WEBVTT

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 - All right, I believe we have a quorum.

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 - It looks really good.

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 - Yeah, I thought it did too.

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 - Is that accurate?

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 - Yeah, that's correct.

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 - Let's pick 'em up some time this week.

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 (indistinct)

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 - Yeah, it looked really good.

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 - It's just the veteran.

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 - That was a great tour.

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 - That's the best.

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 - That was a great tour.

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 - Oh, good, I feel like I want that truck.

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 - Okay, everyone, I've got 1103.

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 We do have a quorum, which is seven members plus,

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 and we'll go forward, good morning.

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 Welcome to this meeting

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 in the Economic Development Partnership Board.

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 It is Wednesday, November 13th, 2024, it's 1103.

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 We've established a quorum,

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 so the meeting is called to order.

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 We'll start with an opportunity to review minutes

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 from September 11th.

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 Are there any questions at this time?

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 If no questions, can I get a motion?

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 - So moved.

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 - We have, thank you, and second, thank you.

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 We have a motion and a second, any discussion?

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 Seeing none, all in favor signify by saying aye.

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 - Aye.

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 - Any opposed?

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 Same sign.

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 Hearing none, that passes, and we'll move into,

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 our next item is item B, ADP 24-088.

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 Three, receive a report, hold a discussion,

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 give staff direction regarding the meeting dates

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 and times for the calendar year 2025,

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 and let's take that forward, please.

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 - Hi, everyone, my name is Vanessa Sparsa.

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 I am the...

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 - Where are we?

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 - Board secretary. - Board liaison.

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 Whatever you'd like, I get your food, whatever you need.

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 These are the dates for 2025, and basically,

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 we just want everybody to take a look,

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 and as far in advance as you can let us know,

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 if you're not gonna be able to make a meeting,

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 just let us know, shoot me an email,

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 and then fill out your notification of absence form,

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 and get that signed.

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 Usually here, we don't have any of these

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 falling on any holidays, so we should be good,

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 but do y'all have any questions?

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 - Only thing I was gonna ask the group

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 is if we wanna meet in July,

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 'cause we've had to, because of vacation and scheduling,

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 and everybody never made the form in July,

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 but we just wanna go ahead and just

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 get stuff to the group, but if it has a good form, yeah.

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 Might as well strike that one and not do it in July.

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 - Okay, so I'm hearing, skip the July date,

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 or would y'all like to move it to the following week?

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 - I think skip it, personally.

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 We have to make forms.

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 - We could put an asterisk on it,

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 and say we need an asterisk on it.

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 - Yeah.

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 - We can always, you can strike it,

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 and we can do a special call.

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 - Yeah, that's fine.

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 - Okay, awesome, is there anything else?

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 - All right, so we propose accepting

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 next year's calendar, with the exception of July,

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 July schedule board meeting.

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 All in favor, signify by saying aye.

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 - Aye. - Aye.

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 - Any opposed? - I understand.

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 - Hearing none, that passes, thank you.

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 Great job.

00:03:26.560 --> 00:03:31.360
 Okay.

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 Next item is item C, EDP 24-081,

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 Receive Reportable Discussions and Recommendation

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 to City Council Regarding an Incentive Agreement

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 for the Engentech North America Corporation

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 for Performance-Based and Valerian Tax-Rebate.

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 Ready to go? - I'm ready.

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 - Take it away.

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 - Hello board, Greg Sotelo, Economic Development Director.

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 It's great to see you today.

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 We're very excited to present an incentive application

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 for Engentech North America.

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 We will go through the presentation in whole,

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 and I will transfer to Christina Davis Midway,

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 who's been the primary project manager on the project.

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 So let's go ahead and get started.

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 I need this one, they gotta work as soon as I go up here.

00:04:19.680 --> 00:04:21.520
 Okay, okay.

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 Today's objective is to review an incentive application

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 and seek your approval to then move forward

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 to city council.

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 Company background, they're an international company

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 based in India with over 500 employees.

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 They're an advanced injection molding manufacturer.

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 They specialize in engineering and design automotive models

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 for global companies.

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 They are IATF 16949 certified systems manufacturers

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 with highly engineered automotive equipment,

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 part to patents.

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 So with their specialized technology and patents,

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 they are a highly skilled company,

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 and they have rapid growth in part

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 to their new pack car partnership and expansion to the U.S.

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 So they have chosen Denton

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 as their new North American headquarters.

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 They will manufacture injection molded engine parts,

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 the only one in Texas based out there in Mexico.

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 We actually find out there was one of seven

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 injection molding companies.

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 They will be one of seven injection molding companies

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 in Texas.

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 And they plan to create 133 new jobs

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 over a term of five years.

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 And their growth is in part due to their partnership

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 with Peterbilt.

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 Pack car is our largest North American customer.

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 They were awarded a zero PPM quality award

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 for the last three years by Pack Car.

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 And that's their global,

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 Pack Car is our global company of Peterbilt.

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 And what zero PPM means is parts per minute.

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 Brian, did you know that by chance?

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 - Parts per million.

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 - Parts per million.

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 Oh, I'm long.

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 He did know that.

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 Got that wrong.

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 And they added new,

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 since their announcement that they would move to Denton,

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 or since they've chosen Denton as a site to move,

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 they've added three new product contracts

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 within the last 30 days.

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 So here's a list of all of their global customers,

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 including Chevrolet, Izuzu, Caterpillar, Kubota.

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 They are a very well-known company worldwide.

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 And just to share the timeline,

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 I wanted to share that this is a very untraditional request

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 due to the circumstances that they are moving from India.

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 Our incentive process is a little bit off base.

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 It's not our normal method of moving forward.

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 So we're gonna share our timeline.

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 Back in 2016, the company met PACR at a Mumbai conference.

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 In 2018, they became a PACR vendor.

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 In 2023, they started scouting locations across Texas

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 and met with the chamber meeting staff in late 2023,

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 and the city staff, I believe.

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 In 2024, they met with, earlier this summer,

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 they met with chamber staff,

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 and then they met with the city staff in late July.

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 They officially submitted their incentive application

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 in August, and then in 2024, I'm sorry,

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 in October, they negotiated incentives,

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 and they finalized their lease.

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 That was in late September, early October.

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 And their goal is to start production

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 in January of next year.

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 And so this is a very much a chicken and egg situation

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 in that the company, since they're moving from India,

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 they're having to transfer, open up a bank account

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 in order to open up a U.S. bank account

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 they need a U.S. address.

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 And so that is why they had to sign a lease.

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 They're also having to transfer funds

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 from their bank in India to America,

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 and that hasn't been an easy process.

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 As you can imagine, the fees,

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 but they're having to pay for that.

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 And then also setting up a U.S. bank account,

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 is it easy as well, right, to pay for work,

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 setting up legal documents has been a process, okay.

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 So they have chosen to locate at 2025 North Mosh Branch Road

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 building number two at the M380 Business Park.

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 And on their incentive application,

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 they listed that they would create 5.9 million dollars

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 in investment, 200,000 in improvements,

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 5.7 million in business personal property,

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 and 130 new jobs over a five-year term.

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 So they did submit their incentive application

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 prior to signing a lease,

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 and that is okay in our incentive policy.

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 Leaks do state that as long as they submit

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 their incentive application before signing a lease,

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 or any type of, getting any type of apartment,

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 then they are allowed to ask for incentives.

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 And so Christina Davis will go over the number,

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 the jobs credit numbers.

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 This isn't working, what am I supposed to do?

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 I'll use the mixer, I'll use the mixer.

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 Hello.

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 So what we have here is the incentive and objective

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 revenue that'll be generated by this project.

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 We're looking at a 50% abatement rebate

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 on business personal property for five years.

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 We're looking at a headquarters grant of 50,000,

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 and job space grant based on salaries

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 and a bonus for debt and residence.

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 Going through the columns from left over to right,

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 we have cumulative totals for each year of the agreement,

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 beginning at 110, 909, and then the fifth year,

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 down to, my numbers are not right.

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 Down to the total, the cumulative total of the five years

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 comes out to $339,545, so the revenue for the city

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 during the same timeframe, 50% for five years,

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 and then 100% for the remaining five years

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 because we do a 10 year picture of our revenue generation

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 on the agreements.

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 So years one through five, the city would gain 15,909,

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 and years six through 10, $31,819.

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 And so this is based on the land only,

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 not on the business personal property.

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 In the table below, we break that out for you

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 in land, improvements, and business personal property.

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 So the total valuation for current valuation

00:10:37.400 --> 00:10:40.980
 is 3,154,606.

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 The estimated increase of that valuation,

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 land, there's not an increase

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 because the land is already existing,

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 the building is existing.

00:10:48.620 --> 00:10:52.000
 We're looking at $200,000 in improvements

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 and then business personal property of 5.6 million.

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 At the end of the time period,

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 we're looking at a total estimated revenue to the city

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 for land of $4,019, improvements, 14,790,

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 and the business personal property of 3,189.

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 So the total annual on that will be $50,628.

00:11:16.740 --> 00:11:24.640
 On the next slide, I have a corrected sheet

00:11:24.640 --> 00:11:26.240
 that I handed out to each of you

00:11:26.240 --> 00:11:31.020
 because my totals were off at the bottom.

00:11:33.380 --> 00:11:34.220
 Excuse me.

00:11:34.220 --> 00:11:37.880
 So this is a breakout of the jobs.

00:11:37.880 --> 00:11:40.060
 During the five-year period,

00:11:40.060 --> 00:11:43.280
 Inditech plans to add 133 jobs.

00:11:43.280 --> 00:11:45.680
 During year one, there'll be 25 jobs

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 and we're looking at starting their incentive

00:11:47.280 --> 00:11:50.160
 with this year so we can capture all their startup

00:11:50.160 --> 00:11:51.120
 and all their new employees

00:11:51.120 --> 00:11:53.460
 if they'll be starting this first year.

00:11:53.460 --> 00:11:55.560
 Year two will be 39 employees,

00:11:55.560 --> 00:12:00.400
 year three, 43, year four, 14, and year five, 12.

00:12:00.400 --> 00:12:03.920
 Looking at a total of 133 employees.

00:12:03.920 --> 00:12:08.760
 The average base salary for those employees

00:12:08.760 --> 00:12:17.220
 annually is $62,522 and hourly it's 30.06.

00:12:17.220 --> 00:12:21.520
 On the second part of the presentation,

00:12:21.520 --> 00:12:24.120
 we've done the calculations for you

00:12:24.120 --> 00:12:28.600
 for the base salary plus an average of 30%

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 for benefits and salary.

00:12:29.760 --> 00:12:32.720
 And that's based on the standard benefits package.

00:12:32.720 --> 00:12:36.140
 So you're looking at paid holidays, sick leave,

00:12:36.140 --> 00:12:40.400
 insurance, share costs, and a 401

00:12:40.400 --> 00:12:42.620
 or other type of pension for retirement.

00:12:42.620 --> 00:12:47.980
 So adding through those, the total annual salary

00:12:47.980 --> 00:12:52.480
 for the benefits for all employees is $10,810.

00:12:55.840 --> 00:13:00.840
 Sorry, $10,810,150, sorry.

00:13:00.840 --> 00:13:07.120
 So any questions about the salaries part of this

00:13:07.120 --> 00:13:07.960
 before we move on?

00:13:07.960 --> 00:13:10.180
 We're good.

00:13:10.180 --> 00:13:12.800
 - Okay, and also I wanna add on the previous slide, Vanessa.

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 - Okay, please.

00:13:14.400 --> 00:13:16.160
 - We are proposing a headquarters grant

00:13:16.160 --> 00:13:17.840
 and that's something that we haven't done before.

