00:02:22,360 --> 00:02:23,960
 but do y'all have any questions?

54
00:02:25,680 --> 00:02:27,680
 - Only thing I was gonna ask the group

55
00:02:27,680 --> 00:02:29,240
 is if we wanna meet in July,

56
00:02:29,240 --> 00:02:32,320
 'cause we've had to, because of vacation and scheduling,

57
00:02:32,320 --> 00:02:34,620
 and everybody never made the form in July,

58
00:02:34,620 --> 00:02:37,160
 but we just wanna go ahead and just

59
00:02:37,160 --> 00:02:40,580
 get stuff to the group, but if it has a good form, yeah.

60
00:02:40,580 --> 00:02:44,640
 Might as well strike that one and not do it in July.

61
00:02:44,640 --> 00:02:48,480
 - Okay, so I'm hearing, skip the July date,

62
00:02:48,480 --> 00:02:52,760
 or would y'all like to move it to the following week?

63
00:02:52,760 --> 00:02:54,800
 - I think skip it, personally.

64
00:02:54,800 --> 00:02:56,560
 We have to make forms.

65
00:02:56,560 --> 00:02:57,720
 - We could put an asterisk on it,

66
00:02:57,720 --> 00:02:59,720
 and say we need an asterisk on it.

67
00:02:59,720 --> 00:03:00,560
 - Yeah.

68
00:03:00,560 --> 00:03:01,400
 - We can always, you can strike it,

69
00:03:01,400 --> 00:03:02,880
 and we can do a special call.

70
00:03:02,880 --> 00:03:04,040
 - Yeah, that's fine.

71
00:03:04,040 --> 00:03:06,620
 - Okay, awesome, is there anything else?

72
00:03:06,620 --> 00:03:13,480
 - All right, so we propose accepting

73
00:03:13,480 --> 00:03:17,280
 next year's calendar, with the exception of July,

74
00:03:17,280 --> 00:03:19,540
 July schedule board meeting.

75
00:03:19,540 --> 00:03:21,280
 All in favor, signify by saying aye.

76
00:03:21,280 --> 00:03:22,560
 - Aye. - Aye.

77
00:03:22,560 --> 00:03:24,080
 - Any opposed? - I understand.

78
00:03:24,080 --> 00:03:25,720
 - Hearing none, that passes, thank you.

79
00:03:25,720 --> 00:03:26,560
 Great job.

80
00:03:26,560 --> 00:03:31,360
 Okay.

81
00:03:31,360 --> 00:03:36,760
 Next item is item C, EDP 24-081,

82
00:03:36,760 --> 00:03:38,960
 Receive Reportable Discussions and Recommendation

83
00:03:38,960 --> 00:03:41,920
 to City Council Regarding an Incentive Agreement

84
00:03:41,920 --> 00:03:45,760
 for the Engentech North America Corporation

85
00:03:45,760 --> 00:03:49,880
 for Performance-Based and Valerian Tax-Rebate.

86
00:03:49,880 --> 00:03:52,460
 Ready to go? - I'm ready.

87
00:03:52,460 --> 00:03:53,300
 - Take it away.

88
00:03:53,300 --> 00:03:56,120
 - Hello board, Greg Sotelo, Economic Development Director.

89
00:03:56,120 --> 00:03:57,760
 It's great to see you today.

90
00:03:57,760 --> 00:04:00,640
 We're very excited to present an incentive application

91
00:04:00,640 --> 00:04:03,320
 for Engentech North America.

92
00:04:03,320 --> 00:04:05,280
 We will go through the presentation in whole,

93
00:04:05,280 --> 00:04:08,240
 and I will transfer to Christina Davis Midway,

94
00:04:08,240 --> 00:04:12,240
 who's been the primary project manager on the project.

95
00:04:12,240 --> 00:04:13,840
 So let's go ahead and get started.

96
00:04:13,840 --> 00:04:19,680
 I need this one, they gotta work as soon as I go up here.

97
00:04:19,680 --> 00:04:21,520
 Okay, okay.

98
00:04:21,520 --> 00:04:25,000
 Today's objective is to review an incentive application

99
00:04:25,000 --> 00:04:28,240
 and seek your approval to then move forward

100
00:04:28,240 --> 00:04:29,160
 to city council.

101
00:04:29,160 --> 00:04:33,760
 Company background, they're an international company

102
00:04:33,760 --> 00:04:37,040
 based in India with over 500 employees.

103
00:04:37,040 --> 00:04:39,840
 They're an advanced injection molding manufacturer.

104
00:04:39,840 --> 00:04:43,160
 They specialize in engineering and design automotive models

105
00:04:43,160 --> 00:04:44,500
 for global companies.

106
00:04:44,500 --> 00:04:50,240
 They are IATF 16949 certified systems manufacturers

107
00:04:50,240 --> 00:04:52,760
 with highly engineered automotive equipment,

108
00:04:52,760 --> 00:04:53,600
 part to patents.

109
00:04:53,600 --> 00:04:56,880
 So with their specialized technology and patents,

110
00:04:56,880 --> 00:04:59,680
 they are a highly skilled company,

111
00:04:59,680 --> 00:05:01,880
 and they have rapid growth in part

112
00:05:01,880 --> 00:05:05,080
 to their new pack car partnership and expansion to the U.S.

113
00:05:05,080 --> 00:05:09,800
 So they have chosen Denton

114
00:05:09,800 --> 00:05:12,480
 as their new North American headquarters.

115
00:05:12,480 --> 00:05:15,840
 They will manufacture injection molded engine parts,

116
00:05:15,840 --> 00:05:18,160
 the only one in Texas based out there in Mexico.

117
00:05:18,160 --> 00:05:20,600
 We actually find out there was one of seven

118
00:05:20,600 --> 00:05:22,280
 injection molding companies.

119
00:05:22,280 --> 00:05:24,560
 They will be one of seven injection molding companies

120
00:05:24,560 --> 00:05:25,680
 in Texas.

121
00:05:25,680 --> 00:05:28,000
 And they plan to create 133 new jobs

122
00:05:28,000 --> 00:05:29,700
 over a term of five years.

123
00:05:29,700 --> 00:05:33,280
 And their growth is in part due to their partnership

124
00:05:33,280 --> 00:05:34,200
 with Peterbilt.

125
00:05:34,200 --> 00:05:37,720
 Pack car is our largest North American customer.

126
00:05:37,720 --> 00:05:40,480
 They were awarded a zero PPM quality award

127
00:05:40,480 --> 00:05:42,680
 for the last three years by Pack Car.

128
00:05:42,680 --> 00:05:43,560
 And that's their global,

129
00:05:43,560 --> 00:05:47,200
 Pack Car is our global company of Peterbilt.

130
00:05:47,200 --> 00:05:51,240
 And what zero PPM means is parts per minute.

131
00:05:51,240 --> 00:05:52,580
 Brian, did you know that by chance?

132
00:05:52,580 --> 00:05:53,420
 - Parts per million.

133
00:05:53,420 --> 00:05:54,260
 - Parts per million.

134
00:05:54,260 --> 00:05:55,100
 Oh, I'm long.

135
00:05:55,100 --> 00:05:56,200
 He did know that.

136
00:05:56,200 --> 00:05:57,600
 Got that wrong.

137
00:05:57,600 --> 00:05:59,400
 And they added new,

138
00:05:59,400 --> 00:06:03,160
 since their announcement that they would move to Denton,

139
00:06:03,160 --> 00:06:06,400
 or since they've chosen Denton as a site to move,

140
00:06:06,400 --> 00:06:08,280
 they've added three new product contracts

141
00:06:08,280 --> 00:06:09,720
 within the last 30 days.

142
00:06:09,720 --> 00:06:16,760
 So here's a list of all of their global customers,

143
00:06:16,760 --> 00:06:21,080
 including Chevrolet, Izuzu, Caterpillar, Kubota.

144
00:06:21,080 --> 00:06:25,460
 They are a very well-known company worldwide.

145
00:06:25,460 --> 00:06:29,400
 And just to share the timeline,

146
00:06:29,400 --> 00:06:33,400
 I wanted to share that this is a very untraditional request

147
00:06:33,400 --> 00:06:37,580
 due to the circumstances that they are moving from India.

148
00:06:37,580 --> 00:06:41,240
 Our incentive process is a little bit off base.

149
00:06:41,240 --> 00:06:44,840
 It's not our normal method of moving forward.

150
00:06:44,840 --> 00:06:46,960
 So we're gonna share our timeline.

151
00:06:46,960 --> 00:06:51,480
 Back in 2016, the company met PACR at a Mumbai conference.

152
00:06:51,480 --> 00:06:55,160
 In 2018, they became a PACR vendor.

153
00:06:55,160 --> 00:06:59,320
 In 2023, they started scouting locations across Texas

154
00:06:59,320 --> 00:07:03,040
 and met with the chamber meeting staff in late 2023,

155
00:07:03,040 --> 00:07:04,680
 and the city staff, I believe.

156
00:07:04,680 --> 00:07:08,500
 In 2024, they met with, earlier this summer,

157
00:07:08,500 --> 00:07:10,260
 they met with chamber staff,

158
00:07:10,260 --> 00:07:13,840
 and then they met with the city staff in late July.

159
00:07:13,840 --> 00:07:16,840
 They officially submitted their incentive application

160
00:07:16,840 --> 00:07:20,480
 in August, and then in 2024, I'm sorry,

161
00:07:20,480 --> 00:07:23,080
 in October, they negotiated incentives,

162
00:07:23,080 --> 00:07:24,920
 and they finalized their lease.

163
00:07:24,920 --> 00:07:28,060
 That was in late September, early October.

164
00:07:28,060 --> 00:07:30,600
 And their goal is to start production

165
00:07:30,600 --> 00:07:33,480
 in January of next year.

166
00:07:33,480 --> 00:07:36,480
 And so this is a very much a chicken and egg situation

167
00:07:36,480 --> 00:07:38,680
 in that the company, since they're moving from India,

168
00:07:38,680 --> 00:07:41,640
 they're having to transfer, open up a bank account

169
00:07:41,640 --> 00:07:43,600
 in order to open up a U.S. bank account

170
00:07:43,600 --> 00:07:45,000
 they need a U.S. address.

171
00:07:45,000 --> 00:07:47,440
 And so that is why they had to sign a lease.

172
00:07:47,440 --> 00:07:50,880
 They're also having to transfer funds

173
00:07:50,880 --> 00:07:53,840
 from their bank in India to America,

174
00:07:53,840 --> 00:07:55,680
 and that hasn't been an easy process.

175
00:07:55,680 --> 00:07:57,440
 As you can imagine, the fees,

176
00:07:57,440 --> 00:07:58,640
 but they're having to pay for that.

177
00:07:58,640 --> 00:08:01,740
 And then also setting up a U.S. bank account,

178
00:08:01,740 --> 00:08:03,400
 is it easy as well, right, to pay for work,

179
00:08:03,400 --> 00:08:06,860
 setting up legal documents has been a process, okay.

180
00:08:06,860 --> 00:08:12,520
 So they have chosen to locate at 2025 North Mosh Branch Road

181
00:08:12,520 --> 00:08:15,540
 building number two at the M380 Business Park.

182
00:08:15,540 --> 00:08:21,560
 And on their incentive application,

183
00:08:21,560 --> 00:08:25,480
 they listed that they would create 5.9 million dollars

184
00:08:25,480 --> 00:08:29,080
 in investment, 200,000 in improvements,

185
00:08:29,080 --> 00:08:31,400
 5.7 million in business personal property,

186
00:08:31,400 --> 00:08:34,700
 and 130 new jobs over a five-year term.

187
00:08:34,700 --> 00:08:37,000
 So they did submit their incentive application

188
00:08:37,000 --> 00:08:39,120
 prior to signing a lease,

189
00:08:39,120 --> 00:08:43,160
 and that is okay in our incentive policy.

190
00:08:43,160 --> 00:08:45,440
 Leaks do state that as long as they submit

191
00:08:45,440 --> 00:08:48,480
 their incentive application before signing a lease,

192
00:08:48,480 --> 00:08:50,320
 or any type of, getting any type of apartment,

193
00:08:50,320 --> 00:08:52,120
 then they are allowed to ask for incentives.

194
00:08:52,120 --> 00:08:56,200
 And so Christina Davis will go over the number,

195
00:08:56,200 --> 00:08:57,400
 the jobs credit numbers.

196
00:08:57,400 --> 00:09:03,320
 This isn't working, what am I supposed to do?

197
00:09:03,320 --> 00:09:06,420
 I'll use the mixer, I'll use the mixer.

198
00:09:06,420 --> 00:09:07,260
 Hello.

199
00:09:09,400 --> 00:09:12,680
 So what we have here is the incentive and objective

200
00:09:12,680 --> 00:09:15,600
 revenue that'll be generated by this project.

201
00:09:15,600 --> 00:09:18,240
 We're looking at a 50% abatement rebate

202
00:09:18,240 --> 00:09:20,680
 on business personal property for five years.

203
00:09:20,680 --> 00:09:25,120
 We're looking at a headquarters grant of 50,000,

204
00:09:25,120 --> 00:09:28,680
 and job space grant based on salaries

205
00:09:28,680 --> 00:09:31,280
 and a bonus for debt and residence.

206
00:09:31,280 --> 00:09:35,980
 Going through the columns from left over to right,

207
00:09:35,980 --> 00:09:39,840
 we have cumulative totals for each year of the agreement,

208
00:09:39,840 --> 00:09:44,080
 beginning at 110, 909, and then the fifth year,

209
00:09:44,080 --> 00:09:48,180
 down to, my numbers are not right.

210
00:09:48,180 --> 00:09:55,180
 Down to the total, the cumulative total of the five years

211
00:09:55,180 --> 00:10:00,180
 comes out to $339,545, so the revenue for the city

212
00:10:00,180 --> 00:10:05,820
 during the same timeframe, 50% for five years,

213
00:10:05,820 --> 00:10:07,800
 and then 100% for the remaining five years

214
00:10:07,800 --> 00:10:11,920
 because we do a 10 year picture of our revenue generation

215
00:10:11,920 --> 00:10:13,360
 on the agreements.

216
00:10:13,360 --> 00:10:17,760
 So years one through five, the city would gain 15,909,

217
00:10:17,760 --> 00:10:21,640
 and years six through 10, $31,819.

218
00:10:21,640 --> 00:10:24,380
 And so this is based on the land only,

219
00:10:24,380 --> 00:10:27,720
 not on the business personal property.

220
00:10:27,720 --> 00:10:31,200
 In the table below, we break that out for you

221
00:10:31,200 --> 00:10:34,400
 in land, improvements, and business personal property.

222
00:10:34,400 --> 00:10:37,400
 So the total valuation for current valuation

223
00:10:37,400 --> 00:10:40,980
 is 3,154,606.

224
00:10:40,980 --> 00:10:43,360
 The estimated increase of that valuation,

225
00:10:43,360 --> 00:10:44,780
 land, there's not an increase

226
00:10:44,780 --> 00:10:46,760
 because the land is already existing,

227
00:10:46,760 --> 00:10:48,620
 the building is existing.

228
00:10:48,620 --> 00:10:52,000
 We're looking at $200,000 in improvements

229
00:10:52,000 --> 00:10:56,720
 and then business personal property of 5.6 million.

230
00:10:56,720 --> 00:11:00,540
 At the end of the time period,

231
00:11:00,540 --> 00:11:03,040
 we're looking at a total estimated revenue to the city

232
00:11:03,040 --> 00:11:08,040
 for land of $4,019, improvements, 14,790,

233
00:11:08,040 --> 00:11:13,740
 and the business personal property of 3,189.

234
00:11:13,740 --> 00:11:16,740
 So the total annual on that will be $50,628.

235
00:11:16,740 --> 00:11:24,640
 On the next slide, I have a corrected sheet

236
00:11:24,640 --> 00:11:26,240
 that I handed out to each of you

237
00:11:26,240 --> 00:11:31,020
 because my totals were off at the bottom.

238
00:11:33,380 --> 00:11:34,220
 Excuse me.

239
00:11:34,220 --> 00:11:37,880
 So this is a breakout of the jobs.

240
00:11:37,880 --> 00:11:40,060
 During the five-year period,

241
00:11:40,060 --> 00:11:43,280
 Inditech plans to add 133 jobs.

242
00:11:43,280 --> 00:11:45,680
 During year one, there'll be 25 jobs

243
00:11:45,680 --> 00:11:47,280
 and we're looking at starting their incentive

244
00:11:47,280 --> 00:11:50,160
 with this year so we can capture all their startup

245
00:11:50,160 --> 00:11:51,120
 and all their new employees

246
00:11:51,120 --> 00:11:53,460
 if they'll be starting this first year.

247
00:11:53,460 --> 00:11:55,560
 Year two will be 39 employees,

248
00:11:55,560 --> 00:12:00,400
 year three, 43, year four, 14, and year five, 12.

249
00:12:00,400 --> 00:12:03,920
 Looking at a total of 133 employees.

250
00:12:03,920 --> 00:12:08,760
 The average base salary for those employees

251
00:12:08,760 --> 00:12:17,220
 annually is $62,522 and hourly it's 30.06.

252
00:12:17,220 --> 00:12:21,520
 On the second part of the presentation,

253
00:12:21,520 --> 00:12:24,120
 we've done the calculations for you

254
00:12:24,120 --> 00:12:28,600
 for the base salary plus an average of 30%

255
00:12:28,600 --> 00:12:29,760
 for benefits and salary.