00:13:17.840 --> 00:13:20.200
 So we do wanna hear your opinions on

00:13:20.200 --> 00:13:21.640
 if that's something that you would support

00:13:21.640 --> 00:13:23.880
 because since they've already signed their lease,

00:13:23.880 --> 00:13:26.920
 that's something typically we would provide

00:13:26.920 --> 00:13:28.040
 in a relocation grant.

00:13:28.040 --> 00:13:29.280
 But since they are headquarters,

00:13:29.280 --> 00:13:32.560
 we're pitching a headquarters grant of $50,000.

00:13:32.560 --> 00:13:35.720
 So we wanna hear your feedback after this presentation.

00:13:35.720 --> 00:13:37.840
 And I do wanna say that the company leaders,

00:13:37.840 --> 00:13:42.080
 Director Akshay and his team, Anil and Harsha,

00:13:42.080 --> 00:13:44.980
 are here in the back and are here to answer any questions.

00:13:44.980 --> 00:13:46.880
 - Thank you.

00:13:46.880 --> 00:13:49.780
 One more slide, please.

00:13:52.840 --> 00:13:56.960
 We do use the numbers available to us

00:13:56.960 --> 00:13:59.320
 to create an economic impact report.

00:13:59.320 --> 00:14:05.000
 For this project with the investment

00:14:05.000 --> 00:14:07.200
 and the cities incentive,

00:14:07.200 --> 00:14:12.120
 we're looking at a rate of return of 13.6

00:14:12.120 --> 00:14:14.920
 and then the payback period for that is 6.9.

00:14:14.920 --> 00:14:19.760
 One other item I wanted to point out to you is

00:14:19.760 --> 00:14:23.720
 under the net benefits, over 10 years to the city,

00:14:23.720 --> 00:14:27.200
 it calculates out at just over $115,000.

00:14:27.200 --> 00:14:33.040
 I don't know what else to point out on this slide,

00:14:33.040 --> 00:14:35.760
 but basically, those are the key factors.

00:14:35.760 --> 00:14:36.600
 Go ahead, Brian.

00:14:36.600 --> 00:14:40.120
 - I have a question 'cause they are manufacturers of,

00:14:40.120 --> 00:14:41.520
 you know, they do injection molding.

00:14:41.520 --> 00:14:43.640
 Do we do any kind of analysis on

00:14:43.640 --> 00:14:47.600
 how it'll help DME from a revenue perspective

00:14:47.600 --> 00:14:50.600
 because it should be pretty high energy usage?

00:14:50.600 --> 00:14:53.080
 - Based on the information we had on the machines

00:14:53.080 --> 00:14:55.840
 at the beginning of the application process,

00:14:55.840 --> 00:15:00.800
 DME did not see them as a significant user of energy,

00:15:00.800 --> 00:15:03.720
 but that falls toward their being more

00:15:03.720 --> 00:15:07.120
 environmentally friendly

00:15:07.120 --> 00:15:08.720
 and helping us with those kinds of things.

00:15:08.720 --> 00:15:12.440
 So the machinery that they've chosen is low energy use.

00:15:12.440 --> 00:15:14.360
 - And that more from a revenue perspective.

00:15:14.360 --> 00:15:16.360
 - Revenue perspective, yes.

00:15:18.600 --> 00:15:21.800
 - My point is, this is gonna help DME

00:15:21.800 --> 00:15:24.000
 with their base customer power.

00:15:24.000 --> 00:15:29.440
 - I just calculate in on the cap model.

00:15:29.440 --> 00:15:31.000
 I'm not sure which category it goes under,

00:15:31.000 --> 00:15:33.480
 but the revenue back to the city is one that it calculates

00:15:33.480 --> 00:15:36.880
 that goes into the net benefit and the rate on return.

00:15:36.880 --> 00:15:38.280
 She was speaking to, we did look at them

00:15:38.280 --> 00:15:39.280
 to see if they would qualify

00:15:39.280 --> 00:15:41.040
 for additional incentives for DME,

00:15:41.040 --> 00:15:43.080
 and they didn't currently meet that threshold,

00:15:43.080 --> 00:15:44.880
 but we certainly are capturing the revenue

00:15:44.880 --> 00:15:45.960
 they're gonna pay into the city

00:15:45.960 --> 00:15:47.560
 as part of that calculation.

00:15:47.560 --> 00:15:51.880
 - I believe it's part of the cost

00:15:51.880 --> 00:15:53.720
 and then the net net revenue, right?

00:15:53.720 --> 00:16:04.480
 The projected revenue and the financial impact

00:16:04.480 --> 00:16:08.240
 for this project, Ingenhec is expecting

00:16:08.240 --> 00:16:09.760
 a 30% increase in revenue

00:16:09.760 --> 00:16:11.920
 over the next three years of the project.

00:16:11.920 --> 00:16:14.640
 The cost savings analysis,

00:16:14.640 --> 00:16:18.560
 so the local production is expected to help them

00:16:18.560 --> 00:16:21.840
 with the USMCA umbrella,

00:16:21.840 --> 00:16:24.640
 so the cost of bringing things through

00:16:24.640 --> 00:16:29.360
 in the United States, Mexico, Canada agreement,

00:16:29.360 --> 00:16:31.600
 if those work or trade.

00:16:31.600 --> 00:16:33.760
 So having them here locally, it helps with that

00:16:33.760 --> 00:16:35.840
 instead of having to bring things in

00:16:35.840 --> 00:16:37.160
 from out of the country.

00:16:37.160 --> 00:16:39.200
 And then Ingenhec is committed

00:16:39.200 --> 00:16:41.560
 to sustainable financial growth

00:16:41.560 --> 00:16:45.520
 and helping other companies within the area to succeed.

00:16:45.520 --> 00:16:52.640
 The way that this project aligns with our policy

00:16:52.640 --> 00:16:55.600
 and our plans, it is a key focus area too,

00:16:55.600 --> 00:16:59.920
 which is fostering economic opportunity and affordability,

00:16:59.920 --> 00:17:03.000
 fosters growth through the supply chain logistics,

00:17:03.000 --> 00:17:05.920
 advanced manufacturing, research, and development.

00:17:05.920 --> 00:17:07.200
 It's one thing we didn't talk about

00:17:07.200 --> 00:17:12.200
 is that Ingenhec designs and builds

00:17:12.200 --> 00:17:13.880
 all of their own products.

00:17:13.880 --> 00:17:15.840
 So they're doing their own research and development,

00:17:15.840 --> 00:17:17.240
 they're owning their patents,

00:17:17.240 --> 00:17:19.560
 so this is a patented technology.

00:17:19.560 --> 00:17:24.280
 Also goes toward energy efficiency and conservation,

00:17:24.280 --> 00:17:25.280
 and then green buildings,

00:17:25.280 --> 00:17:26.880
 and it's a building that they're moving into

00:17:26.880 --> 00:17:28.720
 is LEED certified silver.

00:17:28.720 --> 00:17:32.840
 And also a goal three of the strategic plan

00:17:32.840 --> 00:17:34.280
 to strengthen community inclusion,

00:17:34.280 --> 00:17:36.200
 so workforce collaboration

00:17:36.200 --> 00:17:38.640
 and growing our own talent initiative.

00:17:38.640 --> 00:17:40.760
 Next one.

00:17:40.760 --> 00:17:44.320
 So the benefits of Ingenhec being in Denton

00:17:44.320 --> 00:17:46.600
 is that this location will be

00:17:46.600 --> 00:17:48.480
 the North American headquarters.

00:17:48.480 --> 00:17:51.200
 They will be a top 20 employer

00:17:51.200 --> 00:17:54.800
 once they're up at full capacity with 133 employees.

00:17:54.800 --> 00:17:56.720
 They are a global chain supplier,

00:17:56.720 --> 00:17:59.120
 so they supply in all the countries

00:17:59.120 --> 00:18:02.880
 that Pat Carr has products and companies in,

00:18:02.880 --> 00:18:07.000
 Canada, Mexico, Europe, Asia.

00:18:07.000 --> 00:18:09.440
 They will be one of seven injection molding companies

00:18:09.440 --> 00:18:11.320
 in Texas, and based on their NICS code,

00:18:11.320 --> 00:18:14.760
 they were the only one I could find that does engine parts.

00:18:14.760 --> 00:18:17.240
 So we have lots that do medical and things like that,

00:18:17.240 --> 00:18:19.280
 but they were the only ones for engine parts.

00:18:19.280 --> 00:18:21.400
 They do have sustainable practices.

00:18:21.400 --> 00:18:25.320
 They do have, originally, when they came to us,

00:18:25.320 --> 00:18:27.520
 they were looking to purchase a piece of property

00:18:27.520 --> 00:18:29.800
 and build their own facility.

00:18:29.800 --> 00:18:31.600
 But due to timing, they didn't,

00:18:31.600 --> 00:18:32.960
 they went with the lease process.

00:18:32.960 --> 00:18:35.920
 So hopefully in the future, they'll build a facility here

00:18:35.920 --> 00:18:38.280
 and be here much longer.

00:18:38.280 --> 00:18:39.520
 The jobs that they have there

00:18:39.520 --> 00:18:42.280
 do require some specific knowledge.

00:18:42.280 --> 00:18:43.920
 So they'll be working through training

00:18:43.920 --> 00:18:48.560
 with North Central Texas College, the DISD,

00:18:48.560 --> 00:18:51.080
 and other opportunities for training.

00:18:51.080 --> 00:18:58.720
 So our request for you today is for options and directions.

00:18:58.720 --> 00:19:01.200
 We're hoping to see a chapter 380 grant

00:19:01.200 --> 00:19:03.600
 for performance-based ad-lorm tax rebate,

00:19:03.600 --> 00:19:05.400
 50% for five years.

00:19:05.400 --> 00:19:10.080
 A job-based grant, which includes 70 jobs

00:19:10.080 --> 00:19:12.960
 based on the eligible jobs in our plan matrix,

00:19:12.960 --> 00:19:16.720
 and 32 additional jobs for Denton residents.

00:19:16.720 --> 00:19:19.200
 And then the agreement would include

00:19:19.200 --> 00:19:20.560
 evaluation of the branch hold

00:19:20.560 --> 00:19:25.560
 and cap of funding of $339,545.

00:19:25.560 --> 00:19:28.320
 Well, the other option is snow and center.

00:19:30.680 --> 00:19:33.520
 Would you like to entertain any questions?

00:19:33.520 --> 00:19:38.360
 - You may have, it's a five or 10-year lease

00:19:38.360 --> 00:19:40.200
 that they've signed.

00:19:40.200 --> 00:19:42.360
 - The lease itself will be incentive?

00:19:42.360 --> 00:19:43.760
 Application is required-- - No, no, the lease

00:19:43.760 --> 00:19:45.040
 that they've signed-- - I think there'll be

00:19:45.040 --> 00:19:46.360
 a question for action.

00:19:46.360 --> 00:19:47.520
 - I need to pick up. - Hi.

00:19:47.520 --> 00:19:49.320
 - Oh, I'm sorry, can I get you to come up here, please?

00:19:49.320 --> 00:19:52.320
 - Can I introduce yourself? - Yeah, yeah.

00:19:52.320 --> 00:19:57.320
 - So this is five years, but we plan to do a motion

00:19:57.320 --> 00:19:59.560
 of starting to identify land

00:19:59.560 --> 00:20:04.000
 when we start the production in Q1, 2025,

00:20:04.000 --> 00:20:06.840
 because the current location will take care

00:20:06.840 --> 00:20:09.840
 of only four machines and limit the amount of production,

00:20:09.840 --> 00:20:11.480
 so we need a larger scale.

00:20:11.480 --> 00:20:14.440
 Our product portfolio is a lot wider.

00:20:14.440 --> 00:20:16.400
 Many of the things that we're currently doing in India

00:20:16.400 --> 00:20:20.160
 are already used here, and we just have to pick them up

00:20:20.160 --> 00:20:23.360
 from there and get them here under the USMCA.

00:20:23.360 --> 00:20:26.080
 So this five-year lease, in the meanwhile,

00:20:26.080 --> 00:20:30.000
 we're looking to find a place for a piece of land

00:20:30.000 --> 00:20:31.600
 and begin the construction.

00:20:31.600 --> 00:20:33.480
 - So you guys want to own the ventures?

00:20:33.480 --> 00:20:34.880
 - Yes, yes.

00:20:34.880 --> 00:20:37.720
 - So it's an agreement, 380 agreement, correct?

00:20:37.720 --> 00:20:41.560
 So the 380 agreement, if it's an agreement,

00:20:41.560 --> 00:20:43.720
 will actually, the abatement will actually be

00:20:43.720 --> 00:20:46.240
 to the building owner, it'll be passed back to you guys

00:20:46.240 --> 00:20:49.120
 through triple nets, is that how this is structured?

00:20:49.120 --> 00:20:50.920
 - For the business personal property.

00:20:50.920 --> 00:20:52.200
 - Just the business personal property,

00:20:52.200 --> 00:20:54.440
 that's all, it's an agreement, also.

00:20:55.400 --> 00:20:58.480
 - It is, it is real property, business personal property,

00:20:58.480 --> 00:21:00.480
 so just everything, the interior of this whole thing.

00:21:00.480 --> 00:21:03.640
 - Okay, so no, we're not doing any, okay, perfect.

00:21:03.640 --> 00:21:04.840
 That answers my question.

00:21:04.840 --> 00:21:12.200
 - So, you brought up, I got two questions.

00:21:12.200 --> 00:21:14.160
 I mean, on the headquarter grant,

00:21:14.160 --> 00:21:16.200
 what are the rules of that?

00:21:16.200 --> 00:21:18.240
 Like, what are the specifications?

00:21:18.240 --> 00:21:22.240
 Because in this case, it's not their corporate headquarters,

00:21:22.240 --> 00:21:25.840
 it's just their US headquarters, right?

00:21:25.840 --> 00:21:30.160
 So, what, you asked the question, does this,

00:21:30.160 --> 00:21:31.320
 what's our feedback?

00:21:31.320 --> 00:21:35.080
 But I guess I would volley that back to you

00:21:35.080 --> 00:21:37.920
 and say, what are the guidelines that are in place

00:21:37.920 --> 00:21:38.920
 for the definition?

00:21:38.920 --> 00:21:42.120
 - Right, so this is something new, it's a new concept.

00:21:42.120 --> 00:21:43.280
 This, I mean, it's not in the policy.

00:21:43.280 --> 00:21:46.120
 We do have the SGA strategic growth areas,

00:21:46.120 --> 00:21:48.760
 so under competitiveness, there is an option

00:21:48.760 --> 00:21:50.800
 where you can provide, if there are headquarters,

00:21:50.800 --> 00:21:53.680
 you can provide a grant, and then I'm gonna ask Erica

00:21:53.680 --> 00:21:54.960
 to actually come up and speak

00:21:54.960 --> 00:21:58.440
 on what our typical relocation grant measures are for.

00:21:58.440 --> 00:22:01.880
 And since we can't, and Scott Fray may wanna speak

00:22:01.880 --> 00:22:05.680
 to this as well, we didn't, there were some issues

00:22:05.680 --> 00:22:08.720
 or many confusion on why we would provide a grant funding

00:22:08.720 --> 00:22:10.640
 for a company that's already signed a lease,

00:22:10.640 --> 00:22:12.920
 but due to the timing of everything, right?

00:22:12.920 --> 00:22:14.480
 It's kind of backwards for us.

00:22:14.480 --> 00:22:17.840
 Then, this is why we decided to do the headquarters grant.

00:22:17.840 --> 00:22:22.040
 So, Erica, do you mind speaking upon what we typically do

00:22:22.040 --> 00:22:26.640
 for the relocation grants, and then I'll take you back

00:22:26.640 --> 00:22:27.480
 and talk about that.

00:22:27.480 --> 00:22:29.360
 - And I'm not as so much as worried about that

00:22:29.360 --> 00:22:32.640
 as they're not relocating their headquarters, are they?

00:22:32.640 --> 00:22:36.200
 - They're not relocating their US locations,

00:22:36.200 --> 00:22:37.520
 US headquarters.

00:22:37.520 --> 00:22:40.080
 - You're doing a subsidiary for North America here?

00:22:40.080 --> 00:22:44.240
 - No, this is not a subsidiary, this is a fresh company.

00:22:44.240 --> 00:22:47.120
 - Okay. - And the ownership remains

00:22:47.120 --> 00:22:49.640
 the same what we have in India, but it's a separate company

00:22:49.640 --> 00:22:51.280
 that we've established here.

00:22:51.280 --> 00:22:52.840
 - So, it is a North American headquarters.

00:22:52.840 --> 00:22:56.240
 - Correct, North American headquarters.

00:22:56.240 --> 00:22:58.480
 - That depends on your grant definition.

00:22:58.480 --> 00:23:00.640
 - Which we don't have a definition, it sounds like.

00:23:00.640 --> 00:23:02.160
 - But that's similar to Toyota.

00:23:02.160 --> 00:23:05.280
 They have the North American headquarters.

00:23:05.280 --> 00:23:06.920
 That's what they do.

00:23:06.920 --> 00:23:08.200
 Sounds the same structure.

00:23:08.200 --> 00:23:14.440
 - Erica Sullivan, economic development program administrator.

00:23:14.440 --> 00:23:17.520
 Speaking to our policy, our job-based grants,

00:23:17.520 --> 00:23:22.200
 they are for relocation typically and for expansion.

00:23:22.200 --> 00:23:23.920
 So, headquarters is a new concept.

00:23:23.920 --> 00:23:26.560
 What she mentioned is the strategic growth areas.

00:23:26.560 --> 00:23:28.160
 These are our priority considerations,

00:23:28.160 --> 00:23:29.720
 and headquarters is one of those areas,

00:23:29.720 --> 00:23:32.640
 if you remember from the criteria that we look at.

00:23:32.640 --> 00:23:39.840
 So, basically what we have in our job-based grant is

00:23:43.960 --> 00:23:45.880
 set up in the agreement.

00:23:45.880 --> 00:23:48.080
 So, the policy is pretty general.

00:23:48.080 --> 00:23:50.600
 It doesn't specifically say how it's gonna be enforced.

00:23:50.600 --> 00:23:52.640
 Typically, with the job-based grant we required,

00:23:52.640 --> 00:23:56.040
 in the past we required a W-2 and an offer letter,

00:23:56.040 --> 00:23:58.560
 'cause most people aren't hired January 1.

00:23:58.560 --> 00:24:01.640
 So, the offer letter will make up that amount

00:24:01.640 --> 00:24:02.920
 when we do that.

00:24:02.920 --> 00:24:06.400
 We've done ad valorem and job-based grants as well.

00:24:06.400 --> 00:24:09.080
 And so, the different particulars are set up in the agreement

00:24:09.080 --> 00:24:11.680
 on how we specifically address that.

00:24:11.680 --> 00:24:14.960
 But the rebate is a percentage based on, in this case,

00:24:14.960 --> 00:24:16.880
 50% for the five-year term.

00:24:16.880 --> 00:24:18.240
 And we've done five years typically

00:24:18.240 --> 00:24:21.320
 for all of our job-based grants that we've done.

00:24:21.320 --> 00:24:24.320
 - Is the 50,000, is that through the treaty agreement,

00:24:24.320 --> 00:24:26.760
 or is that a grant ran through on top of that?

00:24:26.760 --> 00:24:29.080
 - It's a cash grant up front.

00:24:29.080 --> 00:24:32.480
 Typically, what we've done for the cash relocation grants

00:24:32.480 --> 00:24:34.600
 is it helps them do the finish out.

00:24:34.600 --> 00:24:36.640
 We had Team of Defenders, we had From the Future,

00:24:36.640 --> 00:24:41.280
 SACREN, and then Ranchland also received that.

00:24:41.280 --> 00:24:43.480
 But basically, it's helping them set up the facility

00:24:43.480 --> 00:24:46.200
 to move out of stoke in the case of Team of Defenders

00:24:46.200 --> 00:24:48.200
 so that we reimburse all their expenses

00:24:48.200 --> 00:24:50.640
 for their new facility, including rent,

00:24:50.640 --> 00:24:51.920
 and then everything to the facility.

00:24:51.920 --> 00:24:53.520
 - But it's a reimbursement after the money's--

00:24:53.520 --> 00:24:54.440
 - Yes.

00:24:54.440 --> 00:24:56.240
 They're all done reimbursement basis.

00:24:56.240 --> 00:24:57.720
 - Great.

00:24:57.720 --> 00:24:59.400
 - And Christina had a point that's similar

00:24:59.400 --> 00:25:02.440
 on any of the cash ones to build in parameters

00:25:02.440 --> 00:25:04.520
 to make sure they meet certain milestones,

00:25:04.520 --> 00:25:06.080
 to mention certificate of occupancy

00:25:06.080 --> 00:25:07.440
 was being put in there,

00:25:07.440 --> 00:25:11.640
 and other milestones before money is given.

00:25:11.640 --> 00:25:13.280
 - That's what I was talking about with the agreement,

00:25:13.280 --> 00:25:15.000
 that they continually occupy the funds

00:25:15.000 --> 00:25:17.920
 that they're going to use for example.

00:25:17.920 --> 00:25:20.280
 - So after five years, let's say their lease is up,

00:25:20.280 --> 00:25:23.200
 and they decide to move to a neighboring city.

00:25:23.200 --> 00:25:26.840
 What impact does that have on this?

00:25:26.840 --> 00:25:29.240
 - That would be beyond the term of the agreement.

00:25:29.240 --> 00:25:32.960
 - Right, so what's the net after five years?

00:25:32.960 --> 00:25:33.800
 Was it $4,000?

00:25:33.800 --> 00:25:36.680
 Is that what it is?

00:25:36.680 --> 00:25:37.520
 - No.

00:25:37.520 --> 00:25:38.760
 - I'm not sure I understand the question.

00:25:38.760 --> 00:25:41.120
 - If they leave prior 'cause we showed a payback period

00:25:41.120 --> 00:25:43.440
 and a rate of return based on assumption of years,

00:25:43.440 --> 00:25:45.120
 if they leave before that.

00:25:45.120 --> 00:25:46.160
 - It's a 10-year basis,

00:25:46.160 --> 00:25:48.600
 so that would need to be adjusted, so yes.

00:25:48.600 --> 00:25:49.440
 - They left it in that time.

00:25:49.440 --> 00:25:51.600
 - But then it happens at seven years, right?

00:25:51.600 --> 00:25:52.760
 Seven years.

00:25:52.760 --> 00:25:53.600
 - Yeah, they wouldn't like it.

00:25:53.600 --> 00:25:56.000
 - Or we have to look at the...

00:25:56.000 --> 00:25:57.320
 Can you go back to the--

00:25:57.320 --> 00:25:58.160
 - It's a break-in.

00:25:58.160 --> 00:25:59.320
 - It happens after 10 years.

00:25:59.320 --> 00:26:00.160
 - It happens.

00:26:00.160 --> 00:26:01.000
 - Okay.

00:26:01.000 --> 00:26:02.680
 - The rate of return and the payback period.

00:26:02.680 --> 00:26:04.480
 - So that's five years after seven years.

00:26:04.480 --> 00:26:05.320
 - This one?

00:26:05.320 --> 00:26:06.160
 - No.

00:26:06.160 --> 00:26:07.600
 (mumbles)

00:26:07.600 --> 00:26:09.720
 - So it had a payback period of seven years,

00:26:09.720 --> 00:26:13.240
 6.9 years, and a rate of return of 13.5.

00:26:13.240 --> 00:26:15.280
 That's assuming the assumptions that we have today,

00:26:15.280 --> 00:26:16.800
 we would need to go back to the model.