256
00:12:29,760 --> 00:12:32,720
 And that's based on the standard benefits package.

257
00:12:32,720 --> 00:12:36,140
 So you're looking at paid holidays, sick leave,

258
00:12:36,140 --> 00:12:40,400
 insurance, share costs, and a 401

259
00:12:40,400 --> 00:12:42,620
 or other type of pension for retirement.

260
00:12:42,620 --> 00:12:47,980
 So adding through those, the total annual salary

261
00:12:47,980 --> 00:12:52,480
 for the benefits for all employees is $10,810.

262
00:12:55,840 --> 00:13:00,840
 Sorry, $10,810,150, sorry.

263
00:13:00,840 --> 00:13:07,120
 So any questions about the salaries part of this

264
00:13:07,120 --> 00:13:07,960
 before we move on?

265
00:13:07,960 --> 00:13:10,180
 We're good.

266
00:13:10,180 --> 00:13:12,800
 - Okay, and also I wanna add on the previous slide, Vanessa.

267
00:13:12,800 --> 00:13:14,400
 - Okay, please.

268
00:13:14,400 --> 00:13:16,160
 - We are proposing a headquarters grant

269
00:13:16,160 --> 00:13:17,840
 and that's something that we haven't done before.

270
00:13:17,840 --> 00:13:20,200
 So we do wanna hear your opinions on

271
00:13:20,200 --> 00:13:21,640
 if that's something that you would support

272
00:13:21,640 --> 00:13:23,880
 because since they've already signed their lease,

273
00:13:23,880 --> 00:13:26,920
 that's something typically we would provide

274
00:13:26,920 --> 00:13:28,040
 in a relocation grant.

275
00:13:28,040 --> 00:13:29,280
 But since they are headquarters,

276
00:13:29,280 --> 00:13:32,560
 we're pitching a headquarters grant of $50,000.

277
00:13:32,560 --> 00:13:35,720
 So we wanna hear your feedback after this presentation.

278
00:13:35,720 --> 00:13:37,840
 And I do wanna say that the company leaders,

279
00:13:37,840 --> 00:13:42,080
 Director Akshay and his team, Anil and Harsha,

280
00:13:42,080 --> 00:13:44,980
 are here in the back and are here to answer any questions.

281
00:13:44,980 --> 00:13:46,880
 - Thank you.

282
00:13:46,880 --> 00:13:49,780
 One more slide, please.

283
00:13:52,840 --> 00:13:56,960
 We do use the numbers available to us

284
00:13:56,960 --> 00:13:59,320
 to create an economic impact report.

285
00:13:59,320 --> 00:14:05,000
 For this project with the investment

286
00:14:05,000 --> 00:14:07,200
 and the cities incentive,

287
00:14:07,200 --> 00:14:12,120
 we're looking at a rate of return of 13.6

288
00:14:12,120 --> 00:14:14,920
 and then the payback period for that is 6.9.

289
00:14:14,920 --> 00:14:19,760
 One other item I wanted to point out to you is

290
00:14:19,760 --> 00:14:23,720
 under the net benefits, over 10 years to the city,

291
00:14:23,720 --> 00:14:27,200
 it calculates out at just over $115,000.

292
00:14:27,200 --> 00:14:33,040
 I don't know what else to point out on this slide,

293
00:14:33,040 --> 00:14:35,760
 but basically, those are the key factors.

294
00:14:35,760 --> 00:14:36,600
 Go ahead, Brian.

295
00:14:36,600 --> 00:14:40,120
 - I have a question 'cause they are manufacturers of,

296
00:14:40,120 --> 00:14:41,520
 you know, they do injection molding.

297
00:14:41,520 --> 00:14:43,640
 Do we do any kind of analysis on

298
00:14:43,640 --> 00:14:47,600
 how it'll help DME from a revenue perspective

299
00:14:47,600 --> 00:14:50,600
 because it should be pretty high energy usage?

300
00:14:50,600 --> 00:14:53,080
 - Based on the information we had on the machines

301
00:14:53,080 --> 00:14:55,840
 at the beginning of the application process,

302
00:14:55,840 --> 00:15:00,800
 DME did not see them as a significant user of energy,

303
00:15:00,800 --> 00:15:03,720
 but that falls toward their being more

304
00:15:03,720 --> 00:15:07,120
 environmentally friendly

305
00:15:07,120 --> 00:15:08,720
 and helping us with those kinds of things.

306
00:15:08,720 --> 00:15:12,440
 So the machinery that they've chosen is low energy use.

307
00:15:12,440 --> 00:15:14,360
 - And that more from a revenue perspective.

308
00:15:14,360 --> 00:15:16,360
 - Revenue perspective, yes.

309
00:15:18,600 --> 00:15:21,800
 - My point is, this is gonna help DME

310
00:15:21,800 --> 00:15:24,000
 with their base customer power.

311
00:15:24,000 --> 00:15:29,440
 - I just calculate in on the cap model.

312
00:15:29,440 --> 00:15:31,000
 I'm not sure which category it goes under,

313
00:15:31,000 --> 00:15:33,480
 but the revenue back to the city is one that it calculates

314
00:15:33,480 --> 00:15:36,880
 that goes into the net benefit and the rate on return.

315
00:15:36,880 --> 00:15:38,280
 She was speaking to, we did look at them

316
00:15:38,280 --> 00:15:39,280
 to see if they would qualify

317
00:15:39,280 --> 00:15:41,040
 for additional incentives for DME,

318
00:15:41,040 --> 00:15:43,080
 and they didn't currently meet that threshold,

319
00:15:43,080 --> 00:15:44,880
 but we certainly are capturing the revenue

320
00:15:44,880 --> 00:15:45,960
 they're gonna pay into the city

321
00:15:45,960 --> 00:15:47,560
 as part of that calculation.

322
00:15:47,560 --> 00:15:51,880
 - I believe it's part of the cost

323
00:15:51,880 --> 00:15:53,720
 and then the net net revenue, right?

324
00:15:53,720 --> 00:16:04,480
 The projected revenue and the financial impact

325
00:16:04,480 --> 00:16:08,240
 for this project, Ingenhec is expecting

326
00:16:08,240 --> 00:16:09,760
 a 30% increase in revenue

327
00:16:09,760 --> 00:16:11,920
 over the next three years of the project.

328
00:16:11,920 --> 00:16:14,640
 The cost savings analysis,

329
00:16:14,640 --> 00:16:18,560
 so the local production is expected to help them

330
00:16:18,560 --> 00:16:21,840
 with the USMCA umbrella,

331
00:16:21,840 --> 00:16:24,640
 so the cost of bringing things through

332
00:16:24,640 --> 00:16:29,360
 in the United States, Mexico, Canada agreement,

333
00:16:29,360 --> 00:16:31,600
 if those work or trade.

334
00:16:31,600 --> 00:16:33,760
 So having them here locally, it helps with that

335
00:16:33,760 --> 00:16:35,840
 instead of having to bring things in

336
00:16:35,840 --> 00:16:37,160
 from out of the country.

337
00:16:37,160 --> 00:16:39,200
 And then Ingenhec is committed

338
00:16:39,200 --> 00:16:41,560
 to sustainable financial growth

339
00:16:41,560 --> 00:16:45,520
 and helping other companies within the area to succeed.

340
00:16:45,520 --> 00:16:52,640
 The way that this project aligns with our policy

341
00:16:52,640 --> 00:16:55,600
 and our plans, it is a key focus area too,

342
00:16:55,600 --> 00:16:59,920
 which is fostering economic opportunity and affordability,

343
00:16:59,920 --> 00:17:03,000
 fosters growth through the supply chain logistics,

344
00:17:03,000 --> 00:17:05,920
 advanced manufacturing, research, and development.

345
00:17:05,920 --> 00:17:07,200
 It's one thing we didn't talk about

346
00:17:07,200 --> 00:17:12,200
 is that Ingenhec designs and builds

347
00:17:12,200 --> 00:17:13,880
 all of their own products.

348
00:17:13,880 --> 00:17:15,840
 So they're doing their own research and development,

349
00:17:15,840 --> 00:17:17,240
 they're owning their patents,

350
00:17:17,240 --> 00:17:19,560
 so this is a patented technology.

351
00:17:19,560 --> 00:17:24,280
 Also goes toward energy efficiency and conservation,

352
00:17:24,280 --> 00:17:25,280
 and then green buildings,

353
00:17:25,280 --> 00:17:26,880
 and it's a building that they're moving into

354
00:17:26,880 --> 00:17:28,720
 is LEED certified silver.

355
00:17:28,720 --> 00:17:32,840
 And also a goal three of the strategic plan

356
00:17:32,840 --> 00:17:34,280
 to strengthen community inclusion,

357
00:17:34,280 --> 00:17:36,200
 so workforce collaboration

358
00:17:36,200 --> 00:17:38,640
 and growing our own talent initiative.

359
00:17:38,640 --> 00:17:40,760
 Next one.

360
00:17:40,760 --> 00:17:44,320
 So the benefits of Ingenhec being in Denton

361
00:17:44,320 --> 00:17:46,600
 is that this location will be

362
00:17:46,600 --> 00:17:48,480
 the North American headquarters.

363
00:17:48,480 --> 00:17:51,200
 They will be a top 20 employer

364
00:17:51,200 --> 00:17:54,800
 once they're up at full capacity with 133 employees.

365
00:17:54,800 --> 00:17:56,720
 They are a global chain supplier,

366
00:17:56,720 --> 00:17:59,120
 so they supply in all the countries

367
00:17:59,120 --> 00:18:02,880
 that Pat Carr has products and companies in,

368
00:18:02,880 --> 00:18:07,000
 Canada, Mexico, Europe, Asia.

369
00:18:07,000 --> 00:18:09,440
 They will be one of seven injection molding companies

370
00:18:09,440 --> 00:18:11,320
 in Texas, and based on their NICS code,

371
00:18:11,320 --> 00:18:14,760
 they were the only one I could find that does engine parts.

372
00:18:14,760 --> 00:18:17,240
 So we have lots that do medical and things like that,

373
00:18:17,240 --> 00:18:19,280
 but they were the only ones for engine parts.

374
00:18:19,280 --> 00:18:21,400
 They do have sustainable practices.

375
00:18:21,400 --> 00:18:25,320
 They do have, originally, when they came to us,

376
00:18:25,320 --> 00:18:27,520
 they were looking to purchase a piece of property

377
00:18:27,520 --> 00:18:29,800
 and build their own facility.

378
00:18:29,800 --> 00:18:31,600
 But due to timing, they didn't,

379
00:18:31,600 --> 00:18:32,960
 they went with the lease process.

380
00:18:32,960 --> 00:18:35,920
 So hopefully in the future, they'll build a facility here

381
00:18:35,920 --> 00:18:38,280
 and be here much longer.

382
00:18:38,280 --> 00:18:39,520
 The jobs that they have there

383
00:18:39,520 --> 00:18:42,280
 do require some specific knowledge.

384
00:18:42,280 --> 00:18:43,920
 So they'll be working through training

385
00:18:43,920 --> 00:18:48,560
 with North Central Texas College, the DISD,

386
00:18:48,560 --> 00:18:51,080
 and other opportunities for training.

387
00:18:51,080 --> 00:18:58,720
 So our request for you today is for options and directions.

388
00:18:58,720 --> 00:19:01,200
 We're hoping to see a chapter 380 grant

389
00:19:01,200 --> 00:19:03,600
 for performance-based ad-lorm tax rebate,

390
00:19:03,600 --> 00:19:05,400
 50% for five years.

391
00:19:05,400 --> 00:19:10,080
 A job-based grant, which includes 70 jobs

392
00:19:10,080 --> 00:19:12,960
 based on the eligible jobs in our plan matrix,

393
00:19:12,960 --> 00:19:16,720
 and 32 additional jobs for Denton residents.

394
00:19:16,720 --> 00:19:19,200
 And then the agreement would include

395
00:19:19,200 --> 00:19:20,560
 evaluation of the branch hold

396
00:19:20,560 --> 00:19:25,560
 and cap of funding of $339,545.

397
00:19:25,560 --> 00:19:28,320
 Well, the other option is snow and center.

398
00:19:30,680 --> 00:19:33,520
 Would you like to entertain any questions?

399
00:19:33,520 --> 00:19:38,360
 - You may have, it's a five or 10-year lease

400
00:19:38,360 --> 00:19:40,200
 that they've signed.

401
00:19:40,200 --> 00:19:42,360
 - The lease itself will be incentive?

402
00:19:42,360 --> 00:19:43,760
 Application is required-- - No, no, the lease

403
00:19:43,760 --> 00:19:45,040
 that they've signed-- - I think there'll be

404
00:19:45,040 --> 00:19:46,360
 a question for action.

405
00:19:46,360 --> 00:19:47,520
 - I need to pick up. - Hi.

406
00:19:47,520 --> 00:19:49,320
 - Oh, I'm sorry, can I get you to come up here, please?

407
00:19:49,320 --> 00:19:52,320
 - Can I introduce yourself? - Yeah, yeah.

408
00:19:52,320 --> 00:19:57,320
 - So this is five years, but we plan to do a motion

409
00:19:57,320 --> 00:19:59,560
 of starting to identify land

410
00:19:59,560 --> 00:20:04,000
 when we start the production in Q1, 2025,

411
00:20:04,000 --> 00:20:06,840
 because the current location will take care

412
00:20:06,840 --> 00:20:09,840
 of only four machines and limit the amount of production,

413
00:20:09,840 --> 00:20:11,480
 so we need a larger scale.

414
00:20:11,480 --> 00:20:14,440
 Our product portfolio is a lot wider.

415
00:20:14,440 --> 00:20:16,400
 Many of the things that we're currently doing in India

416
00:20:16,400 --> 00:20:20,160
 are already used here, and we just have to pick them up

417
00:20:20,160 --> 00:20:23,360
 from there and get them here under the USMCA.

418
00:20:23,360 --> 00:20:26,080
 So this five-year lease, in the meanwhile,

419
00:20:26,080 --> 00:20:30,000
 we're looking to find a place for a piece of land

420
00:20:30,000 --> 00:20:31,600
 and begin the construction.

421
00:20:31,600 --> 00:20:33,480
 - So you guys want to own the ventures?

422
00:20:33,480 --> 00:20:34,880
 - Yes, yes.

423
00:20:34,880 --> 00:20:37,720
 - So it's an agreement, 380 agreement, correct?

424
00:20:37,720 --> 00:20:41,560
 So the 380 agreement, if it's an agreement,

425
00:20:41,560 --> 00:20:43,720
 will actually, the abatement will actually be

426
00:20:43,720 --> 00:20:46,240
 to the building owner, it'll be passed back to you guys

427
00:20:46,240 --> 00:20:49,120
 through triple nets, is that how this is structured?

428
00:20:49,120 --> 00:20:50,920
 - For the business personal property.

429
00:20:50,920 --> 00:20:52,200
 - Just the business personal property,

430
00:20:52,200 --> 00:20:54,440
 that's all, it's an agreement, also.

431
00:20:55,400 --> 00:20:58,480
 - It is, it is real property, business personal property,

432
00:20:58,480 --> 00:21:00,480
 so just everything, the interior of this whole thing.

433
00:21:00,480 --> 00:21:03,640
 - Okay, so no, we're not doing any, okay, perfect.

434
00:21:03,640 --> 00:21:04,840
 That answers my question.

435
00:21:04,840 --> 00:21:12,200
 - So, you brought up, I got two questions.

436
00:21:12,200 --> 00:21:14,160
 I mean, on the headquarter grant,

437
00:21:14,160 --> 00:21:16,200
 what are the rules of that?

438
00:21:16,200 --> 00:21:18,240
 Like, what are the specifications?

439
00:21:18,240 --> 00:21:22,240
 Because in this case, it's not their corporate headquarters,

440
00:21:22,240 --> 00:21:25,840
 it's just their US headquarters, right?

441
00:21:25,840 --> 00:21:30,160
 So, what, you asked the question, does this,

442
00:21:30,160 --> 00:21:31,320
 what's our feedback?

443
00:21:31,320 --> 00:21:35,080
 But I guess I would volley that back to you

444
00:21:35,080 --> 00:21:37,920
 and say, what are the guidelines that are in place

445
00:21:37,920 --> 00:21:38,920
 for the definition?

446
00:21:38,920 --> 00:21:42,120
 - Right, so this is something new, it's a new concept.

447
00:21:42,120 --> 00:21:43,280
 This, I mean, it's not in the policy.

448
00:21:43,280 --> 00:21:46,120
 We do have the SGA strategic growth areas,

449
00:21:46,120 --> 00:21:48,760
 so under competitiveness, there is an option

450
00:21:48,760 --> 00:21:50,800
 where you can provide, if there are headquarters,

451
00:21:50,800 --> 00:21:53,680
 you can provide a grant, and then I'm gonna ask Erica

452
00:21:53,680 --> 00:21:54,960
 to actually come up and speak

453
00:21:54,960 --> 00:21:58,440
 on what our typical relocation grant measures are for.

454
00:21:58,440 --> 00:22:01,880
 And since we can't, and Scott Fray may wanna speak

455
00:22:01,880 --> 00:22:05,680
 to this as well, we didn't, there were some issues

456
00:22:05,680 --> 00:22:08,720
 or many confusion on why we would provide a grant funding

457
00:22:08,720 --> 00:22:10,640
 for a company that's already signed a lease,

458
00:22:10,640 --> 00:22:12,920
 but due to the timing of everything, right?