00:26:16.800 --> 00:26:20.440
 - So based on what we're providing them in grants,

00:26:20.440 --> 00:26:24.000
 it's gonna take seven years for us to get payback,

00:26:24.000 --> 00:26:25.720
 if they're eligible for all the stuff,

00:26:25.720 --> 00:26:27.440
 and they're only committed for five years,

00:26:27.440 --> 00:26:30.240
 so we could lose money on this in a five-year period,

00:26:30.240 --> 00:26:31.080
 correct?

00:26:31.080 --> 00:26:34.560
 - It depends on how you look at it.

00:26:35.840 --> 00:26:37.880
 They all have different varying rate of returns.

00:26:37.880 --> 00:26:39.440
 For Project Orange, that was very rare

00:26:39.440 --> 00:26:42.040
 when you have like a three-year rate of return,

00:26:42.040 --> 00:26:43.880
 for example, but we have had some

00:26:43.880 --> 00:26:45.720
 that have a 16-year rate of return.

00:26:45.720 --> 00:26:48.960
 We passed as well, by and large.

00:26:48.960 --> 00:26:52.840
 So it depends on what that particular project offers

00:26:52.840 --> 00:26:53.720
 and what you're looking for.

00:26:53.720 --> 00:26:57.320
 That had a community benefit, for example, by and large.

00:26:57.320 --> 00:27:00.080
 - We'll add a callback clause where we require,

00:27:00.080 --> 00:27:02.720
 if they don't meet certain measures gross grade every year,

00:27:02.720 --> 00:27:05.640
 if they don't meet the Avalorum valuation every year,

00:27:05.640 --> 00:27:09.080
 then they won't get that rebate the following year.

00:27:09.080 --> 00:27:11.440
 So those are the measures that we take

00:27:11.440 --> 00:27:15.680
 to protect ourselves, and that's our total economic impact

00:27:15.680 --> 00:27:18.400
 that we will have a return of, this is for nine years,

00:27:18.400 --> 00:27:19.760
 but it doesn't mean that they're gonna get

00:27:19.760 --> 00:27:22.480
 the full grant funding.

00:27:22.480 --> 00:27:25.400
 So all the callback measures where they'll have to pay back

00:27:25.400 --> 00:27:26.760
 all the money that we provided them

00:27:26.760 --> 00:27:27.920
 if they don't meet those measures,

00:27:27.920 --> 00:27:30.240
 and also they won't get it

00:27:30.240 --> 00:27:31.680
 if they don't meet the measures that fall in,

00:27:31.680 --> 00:27:33.720
 second or third year or fourth, or whatever that may be.

00:27:33.720 --> 00:27:35.480
 - So we're tracking it each year to callback

00:27:35.480 --> 00:27:37.200
 if they hadn't met it, and then we,

00:27:37.200 --> 00:27:39.520
 so we have stage gates along the way.

00:27:39.520 --> 00:27:44.520
 And, you know, to, honestly, for what we're giving

00:27:44.520 --> 00:27:47.520
 is pretty minimal compared to other places.

00:27:47.520 --> 00:27:49.360
 So I'm good if it's seven years, you know,

00:27:49.360 --> 00:27:51.240
 where you have a two-year risk there,

00:27:51.240 --> 00:27:52.080
 that's pretty minimal.

00:27:52.080 --> 00:27:53.360
 - So the payback you're trying to get,

00:27:53.360 --> 00:27:55.600
 so that role for us is a 50-gaddy split, right?

00:27:55.600 --> 00:27:57.120
 So if they don't come, there's no money.

00:27:57.120 --> 00:27:57.960
 - That's right.

00:27:57.960 --> 00:28:00.440
 - So all you're trying to recruit in the seven-year payback

00:28:00.440 --> 00:28:01.920
 is the 50% you left.

00:28:01.920 --> 00:28:04.920
 So we still make 50, which you're not counting at all,

00:28:04.920 --> 00:28:05.760
 which is income.

00:28:05.760 --> 00:28:07.960
 So if the payback is on what you let them have,

00:28:07.960 --> 00:28:09.920
 it doesn't mean we didn't make any money all the time.

00:28:09.920 --> 00:28:10.760
 - Right.

00:28:10.760 --> 00:28:15.280
 - Good for the, is it the next slide, maybe?

00:28:15.280 --> 00:28:18.840
 This one.

00:28:18.840 --> 00:28:20.880
 - About one.

00:28:20.880 --> 00:28:21.720
 - That one.

00:28:21.720 --> 00:28:27.720
 So you have 70, or I'm sorry, 27 jobs over 100,000.

00:28:27.720 --> 00:28:32.160
 Then you scroll down and you look at the annual base salary

00:28:32.160 --> 00:28:34.760
 and you add up all the ones, total number,

00:28:34.760 --> 00:28:38.440
 yours one through five, there's only 17 jobs there.

00:28:38.440 --> 00:28:39.480
 Where's the other 10?

00:28:39.480 --> 00:28:43.120
 - So we're actually basing it off

00:28:43.120 --> 00:28:45.520
 the annual base salary plus benefits.

00:28:45.520 --> 00:28:48.040
 And the reason why we did this is because

00:28:48.040 --> 00:28:50.160
 we were gonna be short about three jobs,

00:28:50.160 --> 00:28:52.240
 they weren't gonna be eligible for this grant

00:28:52.240 --> 00:28:55.200
 by three jobs if we just used the base salary.

00:28:55.200 --> 00:28:56.800
 So that's why we're using with benefits.

00:28:56.800 --> 00:28:58.640
 In the agreement, we're gonna require them

00:28:58.640 --> 00:29:01.200
 to report how much they're paying in 401k,

00:29:01.200 --> 00:29:02.600
 whatever benefits, right?

00:29:02.600 --> 00:29:04.200
 That's something we haven't done in the past.

00:29:04.200 --> 00:29:05.640
 Our policy doesn't necessarily say

00:29:05.640 --> 00:29:08.440
 if you have to use base salary or with benefits.

00:29:08.440 --> 00:29:10.920
 Our practice has been just to use base salary.

00:29:10.920 --> 00:29:12.960
 - Well, if you remember in our last conversation

00:29:12.960 --> 00:29:14.040
 when we went through all that,

00:29:14.040 --> 00:29:16.840
 we made a big argument that benefits matter.

00:29:16.840 --> 00:29:18.360
 And so my argument would be

00:29:18.360 --> 00:29:20.320
 we should be using that every time,

00:29:20.320 --> 00:29:22.440
 because that was a whole discussion

00:29:22.440 --> 00:29:24.640
 when we did our last checklist was,

00:29:24.640 --> 00:29:26.760
 if you're paying insurance, if you're paying 401k,

00:29:26.760 --> 00:29:29.720
 that's real dollars and another company may not be paying.

00:29:29.720 --> 00:29:31.240
 So I think we did it properly.

00:29:32.200 --> 00:29:34.360
 - That's how we did that this time.

00:29:34.360 --> 00:29:38.320
 - 'Cause we had-- (overlapping chatter)

00:29:38.320 --> 00:29:41.720
 - Contractors are given the same value or less

00:29:41.720 --> 00:29:43.560
 and it gets tied to the benefit.

00:29:43.560 --> 00:29:44.400
 - That's right.

00:29:44.400 --> 00:29:46.960
 - So I agree with that.

00:29:46.960 --> 00:29:49.240
 - Yeah, I mean, what's in that?

00:29:49.240 --> 00:29:51.600
 Benefits and above in 100k is 27 people.

00:29:51.600 --> 00:29:56.200
 (overlapping chatter)

00:29:56.200 --> 00:29:59.200
 - Yeah, well, she's got the color code.

00:29:59.200 --> 00:30:01.560
 (overlapping chatter)

00:30:01.560 --> 00:30:03.880
 - Help for each section that goes up through the file.

00:30:03.880 --> 00:30:04.720
 - Yeah.

00:30:04.720 --> 00:30:07.480
 (overlapping chatter)

00:30:07.480 --> 00:30:09.120
 - I'd make a motion to approve.

00:30:09.120 --> 00:30:09.960
 - Second.

00:30:09.960 --> 00:30:10.800
 - I second.

00:30:10.800 --> 00:30:11.640
 - Oh, sorry.

00:30:11.640 --> 00:30:14.000
 - I got a question from legal.

00:30:14.000 --> 00:30:15.480
 Do I need to recuse myself?

00:30:15.480 --> 00:30:19.440
 - It's not your business.

00:30:19.440 --> 00:30:22.600
 I think if it, no, I think the fact that there's a--

00:30:22.600 --> 00:30:24.600
 - There's a tie, so I was asking.

00:30:24.600 --> 00:30:27.280
 - I don't think there's any reason you need to.

00:30:27.280 --> 00:30:28.120
 - Okay.

00:30:28.120 --> 00:30:28.960
 (overlapping chatter)

00:30:28.960 --> 00:30:32.120
 - Does Pat Card, the sole contractor?

00:30:32.120 --> 00:30:32.960
 - No.

00:30:32.960 --> 00:30:33.800
 - They have other contracts.

00:30:33.800 --> 00:30:34.640
 - They have other contracts.

00:30:34.640 --> 00:30:35.640
 - But ultimately, that's your choice.

00:30:35.640 --> 00:30:38.120
 You know, whether you recuse us in the discretion of things.

00:30:38.120 --> 00:30:40.400
 (overlapping chatter)

00:30:40.400 --> 00:30:41.880
 - We have a motion and a second.

00:30:41.880 --> 00:30:44.080
 Did you get that recorded?

00:30:44.080 --> 00:30:46.040
 Further conversation, discussion?

00:30:46.040 --> 00:30:49.760
 Hearing none, we'll move to vote.

00:30:49.760 --> 00:30:51.800
 All in favor, signify by saying aye.

00:30:51.800 --> 00:30:52.640
 - Aye.

00:30:52.640 --> 00:30:53.460
 - Aye.

00:30:53.460 --> 00:30:54.300
 - Opposed, same.

00:30:54.300 --> 00:30:58.040
 Hearing none, we'll approve that

00:30:58.040 --> 00:30:59.920
 and we're going to the next, thank you.

00:30:59.920 --> 00:31:02.520
 Great job, great conversation, everyone.

00:31:02.520 --> 00:31:04.040
 Thank you for coming in.

00:31:04.040 --> 00:31:04.880
 We appreciate your attendance.

00:31:04.880 --> 00:31:06.840
 (overlapping chatter)

00:31:06.840 --> 00:31:09.840
 (audience applauds)

00:31:09.840 --> 00:31:14.040
 - So, I think our group's coming up.

00:31:14.040 --> 00:31:16.040
 He's our business agreement specialist.

00:31:16.040 --> 00:31:18.840
 We are going to get more creative

00:31:18.840 --> 00:31:21.000
 with our incentive proposals

00:31:21.000 --> 00:31:23.240
 just because we need to be competitive to other cities.

00:31:23.240 --> 00:31:26.080
 And since we don't have large incentive funds,

00:31:26.080 --> 00:31:27.920
 we will start seeing creative packages like this.

00:31:27.920 --> 00:31:31.900
 At any point, if you have any questions, let us know.

00:31:31.900 --> 00:31:32.880
 - Good morning, everybody.

00:31:32.880 --> 00:31:33.840
 I'm Clay Parker.

00:31:33.840 --> 00:31:35.400
 I'm a business agreement specialist

00:31:35.400 --> 00:31:37.840
 here at the Office of Economic Development.

00:31:37.840 --> 00:31:40.320
 And today I'm gonna bring you an application

00:31:40.320 --> 00:31:41.720
 from Bloomfield Homes.

00:31:41.720 --> 00:31:45.440
 So, today we're presenting their incentive application

00:31:45.440 --> 00:31:48.400
 and trying to seek approval for a recommendation

00:31:48.400 --> 00:31:50.460
 to city council next week.