459
00:22:12,920 --> 00:22:14,480
 It's kind of backwards for us.

460
00:22:14,480 --> 00:22:17,840
 Then, this is why we decided to do the headquarters grant.

461
00:22:17,840 --> 00:22:22,040
 So, Erica, do you mind speaking upon what we typically do

462
00:22:22,040 --> 00:22:26,640
 for the relocation grants, and then I'll take you back

463
00:22:26,640 --> 00:22:27,480
 and talk about that.

464
00:22:27,480 --> 00:22:29,360
 - And I'm not as so much as worried about that

465
00:22:29,360 --> 00:22:32,640
 as they're not relocating their headquarters, are they?

466
00:22:32,640 --> 00:22:36,200
 - They're not relocating their US locations,

467
00:22:36,200 --> 00:22:37,520
 US headquarters.

468
00:22:37,520 --> 00:22:40,080
 - You're doing a subsidiary for North America here?

469
00:22:40,080 --> 00:22:44,240
 - No, this is not a subsidiary, this is a fresh company.

470
00:22:44,240 --> 00:22:47,120
 - Okay. - And the ownership remains

471
00:22:47,120 --> 00:22:49,640
 the same what we have in India, but it's a separate company

472
00:22:49,640 --> 00:22:51,280
 that we've established here.

473
00:22:51,280 --> 00:22:52,840
 - So, it is a North American headquarters.

474
00:22:52,840 --> 00:22:56,240
 - Correct, North American headquarters.

475
00:22:56,240 --> 00:22:58,480
 - That depends on your grant definition.

476
00:22:58,480 --> 00:23:00,640
 - Which we don't have a definition, it sounds like.

477
00:23:00,640 --> 00:23:02,160
 - But that's similar to Toyota.

478
00:23:02,160 --> 00:23:05,280
 They have the North American headquarters.

479
00:23:05,280 --> 00:23:06,920
 That's what they do.

480
00:23:06,920 --> 00:23:08,200
 Sounds the same structure.

481
00:23:08,200 --> 00:23:14,440
 - Erica Sullivan, economic development program administrator.

482
00:23:14,440 --> 00:23:17,520
 Speaking to our policy, our job-based grants,

483
00:23:17,520 --> 00:23:22,200
 they are for relocation typically and for expansion.

484
00:23:22,200 --> 00:23:23,920
 So, headquarters is a new concept.

485
00:23:23,920 --> 00:23:26,560
 What she mentioned is the strategic growth areas.

486
00:23:26,560 --> 00:23:28,160
 These are our priority considerations,

487
00:23:28,160 --> 00:23:29,720
 and headquarters is one of those areas,

488
00:23:29,720 --> 00:23:32,640
 if you remember from the criteria that we look at.

489
00:23:32,640 --> 00:23:39,840
 So, basically what we have in our job-based grant is

490
00:23:43,960 --> 00:23:45,880
 set up in the agreement.

491
00:23:45,880 --> 00:23:48,080
 So, the policy is pretty general.

492
00:23:48,080 --> 00:23:50,600
 It doesn't specifically say how it's gonna be enforced.

493
00:23:50,600 --> 00:23:52,640
 Typically, with the job-based grant we required,

494
00:23:52,640 --> 00:23:56,040
 in the past we required a W-2 and an offer letter,

495
00:23:56,040 --> 00:23:58,560
 'cause most people aren't hired January 1.

496
00:23:58,560 --> 00:24:01,640
 So, the offer letter will make up that amount

497
00:24:01,640 --> 00:24:02,920
 when we do that.

498
00:24:02,920 --> 00:24:06,400
 We've done ad valorem and job-based grants as well.

499
00:24:06,400 --> 00:24:09,080
 And so, the different particulars are set up in the agreement

500
00:24:09,080 --> 00:24:11,680
 on how we specifically address that.

501
00:24:11,680 --> 00:24:14,960
 But the rebate is a percentage based on, in this case,

502
00:24:14,960 --> 00:24:16,880
 50% for the five-year term.

503
00:24:16,880 --> 00:24:18,240
 And we've done five years typically

504
00:24:18,240 --> 00:24:21,320
 for all of our job-based grants that we've done.

505
00:24:21,320 --> 00:24:24,320
 - Is the 50,000, is that through the treaty agreement,

506
00:24:24,320 --> 00:24:26,760
 or is that a grant ran through on top of that?

507
00:24:26,760 --> 00:24:29,080
 - It's a cash grant up front.

508
00:24:29,080 --> 00:24:32,480
 Typically, what we've done for the cash relocation grants

509
00:24:32,480 --> 00:24:34,600
 is it helps them do the finish out.

510
00:24:34,600 --> 00:24:36,640
 We had Team of Defenders, we had From the Future,

511
00:24:36,640 --> 00:24:41,280
 SACREN, and then Ranchland also received that.

512
00:24:41,280 --> 00:24:43,480
 But basically, it's helping them set up the facility

513
00:24:43,480 --> 00:24:46,200
 to move out of stoke in the case of Team of Defenders

514
00:24:46,200 --> 00:24:48,200
 so that we reimburse all their expenses

515
00:24:48,200 --> 00:24:50,640
 for their new facility, including rent,

516
00:24:50,640 --> 00:24:51,920
 and then everything to the facility.

517
00:24:51,920 --> 00:24:53,520
 - But it's a reimbursement after the money's--

518
00:24:53,520 --> 00:24:54,440
 - Yes.

519
00:24:54,440 --> 00:24:56,240
 They're all done reimbursement basis.

520
00:24:56,240 --> 00:24:57,720
 - Great.

521
00:24:57,720 --> 00:24:59,400
 - And Christina had a point that's similar

522
00:24:59,400 --> 00:25:02,440
 on any of the cash ones to build in parameters

523
00:25:02,440 --> 00:25:04,520
 to make sure they meet certain milestones,

524
00:25:04,520 --> 00:25:06,080
 to mention certificate of occupancy

525
00:25:06,080 --> 00:25:07,440
 was being put in there,

526
00:25:07,440 --> 00:25:11,640
 and other milestones before money is given.

527
00:25:11,640 --> 00:25:13,280
 - That's what I was talking about with the agreement,

528
00:25:13,280 --> 00:25:15,000
 that they continually occupy the funds

529
00:25:15,000 --> 00:25:17,920
 that they're going to use for example.

530
00:25:17,920 --> 00:25:20,280
 - So after five years, let's say their lease is up,

531
00:25:20,280 --> 00:25:23,200
 and they decide to move to a neighboring city.

532
00:25:23,200 --> 00:25:26,840
 What impact does that have on this?

533
00:25:26,840 --> 00:25:29,240
 - That would be beyond the term of the agreement.

534
00:25:29,240 --> 00:25:32,960
 - Right, so what's the net after five years?

535
00:25:32,960 --> 00:25:33,800
 Was it $4,000?

536
00:25:33,800 --> 00:25:36,680
 Is that what it is?

537
00:25:36,680 --> 00:25:37,520
 - No.

538
00:25:37,520 --> 00:25:38,760
 - I'm not sure I understand the question.

539
00:25:38,760 --> 00:25:41,120
 - If they leave prior 'cause we showed a payback period

540
00:25:41,120 --> 00:25:43,440
 and a rate of return based on assumption of years,

541
00:25:43,440 --> 00:25:45,120
 if they leave before that.

542
00:25:45,120 --> 00:25:46,160
 - It's a 10-year basis,

543
00:25:46,160 --> 00:25:48,600
 so that would need to be adjusted, so yes.

544
00:25:48,600 --> 00:25:49,440
 - They left it in that time.

545
00:25:49,440 --> 00:25:51,600
 - But then it happens at seven years, right?

546
00:25:51,600 --> 00:25:52,760
 Seven years.

547
00:25:52,760 --> 00:25:53,600
 - Yeah, they wouldn't like it.

548
00:25:53,600 --> 00:25:56,000
 - Or we have to look at the...

549
00:25:56,000 --> 00:25:57,320
 Can you go back to the--

550
00:25:57,320 --> 00:25:58,160
 - It's a break-in.

551
00:25:58,160 --> 00:25:59,320
 - It happens after 10 years.

552
00:25:59,320 --> 00:26:00,160
 - It happens.

553
00:26:00,160 --> 00:26:01,000
 - Okay.

554
00:26:01,000 --> 00:26:02,680
 - The rate of return and the payback period.

555
00:26:02,680 --> 00:26:04,480
 - So that's five years after seven years.

556
00:26:04,480 --> 00:26:05,320
 - This one?

557
00:26:05,320 --> 00:26:06,160
 - No.

558
00:26:06,160 --> 00:26:07,600
 (mumbles)

559
00:26:07,600 --> 00:26:09,720
 - So it had a payback period of seven years,

560
00:26:09,720 --> 00:26:13,240
 6.9 years, and a rate of return of 13.5.

561
00:26:13,240 --> 00:26:15,280
 That's assuming the assumptions that we have today,

562
00:26:15,280 --> 00:26:16,800
 we would need to go back to the model.

563
00:26:16,800 --> 00:26:20,440
 - So based on what we're providing them in grants,

564
00:26:20,440 --> 00:26:24,000
 it's gonna take seven years for us to get payback,

565
00:26:24,000 --> 00:26:25,720
 if they're eligible for all the stuff,

566
00:26:25,720 --> 00:26:27,440
 and they're only committed for five years,

567
00:26:27,440 --> 00:26:30,240
 so we could lose money on this in a five-year period,

568
00:26:30,240 --> 00:26:31,080
 correct?

569
00:26:31,080 --> 00:26:34,560
 - It depends on how you look at it.

570
00:26:35,840 --> 00:26:37,880
 They all have different varying rate of returns.

571
00:26:37,880 --> 00:26:39,440
 For Project Orange, that was very rare

572
00:26:39,440 --> 00:26:42,040
 when you have like a three-year rate of return,

573
00:26:42,040 --> 00:26:43,880
 for example, but we have had some

574
00:26:43,880 --> 00:26:45,720
 that have a 16-year rate of return.

575
00:26:45,720 --> 00:26:48,960
 We passed as well, by and large.

576
00:26:48,960 --> 00:26:52,840
 So it depends on what that particular project offers

577
00:26:52,840 --> 00:26:53,720
 and what you're looking for.

578
00:26:53,720 --> 00:26:57,320
 That had a community benefit, for example, by and large.

579
00:26:57,320 --> 00:27:00,080
 - We'll add a callback clause where we require,

580
00:27:00,080 --> 00:27:02,720
 if they don't meet certain measures gross grade every year,

581
00:27:02,720 --> 00:27:05,640
 if they don't meet the Avalorum valuation every year,

582
00:27:05,640 --> 00:27:09,080
 then they won't get that rebate the following year.

583
00:27:09,080 --> 00:27:11,440
 So those are the measures that we take

584
00:27:11,440 --> 00:27:15,680
 to protect ourselves, and that's our total economic impact

585
00:27:15,680 --> 00:27:18,400
 that we will have a return of, this is for nine years,

586
00:27:18,400 --> 00:27:19,760
 but it doesn't mean that they're gonna get

587
00:27:19,760 --> 00:27:22,480
 the full grant funding.

588
00:27:22,480 --> 00:27:25,400
 So all the callback measures where they'll have to pay back

589
00:27:25,400 --> 00:27:26,760
 all the money that we provided them

590
00:27:26,760 --> 00:27:27,920
 if they don't meet those measures,

591
00:27:27,920 --> 00:27:30,240
 and also they won't get it

592
00:27:30,240 --> 00:27:31,680
 if they don't meet the measures that fall in,

593
00:27:31,680 --> 00:27:33,720
 second or third year or fourth, or whatever that may be.

594
00:27:33,720 --> 00:27:35,480
 - So we're tracking it each year to callback

595
00:27:35,480 --> 00:27:37,200
 if they hadn't met it, and then we,

596
00:27:37,200 --> 00:27:39,520
 so we have stage gates along the way.

597
00:27:39,520 --> 00:27:44,520
 And, you know, to, honestly, for what we're giving

598
00:27:44,520 --> 00:27:47,520
 is pretty minimal compared to other places.

599
00:27:47,520 --> 00:27:49,360
 So I'm good if it's seven years, you know,

600
00:27:49,360 --> 00:27:51,240
 where you have a two-year risk there,

601
00:27:51,240 --> 00:27:52,080
 that's pretty minimal.

602
00:27:52,080 --> 00:27:53,360
 - So the payback you're trying to get,

603
00:27:53,360 --> 00:27:55,600
 so that role for us is a 50-gaddy split, right?

604
00:27:55,600 --> 00:27:57,120
 So if they don't come, there's no money.

605
00:27:57,120 --> 00:27:57,960
 - That's right.

606
00:27:57,960 --> 00:28:00,440
 - So all you're trying to recruit in the seven-year payback

607
00:28:00,440 --> 00:28:01,920
 is the 50% you left.

608
00:28:01,920 --> 00:28:04,920
 So we still make 50, which you're not counting at all,

609
00:28:04,920 --> 00:28:05,760
 which is income.

610
00:28:05,760 --> 00:28:07,960
 So if the payback is on what you let them have,

611
00:28:07,960 --> 00:28:09,920
 it doesn't mean we didn't make any money all the time.

612
00:28:09,920 --> 00:28:10,760
 - Right.

613
00:28:10,760 --> 00:28:15,280
 - Good for the, is it the next slide, maybe?

614
00:28:15,280 --> 00:28:18,840
 This one.

615
00:28:18,840 --> 00:28:20,880
 - About one.

616
00:28:20,880 --> 00:28:21,720
 - That one.

617
00:28:21,720 --> 00:28:27,720
 So you have 70, or I'm sorry, 27 jobs over 100,000.

618
00:28:27,720 --> 00:28:32,160
 Then you scroll down and you look at the annual base salary

619
00:28:32,160 --> 00:28:34,760
 and you add up all the ones, total number,

620
00:28:34,760 --> 00:28:38,440
 yours one through five, there's only 17 jobs there.

621
00:28:38,440 --> 00:28:39,480
 Where's the other 10?

622
00:28:39,480 --> 00:28:43,120
 - So we're actually basing it off

623
00:28:43,120 --> 00:28:45,520
 the annual base salary plus benefits.

624
00:28:45,520 --> 00:28:48,040
 And the reason why we did this is because

625
00:28:48,040 --> 00:28:50,160
 we were gonna be short about three jobs,

626
00:28:50,160 --> 00:28:52,240
 they weren't gonna be eligible for this grant

627
00:28:52,240 --> 00:28:55,200
 by three jobs if we just used the base salary.

628
00:28:55,200 --> 00:28:56,800
 So that's why we're using with benefits.

629
00:28:56,800 --> 00:28:58,640
 In the agreement, we're gonna require them

630
00:28:58,640 --> 00:29:01,200
 to report how much they're paying in 401k,

631
00:29:01,200 --> 00:29:02,600
 whatever benefits, right?

632
00:29:02,600 --> 00:29:04,200
 That's something we haven't done in the past.

633
00:29:04,200 --> 00:29:05,640
 Our policy doesn't necessarily say

634
00:29:05,640 --> 00:29:08,440
 if you have to use base salary or with benefits.

635
00:29:08,440 --> 00:29:10,920
 Our practice has been just to use base salary.

636
00:29:10,920 --> 00:29:12,960
 - Well, if you remember in our last conversation

637
00:29:12,960 --> 00:29:14,040
 when we went through all that,

638
00:29:14,040 --> 00:29:16,840
 we made a big argument that benefits matter.

639
00:29:16,840 --> 00:29:18,360
 And so my argument would be

640
00:29:18,360 --> 00:29:20,320
 we should be using that every time,

641
00:29:20,320 --> 00:29:22,440
 because that was a whole discussion

642
00:29:22,440 --> 00:29:24,640
 when we did our last checklist was,

643
00:29:24,640 --> 00:29:26,760
 if you're paying insurance, if you're paying 401k,

644
00:29:26,760 --> 00:29:29,720
 that's real dollars and another company may not be paying.

645
00:29:29,720 --> 00:29:31,240
 So I think we did it properly.

646
00:29:32,200 --> 00:29:34,360
 - That's how we did that this time.

647
00:29:34,360 --> 00:29:38,320
 - 'Cause we had-- (overlapping chatter)

648
00:29:38,320 --> 00:29:41,720
 - Contractors are given the same value or less

649
00:29:41,720 --> 00:29:43,560
 and it gets tied to the benefit.

650
00:29:43,560 --> 00:29:44,400
 - That's right.

651
00:29:44,400 --> 00:29:46,960
 - So I agree with that.

652
00:29:46,960 --> 00:29:49,240
 - Yeah, I mean, what's in that?

653
00:29:49,240 --> 00:29:51,600
 Benefits and above in 100k is 27 people.

654
00:29:51,600 --> 00:29:56,200
 (overlapping chatter)

655
00:29:56,200 --> 00:29:59,200
 - Yeah, well, she's got the color code.

656
00:29:59,200 --> 00:30:01,560
 (overlapping chatter)

657
00:30:01,560 --> 00:30:03,880
 - Help for each section that goes up through the file.

658
00:30:03,880 --> 00:30:04,720
 - Yeah.

659
00:30:04,720 --> 00:30:07,480
 (overlapping chatter)

660
00:30:07,480 --> 00:30:09,120
 - I'd make a motion to approve.

661
00:30:09,120 --> 00:30:09,960
 - Second.

662
00:30:09,960 --> 00:30:10,800
 - I second.

663
00:30:10,800 --> 00:30:11,640
 - Oh, sorry.

664
00:30:11,640 --> 00:30:14,000
 - I got a question from legal.

665
00:30:14,000 --> 00:30:15,480
 Do I need to recuse myself?

666
00:30:15,480 --> 00:30:19,440
 - It's not your business.

667
00:30:19,440 --> 00:30:22,600
 I think if it, no, I think the fact that there's a--

668
00:30:22,600 --> 00:30:24,600
 - There's a tie, so I was asking.

669
00:30:24,600 --> 00:30:27,280
 - I don't think there's any reason you need to.

670
00:30:27,280 --> 00:30:28,120
 - Okay.

671
00:30:28,120 --> 00:30:28,960
 (overlapping chatter)

672
00:30:28,960 --> 00:30:32,120
 - Does Pat Card, the sole contractor?

673
00:30:32,120 --> 00:30:32,960
 - No.

674
00:30:32,960 --> 00:30:33,800
 - They have other contracts.

675
00:30:33,800 --> 00:30:34,640
 - They have other contracts.

676
00:30:34,640 --> 00:30:35,640
 - But ultimately, that's your choice.

677
00:30:35,640 --> 00:30:38,120
 You know, whether you recuse us in the discretion of things.

678
00:30:38,120 --> 00:30:40,400
 (overlapping chatter)

679
00:30:40,400 --> 00:30:41,880
 - We have a motion and a second.

680
00:30:41,880 --> 00:30:44,080
 Did you get that recorded?

681
00:30:44,080 --> 00:30:46,040
 Further conversation, discussion?

682
00:30:46,040 --> 00:30:49,760
 Hearing none, we'll move to vote.

683
00:30:49,760 --> 00:30:51,800
 All in favor, signify by saying aye.

684
00:30:51,800 --> 00:30:52,640
 - Aye.

685
00:30:52,640 --> 00:30:53,460
 - Aye.

686
00:30:53,460 --> 00:30:54,300
 - Opposed, same.

687
00:30:54,300 --> 00:30:58,040
 Hearing none, we'll approve that

688
00:30:58,040 --> 00:30:59,920
 and we're going to the next, thank you.

689
00:30:59,920 --> 00:31:02,520
 Great job, great conversation, everyone.

690
00:31:02,520 --> 00:31:04,040
 Thank you for coming in.

691
00:31:04,040 --> 00:31:04,880
 We appreciate your attendance.

692
00:31:04,880 --> 00:31:06,840
 (overlapping chatter)

693
00:31:06,840 --> 00:31:09,840
 (audience applauds)

694
00:31:09,840 --> 00:31:14,040
 - So, I think our group's coming up.

695
00:31:14,040 --> 00:31:16,040
 He's our business agreement specialist.

696
00:31:16,040 --> 00:31:18,840
 We are going to get more creative

697
00:31:18,840 --> 00:31:21,000
 with our incentive proposals

698
00:31:21,000 --> 00:31:23,240
 just because we need to be competitive to other cities.

699
00:31:23,240 --> 00:31:26,080
 And since we don't have large incentive funds,

700
00:31:26,080 --> 00:31:27,920
 we will start seeing creative packages like this.

701
00:31:27,920 --> 00:31:31,900
 At any point, if you have any questions, let us know.

702
00:31:31,900 --> 00:31:32,880
 - Good morning, everybody.

703
00:31:32,880 --> 00:31:33,840
 I'm Clay Parker.

704
00:31:33,840 --> 00:31:35,400
 I'm a business agreement specialist

705
00:31:35,400 --> 00:31:37,840
 here at the Office of Economic Development.

706
00:31:37,840 --> 00:31:40,320
 And today I'm gonna bring you an application

707
00:31:40,320 --> 00:31:41,720
 from Bloomfield Homes.

708
00:31:41,720 --> 00:31:45,440
 So, today we're presenting their incentive application

709
00:31:45,440 --> 00:31:48,400
 and trying to seek approval for a recommendation

710
00:31:48,400 --> 00:31:50,460
 to city council next week.

711
00:31:50,460 --> 00:31:54,440
 So, Bloomfield Homes is a market-leading home builder.

712
00:31:54,440 --> 00:31:58,200
 They are a top five in the DFW metro area.

713
00:31:58,200 --> 00:32:00,000
 And they're headquartered down in South Lake

714
00:32:00,000 --> 00:32:02,200
 for the last 20 years.

715
00:32:02,200 --> 00:32:03,680
 And currently in Denton, you can see

716
00:32:03,680 --> 00:32:05,880
 two of their neighborhoods right here on the Southwest

717
00:32:05,880 --> 00:32:08,600
 where they're building 248 new homes

718
00:32:08,600 --> 00:32:11,280
 in Country Lakes and Glenwood Meadows,

719
00:32:11,280 --> 00:32:12,920
 both of those neighborhoods.

720
00:32:12,920 --> 00:32:16,520
 So, they currently pay local sales tax

721
00:32:16,520 --> 00:32:18,640
 on their construction materials

722
00:32:18,640 --> 00:32:21,040
 at the place where they simply buy them,

723
00:32:21,040 --> 00:32:25,120
 those warehouses where lumber is or stone is.

724
00:32:25,120 --> 00:32:29,040
 Alternatively, they can issue a Texas direct payment permit,

725
00:32:29,040 --> 00:32:31,040
 which I'll get into the requirements of later

726
00:32:31,040 --> 00:32:32,880
 and how they qualify for that.

727
00:32:32,880 --> 00:32:36,280
 And that allows a home builder or any company that qualifies

728
00:32:36,280 --> 00:32:38,800
 to pay taxes on those materials

729
00:32:38,800 --> 00:32:41,000
 at the job site where it is used.

730
00:32:41,000 --> 00:32:43,720
 So, in this case, they're paying on the taxes

731
00:32:43,720 --> 00:32:46,520
 for those materials at those two neighborhoods

732
00:32:46,520 --> 00:32:48,840
 in the city limits of Denton.

733
00:32:48,840 --> 00:32:51,760
 So, they're proposing to us to enter a 10-year Chapter 380

734
00:32:51,760 --> 00:32:55,040
 agreement where they will use their direct pay permit

735
00:32:55,040 --> 00:32:59,200
 and the company will receive a 33% rebate from us

736
00:32:59,200 --> 00:33:01,720
 from this newly acquired funding.

737
00:33:01,720 --> 00:33:04,920
 And we will retain 67% of that new revenue

738
00:33:04,920 --> 00:33:07,480
 that otherwise would go to the cities

739
00:33:07,480 --> 00:33:09,760
 where the suppliers have their warehouses.

740
00:33:09,760 --> 00:33:12,880
 So, for that Texas direct payment permit,

741
00:33:12,880 --> 00:33:17,880
 you have to qualify by purchasing $800,000

742
00:33:18,840 --> 00:33:21,400
 of eligible sales annually.

743
00:33:21,400 --> 00:33:24,920
 And that allows you to pay taxes directly to the controller

744
00:33:24,920 --> 00:33:27,960
 as opposed to paying to the supplier upfront.

745
00:33:27,960 --> 00:33:31,000
 And those items have to be for the purchaser's own use

746
00:33:31,000 --> 00:33:32,560
 and not for an immediate resale.

747
00:33:32,560 --> 00:33:34,280
 So, in this case, they can't turn around

748
00:33:34,280 --> 00:33:35,960
 and sell that lumber to somebody else.

749
00:33:35,960 --> 00:33:37,280
 They're gonna use it to build a house

750
00:33:37,280 --> 00:33:38,920
 and to sell that house.

751
00:33:38,920 --> 00:33:40,720
 This is not a new thing for Bloomfield.

752
00:33:40,720 --> 00:33:43,480
 It's not a new thing for home builders in general.

753
00:33:43,480 --> 00:33:45,800
 First Texas does this as well.

754
00:33:45,800 --> 00:33:47,960
 And they currently, Bloomfield specifically,

755
00:33:47,960 --> 00:33:51,680
 utilize this permit with 21 different communities

756
00:33:51,680 --> 00:33:54,280
 within DFW, such as ANA, Salagna,

757
00:33:54,280 --> 00:33:57,560
 a lot of our neighbors and a lot of our friends.

758
00:33:57,560 --> 00:34:00,120
 So, this is kind of how the math breaks down

759
00:34:00,120 --> 00:34:02,960
 based on what they estimate to be the average cost

760
00:34:02,960 --> 00:34:04,960
 of the materials of their houses.

761
00:34:04,960 --> 00:34:08,680
 So, it's about $75,000 for materials per house.

762
00:34:08,680 --> 00:34:11,200
 And you multiply that by our local sales tax rate

763
00:34:11,200 --> 00:34:12,840
 of one and a half percent.

764
00:34:12,840 --> 00:34:17,400
 And that gets you about $1,000 per house

765
00:34:17,400 --> 00:34:19,760
 in sales tax revenue generated.

766
00:34:19,760 --> 00:34:21,600
 Again, outside of this agreement,

767
00:34:21,600 --> 00:34:24,480
 that sales tax revenue is being dispersed

768
00:34:24,480 --> 00:34:27,640
 between multiple cities based on where the materials are.

769
00:34:27,640 --> 00:34:29,880
 But in this case, if all of that was paid

770
00:34:29,880 --> 00:34:33,000
 at job site in Denton, under this current agreement,

771
00:34:33,000 --> 00:34:37,240
 that new funding would, 33% of it would go to Bloomfield.

772
00:34:37,240 --> 00:34:39,960
 So, that'd be $375 per house.

773
00:34:39,960 --> 00:34:44,240
 We would get new funding of $750 per house.

774
00:34:44,240 --> 00:34:45,440
 Let me go to the next slide.

775
00:34:45,440 --> 00:34:47,960
 This is how it adds up, 248 homes

776
00:34:47,960 --> 00:34:49,640
 in these two neighborhoods,

777
00:34:49,640 --> 00:34:51,720
 for that $750 that we're gonna get,

778
00:34:51,720 --> 00:34:56,240
 that's $186,000 of new sales tax revenue

779
00:34:56,240 --> 00:34:59,400
 that we would not have access to otherwise.

780
00:34:59,400 --> 00:35:02,880
 And that is assuming a 0% inflation,

781
00:35:02,880 --> 00:35:05,080
 depending on how long it takes to build these houses

782
00:35:05,080 --> 00:35:06,880
 and how much materials change.

783
00:35:06,880 --> 00:35:11,360
 If you assume 5% annual increase, that goes up to 237,000.

784
00:35:11,360 --> 00:35:13,200
 And if you assume an 8% increase,

785
00:35:13,200 --> 00:35:15,640
 that goes up to $278,000.

786
00:35:15,640 --> 00:35:18,840
 But construction materials fluctuate, it's all up in the air.

787
00:35:18,840 --> 00:35:21,400
 Here's where we start on investment.

788
00:35:21,400 --> 00:35:23,560
 Obviously, this expands the tax base.

789
00:35:23,560 --> 00:35:26,360
 It provides the city with over $186,000

790
00:35:26,360 --> 00:35:29,080
 that we otherwise would not have access to.

791
00:35:29,080 --> 00:35:31,760
 It also creates good relationships with Bloomfield,

792
00:35:31,760 --> 00:35:33,320
 which helps with business retention

793
00:35:33,320 --> 00:35:35,280
 when it comes to construction jobs,

794
00:35:35,280 --> 00:35:37,880
 based on how much they estimate the need

795
00:35:37,880 --> 00:35:40,640
 for construction workers on a per house level.

796
00:35:40,640 --> 00:35:43,240
 They estimate it's about 992 construction jobs

797
00:35:43,240 --> 00:35:47,000
 throughout the construction of both of these neighborhoods.

798
00:35:47,000 --> 00:35:48,720
 Bloomfield's also a sustainable company.

799
00:35:48,720 --> 00:35:52,040
 They try their best to use efficient HVAC lighting appliances

800
00:35:52,040 --> 00:35:54,040
 and it's a part of a lot of their certification,

801
00:35:54,040 --> 00:35:56,080
 how they advertise their solid homes.

802
00:35:56,080 --> 00:35:57,400
 And they're also a charitable company.

803
00:35:57,400 --> 00:35:59,320
 In a lot of the neighborhoods they set up,

804
00:35:59,320 --> 00:36:02,920
 they have food pantries and library reading programs,

805
00:36:02,920 --> 00:36:04,920
 a lot of positive stuff for the communities

806
00:36:04,920 --> 00:36:06,440
 that they are investing in.

807
00:36:06,440 --> 00:36:10,040
 So the incentive recommendation would be

808
00:36:10,040 --> 00:36:12,960
 to do a chapter 380 grant,

809
00:36:12,960 --> 00:36:16,760
 which is a sales tax rebate on those construction materials

810
00:36:16,760 --> 00:36:19,360
 at 33% for 10 years.

811
00:36:19,360 --> 00:36:22,920
 Then for your options,

812
00:36:22,920 --> 00:36:25,720
 it is following through that staff recommendation

813
00:36:25,720 --> 00:36:27,920
 for opting to choose no incentives.

814
00:36:27,920 --> 00:36:33,160
 - So question, on the,

815
00:36:33,160 --> 00:36:36,640
 you said the $186,000 we wouldn't normally get,

816
00:36:36,640 --> 00:36:39,400
 does that assume they don't build a house?

817
00:36:39,400 --> 00:36:41,520
 - That assumes, so they're building the houses,

818
00:36:41,520 --> 00:36:43,600
 that assumes that they don't opt

819
00:36:43,600 --> 00:36:45,520
 to use that tax and direct pay permit.

820
00:36:45,520 --> 00:36:49,160
 So otherwise, say lumber, for instance.

821
00:36:49,160 --> 00:36:51,880
 Bloomfield specifically and most home builders

822
00:36:51,880 --> 00:36:53,880
 get lumber from First Source Building,

823
00:36:53,880 --> 00:36:55,880
 which is out in Frisco.

824
00:36:55,880 --> 00:36:59,760
 So I buy it at that warehouse,

825
00:36:59,760 --> 00:37:03,680
 technically all that sales tax for lumber goes to Frisco,

826
00:37:03,680 --> 00:37:05,040
 but under this current agreement,

827
00:37:05,040 --> 00:37:07,760
 it would be able to pay at job site,

828
00:37:07,760 --> 00:37:09,640
 which would be in the detected neighborhood.

829
00:37:09,640 --> 00:37:10,840
 - Excellent, excellent.

830
00:37:10,840 --> 00:37:13,360
 The assumption is that none of their suppliers

831
00:37:13,360 --> 00:37:15,360
 currently exist and didn't count.

832
00:37:15,360 --> 00:37:17,000
 - The majority of their suppliers.

833
00:37:17,000 --> 00:37:18,600
 - They're preferred suppliers that they use.

834
00:37:18,600 --> 00:37:20,200
 They probably are suppliers that provide it,

835
00:37:20,200 --> 00:37:22,560
 but that's probably not who they use as their go-to.

836
00:37:22,560 --> 00:37:24,520
 - Well, my question is, is if they buy it,

837
00:37:24,520 --> 00:37:27,560
 then do we still split those tax savings

838
00:37:27,560 --> 00:37:29,240
 if they were doing business alone?

839
00:37:29,240 --> 00:37:30,200
 - Yes.

840
00:37:30,200 --> 00:37:32,280
 - We've looked at this on multifamily

841
00:37:32,280 --> 00:37:34,600
 in pretty high level detail in the past,

842
00:37:34,600 --> 00:37:37,040
 and there's a lot of work that goes into it

843
00:37:37,040 --> 00:37:40,320
 on their side to keep the records for this.

844
00:37:40,320 --> 00:37:43,000
 My issue with these has only been,

845
00:37:43,000 --> 00:37:44,880
 I think I can support it,

846
00:37:44,880 --> 00:37:49,880
 but it incentivized them to buy supplies outside of Denton

847
00:37:49,880 --> 00:37:52,480
 because they split or we're giving up tax

848
00:37:52,480 --> 00:37:55,360
 that we would get for our businesses

849
00:37:55,360 --> 00:37:57,120
 that are currently in debt.

850
00:37:57,120 --> 00:37:58,920
 So that's where I've always kind of,

851
00:37:58,920 --> 00:38:02,480
 not sure if it's a one-time project

852
00:38:02,480 --> 00:38:06,240
 and everything's out that they're outside of town

853
00:38:06,240 --> 00:38:07,520
 and they're not doing business

854
00:38:07,520 --> 00:38:12,080
 with 84 lumber out here already,

855
00:38:12,080 --> 00:38:14,960
 'cause now we're splitting that tax savings already.

856
00:38:14,960 --> 00:38:17,240
 So that's where I kind of have a little bit of,

857
00:38:17,240 --> 00:38:19,680
 we never did it in our multifamily world,

858
00:38:19,680 --> 00:38:22,920
 just because one, it's a lot of paperwork.

859
00:38:22,920 --> 00:38:24,320
 They probably have good processes

860
00:38:24,320 --> 00:38:27,240
 'cause they're doing it in multiple cities to do that,

861
00:38:27,240 --> 00:38:32,240
 but does it incentivize doing business in Denton?

862
00:38:32,240 --> 00:38:35,320
 That's my only kind of downside.

863
00:38:35,320 --> 00:38:37,400
 And if their vendor list is already,

864
00:38:37,400 --> 00:38:40,880
 no, they're not buying from vendors out of Denton anyway.