00:31:50.460 --> 00:31:54.440
 So, Bloomfield Homes is a market-leading home builder.

00:31:54.440 --> 00:31:58.200
 They are a top five in the DFW metro area.

00:31:58.200 --> 00:32:00.000
 And they're headquartered down in South Lake

00:32:00.000 --> 00:32:02.200
 for the last 20 years.

00:32:02.200 --> 00:32:03.680
 And currently in Denton, you can see

00:32:03.680 --> 00:32:05.880
 two of their neighborhoods right here on the Southwest

00:32:05.880 --> 00:32:08.600
 where they're building 248 new homes

00:32:08.600 --> 00:32:11.280
 in Country Lakes and Glenwood Meadows,

00:32:11.280 --> 00:32:12.920
 both of those neighborhoods.

00:32:12.920 --> 00:32:16.520
 So, they currently pay local sales tax

00:32:16.520 --> 00:32:18.640
 on their construction materials

00:32:18.640 --> 00:32:21.040
 at the place where they simply buy them,

00:32:21.040 --> 00:32:25.120
 those warehouses where lumber is or stone is.

00:32:25.120 --> 00:32:29.040
 Alternatively, they can issue a Texas direct payment permit,

00:32:29.040 --> 00:32:31.040
 which I'll get into the requirements of later

00:32:31.040 --> 00:32:32.880
 and how they qualify for that.

00:32:32.880 --> 00:32:36.280
 And that allows a home builder or any company that qualifies

00:32:36.280 --> 00:32:38.800
 to pay taxes on those materials

00:32:38.800 --> 00:32:41.000
 at the job site where it is used.

00:32:41.000 --> 00:32:43.720
 So, in this case, they're paying on the taxes

00:32:43.720 --> 00:32:46.520
 for those materials at those two neighborhoods

00:32:46.520 --> 00:32:48.840
 in the city limits of Denton.

00:32:48.840 --> 00:32:51.760
 So, they're proposing to us to enter a 10-year Chapter 380

00:32:51.760 --> 00:32:55.040
 agreement where they will use their direct pay permit

00:32:55.040 --> 00:32:59.200
 and the company will receive a 33% rebate from us

00:32:59.200 --> 00:33:01.720
 from this newly acquired funding.

00:33:01.720 --> 00:33:04.920
 And we will retain 67% of that new revenue

00:33:04.920 --> 00:33:07.480
 that otherwise would go to the cities

00:33:07.480 --> 00:33:09.760
 where the suppliers have their warehouses.

00:33:09.760 --> 00:33:12.880
 So, for that Texas direct payment permit,

00:33:12.880 --> 00:33:17.880
 you have to qualify by purchasing $800,000

00:33:18.840 --> 00:33:21.400
 of eligible sales annually.

00:33:21.400 --> 00:33:24.920
 And that allows you to pay taxes directly to the controller

00:33:24.920 --> 00:33:27.960
 as opposed to paying to the supplier upfront.

00:33:27.960 --> 00:33:31.000
 And those items have to be for the purchaser's own use

00:33:31.000 --> 00:33:32.560
 and not for an immediate resale.

00:33:32.560 --> 00:33:34.280
 So, in this case, they can't turn around

00:33:34.280 --> 00:33:35.960
 and sell that lumber to somebody else.

00:33:35.960 --> 00:33:37.280
 They're gonna use it to build a house

00:33:37.280 --> 00:33:38.920
 and to sell that house.

00:33:38.920 --> 00:33:40.720
 This is not a new thing for Bloomfield.

00:33:40.720 --> 00:33:43.480
 It's not a new thing for home builders in general.

00:33:43.480 --> 00:33:45.800
 First Texas does this as well.

00:33:45.800 --> 00:33:47.960
 And they currently, Bloomfield specifically,

00:33:47.960 --> 00:33:51.680
 utilize this permit with 21 different communities

00:33:51.680 --> 00:33:54.280
 within DFW, such as ANA, Salagna,

00:33:54.280 --> 00:33:57.560
 a lot of our neighbors and a lot of our friends.

00:33:57.560 --> 00:34:00.120
 So, this is kind of how the math breaks down

00:34:00.120 --> 00:34:02.960
 based on what they estimate to be the average cost

00:34:02.960 --> 00:34:04.960
 of the materials of their houses.

00:34:04.960 --> 00:34:08.680
 So, it's about $75,000 for materials per house.

00:34:08.680 --> 00:34:11.200
 And you multiply that by our local sales tax rate

00:34:11.200 --> 00:34:12.840
 of one and a half percent.

00:34:12.840 --> 00:34:17.400
 And that gets you about $1,000 per house

00:34:17.400 --> 00:34:19.760
 in sales tax revenue generated.

00:34:19.760 --> 00:34:21.600
 Again, outside of this agreement,

00:34:21.600 --> 00:34:24.480
 that sales tax revenue is being dispersed

00:34:24.480 --> 00:34:27.640
 between multiple cities based on where the materials are.

00:34:27.640 --> 00:34:29.880
 But in this case, if all of that was paid

00:34:29.880 --> 00:34:33.000
 at job site in Denton, under this current agreement,

00:34:33.000 --> 00:34:37.240
 that new funding would, 33% of it would go to Bloomfield.

00:34:37.240 --> 00:34:39.960
 So, that'd be $375 per house.

00:34:39.960 --> 00:34:44.240
 We would get new funding of $750 per house.

00:34:44.240 --> 00:34:45.440
 Let me go to the next slide.

00:34:45.440 --> 00:34:47.960
 This is how it adds up, 248 homes

00:34:47.960 --> 00:34:49.640
 in these two neighborhoods,

00:34:49.640 --> 00:34:51.720
 for that $750 that we're gonna get,

00:34:51.720 --> 00:34:56.240
 that's $186,000 of new sales tax revenue

00:34:56.240 --> 00:34:59.400
 that we would not have access to otherwise.

00:34:59.400 --> 00:35:02.880
 And that is assuming a 0% inflation,

00:35:02.880 --> 00:35:05.080
 depending on how long it takes to build these houses

00:35:05.080 --> 00:35:06.880
 and how much materials change.

00:35:06.880 --> 00:35:11.360
 If you assume 5% annual increase, that goes up to 237,000.

00:35:11.360 --> 00:35:13.200
 And if you assume an 8% increase,

00:35:13.200 --> 00:35:15.640
 that goes up to $278,000.

00:35:15.640 --> 00:35:18.840
 But construction materials fluctuate, it's all up in the air.

00:35:18.840 --> 00:35:21.400
 Here's where we start on investment.

00:35:21.400 --> 00:35:23.560
 Obviously, this expands the tax base.

00:35:23.560 --> 00:35:26.360
 It provides the city with over $186,000

00:35:26.360 --> 00:35:29.080
 that we otherwise would not have access to.

00:35:29.080 --> 00:35:31.760
 It also creates good relationships with Bloomfield,

00:35:31.760 --> 00:35:33.320
 which helps with business retention

00:35:33.320 --> 00:35:35.280
 when it comes to construction jobs,

00:35:35.280 --> 00:35:37.880
 based on how much they estimate the need

00:35:37.880 --> 00:35:40.640
 for construction workers on a per house level.

00:35:40.640 --> 00:35:43.240
 They estimate it's about 992 construction jobs

00:35:43.240 --> 00:35:47.000
 throughout the construction of both of these neighborhoods.

00:35:47.000 --> 00:35:48.720
 Bloomfield's also a sustainable company.

00:35:48.720 --> 00:35:52.040
 They try their best to use efficient HVAC lighting appliances

00:35:52.040 --> 00:35:54.040
 and it's a part of a lot of their certification,

00:35:54.040 --> 00:35:56.080
 how they advertise their solid homes.

00:35:56.080 --> 00:35:57.400
 And they're also a charitable company.

00:35:57.400 --> 00:35:59.320
 In a lot of the neighborhoods they set up,

00:35:59.320 --> 00:36:02.920
 they have food pantries and library reading programs,

00:36:02.920 --> 00:36:04.920
 a lot of positive stuff for the communities

00:36:04.920 --> 00:36:06.440
 that they are investing in.

00:36:06.440 --> 00:36:10.040
 So the incentive recommendation would be

00:36:10.040 --> 00:36:12.960
 to do a chapter 380 grant,

00:36:12.960 --> 00:36:16.760
 which is a sales tax rebate on those construction materials

00:36:16.760 --> 00:36:19.360
 at 33% for 10 years.

00:36:19.360 --> 00:36:22.920
 Then for your options,

00:36:22.920 --> 00:36:25.720
 it is following through that staff recommendation

00:36:25.720 --> 00:36:27.920
 for opting to choose no incentives.

00:36:27.920 --> 00:36:33.160
 - So question, on the,

00:36:33.160 --> 00:36:36.640
 you said the $186,000 we wouldn't normally get,

00:36:36.640 --> 00:36:39.400
 does that assume they don't build a house?

00:36:39.400 --> 00:36:41.520
 - That assumes, so they're building the houses,

00:36:41.520 --> 00:36:43.600
 that assumes that they don't opt

00:36:43.600 --> 00:36:45.520
 to use that tax and direct pay permit.

00:36:45.520 --> 00:36:49.160
 So otherwise, say lumber, for instance.

00:36:49.160 --> 00:36:51.880
 Bloomfield specifically and most home builders

00:36:51.880 --> 00:36:53.880
 get lumber from First Source Building,

00:36:53.880 --> 00:36:55.880
 which is out in Frisco.

00:36:55.880 --> 00:36:59.760
 So I buy it at that warehouse,

00:36:59.760 --> 00:37:03.680
 technically all that sales tax for lumber goes to Frisco,

00:37:03.680 --> 00:37:05.040
 but under this current agreement,

00:37:05.040 --> 00:37:07.760
 it would be able to pay at job site,

00:37:07.760 --> 00:37:09.640
 which would be in the detected neighborhood.

00:37:09.640 --> 00:37:10.840
 - Excellent, excellent.

00:37:10.840 --> 00:37:13.360
 The assumption is that none of their suppliers

00:37:13.360 --> 00:37:15.360
 currently exist and didn't count.

00:37:15.360 --> 00:37:17.000
 - The majority of their suppliers.

00:37:17.000 --> 00:37:18.600
 - They're preferred suppliers that they use.

00:37:18.600 --> 00:37:20.200
 They probably are suppliers that provide it,

00:37:20.200 --> 00:37:22.560
 but that's probably not who they use as their go-to.

00:37:22.560 --> 00:37:24.520
 - Well, my question is, is if they buy it,

00:37:24.520 --> 00:37:27.560
 then do we still split those tax savings

00:37:27.560 --> 00:37:29.240
 if they were doing business alone?

00:37:29.240 --> 00:37:30.200
 - Yes.

00:37:30.200 --> 00:37:32.280
 - We've looked at this on multifamily

00:37:32.280 --> 00:37:34.600
 in pretty high level detail in the past,

00:37:34.600 --> 00:37:37.040
 and there's a lot of work that goes into it

00:37:37.040 --> 00:37:40.320
 on their side to keep the records for this.

00:37:40.320 --> 00:37:43.000
 My issue with these has only been,

00:37:43.000 --> 00:37:44.880
 I think I can support it,

00:37:44.880 --> 00:37:49.880
 but it incentivized them to buy supplies outside of Denton

00:37:49.880 --> 00:37:52.480
 because they split or we're giving up tax

00:37:52.480 --> 00:37:55.360
 that we would get for our businesses

00:37:55.360 --> 00:37:57.120
 that are currently in debt.

00:37:57.120 --> 00:37:58.920
 So that's where I've always kind of,

00:37:58.920 --> 00:38:02.480
 not sure if it's a one-time project

00:38:02.480 --> 00:38:06.240
 and everything's out that they're outside of town

00:38:06.240 --> 00:38:07.520
 and they're not doing business

00:38:07.520 --> 00:38:12.080
 with 84 lumber out here already,

00:38:12.080 --> 00:38:14.960
 'cause now we're splitting that tax savings already.