865
00:38:40,880 --> 00:38:42,160
 Do we have that information

866
00:38:42,160 --> 00:38:44,840
 of what business are doing in Denton and what they're not?

867
00:38:44,840 --> 00:38:46,720
 - So we have some information on,

868
00:38:46,720 --> 00:38:48,120
 obviously we don't have as much information

869
00:38:48,120 --> 00:38:49,760
 on what they're buying outside.

870
00:38:49,760 --> 00:38:51,200
 We have some of the tax revenue

871
00:38:51,200 --> 00:38:54,760
 from the last few years of what they've done here.

872
00:38:54,760 --> 00:38:58,160
 It reflects that they're buying outside of Denton

873
00:38:58,160 --> 00:39:01,280
 in terms of it doesn't look like something like 90%

874
00:39:01,280 --> 00:39:02,760
 of their materials are coming from here

875
00:39:02,760 --> 00:39:03,600
 or anything like that.

876
00:39:03,600 --> 00:39:06,440
 - We would probably also, if they give you information

877
00:39:06,440 --> 00:39:08,560
 on a neighborhood in Francisco,

878
00:39:08,560 --> 00:39:09,840
 then there'll be different suppliers

879
00:39:09,840 --> 00:39:10,680
 when they're using it in Denton.

880
00:39:10,680 --> 00:39:11,960
 So you'd have to almost cop it

881
00:39:11,960 --> 00:39:14,120
 with another neighborhood they've done in Denton

882
00:39:14,120 --> 00:39:17,040
 and where do they spend their money to come up with that?

883
00:39:17,040 --> 00:39:18,040
 It's gonna be hard to--

884
00:39:18,040 --> 00:39:19,960
 - Really, it's not a big needle mover, right?

885
00:39:19,960 --> 00:39:21,080
 It's 186,000.

886
00:39:21,080 --> 00:39:23,360
 Is there any extra work that that's gonna cost the city

887
00:39:23,360 --> 00:39:24,200
 to do accounting for you?

888
00:39:24,200 --> 00:39:25,680
 So is it all done through the state?

889
00:39:25,680 --> 00:39:27,240
 - For that administrative stuff,

890
00:39:27,240 --> 00:39:28,440
 that's part of their agreement

891
00:39:28,440 --> 00:39:31,200
 where they're basically handling all of it.

892
00:39:31,200 --> 00:39:33,800
 - So is it gonna put any extra workload on the city staff?

893
00:39:33,800 --> 00:39:35,000
 - There'll be some compliance

894
00:39:35,000 --> 00:39:37,600
 and maintaining compliance with it.

895
00:39:37,600 --> 00:39:40,240
 But the catalyst behind this was

896
00:39:40,240 --> 00:39:42,280
 we're trying to get creative with our incentives

897
00:39:42,280 --> 00:39:45,000
 and right now this conversation

898
00:39:45,000 --> 00:39:46,520
 of economic development is competitive.

899
00:39:46,520 --> 00:39:48,360
 That's just the way it is.

900
00:39:48,360 --> 00:39:51,720
 And we see this as a way to increase the tax base

901
00:39:51,720 --> 00:39:54,560
 without paying down cash.

902
00:39:54,560 --> 00:39:55,960
 - It's very easy to administer

903
00:39:55,960 --> 00:39:57,240
 'cause we've done to already.

904
00:39:57,240 --> 00:39:59,520
 With Winkow, we did sales and use for construction.

905
00:39:59,520 --> 00:40:01,000
 We didn't do it over a 10-year period.

906
00:40:01,000 --> 00:40:03,440
 It was one time for the equipping of their facility.

907
00:40:03,440 --> 00:40:04,720
 We also did it for O'Reilly,

908
00:40:04,720 --> 00:40:06,440
 the Convention Center, one time.

909
00:40:06,440 --> 00:40:08,120
 There's actually two separate codes

910
00:40:08,120 --> 00:40:11,120
 that the city receives and work with our finance department,

911
00:40:11,120 --> 00:40:14,560
 26 and 27, so we literally can marry them up

912
00:40:14,560 --> 00:40:16,760
 with their returns if they give us some of the comptroller.

913
00:40:16,760 --> 00:40:18,920
 And I think we were like four cents off on one of them.

914
00:40:18,920 --> 00:40:21,640
 So very easy to administer with the taxes directly.

915
00:40:21,640 --> 00:40:22,480
 - That's what I'm just going,

916
00:40:22,480 --> 00:40:23,960
 if it's gonna add a big uplift,

917
00:40:23,960 --> 00:40:27,520
 we've gotta add, you know, for ongoing one project,

918
00:40:27,520 --> 00:40:29,160
 I kind of get that, right?

919
00:40:29,160 --> 00:40:32,240
 It's a one, but an ongoing kind of thing.

920
00:40:32,240 --> 00:40:35,880
 - It would be a semi-annual draw.

921
00:40:35,880 --> 00:40:38,160
 So it wouldn't be that much administrative time.

922
00:40:38,160 --> 00:40:39,880
 We wouldn't be doing it on a monthly basis.

923
00:40:39,880 --> 00:40:42,640
 Like we do for some of our sales tax incentives.

924
00:40:42,640 --> 00:40:44,760
 So that would be a lot easier to end use.

925
00:40:44,760 --> 00:40:47,960
 - Mr. Melton.

926
00:40:47,960 --> 00:40:49,800
 - Yeah, thanks.

927
00:40:49,800 --> 00:40:52,760
 Other people know about this too, right?

928
00:40:52,760 --> 00:40:55,160
 It's not just like only Ed knows about this.

929
00:40:55,160 --> 00:40:56,720
 - Yeah, they currently have agreements

930
00:40:56,720 --> 00:40:58,440
 with 21 different communities,

931
00:40:58,440 --> 00:41:00,240
 Bloomfield specifically.

932
00:41:00,240 --> 00:41:03,120
 It's public record to who has a Texas Direct Pay Permit.

933
00:41:03,120 --> 00:41:05,400
 So you can go to the website of the comptrollers

934
00:41:05,400 --> 00:41:07,720
 and type in home so you can see it.

935
00:41:07,720 --> 00:41:09,400
 First Texas has it.

936
00:41:09,400 --> 00:41:11,040
 - I wasn't really looking at the list.

937
00:41:11,040 --> 00:41:15,160
 My point is, you know, essentially we're,

938
00:41:15,160 --> 00:41:18,920
 we're kind of bogarting sales tax from another community.

939
00:41:18,920 --> 00:41:22,120
 Presumably, others will catch on to this.

940
00:41:22,120 --> 00:41:24,600
 And I'd be interested in your point of view

941
00:41:24,600 --> 00:41:26,960
 on what the implications are

942
00:41:26,960 --> 00:41:28,720
 if this becomes the general practice.

943
00:41:28,720 --> 00:41:32,160
 Does it create a race to the bottom on sales tax rates?

944
00:41:32,160 --> 00:41:33,880
 'Cause who can attract,

945
00:41:33,880 --> 00:41:37,000
 who can kind of attract the most, you know,

946
00:41:37,000 --> 00:41:39,520
 sales tax opportunities from other communities?

947
00:41:39,520 --> 00:41:40,360
 Does it?

948
00:41:40,360 --> 00:41:41,200
 - It's already there.

949
00:41:41,200 --> 00:41:43,560
 - Yeah, I can answer for Clay so he doesn't have to.

950
00:41:43,560 --> 00:41:48,080
 But economic development isn't a fair process.

951
00:41:48,080 --> 00:41:49,600
 Like it is competitive.

952
00:41:49,600 --> 00:41:51,360
 We've had this conversation and the model--

953
00:41:51,360 --> 00:41:53,320
 - Do we win in that competition is my question.

954
00:41:53,320 --> 00:41:54,160
 - I'm sorry?

955
00:41:54,160 --> 00:41:55,240
 - I get it's competitive.

956
00:41:55,240 --> 00:41:57,440
 To win when everybody's doing it.

957
00:41:57,440 --> 00:41:59,120
 - I mean, that's the model and that's what we have

958
00:41:59,120 --> 00:42:01,120
 to be aggressive in what we're going after.

959
00:42:01,120 --> 00:42:03,840
 And that was kind of our charge with this committee

960
00:42:03,840 --> 00:42:05,000
 and how do we get creative?

961
00:42:05,000 --> 00:42:07,160
 How do we get out there and pull some of this?

962
00:42:07,160 --> 00:42:09,120
 So if we step back and we're not pulling for it,

963
00:42:09,120 --> 00:42:10,640
 it still exists and it's happening.

964
00:42:10,640 --> 00:42:14,200
 So likely revenues being pulled from the city of Denton.

965
00:42:14,200 --> 00:42:16,040
 - 'Cause I know I was just in a meeting up in Gainesville

966
00:42:16,040 --> 00:42:17,840
 the other day and they passed the same thing

967
00:42:17,840 --> 00:42:20,360
 for residential subdivision in Gainesville,

968
00:42:20,360 --> 00:42:22,120
 the 10th Creek, this period.

969
00:42:22,120 --> 00:42:25,880
 And I promise you that's their closest supplier

970
00:42:25,880 --> 00:42:28,680
 to be competitive who've been coming out of Denton.

971
00:42:28,680 --> 00:42:30,800
 'Cause they're not gonna ship stuff out of the Metroplex

972
00:42:30,800 --> 00:42:32,280
 to Gainesville for built houses.

973
00:42:32,280 --> 00:42:33,600
 They're probably coming out of Denton,

974
00:42:33,600 --> 00:42:35,240
 which is for shipping costs.

975
00:42:35,240 --> 00:42:38,240
 Which is really smart for Gainesville to do that.

976
00:42:38,240 --> 00:42:40,000
 They were a little ahead of the crowd.

977
00:42:40,000 --> 00:42:41,800
 It might've been Cook County actually.

978
00:42:41,800 --> 00:42:43,800
 May not have been the city of Gainesville.

979
00:42:43,800 --> 00:42:46,760
 But it's happening all over.

980
00:42:46,760 --> 00:42:48,240
 And I like the incentive.

981
00:42:48,240 --> 00:42:50,760
 I think where we, I would support this,

982
00:42:50,760 --> 00:42:53,040
 but I think where we can have more uplift,

983
00:42:53,040 --> 00:42:54,960
 if you look at these multifamily projects

984
00:42:54,960 --> 00:42:56,520
 that are going up everywhere,

985
00:42:56,520 --> 00:42:57,960
 that's a big lumber package.

986
00:42:57,960 --> 00:42:59,560
 That's probably, you know,

987
00:42:59,560 --> 00:43:03,320
 seven, eight million dollars in just lumber alone.

988
00:43:03,320 --> 00:43:04,600
 And we've talked about it in the past.

989
00:43:04,600 --> 00:43:06,680
 It's just teaching people how to administer it.

990
00:43:06,680 --> 00:43:09,400
 So it's happening everywhere right now.

991
00:43:09,400 --> 00:43:12,360
 - And would it be more efficient

992
00:43:12,360 --> 00:43:14,880
 in getting more benefits here

993
00:43:14,880 --> 00:43:17,840
 by finding ways to incentivize them to buy here?

994
00:43:17,840 --> 00:43:19,280
 - Yes, but the problem is,

995
00:43:19,280 --> 00:43:21,160
 you look at lumberyards, builder's first sources,

996
00:43:21,160 --> 00:43:22,120
 who they're buying from.

997
00:43:22,120 --> 00:43:24,120
 And they're the largest lumber supplier.

998
00:43:24,120 --> 00:43:26,840
 Or you look at how in apartments,

999
00:43:26,840 --> 00:43:29,320
 we buy it directly from the mills to a broker, right?

1000
00:43:29,320 --> 00:43:31,920
 So there's no way a local lumber supplier

1001
00:43:31,920 --> 00:43:33,880
 could compete with what that is.

1002
00:43:33,880 --> 00:43:35,160
 So there's a lot of moving parts.

1003
00:43:35,160 --> 00:43:37,280
 That's what my original thought when I looked at this,

1004
00:43:37,280 --> 00:43:40,480
 I go, we're de-incentivizing buying here in town.

1005
00:43:40,480 --> 00:43:42,600
 But not really because they're just getting a piece

1006
00:43:42,600 --> 00:43:44,520
 of that tax incentive too, right?

1007
00:43:44,520 --> 00:43:45,840
 So that helps it up.

1008
00:43:45,840 --> 00:43:48,520
 But having other cities taking that from us

1009
00:43:48,520 --> 00:43:49,760
 is the problem, right?

1010
00:43:49,760 --> 00:43:51,480
 Because it's like Cook County,

1011
00:43:51,480 --> 00:43:53,560
 they're buying out of that problem.

1012
00:43:53,560 --> 00:43:57,000
 - So if you're a developing community,

1013
00:43:57,000 --> 00:43:58,080
 you're a pro-developing community,

1014
00:43:58,080 --> 00:43:59,720
 then this is the way to go.

1015
00:43:59,720 --> 00:44:02,240
 If you were a community that has a lot of suppliers,

1016
00:44:02,240 --> 00:44:03,400
 this is not the way to go.

1017
00:44:03,400 --> 00:44:04,240
 - That's right.

1018
00:44:04,240 --> 00:44:05,840
 - So I don't think we have the latter.

1019
00:44:05,840 --> 00:44:06,920
 - Yep.

1020
00:44:06,920 --> 00:44:07,760
 - So it's probably the way to go.

1021
00:44:07,760 --> 00:44:09,200
 - I think these are valid questions

1022
00:44:09,200 --> 00:44:11,000
 because of my exact thought process.

1023
00:44:11,000 --> 00:44:12,560
 We don't want to de-incentivize it.

1024
00:44:12,560 --> 00:44:17,000
 But if there's other companies taking our tax base,

1025
00:44:17,000 --> 00:44:19,280
 so, you know, from our suppliers.

1026
00:44:19,280 --> 00:44:20,880
 So it's a creative tax.

1027
00:44:20,880 --> 00:44:22,680
 And I think this is a good start.

1028
00:44:22,680 --> 00:44:25,040
 And I know, but the bigger projects

1029
00:44:25,040 --> 00:44:27,160
 is where this really works well,

1030
00:44:27,160 --> 00:44:32,200
 is kind of their purpose.

1031
00:44:32,200 --> 00:44:33,360
 - Good conversation.

1032
00:44:33,360 --> 00:44:34,240
 Do we have a motion?

1033
00:44:34,240 --> 00:44:36,120
 - Steve, right away.

1034
00:44:36,120 --> 00:44:37,240
 - I'm not opposed to this,

1035
00:44:37,240 --> 00:44:39,800
 but do you have a place I could go to get more information

1036
00:44:39,800 --> 00:44:41,360
 so I could read more about this, please?

1037
00:44:41,360 --> 00:44:42,200
 - Absolutely.

1038
00:44:42,200 --> 00:44:43,520
 The Comptroller has tons of perspectives.

1039
00:44:43,520 --> 00:44:46,360
 - I move that we approve the staff recommendation.

1040
00:44:46,360 --> 00:44:48,920
 I have a resource document that we can distribute.

1041
00:44:48,920 --> 00:44:52,640
 - We have a motion and a second.

1042
00:44:52,640 --> 00:44:54,200
 Any further conversation?

1043
00:44:54,200 --> 00:44:55,800
 It's okay if we don't.

1044
00:44:55,800 --> 00:44:56,640
 All right.

1045
00:44:56,640 --> 00:44:58,880
 (laughing)

1046
00:44:58,880 --> 00:45:03,760
 All in favor, say goodbye by saying that.

1047
00:45:03,760 --> 00:45:04,600
 Any opposed?

1048
00:45:04,600 --> 00:45:05,440
 Same sign.

1049
00:45:05,440 --> 00:45:06,280
 - I have an aye yet.

1050
00:45:06,280 --> 00:45:08,040
 I'm gonna say I appreciate the conversation.

1051
00:45:08,040 --> 00:45:09,280
 I give another point at the end.

1052
00:45:09,280 --> 00:45:10,360
 - Okay.

1053
00:45:10,360 --> 00:45:11,200
 So moved.

1054
00:45:11,200 --> 00:45:12,040
 Thank you.

1055
00:45:12,040 --> 00:45:12,860
 Appreciate it.

1056
00:45:12,860 --> 00:45:13,700
 Good job.

1057
00:45:13,700 --> 00:45:14,540
 Thanks everyone.

1058
00:45:17,240 --> 00:45:20,200
 (papers rustling)

1059
00:45:20,200 --> 00:45:21,040
 - All right.

1060
00:45:21,040 --> 00:45:22,160
 Is that all on the agenda?

1061
00:45:22,160 --> 00:45:23,560
 We move to work session now.

1062
00:45:23,560 --> 00:45:24,400
 Is that accurate?

1063
00:45:24,400 --> 00:45:26,680
 All right.

1064
00:45:26,680 --> 00:45:27,800
 First session.

1065
00:45:27,800 --> 00:45:30,280
 Going right ahead.

1066
00:45:30,280 --> 00:45:32,800
 Mr. Fines.

1067
00:45:32,800 --> 00:45:37,800
 - I didn't realize that I had a speaking part today.

1068
00:45:37,800 --> 00:45:40,000
 (laughing)

1069
00:45:40,000 --> 00:45:41,400
 - Should we get comfortable?

1070
00:45:41,400 --> 00:45:42,240
 - Yeah.

1071
00:45:42,240 --> 00:45:45,560
 I don't know if there's a significant amount of change

1072
00:45:45,560 --> 00:45:48,280
 since the last presentation that we did.

1073
00:45:48,280 --> 00:45:52,900
 The economic development or downtown plan

1074
00:45:52,900 --> 00:45:57,900
 was approved on September 17th with the city council.

1075
00:45:57,900 --> 00:46:01,800
 And I had actually asked Christine on another deal,

1076
00:46:01,800 --> 00:46:03,080
 a little bit of information about that.

1077
00:46:03,080 --> 00:46:06,000
 So I figured it'd probably be good just to echo her comments

1078
00:46:06,000 --> 00:46:09,080
 that she gave me early in the week about that.

1079
00:46:09,080 --> 00:46:13,920
 But it was approved for the expansion of that district

1080
00:46:13,920 --> 00:46:15,000
 in the downtown area.

1081
00:46:15,000 --> 00:46:18,040
 It will, it goes to the council work session

1082
00:46:18,040 --> 00:46:20,840
 on the 19th of this month.

1083
00:46:20,840 --> 00:46:23,960
 Hopefully, it'd correct me if these dates have changed.

1084
00:46:23,960 --> 00:46:25,760
 Then tourist board approval

1085
00:46:25,760 --> 00:46:29,520
 will be a special called meeting to be determined.

1086
00:46:29,520 --> 00:46:32,420
 Then it goes to public hearing on December 3rd,

1087
00:46:32,420 --> 00:46:34,880
 public hearing the second one on December 17th,

1088
00:46:34,880 --> 00:46:38,600
 and then looking for council approval on December 17th.

1089
00:46:38,600 --> 00:46:42,880
 And that'll expand the boundary of that district.

1090
00:46:43,760 --> 00:46:46,680
 And that goes, and I think most probably everybody

1091
00:46:46,680 --> 00:46:49,440
 in this group is well versed enough to know,

1092
00:46:49,440 --> 00:46:54,440
 but the outline expands down to Eagle

1093
00:46:54,440 --> 00:47:00,760
 and then out east on Hickory

1094
00:47:00,760 --> 00:47:02,160
 out toward the new development area.

1095
00:47:02,160 --> 00:47:07,120
 So anyway, I think a lot of activity on that.

1096
00:47:07,120 --> 00:47:10,040
 There were some, I guess, comments in our meeting

1097
00:47:10,040 --> 00:47:12,360
 with regard to this as well,

1098
00:47:12,360 --> 00:47:16,040
 Carol Boulevard and the road and the lanes being reduced

1099
00:47:16,040 --> 00:47:21,040
 and things like that to allow for more pedestrian access.

1100
00:47:21,040 --> 00:47:24,600
 I'm just giving you a 50,000 foot level

1101
00:47:24,600 --> 00:47:27,200
 'cause I'm not an expert in all that.

1102
00:47:27,200 --> 00:47:30,680
 I don't know that there were any additional grant

1103
00:47:30,680 --> 00:47:33,880
 construction on the road.

1104
00:47:33,880 --> 00:47:38,180
 Everything was updated and done complete on that piece.

1105
00:47:38,180 --> 00:47:42,000
 And I think if they came back to do some improvement,

1106
00:47:42,000 --> 00:47:44,880
 I guess, not change orders, but corrections,

1107
00:47:44,880 --> 00:47:47,360
 and those are being completed, I presume, at this point.

1108
00:47:47,360 --> 00:47:49,160
 I don't know that from a grant standpoint,

1109
00:47:49,160 --> 00:47:51,760
 there were anything new from the last time that we met.

1110
00:47:51,760 --> 00:47:53,080
 Christine, what do you need?

1111
00:47:53,080 --> 00:47:54,320
 - I was telling you, next slide.

1112
00:47:54,320 --> 00:47:55,140
 - Okay.

1113
00:47:55,140 --> 00:47:58,640
 I don't think there was anything additional on that

1114
00:47:58,640 --> 00:48:00,480
 that we haven't already seen.

1115
00:48:00,480 --> 00:48:02,240
 Then we have an ambassador update.

1116
00:48:02,240 --> 00:48:05,420
 Next slide, next slide.

1117
00:48:05,420 --> 00:48:10,560
 Did you show us the trash in red, litter, in blue?

1118
00:48:10,560 --> 00:48:11,840
 You can see the last few months,

1119
00:48:11,840 --> 00:48:14,860
 there has been a little increase in the litter.

1120
00:48:14,860 --> 00:48:19,120
 The bill sticker is graffiti up and down.

1121
00:48:19,120 --> 00:48:21,920
 There's really no pattern on that, the last three months.

1122
00:48:21,920 --> 00:48:23,720
 Next slide.

1123
00:48:23,720 --> 00:48:28,840
 I don't know that this is,

1124
00:48:28,840 --> 00:48:30,200
 everybody's already kind of reviewed this.

1125
00:48:30,200 --> 00:48:33,160
 If you go to the downtown, openings and closings.

1126
00:48:33,160 --> 00:48:35,440
 But one thing I had a question on, the next slide,

1127
00:48:35,440 --> 00:48:37,960
 there was Omega's Dream Child Care open and closed

1128
00:48:37,960 --> 00:48:40,400
 in the three-month period, is that correct?

1129
00:48:40,400 --> 00:48:41,400
 - That is correct.

1130
00:48:41,400 --> 00:48:42,240
 - Okay.

1131
00:48:42,240 --> 00:48:48,920
 So, jobs gained obviously with Union Bear coming online.

1132
00:48:48,920 --> 00:48:52,520
 That was 90 of the 117.

1133
00:48:52,520 --> 00:48:57,280
 Net, or the jobs lost for the period were 14.

1134
00:48:57,280 --> 00:49:01,200
 So a net of 103 overall.

1135
00:49:01,200 --> 00:49:04,000
 And that's basically an update.

1136
00:49:04,000 --> 00:49:06,520
 The only other thing on the

1137
00:49:06,520 --> 00:49:07,720
 downtown national development committee

1138
00:49:07,720 --> 00:49:08,560
 just to kind of think about,

1139
00:49:08,560 --> 00:49:10,720
 and I talked to Steve a little bit about that,

1140
00:49:11,800 --> 00:49:13,440
 I didn't know it one year.

1141
00:49:13,440 --> 00:49:15,240
 I was the board chair for this year.

1142
00:49:15,240 --> 00:49:19,240
 So come January, there will be a new,

1143
00:49:19,240 --> 00:49:20,360
 I guess it'll come to this committee

1144
00:49:20,360 --> 00:49:21,880
 for a new appointment for that.

1145
00:49:21,880 --> 00:49:24,440
 And I would personally prefer someone else

1146
00:49:24,440 --> 00:49:28,280
 would stick up here so I can get back to work a little bit.

1147
00:49:28,280 --> 00:49:29,120
 (laughing)

1148
00:49:29,120 --> 00:49:31,080
 A few more hours.

1149
00:49:31,080 --> 00:49:32,520
 - You guys did a great job though.

1150
00:49:32,520 --> 00:49:33,840
 (laughing)

1151
00:49:33,840 --> 00:49:34,680
 - Any questions?

1152
00:49:34,680 --> 00:49:37,240
 Thank you.

1153
00:49:37,240 --> 00:49:38,080
 - Good job.

1154
00:49:41,400 --> 00:49:43,720
 (footsteps)

1155
00:49:43,720 --> 00:49:50,400
 - This one?

1156
00:49:50,400 --> 00:49:51,240
 - Yep.

1157
00:49:51,240 --> 00:49:56,080
 Up next is major records report since we last saw you.

1158
00:49:56,080 --> 00:49:57,480
 It's been two months since we last saw you,

1159
00:49:57,480 --> 00:49:59,600
 but we've had a lot of great news coming out

1160
00:49:59,600 --> 00:50:02,480
 of our office and our team's office.

1161
00:50:02,480 --> 00:50:04,440
 So South Park expansion was approved.

1162
00:50:04,440 --> 00:50:06,360
 Congratulations, this was something that you approved.

1163
00:50:06,360 --> 00:50:07,680
 Put yourself on the back.

1164
00:50:07,680 --> 00:50:09,760
 You can count this on your portfolios, resumes,

1165
00:50:09,760 --> 00:50:12,960
 whatever, it might be on your time serving on this board,

1166
00:50:12,960 --> 00:50:15,120
 but that's 95 jobs.

1167
00:50:15,120 --> 00:50:17,600
 And I think it's what, $17 million?

1168
00:50:17,600 --> 00:50:19,280
 A couple of us that had to pull up my laptop.

1169
00:50:19,280 --> 00:50:21,640
 But congratulations, we're excited.

1170
00:50:21,640 --> 00:50:24,080
 South Fire, they're still waiting for TechSoc

1171
00:50:24,080 --> 00:50:27,160
 to finalize their loop expansion plans,

1172
00:50:27,160 --> 00:50:29,040
 but it's still in the works.

1173
00:50:29,040 --> 00:50:30,600
 Next slide.

1174
00:50:30,600 --> 00:50:32,840
 We do have a very exciting announcement.

1175
00:50:32,840 --> 00:50:35,560
 Stoltz North USA just announced

1176
00:50:35,560 --> 00:50:37,560
 that they are moving to Denton.

1177
00:50:37,560 --> 00:50:39,400
 So this was something that was brought

1178
00:50:39,400 --> 00:50:41,760
 because of our, I feel like it was our due diligence

1179
00:50:41,760 --> 00:50:44,040
 and our efforts in hosting them.

1180
00:50:44,040 --> 00:50:45,960
 So they first contacted both the chamber

1181
00:50:45,960 --> 00:50:49,640
 and the city's staff to meet back in,

1182
00:50:49,640 --> 00:50:51,840
 I think it was July, August.

1183
00:50:51,840 --> 00:50:53,960
 So we planned an initial site tour

1184
00:50:53,960 --> 00:50:56,440
 with the CEO of the company, Brian Hapmaker,

1185
00:50:56,440 --> 00:50:58,080
 and his colleagues.

1186
00:50:58,080 --> 00:51:00,320
 And so we brought in Jamie Adams

1187
00:51:00,320 --> 00:51:03,120
 with the Economic Development Partnership.

1188
00:51:03,120 --> 00:51:05,400
 And then we brought in Charlie Roosevelt

1189
00:51:05,400 --> 00:51:08,920
 with Development Services, D&E, Tony Puente, and Jeff Filder.

1190
00:51:08,920 --> 00:51:11,360
 And then we also brought in Workforce Solutions.

1191
00:51:11,360 --> 00:51:14,160
 And so we didn't hear back from them for a few weeks.

1192
00:51:14,160 --> 00:51:17,920
 They did contact us later to ask about incentives.

1193
00:51:17,920 --> 00:51:19,720
 And they did bring their HR director

1194
00:51:19,720 --> 00:51:21,160
 to come and look at the site.

1195
00:51:21,160 --> 00:51:23,640
 They are looking at leasing,

1196
00:51:23,640 --> 00:51:26,840
 it's the third leasing building, number three,

1197
00:51:26,840 --> 00:51:30,040
 at 288 and 380 Logistics Park.

1198
00:51:30,040 --> 00:51:34,040
 So the HR director, we hosted them at the NBC Suites.

1199
00:51:34,040 --> 00:51:36,000
 And I'm trying to think who else was in the room.

1200
00:51:36,000 --> 00:51:38,200
 Clay was in the room, Christina, Jamie.

1201
00:51:38,200 --> 00:51:40,320
 And we also brought in another gentleman,

1202
00:51:40,320 --> 00:51:41,440
 Workforce Solutions.

1203
00:51:41,440 --> 00:51:44,480
 And so we didn't hear back from them for a few weeks.

1204
00:51:44,480 --> 00:51:48,360
 And then we heard back maybe a month,

1205
00:51:48,360 --> 00:51:49,400
 a few weeks ago actually, and said,

1206
00:51:49,400 --> 00:51:51,800
 "Hey, we signed the lease, we're moving to Denton."

1207
00:51:51,800 --> 00:51:53,760
 So they decided to opt out and send us

1208
00:51:53,760 --> 00:51:56,000
 because of the lengthy process that we have.

1209
00:51:56,000 --> 00:51:57,840
 That's a conversation for another day.

1210
00:51:57,840 --> 00:51:59,600
 But so we're excited to have them.

1211
00:51:59,600 --> 00:52:02,000
 They are opening their third location here.

1212
00:52:02,000 --> 00:52:04,920
 They manufacture technology,

1213
00:52:04,920 --> 00:52:06,960
 cooling equipment for data centers.

1214
00:52:06,960 --> 00:52:09,760
 And so their initial project name was Project Westward

1215
00:52:09,760 --> 00:52:10,840
 because they wanted to move west.

1216
00:52:10,840 --> 00:52:14,120
 So again, so third facility is gonna be their only one

1217
00:52:14,120 --> 00:52:15,760
 in Texas, we're excited about.

1218
00:52:15,760 --> 00:52:19,840
 200 jobs and a $17 million capital investment.

1219
00:52:19,840 --> 00:52:21,560
 And so if you don't follow us on social media,

1220
00:52:21,560 --> 00:52:23,200
 please do because that's where we're releasing

1221
00:52:23,200 --> 00:52:24,400
 the latest announcements.

1222
00:52:24,400 --> 00:52:29,200
 Wing launch, as you know,

1223
00:52:29,200 --> 00:52:32,920
 they launched at the Walmart on Loop 288 on October 2nd.

1224
00:52:32,920 --> 00:52:36,440
 And we are still planning the tour for the board.

1225
00:52:36,440 --> 00:52:38,280
 They've launched in both Lancaster

1226
00:52:38,280 --> 00:52:41,760
 and I think 40 maybe, I can't remember the other site.

1227
00:52:41,760 --> 00:52:42,720
 So they've been a little bit busy,

1228
00:52:42,720 --> 00:52:44,840
 but the tour is still underway.

1229
00:52:44,840 --> 00:52:47,400
 We'll send you those dates whenever we get them.

1230
00:52:47,400 --> 00:52:51,040
 So Wing is flying within a six mile delivery radius

1231
00:52:51,040 --> 00:52:54,200
 and they currently have 10 delivery drones.

1232
00:52:54,200 --> 00:52:57,200
 And we're looking forward to their next expansion

1233
00:52:57,200 --> 00:53:01,560
 at that same Walmart, which we will announce here soon.

1234
00:53:03,840 --> 00:53:08,600
 Well, Lunsford had their groundbreaking for Denton Point

1235
00:53:08,600 --> 00:53:11,440
 number three, four and five.

1236
00:53:11,440 --> 00:53:13,080
 That's three additional buildings,

1237
00:53:13,080 --> 00:53:15,640
 a little over 450,000 square feet of development

1238
00:53:15,640 --> 00:53:17,080
 of I say warehouse space.

1239
00:53:17,080 --> 00:53:19,600
 And so they invited us to attend.

1240
00:53:19,600 --> 00:53:20,840
 So we're excited about that.

1241
00:53:20,840 --> 00:53:24,080
 I think one of the Lunsford owners said

1242
00:53:24,080 --> 00:53:26,800
 that they weren't worried about filling those buildings

1243
00:53:26,800 --> 00:53:29,320
 just because Denton is a hot market.

1244
00:53:31,200 --> 00:53:34,600
 Our staff attended the Move America Trade Show in Austin

1245
00:53:34,600 --> 00:53:36,320
 and the trade show focused on mobility,

1246
00:53:36,320 --> 00:53:38,200
 technology and sustainability.

1247
00:53:38,200 --> 00:53:41,000
 And so we met with several startup companies

1248
00:53:41,000 --> 00:53:44,360
 that are in the mobility tech world.

1249
00:53:44,360 --> 00:53:46,520
 We also went with Bill Kahn,

1250
00:53:46,520 --> 00:53:48,640
 research and development engineer for Peterbilt.

1251
00:53:48,640 --> 00:53:51,240
 Thank you, Jamie Adams for the sponsorship and Erin.

1252
00:53:51,240 --> 00:53:53,600
 And so we had a great time.

1253
00:53:53,600 --> 00:53:57,360
 Bill is actually over a lot of the innovation initiatives

1254
00:53:57,360 --> 00:53:58,640
 at Peterbilt.

1255
00:53:58,640 --> 00:54:01,000
 And so we didn't know when we walked into the trade show

1256
00:54:01,000 --> 00:54:02,520
 that there was gonna be a Peterbilt truck.

1257
00:54:02,520 --> 00:54:03,880
 And so it just so happened it was right there

1258
00:54:03,880 --> 00:54:04,720
 at the front entrance.

1259
00:54:04,720 --> 00:54:06,240
 It was like the start of the show.

1260
00:54:06,240 --> 00:54:07,880
 And so if you look closely at the truck,

1261
00:54:07,880 --> 00:54:10,000
 you can see all the sensors that have been added

1262
00:54:10,000 --> 00:54:10,840
 to this truck.

1263
00:54:10,840 --> 00:54:13,560
 And so Bill said that they are working

1264
00:54:13,560 --> 00:54:16,120
 with a lot of those mobility tech startups.

1265
00:54:16,120 --> 00:54:18,240
 So instead of Peterbilt having to invest

1266
00:54:18,240 --> 00:54:19,720
 in those tech companies,

1267
00:54:19,720 --> 00:54:22,560
 the tech companies are actually investing in themselves.

1268
00:54:22,560 --> 00:54:24,200
 And so then they're using the Peterbilt trucks

1269
00:54:24,200 --> 00:54:25,160
 to add their technology.