00:38:14.960 --> 00:38:17.240
 So that's where I kind of have a little bit of,

00:38:17.240 --> 00:38:19.680
 we never did it in our multifamily world,

00:38:19.680 --> 00:38:22.920
 just because one, it's a lot of paperwork.

00:38:22.920 --> 00:38:24.320
 They probably have good processes

00:38:24.320 --> 00:38:27.240
 'cause they're doing it in multiple cities to do that,

00:38:27.240 --> 00:38:32.240
 but does it incentivize doing business in Denton?

00:38:32.240 --> 00:38:35.320
 That's my only kind of downside.

00:38:35.320 --> 00:38:37.400
 And if their vendor list is already,

00:38:37.400 --> 00:38:40.880
 no, they're not buying from vendors out of Denton anyway.

00:38:40.880 --> 00:38:42.160
 Do we have that information

00:38:42.160 --> 00:38:44.840
 of what business are doing in Denton and what they're not?

00:38:44.840 --> 00:38:46.720
 - So we have some information on,

00:38:46.720 --> 00:38:48.120
 obviously we don't have as much information

00:38:48.120 --> 00:38:49.760
 on what they're buying outside.

00:38:49.760 --> 00:38:51.200
 We have some of the tax revenue

00:38:51.200 --> 00:38:54.760
 from the last few years of what they've done here.

00:38:54.760 --> 00:38:58.160
 It reflects that they're buying outside of Denton

00:38:58.160 --> 00:39:01.280
 in terms of it doesn't look like something like 90%

00:39:01.280 --> 00:39:02.760
 of their materials are coming from here

00:39:02.760 --> 00:39:03.600
 or anything like that.

00:39:03.600 --> 00:39:06.440
 - We would probably also, if they give you information

00:39:06.440 --> 00:39:08.560
 on a neighborhood in Francisco,

00:39:08.560 --> 00:39:09.840
 then there'll be different suppliers

00:39:09.840 --> 00:39:10.680
 when they're using it in Denton.

00:39:10.680 --> 00:39:11.960
 So you'd have to almost cop it

00:39:11.960 --> 00:39:14.120
 with another neighborhood they've done in Denton

00:39:14.120 --> 00:39:17.040
 and where do they spend their money to come up with that?

00:39:17.040 --> 00:39:18.040
 It's gonna be hard to--

00:39:18.040 --> 00:39:19.960
 - Really, it's not a big needle mover, right?

00:39:19.960 --> 00:39:21.080
 It's 186,000.

00:39:21.080 --> 00:39:23.360
 Is there any extra work that that's gonna cost the city

00:39:23.360 --> 00:39:24.200
 to do accounting for you?

00:39:24.200 --> 00:39:25.680
 So is it all done through the state?

00:39:25.680 --> 00:39:27.240
 - For that administrative stuff,

00:39:27.240 --> 00:39:28.440
 that's part of their agreement

00:39:28.440 --> 00:39:31.200
 where they're basically handling all of it.

00:39:31.200 --> 00:39:33.800
 - So is it gonna put any extra workload on the city staff?

00:39:33.800 --> 00:39:35.000
 - There'll be some compliance

00:39:35.000 --> 00:39:37.600
 and maintaining compliance with it.

00:39:37.600 --> 00:39:40.240
 But the catalyst behind this was

00:39:40.240 --> 00:39:42.280
 we're trying to get creative with our incentives

00:39:42.280 --> 00:39:45.000
 and right now this conversation

00:39:45.000 --> 00:39:46.520
 of economic development is competitive.

00:39:46.520 --> 00:39:48.360
 That's just the way it is.

00:39:48.360 --> 00:39:51.720
 And we see this as a way to increase the tax base

00:39:51.720 --> 00:39:54.560
 without paying down cash.

00:39:54.560 --> 00:39:55.960
 - It's very easy to administer

00:39:55.960 --> 00:39:57.240
 'cause we've done to already.

00:39:57.240 --> 00:39:59.520
 With Winkow, we did sales and use for construction.

00:39:59.520 --> 00:40:01.000
 We didn't do it over a 10-year period.

00:40:01.000 --> 00:40:03.440
 It was one time for the equipping of their facility.

00:40:03.440 --> 00:40:04.720
 We also did it for O'Reilly,

00:40:04.720 --> 00:40:06.440
 the Convention Center, one time.

00:40:06.440 --> 00:40:08.120
 There's actually two separate codes

00:40:08.120 --> 00:40:11.120
 that the city receives and work with our finance department,

00:40:11.120 --> 00:40:14.560
 26 and 27, so we literally can marry them up

00:40:14.560 --> 00:40:16.760
 with their returns if they give us some of the comptroller.

00:40:16.760 --> 00:40:18.920
 And I think we were like four cents off on one of them.

00:40:18.920 --> 00:40:21.640
 So very easy to administer with the taxes directly.

00:40:21.640 --> 00:40:22.480
 - That's what I'm just going,

00:40:22.480 --> 00:40:23.960
 if it's gonna add a big uplift,

00:40:23.960 --> 00:40:27.520
 we've gotta add, you know, for ongoing one project,

00:40:27.520 --> 00:40:29.160
 I kind of get that, right?

00:40:29.160 --> 00:40:32.240
 It's a one, but an ongoing kind of thing.

00:40:32.240 --> 00:40:35.880
 - It would be a semi-annual draw.

00:40:35.880 --> 00:40:38.160
 So it wouldn't be that much administrative time.

00:40:38.160 --> 00:40:39.880
 We wouldn't be doing it on a monthly basis.

00:40:39.880 --> 00:40:42.640
 Like we do for some of our sales tax incentives.

00:40:42.640 --> 00:40:44.760
 So that would be a lot easier to end use.

00:40:44.760 --> 00:40:47.960
 - Mr. Melton.

00:40:47.960 --> 00:40:49.800
 - Yeah, thanks.

00:40:49.800 --> 00:40:52.760
 Other people know about this too, right?

00:40:52.760 --> 00:40:55.160
 It's not just like only Ed knows about this.

00:40:55.160 --> 00:40:56.720
 - Yeah, they currently have agreements

00:40:56.720 --> 00:40:58.440
 with 21 different communities,

00:40:58.440 --> 00:41:00.240
 Bloomfield specifically.

00:41:00.240 --> 00:41:03.120
 It's public record to who has a Texas Direct Pay Permit.

00:41:03.120 --> 00:41:05.400
 So you can go to the website of the comptrollers

00:41:05.400 --> 00:41:07.720
 and type in home so you can see it.

00:41:07.720 --> 00:41:09.400
 First Texas has it.

00:41:09.400 --> 00:41:11.040
 - I wasn't really looking at the list.

00:41:11.040 --> 00:41:15.160
 My point is, you know, essentially we're,

00:41:15.160 --> 00:41:18.920
 we're kind of bogarting sales tax from another community.

00:41:18.920 --> 00:41:22.120
 Presumably, others will catch on to this.

00:41:22.120 --> 00:41:24.600
 And I'd be interested in your point of view

00:41:24.600 --> 00:41:26.960
 on what the implications are

00:41:26.960 --> 00:41:28.720
 if this becomes the general practice.

00:41:28.720 --> 00:41:32.160
 Does it create a race to the bottom on sales tax rates?

00:41:32.160 --> 00:41:33.880
 'Cause who can attract,

00:41:33.880 --> 00:41:37.000
 who can kind of attract the most, you know,

00:41:37.000 --> 00:41:39.520
 sales tax opportunities from other communities?

00:41:39.520 --> 00:41:40.360
 Does it?

00:41:40.360 --> 00:41:41.200
 - It's already there.

00:41:41.200 --> 00:41:43.560
 - Yeah, I can answer for Clay so he doesn't have to.

00:41:43.560 --> 00:41:48.080
 But economic development isn't a fair process.

00:41:48.080 --> 00:41:49.600
 Like it is competitive.

00:41:49.600 --> 00:41:51.360
 We've had this conversation and the model--

00:41:51.360 --> 00:41:53.320
 - Do we win in that competition is my question.

00:41:53.320 --> 00:41:54.160
 - I'm sorry?

00:41:54.160 --> 00:41:55.240
 - I get it's competitive.

00:41:55.240 --> 00:41:57.440
 To win when everybody's doing it.

00:41:57.440 --> 00:41:59.120
 - I mean, that's the model and that's what we have

00:41:59.120 --> 00:42:01.120
 to be aggressive in what we're going after.

00:42:01.120 --> 00:42:03.840
 And that was kind of our charge with this committee

00:42:03.840 --> 00:42:05.000
 and how do we get creative?

00:42:05.000 --> 00:42:07.160
 How do we get out there and pull some of this?

00:42:07.160 --> 00:42:09.120
 So if we step back and we're not pulling for it,

00:42:09.120 --> 00:42:10.640
 it still exists and it's happening.

00:42:10.640 --> 00:42:14.200
 So likely revenues being pulled from the city of Denton.

00:42:14.200 --> 00:42:16.040
 - 'Cause I know I was just in a meeting up in Gainesville

00:42:16.040 --> 00:42:17.840
 the other day and they passed the same thing

00:42:17.840 --> 00:42:20.360
 for residential subdivision in Gainesville,

00:42:20.360 --> 00:42:22.120
 the 10th Creek, this period.

00:42:22.120 --> 00:42:25.880
 And I promise you that's their closest supplier

00:42:25.880 --> 00:42:28.680
 to be competitive who've been coming out of Denton.

00:42:28.680 --> 00:42:30.800
 'Cause they're not gonna ship stuff out of the Metroplex

00:42:30.800 --> 00:42:32.280
 to Gainesville for built houses.

00:42:32.280 --> 00:42:33.600
 They're probably coming out of Denton,

00:42:33.600 --> 00:42:35.240
 which is for shipping costs.

00:42:35.240 --> 00:42:38.240
 Which is really smart for Gainesville to do that.

00:42:38.240 --> 00:42:40.000
 They were a little ahead of the crowd.

00:42:40.000 --> 00:42:41.800
 It might've been Cook County actually.

00:42:41.800 --> 00:42:43.800
 May not have been the city of Gainesville.

00:42:43.800 --> 00:42:46.760
 But it's happening all over.

00:42:46.760 --> 00:42:48.240
 And I like the incentive.

00:42:48.240 --> 00:42:50.760
 I think where we, I would support this,

00:42:50.760 --> 00:42:53.040
 but I think where we can have more uplift,

00:42:53.040 --> 00:42:54.960
 if you look at these multifamily projects

00:42:54.960 --> 00:42:56.520
 that are going up everywhere,

00:42:56.520 --> 00:42:57.960
 that's a big lumber package.

00:42:57.960 --> 00:42:59.560
 That's probably, you know,

00:42:59.560 --> 00:43:03.320
 seven, eight million dollars in just lumber alone.

00:43:03.320 --> 00:43:04.600
 And we've talked about it in the past.

00:43:04.600 --> 00:43:06.680
 It's just teaching people how to administer it.

00:43:06.680 --> 00:43:09.400
 So it's happening everywhere right now.

00:43:09.400 --> 00:43:12.360
 - And would it be more efficient

00:43:12.360 --> 00:43:14.880
 in getting more benefits here

00:43:14.880 --> 00:43:17.840
 by finding ways to incentivize them to buy here?

00:43:17.840 --> 00:43:19.280
 - Yes, but the problem is,

00:43:19.280 --> 00:43:21.160
 you look at lumberyards, builder's first sources,

00:43:21.160 --> 00:43:22.120
 who they're buying from.

00:43:22.120 --> 00:43:24.120
 And they're the largest lumber supplier.