1270
00:54:25,160 --> 00:54:27,880
 And this one is for autonomous routes.

1271
00:54:27,880 --> 00:54:30,600
 I think they take a route in Texas somewhere,

1272
00:54:30,600 --> 00:54:33,360
 a rural area where they're driving autonomously.

1273
00:54:33,360 --> 00:54:37,360
 And so we're looking forward to seeing how that transpires.

1274
00:54:37,360 --> 00:54:38,680
 Brian, do you want to add on to this?

1275
00:54:38,680 --> 00:54:41,080
 Do you know about this company?

1276
00:54:41,080 --> 00:54:43,120
 - That's Aurora right there.

1277
00:54:43,120 --> 00:54:44,520
 It's Aurora Technologies.

1278
00:54:44,520 --> 00:54:50,880
 - They're driving around 200 trucks.

1279
00:54:50,880 --> 00:54:55,560
 - So pretty cool stuff going on.

1280
00:54:55,560 --> 00:54:56,960
 We were already met with a few of the companies

1281
00:54:56,960 --> 00:54:58,880
 that we met at the trade show.

1282
00:54:58,880 --> 00:55:01,440
 So looking forward to seeing what comes out

1283
00:55:01,440 --> 00:55:02,800
 of our connections.

1284
00:55:02,800 --> 00:55:05,560
 Training development.

1285
00:55:05,560 --> 00:55:08,440
 We've attended a few conferences in the past few months.

1286
00:55:08,440 --> 00:55:10,960
 Our staff attended the Texas Economic Development Council

1287
00:55:10,960 --> 00:55:12,760
 annual conference in Addison.

1288
00:55:12,760 --> 00:55:16,040
 We attended, first and foremost attended

1289
00:55:16,040 --> 00:55:18,400
 the Texas Downtown Association Conference

1290
00:55:18,400 --> 00:55:21,280
 and she presented on two panels over fire suppression

1291
00:55:21,280 --> 00:55:25,280
 and I think it's a panel with MEN Group,

1292
00:55:25,280 --> 00:55:27,400
 the consultant on the Downtown Master Plan.

1293
00:55:27,400 --> 00:55:28,520
 So really proud of her.

1294
00:55:28,520 --> 00:55:30,240
 And then Matilda attended the UNT

1295
00:55:30,240 --> 00:55:32,560
 Advanced Air Mobility Symposium.

1296
00:55:32,560 --> 00:55:34,600
 So we are out and about representing Denton.

1297
00:55:34,600 --> 00:55:39,280
 And then we met with the Dallas Regional Chamber.

1298
00:55:39,280 --> 00:55:41,160
 In case you don't know,

1299
00:55:41,160 --> 00:55:42,440
 we get leads from the state of Texas

1300
00:55:42,440 --> 00:55:44,680
 and we also get leads from the Dallas Regional Chamber.

1301
00:55:44,680 --> 00:55:48,280
 And so we want to ensure that our partnership is strengthened

1302
00:55:48,280 --> 00:55:50,520
 so if they have any prospects,

1303
00:55:50,520 --> 00:55:52,400
 we want them to continue sending them to us

1304
00:55:52,400 --> 00:55:54,200
 because as you can imagine,

1305
00:55:54,200 --> 00:55:56,000
 with all the cities in the Department of Agriculture,

1306
00:55:56,000 --> 00:55:58,480
 it could be hard to say, "Oh, this city."

1307
00:55:58,480 --> 00:55:59,720
 They say they don't play favorites,

1308
00:55:59,720 --> 00:56:02,280
 but let's, you know, 'cause everyone plays favorites.

1309
00:56:02,280 --> 00:56:04,520
 So we met with them, Mike Rosa and Kevin Shatley,

1310
00:56:04,520 --> 00:56:07,680
 they're the head leaders of the Economic Development Division

1311
00:56:07,680 --> 00:56:09,600
 and it's always great to talk to them

1312
00:56:09,600 --> 00:56:11,160
 because it's like talking to a therapist.

1313
00:56:11,160 --> 00:56:12,000
 They're really great.

1314
00:56:12,000 --> 00:56:14,280
 They kind of know what's going on in the region

1315
00:56:14,280 --> 00:56:15,360
 and kind of the pros and cons.

1316
00:56:15,360 --> 00:56:17,640
 But what they did say is it didn't just seem to make sure

1317
00:56:17,640 --> 00:56:19,040
 that they are out there promoting,

1318
00:56:19,040 --> 00:56:20,760
 continuing promoting yourselves.

1319
00:56:20,760 --> 00:56:22,880
 So, next slide.

1320
00:56:24,680 --> 00:56:28,000
 Our new CRM, so we currently,

1321
00:56:28,000 --> 00:56:30,480
 well, we're using POSFET as a database

1322
00:56:30,480 --> 00:56:32,080
 to track our prospects and leads.

1323
00:56:32,080 --> 00:56:34,080
 So now we officially moved over to a new system

1324
00:56:34,080 --> 00:56:37,120
 called EDOIQ that specializes in economic development.

1325
00:56:37,120 --> 00:56:41,000
 So as you can see already, the dashboard is 100% better.

1326
00:56:41,000 --> 00:56:42,800
 So once we start loading,

1327
00:56:42,800 --> 00:56:44,560
 our data from POSFET has already been loaded

1328
00:56:44,560 --> 00:56:46,400
 into the system and so now we're gonna start adding

1329
00:56:46,400 --> 00:56:48,360
 our new prospects and leads.

1330
00:56:48,360 --> 00:56:49,880
 So you'll start seeing better reporting

1331
00:56:49,880 --> 00:56:51,360
 from us in the near future.

1332
00:56:52,520 --> 00:56:55,840
 So Projects in Progress, our downtown area utility grant.

1333
00:56:55,840 --> 00:56:58,000
 Kristen Pulio and our city management team in finance

1334
00:56:58,000 --> 00:57:00,880
 has put this downtown utility grant together

1335
00:57:00,880 --> 00:57:02,520
 and I wanna ask her to come up here and speak

1336
00:57:02,520 --> 00:57:04,960
 just a little bit on it.

1337
00:57:04,960 --> 00:57:07,440
 She's primarily a project manager.

1338
00:57:07,440 --> 00:57:15,840
 - Hello, good morning.

1339
00:57:15,840 --> 00:57:19,000
 I wanted to talk briefly about the utility grant.

1340
00:57:19,000 --> 00:57:24,000
 So according to the council strategic plans,

1341
00:57:24,000 --> 00:57:26,120
 council priorities, small business,

1342
00:57:26,120 --> 00:57:27,880
 development of small businesses was key

1343
00:57:27,880 --> 00:57:29,480
 with a key focus area.

1344
00:57:29,480 --> 00:57:32,840
 And so city leadership reached out

1345
00:57:32,840 --> 00:57:33,840
 and so they wanna put together

1346
00:57:33,840 --> 00:57:35,800
 this downtown small business utility grant

1347
00:57:35,800 --> 00:57:38,880
 and on September 24th, council approved the grant.

1348
00:57:38,880 --> 00:57:42,200
 And so we sent out over 500 letters

1349
00:57:42,200 --> 00:57:43,640
 to our downtown small businesses.

1350
00:57:43,640 --> 00:57:47,800
 As of today, we have 23 businesses that have applied,

1351
00:57:47,800 --> 00:57:50,160
 which is about even to the businesses

1352
00:57:50,160 --> 00:57:52,600
 that applied for the ARPA funding.

1353
00:57:52,600 --> 00:57:55,760
 This is what we're using the remaining ARPA funding money

1354
00:57:55,760 --> 00:57:59,080
 for is for this downtown small business grant.

1355
00:57:59,080 --> 00:58:01,480
 And so I think back in 2021,

1356
00:58:01,480 --> 00:58:04,480
 only about 28 businesses applied for the ARPA funding.

1357
00:58:04,480 --> 00:58:05,800
 And so we're right on track

1358
00:58:05,800 --> 00:58:08,640
 and hopefully we can continue to get our small businesses.

1359
00:58:08,640 --> 00:58:10,520
 This is a reimbursement grant.

1360
00:58:10,520 --> 00:58:11,920
 So they will see the reimbursement

1361
00:58:11,920 --> 00:58:16,280
 on their December bill up to $1,000.

1362
00:58:16,280 --> 00:58:18,400
 So each business has to apply

1363
00:58:18,400 --> 00:58:20,440
 and then they can be reimbursed for up to $1,000

1364
00:58:20,440 --> 00:58:21,640
 on their utility bill.

1365
00:58:21,640 --> 00:58:24,160
 Thank you.

1366
00:58:24,160 --> 00:58:26,200
 All right, in addition,

1367
00:58:26,200 --> 00:58:28,960
 we are hosting a small business bootcamp

1368
00:58:28,960 --> 00:58:29,960
 in partnership with SCORE.

1369
00:58:29,960 --> 00:58:32,800
 SCORE is funded by the Small Business Administration.

1370
00:58:32,800 --> 00:58:35,840
 So they have a network of mentors across the United States

1371
00:58:35,840 --> 00:58:37,480
 and their former executives like yourselves

1372
00:58:37,480 --> 00:58:39,080
 that are just, they're retired,

1373
00:58:39,080 --> 00:58:39,920
 they don't know what else to do.

1374
00:58:39,920 --> 00:58:42,120
 And so they're helping entrepreneurs get into business

1375
00:58:42,120 --> 00:58:45,000
 and helping them with general business resources.

1376
00:58:45,000 --> 00:58:47,000
 And so we have partnered

1377
00:58:47,000 --> 00:58:49,720
 with our Community Services Department

1378
00:58:49,720 --> 00:58:51,520
 and our Development Services Department

1379
00:58:51,520 --> 00:58:52,960
 to host these workshops.

1380
00:58:52,960 --> 00:58:56,600
 So Courtney Donohue, I know I'm gonna miss...

1381
00:58:56,600 --> 00:58:58,080
 Oh gosh, should I say it first thing?

1382
00:58:58,080 --> 00:58:59,040
 Courtney Donohue.

1383
00:58:59,040 --> 00:59:00,440
 Okay, I can't say her last name.

1384
00:59:00,440 --> 00:59:01,260
 She's great.

1385
00:59:01,260 --> 00:59:03,760
 She had a grant that supported these workshops.

1386
00:59:03,760 --> 00:59:06,960
 And so our second workshop is this Thursday.

1387
00:59:06,960 --> 00:59:09,000
 Initially 17 people signed up

1388
00:59:09,000 --> 00:59:12,320
 and we had about 10 people show up last Thursday,

1389
00:59:12,320 --> 00:59:13,140
 which is great.

1390
00:59:13,140 --> 00:59:14,400
 It was raining that night,

1391
00:59:14,400 --> 00:59:16,240
 but there just seems to be a real hunger

1392
00:59:16,240 --> 00:59:19,680
 for small business education for our residents.

1393
00:59:19,680 --> 00:59:21,280
 So we're excited about that.

1394
00:59:21,280 --> 00:59:24,080
 And then we plan to continue hosting workshops.

1395
00:59:24,080 --> 00:59:24,920
 Priscilla.

1396
00:59:24,920 --> 00:59:26,880
 - We have three more people call like the next day

1397
00:59:26,880 --> 00:59:28,740
 and I'll have to find out who they are.

1398
00:59:28,740 --> 00:59:31,460
 (indistinct)

1399
00:59:31,460 --> 00:59:33,280
 - That was really important getting that.

1400
00:59:33,280 --> 00:59:34,640
 - So we sent it out.

1401
00:59:34,640 --> 00:59:38,160
 We have social media ads and we sent it out via,

1402
00:59:38,160 --> 00:59:39,960
 oh gosh, I think we contacted a church,

1403
00:59:39,960 --> 00:59:41,560
 we contacted churches.

1404
00:59:41,560 --> 00:59:42,480
 Who else did we contact?

1405
00:59:42,480 --> 00:59:44,080
 Priscilla, can you answer that?

1406
00:59:44,840 --> 00:59:47,200
 - Churches, social media.

1407
00:59:47,200 --> 00:59:50,160
 We actually did flyers in the Southeast Denton area

1408
00:59:50,160 --> 00:59:52,280
 and direct mailers.

1409
00:59:52,280 --> 00:59:53,760
 - And we distributed it in the Friday report,

1410
00:59:53,760 --> 00:59:56,660
 which (indistinct)

1411
00:59:56,660 --> 00:59:59,080
 (indistinct)

1412
00:59:59,080 --> 01:00:07,120
 - Thank you.

1413
01:00:07,120 --> 01:00:09,960
 - Next time.

1414
01:00:09,960 --> 01:00:10,780
 - Okay.

1415
01:00:10,780 --> 01:00:13,200
 In addition, we are working on

1416
01:00:13,200 --> 01:00:14,480
 Tourism and Boundary Amendment.

1417
01:00:14,480 --> 01:00:17,160
 That is what Jeremy spoke about.

1418
01:00:17,160 --> 01:00:22,080
 We are the men group who worked on the downtown master plan

1419
01:00:22,080 --> 01:00:24,720
 has recommended that we expand the boundaries.

1420
01:00:24,720 --> 01:00:27,500
 And so we will include Quaker Town Park.

1421
01:00:27,500 --> 01:00:29,960
 They wanted to include north of the right of ways

1422
01:00:29,960 --> 01:00:32,120
 on North on Carroll Street to university.

1423
01:00:32,120 --> 01:00:33,880
 Those are areas not currently included

1424
01:00:33,880 --> 01:00:36,640
 in the downtown tourist boundaries.

1425
01:00:36,640 --> 01:00:39,320
 And so if we're expanding, of course that'll allow

1426
01:00:39,320 --> 01:00:41,720
 more funding to use for some of the bigger products

1427
01:00:41,720 --> 01:00:43,600
 that are proposing the master plan.

1428
01:00:43,600 --> 01:00:45,940
 And so it's an entire process.

1429
01:00:45,940 --> 01:00:49,840
 We have our first public hearing on December 3rd,

1430
01:00:49,840 --> 01:00:51,880
 second public hearings, December 17th,

1431
01:00:51,880 --> 01:00:55,160
 and then our four tours were meeting on December 4th.

1432
01:00:55,160 --> 01:00:58,880
 And so it's, we're kind of pushing the deadline right now.

1433
01:00:58,880 --> 01:01:01,680
 It's a little bit, it's moving quickly,

1434
01:01:01,680 --> 01:01:03,760
 but we really want to include this base year value

1435
01:01:03,760 --> 01:01:06,400
 so we can start collecting increment next year.

1436
01:01:06,400 --> 01:01:07,720
 So that's a goal.

1437
01:01:07,720 --> 01:01:11,360
 And then the last one is incentive effectiveness study.

1438
01:01:11,360 --> 01:01:12,200
 That's something that I mentioned

1439
01:01:12,200 --> 01:01:13,480
 when we first got here.

1440
01:01:13,480 --> 01:01:15,000
 We all know that we're not as competitive

1441
01:01:15,000 --> 01:01:17,080
 in our incentives area.

1442
01:01:17,080 --> 01:01:20,720
 So we're going to release the RFI to several consultants

1443
01:01:20,720 --> 01:01:24,100
 so that they can tell us, compare us to other cities

1444
01:01:24,100 --> 01:01:26,120
 and compare our incentive policies

1445
01:01:26,120 --> 01:01:29,920
 and also compare maybe impact fee waivers,

1446
01:01:29,920 --> 01:01:31,880
 whatever it may be to make us,

1447
01:01:31,880 --> 01:01:35,040
 to help us recruit more companies in the future.

1448
01:01:35,040 --> 01:01:38,560
 So that's what we're aiming to be part of that study.

1449
01:01:38,560 --> 01:01:40,400
 - Yes, it is, it is.

1450
01:01:40,400 --> 01:01:41,560
 So thank you.

1451
01:01:41,560 --> 01:01:42,800
 - So getting rid of the train

1452
01:01:42,800 --> 01:01:43,960
 going to be part of that study.

1453
01:01:43,960 --> 01:01:46,360
 I'd like to see that as an option.

1454
01:01:46,360 --> 01:01:48,260
 - We're definitely looking to funding, yes.

1455
01:01:48,260 --> 01:01:50,800
 - That would be a huge part of that.

1456
01:01:50,800 --> 01:01:53,280
 - Thanks, Lee, appreciate it.

1457
01:01:53,280 --> 01:01:56,820
 Okay, so we have a lot of good things in the works.

1458
01:01:56,820 --> 01:01:59,500
 We've been, we've been busy for sure.

1459
01:01:59,500 --> 01:02:01,680
 So if you have any questions for us, any ideas,

1460
01:02:01,680 --> 01:02:02,920
 and then future let us know.

1461
01:02:02,920 --> 01:02:03,760
 That's all I have.

1462
01:02:03,760 --> 01:02:06,320
 Oh, sorry.

1463
01:02:06,320 --> 01:02:08,680
 - Yeah, comment and a question.

1464
01:02:08,680 --> 01:02:12,400
 I'll just share if it wasn't already obvious that on the,

1465
01:02:12,400 --> 01:02:14,600
 it's not a complete coincidence

1466
01:02:14,600 --> 01:02:16,880
 that the downtown area utility grant

1467
01:02:16,880 --> 01:02:19,360
 happened around the same time

1468
01:02:19,360 --> 01:02:22,000
 that the state decided to cream downtown

1469
01:02:22,000 --> 01:02:25,900
 with a surprise construction project in September.

1470
01:02:25,900 --> 01:02:27,520
 So I'm just bringing that out to you.

1471
01:02:27,520 --> 01:02:31,020
 I figured why you saw council action on that.

1472
01:02:31,020 --> 01:02:33,240
 But my question is,

1473
01:02:35,580 --> 01:02:39,440
 35 days of Halloween, my observation to everybody is,

1474
01:02:39,440 --> 01:02:41,080
 what a home run.

1475
01:02:41,080 --> 01:02:43,000
 I'm curious if you have a sense yet

1476
01:02:43,000 --> 01:02:45,600
 of sales tax versus expenditures.

1477
01:02:45,600 --> 01:02:47,820
 - Not yet, sales tax is about a two month delay

1478
01:02:47,820 --> 01:02:50,080
 before you get the reporting information from the state.

1479
01:02:50,080 --> 01:02:52,880
 So we'll be doing a full report once we have those numbers.

1480
01:02:52,880 --> 01:02:54,800
 The initial numbers we have on foot traffic

1481
01:02:54,800 --> 01:02:59,760
 show 145,000 visitors above last year in the same time period

1482
01:02:59,760 --> 01:03:02,360
 with 60% of those not being residents.

1483
01:03:02,360 --> 01:03:06,400
 So really outstanding foot traffic numbers.

1484
01:03:06,400 --> 01:03:09,600
 And then the initial response from the downtown businesses,

1485
01:03:09,600 --> 01:03:11,940
 one of the businesses on the square sent that email

1486
01:03:11,940 --> 01:03:15,520
 saying that it was a record year for their sales.

1487
01:03:15,520 --> 01:03:19,840
 And typically during an election year, sales are down

1488
01:03:19,840 --> 01:03:21,440
 and they were the highest they've been.

1489
01:03:21,440 --> 01:03:23,240
 And typically his highest numbers

1490
01:03:23,240 --> 01:03:24,800
 are around the tree lighting day.

1491
01:03:24,800 --> 01:03:27,040
 And he was in record numbers every weekend.

1492
01:03:27,040 --> 01:03:29,440
 - In fact, another downtown owner this morning

1493
01:03:29,440 --> 01:03:32,440
 said that in October was the biggest month they'd ever had.

1494
01:03:32,440 --> 01:03:37,100
 - There was an article in the Denton record probably.

1495
01:03:37,100 --> 01:03:37,940
 - We were, yes.

1496
01:03:37,940 --> 01:03:41,100
 - It said 145,000 and 43K in merchandise sales.

1497
01:03:41,100 --> 01:03:45,080
 - We're really looking forward to being able to show

1498
01:03:45,080 --> 01:03:46,820
 that full economics report.

1499
01:03:46,820 --> 01:03:48,520
 We released some preliminary stats,

1500
01:03:48,520 --> 01:03:50,840
 but overwhelming positive response.

1501
01:03:50,840 --> 01:03:53,000
 So just excited to see that.

1502
01:03:53,000 --> 01:03:55,520
 - Everybody give a thumbs up to the parks department.

1503
01:03:55,520 --> 01:03:57,340
 I mean, they work pretty well.

1504
01:03:57,340 --> 01:03:59,580
 - We appreciate that man.

1505
01:03:59,580 --> 01:04:04,580
 - You can invite him next week and speak about that.

1506
01:04:04,580 --> 01:04:06,760
 - Well, let him get all the stuff.

1507
01:04:06,760 --> 01:04:07,600
 (laughing)

1508
01:04:07,600 --> 01:04:08,760
 - We want him to take a vacation.

1509
01:04:08,760 --> 01:04:09,600
 - Yeah.

1510
01:04:09,600 --> 01:04:11,040
 (laughing)

1511
01:04:11,040 --> 01:04:13,400
 - But honestly, he's already planning next year.

1512
01:04:13,400 --> 01:04:14,340
 Like he was already.

1513
01:04:14,340 --> 01:04:17,900
 - We're lucky to have him.

1514
01:04:17,900 --> 01:04:19,200
 - Brittany, thank you.

1515
01:04:19,200 --> 01:04:20,840
 Any other questions for Brittany?

1516
01:04:20,840 --> 01:04:22,980
 Thank you.

1517
01:04:22,980 --> 01:04:23,820
 Jamie.

1518
01:04:28,040 --> 01:04:30,380
 (murmuring)

1519
01:04:30,380 --> 01:04:38,060
 Jamie, how's economic building partnerships?

1520
01:04:38,060 --> 01:04:39,160
 I just got a handful of slides.

1521
01:04:39,160 --> 01:04:40,520
 We'll talk about our business protection

1522
01:04:40,520 --> 01:04:42,140
 and expansion efforts.

1523
01:04:42,140 --> 01:04:43,800
 Any feedback you have would be great

1524
01:04:43,800 --> 01:04:46,240
 or any advice you have would be great.

1525
01:04:46,240 --> 01:04:51,240
 But what the EDP is tasked with is engaging

1526
01:04:51,240 --> 01:04:52,960
 with our established businesses.

1527
01:04:52,960 --> 01:04:55,420
 And that's key within our Denton community.

1528
01:04:55,420 --> 01:04:57,840
 We want to identify needs and provide support.

1529
01:04:57,840 --> 01:04:58,680
 Welcome to stay here.

1530
01:04:58,680 --> 01:04:59,980
 One of the things I always tell everybody,

1531
01:04:59,980 --> 01:05:02,100
 I don't want you to leave until the night.

1532
01:05:02,100 --> 01:05:02,940
 I want you to be here.

1533
01:05:02,940 --> 01:05:03,780
 I want you to be in Denton.

1534
01:05:03,780 --> 01:05:06,640
 I want you to talk to me about how we can help you stay

1535
01:05:06,640 --> 01:05:08,960
 and also help you expand.

1536
01:05:08,960 --> 01:05:10,320
 Going out and meeting with everybody

1537
01:05:10,320 --> 01:05:13,480
 and getting tours is a great resource for that.

1538
01:05:13,480 --> 01:05:15,320
 And that's kind of our main approach

1539
01:05:15,320 --> 01:05:17,560
 as opposed to sending online surveys

1540
01:05:17,560 --> 01:05:19,660
 or just reaching out via email.

1541
01:05:19,660 --> 01:05:23,880
 Four strategies I focus on are obviously

1542
01:05:23,880 --> 01:05:25,760
 assisting businesses, like I said,

1543
01:05:25,760 --> 01:05:27,040
 proactive engagement.

1544
01:05:27,040 --> 01:05:29,000
 You don't want to meet with somebody and they say,

1545
01:05:29,000 --> 01:05:30,360
 hey, we're 90 days from closing.

1546
01:05:30,360 --> 01:05:31,720
 We want to make sure we're out visiting everybody

1547
01:05:31,720 --> 01:05:34,740
 who can address their needs and help them provide

1548
01:05:34,740 --> 01:05:37,240
 any economic benefits that they have.

1549
01:05:37,240 --> 01:05:40,000
 That essentially means I've come to help desk

1550
01:05:40,000 --> 01:05:42,920
 and help them find answers that are needed

1551
01:05:42,920 --> 01:05:45,420
 where they'd be community partners in our first city.

1552
01:05:45,420 --> 01:05:50,720
 The next part is over the course of a year,

1553
01:05:50,720 --> 01:05:55,220
 I try to approach 48 businesses about four a month.

1554
01:05:55,220 --> 01:05:58,800
 And I want to point out that a lot of,

1555
01:05:58,800 --> 01:06:01,560
 when you think BR&E, you think we're just visiting

1556
01:06:01,560 --> 01:06:03,240
 major businesses, we are.

1557
01:06:03,240 --> 01:06:05,680
 Down there was Jocelyn, it's after Winko,

1558
01:06:05,680 --> 01:06:08,160
 but I visited a taekwondo place.

1559
01:06:08,160 --> 01:06:09,160
 We visited restaurants.

1560
01:06:09,160 --> 01:06:11,440
 We visited entertainment venues.

1561
01:06:11,440 --> 01:06:14,680
 Trying to get out and visit as many people as possible

1562
01:06:14,680 --> 01:06:16,320
 I think is very important.

1563
01:06:16,320 --> 01:06:18,360
 So that's our overall reporting,

1564
01:06:18,360 --> 01:06:20,040
 which you'll see at the end of the year,

1565
01:06:20,040 --> 01:06:23,040
 we're producing a lot of information.

1566
01:06:23,040 --> 01:06:26,520
 Top five challenges we're hearing from everybody.

1567
01:06:26,520 --> 01:06:29,040
 Obviously workforce development is one of them.

1568
01:06:29,040 --> 01:06:34,040
 Everybody wants to have a partner with their education.

1569
01:06:34,040 --> 01:06:38,620
 People in town from UNT, T of U, NCTC, or NISD.

1570
01:06:38,620 --> 01:06:41,480
 Transportation assistance.

1571
01:06:41,480 --> 01:06:43,320
 How do I get my employees to work?

1572
01:06:43,320 --> 01:06:45,840
 Brittany's favorite, incentives.

1573
01:06:45,840 --> 01:06:48,600
 People always want to ask about incentives.

1574
01:06:48,600 --> 01:06:52,060
 Employee satisfaction ideas has come up a lot.

1575
01:06:52,060 --> 01:06:54,080
 You know, from, do we put a weight in their manner,

1576
01:06:54,080 --> 01:06:57,720
 or do we take them to a Cowboys game, or whatever it may be.

1577
01:06:57,720 --> 01:06:59,520
 So they always want to pick my brand

1578
01:06:59,520 --> 01:07:03,200
 and learn some good employee satisfaction ideas.

1579
01:07:03,200 --> 01:07:05,920
 Top five challenges we hear, time to time.

1580
01:07:05,920 --> 01:07:10,920
 Some other, you know, broader feedback we get.

1581
01:07:10,920 --> 01:07:13,560
 Hey, my rent increased, I'm looking for some resources.

1582
01:07:13,560 --> 01:07:15,080
 That's typically, we recommend people

1583
01:07:15,080 --> 01:07:17,000
 to Swell Business Development Center.

1584
01:07:17,000 --> 01:07:19,560
 I want to expand, which is always great.

1585
01:07:19,560 --> 01:07:21,320
 I want to be involved with more industry leaders.

1586
01:07:21,320 --> 01:07:23,160
 That's when we sign up for the EDP.

1587
01:07:23,160 --> 01:07:27,200
 Seeking connections, workforce development.

1588
01:07:27,200 --> 01:07:28,960
 Transportation assistance, like I mentioned.

1589
01:07:28,960 --> 01:07:32,340
 And, you know, a lot of turnover from young young people.

1590
01:07:32,340 --> 01:07:36,160
 So we're working a lot with the Grown Academy

1591
01:07:36,160 --> 01:07:39,320
 and developed that youth pipeline.

1592
01:07:39,320 --> 01:07:42,240
 So we hear a lot, and it was talked about this morning

1593
01:07:42,240 --> 01:07:44,200
 at breakfast, that high school students

1594
01:07:44,200 --> 01:07:46,320
 aren't ready for workforce, ready for college,

1595
01:07:46,320 --> 01:07:48,560
 and trying to help them be there.

1596
01:07:48,560 --> 01:07:51,280
 So there's not that term for it, it's important.

1597
01:07:51,280 --> 01:07:57,040
 Help that's provided from my standpoint,

1598
01:07:57,040 --> 01:07:58,920
 business to business relationship,

1599
01:07:58,920 --> 01:08:01,560
 workforce connections, business to community,

1600
01:08:01,560 --> 01:08:05,160
 relationship is huge too, and infrastructure concerns.

1601
01:08:05,160 --> 01:08:08,080
 And that's a lot of that is just sharing information

1602
01:08:08,080 --> 01:08:10,640
 or connecting with the right people

1603
01:08:10,640 --> 01:08:12,760
 so they can get their questions answered.

1604
01:08:12,760 --> 01:08:16,040
 Over the last couple, over the last year,

1605
01:08:16,040 --> 01:08:17,280
 we've hosted a couple of events

1606
01:08:17,280 --> 01:08:19,360
 that kind of spoke to business potential expansion.

1607
01:08:19,360 --> 01:08:23,680
 We had a HR round table, which is always great

1608
01:08:23,680 --> 01:08:26,360
 to get to know our HR leaders in the community.

1609
01:08:26,360 --> 01:08:29,620
 That was a really good event.

1610
01:08:29,620 --> 01:08:32,400
 And then we had a couple of industrial round tables,

1611
01:08:32,400 --> 01:08:35,360
 one at Unity, Discovery Park, one at Tetra Pak.

1612
01:08:35,360 --> 01:08:38,280
 But the main, one of the main things I want to point out

1613
01:08:38,280 --> 01:08:41,760
 is when I met Brittany within five minutes of meeting her,

1614
01:08:41,760 --> 01:08:43,840
 she told me I need to have manufacturing dates.

1615
01:08:43,840 --> 01:08:45,620
 She's been pressing me on that.

1616
01:08:45,620 --> 01:08:47,200
 We are, that's a national day

1617
01:08:47,200 --> 01:08:48,640
 that we're going to sign up for and have it,

1618
01:08:48,640 --> 01:08:50,520
 hopefully in the next fall working with her,

1619
01:08:50,520 --> 01:08:53,560
 in ISD and NCTC to host a day

1620
01:08:53,560 --> 01:08:56,280
 that brings our industrial partners together,

1621
01:08:56,280 --> 01:08:57,920
 where students can get to know them

1622
01:08:57,920 --> 01:09:00,080
 and know what it's like to work.

1623
01:09:00,080 --> 01:09:04,200
 And I'll hopefully stay here and do that.

1624
01:09:04,200 --> 01:09:07,160
 That was a quick and fast business potential expansion,

1625
01:09:07,160 --> 01:09:09,920
 but, Mr. Toro, what we're doing.

1626
01:09:09,920 --> 01:09:12,880
 Is there any questions on that or any questions for the EDP?

1627
01:09:14,740 --> 01:09:15,740
 - Any questions?

1628
01:09:15,740 --> 01:09:18,240
 I really appreciate the update on the projects,

1629
01:09:18,240 --> 01:09:20,200
 so thank you for bringing that forward.

1630
01:09:20,200 --> 01:09:21,840
 Appreciate the report.

1631
01:09:21,840 --> 01:09:23,520
 Great.

1632
01:09:23,520 --> 01:09:24,440
 All right, Christine.

1633
01:09:24,440 --> 01:09:26,480
 - Last item, short and sweet.

1634
01:09:26,480 --> 01:09:28,120
 We have our calendar for the end of the year.

1635
01:09:28,120 --> 01:09:29,640
 Next month, I believe we just have

1636
01:09:29,640 --> 01:09:31,840
 standard items on that agenda.

1637
01:09:31,840 --> 01:09:33,880
 So if there are additional topics

1638
01:09:33,880 --> 01:09:36,880
 as incentive agreements advance,

1639
01:09:36,880 --> 01:09:39,200
 then we will add them to the calendar.

1640
01:09:39,200 --> 01:09:41,880
 If there are any additional topics

1641
01:09:41,880 --> 01:09:43,440
 that the committee's interested in,

1642
01:09:43,440 --> 01:09:47,080
 please let Steve know and he'll work that with Brittany and I.

1643
01:09:47,080 --> 01:09:48,120
 But through the end of the year,

1644
01:09:48,120 --> 01:09:51,360
 we just expect updates and regular action items next month.

1645
01:09:51,360 --> 01:09:56,160
 But very much appreciate the attendance and engagement

1646
01:09:56,160 --> 01:10:01,160
 and encouragement as we go after these different incentives.

1647
01:10:01,160 --> 01:10:05,820
 - All right, any other items to be brought forward?

1648
01:10:05,820 --> 01:10:08,520
 - I'll just comment that the airport

1649
01:10:08,520 --> 01:10:11,760
 has undergone a one-way repair,

1650
01:10:11,760 --> 01:10:13,440
 actually a reconstruction.

1651
01:10:13,440 --> 01:10:18,800
 Somebody somewhere along the line made the runway

1652
01:10:18,800 --> 01:10:21,280
 so that it was higher in the middle than it was on each end.

1653
01:10:21,280 --> 01:10:23,720
 You couldn't see an airplane run into the other.

1654
01:10:23,720 --> 01:10:25,840
 That's against the FAA rules.

1655
01:10:25,840 --> 01:10:28,760
 $17 million later, it has now been fixed.

1656
01:10:28,760 --> 01:10:31,120
 You can see from one end to the other.

1657
01:10:31,120 --> 01:10:32,800
 But it's a nose rule.

1658
01:10:32,800 --> 01:10:34,160
 - You could make a mirror right in the middle.

1659
01:10:34,160 --> 01:10:35,000
 - Yeah.

1660
01:10:35,000 --> 01:10:36,880
 - It's very nice.

1661
01:10:36,880 --> 01:10:38,360
 - So it's a big improvement,

1662
01:10:38,360 --> 01:10:42,080
 and hopefully we'll start seeing some activity

1663
01:10:42,080 --> 01:10:43,720
 to start opening the Westside.

1664
01:10:43,720 --> 01:10:45,760
 - Thank you for that.

1665
01:10:45,760 --> 01:10:49,000
 - All right, y'all, as always, thank you.

1666
01:10:49,000 --> 01:10:51,240
 Appreciate your attendance and participation.

1667
01:10:51,240 --> 01:10:56,480
 That time of internment, 12/13.

1668
01:10:56,480 --> 01:10:57,320
 Thank you.