00:43:24.120 --> 00:43:26.840
 Or you look at how in apartments,

00:43:26.840 --> 00:43:29.320
 we buy it directly from the mills to a broker, right?

00:43:29.320 --> 00:43:31.920
 So there's no way a local lumber supplier

00:43:31.920 --> 00:43:33.880
 could compete with what that is.

00:43:33.880 --> 00:43:35.160
 So there's a lot of moving parts.

00:43:35.160 --> 00:43:37.280
 That's what my original thought when I looked at this,

00:43:37.280 --> 00:43:40.480
 I go, we're de-incentivizing buying here in town.

00:43:40.480 --> 00:43:42.600
 But not really because they're just getting a piece

00:43:42.600 --> 00:43:44.520
 of that tax incentive too, right?

00:43:44.520 --> 00:43:45.840
 So that helps it up.

00:43:45.840 --> 00:43:48.520
 But having other cities taking that from us

00:43:48.520 --> 00:43:49.760
 is the problem, right?

00:43:49.760 --> 00:43:51.480
 Because it's like Cook County,

00:43:51.480 --> 00:43:53.560
 they're buying out of that problem.

00:43:53.560 --> 00:43:57.000
 - So if you're a developing community,

00:43:57.000 --> 00:43:58.080
 you're a pro-developing community,

00:43:58.080 --> 00:43:59.720
 then this is the way to go.

00:43:59.720 --> 00:44:02.240
 If you were a community that has a lot of suppliers,

00:44:02.240 --> 00:44:03.400
 this is not the way to go.

00:44:03.400 --> 00:44:04.240
 - That's right.

00:44:04.240 --> 00:44:05.840
 - So I don't think we have the latter.

00:44:05.840 --> 00:44:06.920
 - Yep.

00:44:06.920 --> 00:44:07.760
 - So it's probably the way to go.

00:44:07.760 --> 00:44:09.200
 - I think these are valid questions

00:44:09.200 --> 00:44:11.000
 because of my exact thought process.

00:44:11.000 --> 00:44:12.560
 We don't want to de-incentivize it.

00:44:12.560 --> 00:44:17.000
 But if there's other companies taking our tax base,

00:44:17.000 --> 00:44:19.280
 so, you know, from our suppliers.

00:44:19.280 --> 00:44:20.880
 So it's a creative tax.

00:44:20.880 --> 00:44:22.680
 And I think this is a good start.

00:44:22.680 --> 00:44:25.040
 And I know, but the bigger projects

00:44:25.040 --> 00:44:27.160
 is where this really works well,

00:44:27.160 --> 00:44:32.200
 is kind of their purpose.

00:44:32.200 --> 00:44:33.360
 - Good conversation.

00:44:33.360 --> 00:44:34.240
 Do we have a motion?

00:44:34.240 --> 00:44:36.120
 - Steve, right away.

00:44:36.120 --> 00:44:37.240
 - I'm not opposed to this,

00:44:37.240 --> 00:44:39.800
 but do you have a place I could go to get more information

00:44:39.800 --> 00:44:41.360
 so I could read more about this, please?

00:44:41.360 --> 00:44:42.200
 - Absolutely.

00:44:42.200 --> 00:44:43.520
 The Comptroller has tons of perspectives.

00:44:43.520 --> 00:44:46.360
 - I move that we approve the staff recommendation.

00:44:46.360 --> 00:44:48.920
 I have a resource document that we can distribute.

00:44:48.920 --> 00:44:52.640
 - We have a motion and a second.

00:44:52.640 --> 00:44:54.200
 Any further conversation?

00:44:54.200 --> 00:44:55.800
 It's okay if we don't.

00:44:55.800 --> 00:44:56.640
 All right.

00:44:56.640 --> 00:44:58.880
 (laughing)

00:44:58.880 --> 00:45:03.760
 All in favor, say goodbye by saying that.

00:45:03.760 --> 00:45:04.600
 Any opposed?

00:45:04.600 --> 00:45:05.440
 Same sign.

00:45:05.440 --> 00:45:06.280
 - I have an aye yet.

00:45:06.280 --> 00:45:08.040
 I'm gonna say I appreciate the conversation.

00:45:08.040 --> 00:45:09.280
 I give another point at the end.

00:45:09.280 --> 00:45:10.360
 - Okay.

00:45:10.360 --> 00:45:11.200
 So moved.

00:45:11.200 --> 00:45:12.040
 Thank you.

00:45:12.040 --> 00:45:12.860
 Appreciate it.

00:45:12.860 --> 00:45:13.700
 Good job.

00:45:13.700 --> 00:45:14.540
 Thanks everyone.

00:45:17.240 --> 00:45:20.200
 (papers rustling)

00:45:20.200 --> 00:45:21.040
 - All right.

00:45:21.040 --> 00:45:22.160
 Is that all on the agenda?

00:45:22.160 --> 00:45:23.560
 We move to work session now.

00:45:23.560 --> 00:45:24.400
 Is that accurate?

00:45:24.400 --> 00:45:26.680
 All right.

00:45:26.680 --> 00:45:27.800
 First session.

00:45:27.800 --> 00:45:30.280
 Going right ahead.

00:45:30.280 --> 00:45:32.800
 Mr. Fines.

00:45:32.800 --> 00:45:37.800
 - I didn't realize that I had a speaking part today.

00:45:37.800 --> 00:45:40.000
 (laughing)

00:45:40.000 --> 00:45:41.400
 - Should we get comfortable?

00:45:41.400 --> 00:45:42.240
 - Yeah.

00:45:42.240 --> 00:45:45.560
 I don't know if there's a significant amount of change

00:45:45.560 --> 00:45:48.280
 since the last presentation that we did.

00:45:48.280 --> 00:45:52.900
 The economic development or downtown plan

00:45:52.900 --> 00:45:57.900
 was approved on September 17th with the city council.

00:45:57.900 --> 00:46:01.800
 And I had actually asked Christine on another deal,

00:46:01.800 --> 00:46:03.080
 a little bit of information about that.

00:46:03.080 --> 00:46:06.000
 So I figured it'd probably be good just to echo her comments

00:46:06.000 --> 00:46:09.080
 that she gave me early in the week about that.

00:46:09.080 --> 00:46:13.920
 But it was approved for the expansion of that district

00:46:13.920 --> 00:46:15.000
 in the downtown area.

00:46:15.000 --> 00:46:18.040
 It will, it goes to the council work session

00:46:18.040 --> 00:46:20.840
 on the 19th of this month.

00:46:20.840 --> 00:46:23.960
 Hopefully, it'd correct me if these dates have changed.

00:46:23.960 --> 00:46:25.760
 Then tourist board approval

00:46:25.760 --> 00:46:29.520
 will be a special called meeting to be determined.

00:46:29.520 --> 00:46:32.420
 Then it goes to public hearing on December 3rd,

00:46:32.420 --> 00:46:34.880
 public hearing the second one on December 17th,

00:46:34.880 --> 00:46:38.600
 and then looking for council approval on December 17th.

00:46:38.600 --> 00:46:42.880
 And that'll expand the boundary of that district.

00:46:43.760 --> 00:46:46.680
 And that goes, and I think most probably everybody

00:46:46.680 --> 00:46:49.440
 in this group is well versed enough to know,

00:46:49.440 --> 00:46:54.440
 but the outline expands down to Eagle

00:46:54.440 --> 00:47:00.760
 and then out east on Hickory

00:47:00.760 --> 00:47:02.160
 out toward the new development area.

00:47:02.160 --> 00:47:07.120
 So anyway, I think a lot of activity on that.

00:47:07.120 --> 00:47:10.040
 There were some, I guess, comments in our meeting

00:47:10.040 --> 00:47:12.360
 with regard to this as well,

00:47:12.360 --> 00:47:16.040
 Carol Boulevard and the road and the lanes being reduced

00:47:16.040 --> 00:47:21.040
 and things like that to allow for more pedestrian access.

00:47:21.040 --> 00:47:24.600
 I'm just giving you a 50,000 foot level

00:47:24.600 --> 00:47:27.200
 'cause I'm not an expert in all that.

00:47:27.200 --> 00:47:30.680
 I don't know that there were any additional grant

00:47:30.680 --> 00:47:33.880
 construction on the road.

00:47:33.880 --> 00:47:38.180
 Everything was updated and done complete on that piece.

00:47:38.180 --> 00:47:42.000
 And I think if they came back to do some improvement,

00:47:42.000 --> 00:47:44.880
 I guess, not change orders, but corrections,

00:47:44.880 --> 00:47:47.360
 and those are being completed, I presume, at this point.

00:47:47.360 --> 00:47:49.160
 I don't know that from a grant standpoint,

00:47:49.160 --> 00:47:51.760
 there were anything new from the last time that we met.

00:47:51.760 --> 00:47:53.080
 Christine, what do you need?

00:47:53.080 --> 00:47:54.320
 - I was telling you, next slide.

00:47:54.320 --> 00:47:55.140
 - Okay.

00:47:55.140 --> 00:47:58.640
 I don't think there was anything additional on that

00:47:58.640 --> 00:48:00.480
 that we haven't already seen.

00:48:00.480 --> 00:48:02.240
 Then we have an ambassador update.

00:48:02.240 --> 00:48:05.420
 Next slide, next slide.

00:48:05.420 --> 00:48:10.560
 Did you show us the trash in red, litter, in blue?

00:48:10.560 --> 00:48:11.840
 You can see the last few months,

00:48:11.840 --> 00:48:14.860
 there has been a little increase in the litter.

00:48:14.860 --> 00:48:19.120
 The bill sticker is graffiti up and down.

00:48:19.120 --> 00:48:21.920
 There's really no pattern on that, the last three months.

00:48:21.920 --> 00:48:23.720
 Next slide.

00:48:23.720 --> 00:48:28.840
 I don't know that this is,

00:48:28.840 --> 00:48:30.200
 everybody's already kind of reviewed this.

00:48:30.200 --> 00:48:33.160
 If you go to the downtown, openings and closings.

00:48:33.160 --> 00:48:35.440
 But one thing I had a question on, the next slide,

00:48:35.440 --> 00:48:37.960
 there was Omega's Dream Child Care open and closed

00:48:37.960 --> 00:48:40.400
 in the three-month period, is that correct?

00:48:40.400 --> 00:48:41.400
 - That is correct.

00:48:41.400 --> 00:48:42.240
 - Okay.

00:48:42.240 --> 00:48:48.920
 So, jobs gained obviously with Union Bear coming online.

00:48:48.920 --> 00:48:52.520
 That was 90 of the 117.

00:48:52.520 --> 00:48:57.280
 Net, or the jobs lost for the period were 14.

00:48:57.280 --> 00:49:01.200
 So a net of 103 overall.

00:49:01.200 --> 00:49:04.000
 And that's basically an update.

00:49:04.000 --> 00:49:06.520
 The only other thing on the

00:49:06.520 --> 00:49:07.720
 downtown national development committee

00:49:07.720 --> 00:49:08.560
 just to kind of think about,

00:49:08.560 --> 00:49:10.720
 and I talked to Steve a little bit about that,

00:49:11.800 --> 00:49:13.440
 I didn't know it one year.

00:49:13.440 --> 00:49:15.240
 I was the board chair for this year.

00:49:15.240 --> 00:49:19.240
 So come January, there will be a new,

00:49:19.240 --> 00:49:20.360
 I guess it'll come to this committee

00:49:20.360 --> 00:49:21.880
 for a new appointment for that.

00:49:21.880 --> 00:49:24.440
 And I would personally prefer someone else

00:49:24.440 --> 00:49:28.280
 would stick up here so I can get back to work a little bit.

00:49:28.280 --> 00:49:29.120
 (laughing)

00:49:29.120 --> 00:49:31.080
 A few more hours.

00:49:31.080 --> 00:49:32.520
 - You guys did a great job though.

00:49:32.520 --> 00:49:33.840
 (laughing)

00:49:33.840 --> 00:49:34.680
 - Any questions?

00:49:34.680 --> 00:49:37.240
 Thank you.

00:49:37.240 --> 00:49:38.080
 - Good job.

00:49:41.400 --> 00:49:43.720
 (footsteps)

00:49:43.720 --> 00:49:50.400
 - This one?

00:49:50.400 --> 00:49:51.240
 - Yep.

00:49:51.240 --> 00:49:56.080
 Up next is major records report since we last saw you.

00:49:56.080 --> 00:49:57.480
 It's been two months since we last saw you,

00:49:57.480 --> 00:49:59.600
 but we've had a lot of great news coming out

00:49:59.600 --> 00:50:02.480
 of our office and our team's office.

00:50:02.480 --> 00:50:04.440
 So South Park expansion was approved.

00:50:04.440 --> 00:50:06.360
 Congratulations, this was something that you approved.

00:50:06.360 --> 00:50:07.680
 Put yourself on the back.

00:50:07.680 --> 00:50:09.760
 You can count this on your portfolios, resumes,

00:50:09.760 --> 00:50:12.960
 whatever, it might be on your time serving on this board,

00:50:12.960 --> 00:50:15.120
 but that's 95 jobs.

00:50:15.120 --> 00:50:17.600
 And I think it's what, $17 million?

00:50:17.600 --> 00:50:19.280
 A couple of us that had to pull up my laptop.

00:50:19.280 --> 00:50:21.640
 But congratulations, we're excited.

00:50:21.640 --> 00:50:24.080
 South Fire, they're still waiting for TechSoc

00:50:24.080 --> 00:50:27.160
 to finalize their loop expansion plans,

00:50:27.160 --> 00:50:29.040
 but it's still in the works.

00:50:29.040 --> 00:50:30.600
 Next slide.

00:50:30.600 --> 00:50:32.840
 We do have a very exciting announcement.

00:50:32.840 --> 00:50:35.560
 Stoltz North USA just announced

00:50:35.560 --> 00:50:37.560
 that they are moving to Denton.

00:50:37.560 --> 00:50:39.400
 So this was something that was brought

00:50:39.400 --> 00:50:41.760
 because of our, I feel like it was our due diligence

00:50:41.760 --> 00:50:44.040
 and our efforts in hosting them.

00:50:44.040 --> 00:50:45.960
 So they first contacted both the chamber

00:50:45.960 --> 00:50:49.640
 and the city's staff to meet back in,

00:50:49.640 --> 00:50:51.840
 I think it was July, August.

00:50:51.840 --> 00:50:53.960
 So we planned an initial site tour

00:50:53.960 --> 00:50:56.440
 with the CEO of the company, Brian Hapmaker,

00:50:56.440 --> 00:50:58.080
 and his colleagues.

00:50:58.080 --> 00:51:00.320
 And so we brought in Jamie Adams

00:51:00.320 --> 00:51:03.120
 with the Economic Development Partnership.

00:51:03.120 --> 00:51:05.400
 And then we brought in Charlie Roosevelt

00:51:05.400 --> 00:51:08.920
 with Development Services, D&E, Tony Puente, and Jeff Filder.

00:51:08.920 --> 00:51:11.360
 And then we also brought in Workforce Solutions.

00:51:11.360 --> 00:51:14.160
 And so we didn't hear back from them for a few weeks.

00:51:14.160 --> 00:51:17.920
 They did contact us later to ask about incentives.

00:51:17.920 --> 00:51:19.720
 And they did bring their HR director

00:51:19.720 --> 00:51:21.160
 to come and look at the site.

00:51:21.160 --> 00:51:23.640
 They are looking at leasing,

00:51:23.640 --> 00:51:26.840
 it's the third leasing building, number three,

00:51:26.840 --> 00:51:30.040
 at 288 and 380 Logistics Park.

00:51:30.040 --> 00:51:34.040
 So the HR director, we hosted them at the NBC Suites.

00:51:34.040 --> 00:51:36.000
 And I'm trying to think who else was in the room.

00:51:36.000 --> 00:51:38.200
 Clay was in the room, Christina, Jamie.

00:51:38.200 --> 00:51:40.320
 And we also brought in another gentleman,

00:51:40.320 --> 00:51:41.440
 Workforce Solutions.

00:51:41.440 --> 00:51:44.480
 And so we didn't hear back from them for a few weeks.

00:51:44.480 --> 00:51:48.360
 And then we heard back maybe a month,

00:51:48.360 --> 00:51:49.400
 a few weeks ago actually, and said,

00:51:49.400 --> 00:51:51.800
 "Hey, we signed the lease, we're moving to Denton."

00:51:51.800 --> 00:51:53.760
 So they decided to opt out and send us

00:51:53.760 --> 00:51:56.000
 because of the lengthy process that we have.

00:51:56.000 --> 00:51:57.840
 That's a conversation for another day.

00:51:57.840 --> 00:51:59.600
 But so we're excited to have them.

00:51:59.600 --> 00:52:02.000
 They are opening their third location here.

00:52:02.000 --> 00:52:04.920
 They manufacture technology,

00:52:04.920 --> 00:52:06.960
 cooling equipment for data centers.

00:52:06.960 --> 00:52:09.760
 And so their initial project name was Project Westward

00:52:09.760 --> 00:52:10.840
 because they wanted to move west.

00:52:10.840 --> 00:52:14.120
 So again, so third facility is gonna be their only one

00:52:14.120 --> 00:52:15.760
 in Texas, we're excited about.

00:52:15.760 --> 00:52:19.840
 200 jobs and a $17 million capital investment.

00:52:19.840 --> 00:52:21.560
 And so if you don't follow us on social media,

00:52:21.560 --> 00:52:23.200
 please do because that's where we're releasing

00:52:23.200 --> 00:52:24.400
 the latest announcements.

00:52:24.400 --> 00:52:29.200
 Wing launch, as you know,

00:52:29.200 --> 00:52:32.920
 they launched at the Walmart on Loop 288 on October 2nd.

00:52:32.920 --> 00:52:36.440
 And we are still planning the tour for the board.

00:52:36.440 --> 00:52:38.280
 They've launched in both Lancaster

00:52:38.280 --> 00:52:41.760
 and I think 40 maybe, I can't remember the other site.

00:52:41.760 --> 00:52:42.720
 So they've been a little bit busy,

00:52:42.720 --> 00:52:44.840
 but the tour is still underway.

00:52:44.840 --> 00:52:47.400
 We'll send you those dates whenever we get them.

00:52:47.400 --> 00:52:51.040
 So Wing is flying within a six mile delivery radius

00:52:51.040 --> 00:52:54.200
 and they currently have 10 delivery drones.

00:52:54.200 --> 00:52:57.200
 And we're looking forward to their next expansion

00:52:57.200 --> 00:53:01.560
 at that same Walmart, which we will announce here soon.

00:53:03.840 --> 00:53:08.600
 Well, Lunsford had their groundbreaking for Denton Point

00:53:08.600 --> 00:53:11.440
 number three, four and five.

00:53:11.440 --> 00:53:13.080
 That's three additional buildings,

00:53:13.080 --> 00:53:15.640
 a little over 450,000 square feet of development

00:53:15.640 --> 00:53:17.080
 of I say warehouse space.

00:53:17.080 --> 00:53:19.600
 And so they invited us to attend.

00:53:19.600 --> 00:53:20.840
 So we're excited about that.

00:53:20.840 --> 00:53:24.080
 I think one of the Lunsford owners said

00:53:24.080 --> 00:53:26.800
 that they weren't worried about filling those buildings

00:53:26.800 --> 00:53:29.320
 just because Denton is a hot market.

00:53:31.200 --> 00:53:34.600
 Our staff attended the Move America Trade Show in Austin

00:53:34.600 --> 00:53:36.320
 and the trade show focused on mobility,

00:53:36.320 --> 00:53:38.200
 technology and sustainability.

00:53:38.200 --> 00:53:41.000
 And so we met with several startup companies

00:53:41.000 --> 00:53:44.360
 that are in the mobility tech world.

00:53:44.360 --> 00:53:46.520
 We also went with Bill Kahn,

00:53:46.520 --> 00:53:48.640
 research and development engineer for Peterbilt.

00:53:48.640 --> 00:53:51.240
 Thank you, Jamie Adams for the sponsorship and Erin.

00:53:51.240 --> 00:53:53.600
 And so we had a great time.

00:53:53.600 --> 00:53:57.360
 Bill is actually over a lot of the innovation initiatives

00:53:57.360 --> 00:53:58.640
 at Peterbilt.

00:53:58.640 --> 00:54:01.000
 And so we didn't know when we walked into the trade show

00:54:01.000 --> 00:54:02.520
 that there was gonna be a Peterbilt truck.

00:54:02.520 --> 00:54:03.880
 And so it just so happened it was right there

00:54:03.880 --> 00:54:04.720
 at the front entrance.

00:54:04.720 --> 00:54:06.240
 It was like the start of the show.

00:54:06.240 --> 00:54:07.880
 And so if you look closely at the truck,

00:54:07.880 --> 00:54:10.000
 you can see all the sensors that have been added

00:54:10.000 --> 00:54:10.840
 to this truck.

00:54:10.840 --> 00:54:13.560
 And so Bill said that they are working

00:54:13.560 --> 00:54:16.120
 with a lot of those mobility tech startups.

00:54:16.120 --> 00:54:18.240
 So instead of Peterbilt having to invest

00:54:18.240 --> 00:54:19.720
 in those tech companies,

00:54:19.720 --> 00:54:22.560
 the tech companies are actually investing in themselves.

00:54:22.560 --> 00:54:24.200
 And so then they're using the Peterbilt trucks

00:54:24.200 --> 00:54:25.160
 to add their technology.

00:54:25.160 --> 00:54:27.880
 And this one is for autonomous routes.

00:54:27.880 --> 00:54:30.600
 I think they take a route in Texas somewhere,

00:54:30.600 --> 00:54:33.360
 a rural area where they're driving autonomously.

00:54:33.360 --> 00:54:37.360
 And so we're looking forward to seeing how that transpires.

00:54:37.360 --> 00:54:38.680
 Brian, do you want to add on to this?

00:54:38.680 --> 00:54:41.080
 Do you know about this company?

00:54:41.080 --> 00:54:43.120
 - That's Aurora right there.

00:54:43.120 --> 00:54:44.520
 It's Aurora Technologies.

00:54:44.520 --> 00:54:50.880
 - They're driving around 200 trucks.

00:54:50.880 --> 00:54:55.560
 - So pretty cool stuff going on.

00:54:55.560 --> 00:54:56.960
 We were already met with a few of the companies

00:54:56.960 --> 00:54:58.880
 that we met at the trade show.

00:54:58.880 --> 00:55:01.440
 So looking forward to seeing what comes out

00:55:01.440 --> 00:55:02.800
 of our connections.

00:55:02.800 --> 00:55:05.560
 Training development.

00:55:05.560 --> 00:55:08.440
 We've attended a few conferences in the past few months.

00:55:08.440 --> 00:55:10.960
 Our staff attended the Texas Economic Development Council

00:55:10.960 --> 00:55:12.760
 annual conference in Addison.

00:55:12.760 --> 00:55:16.040
 We attended, first and foremost attended

00:55:16.040 --> 00:55:18.400
 the Texas Downtown Association Conference

00:55:18.400 --> 00:55:21.280
 and she presented on two panels over fire suppression

00:55:21.280 --> 00:55:25.280
 and I think it's a panel with MEN Group,

00:55:25.280 --> 00:55:27.400
 the consultant on the Downtown Master Plan.

00:55:27.400 --> 00:55:28.520
 So really proud of her.

00:55:28.520 --> 00:55:30.240
 And then Matilda attended the UNT

00:55:30.240 --> 00:55:32.560
 Advanced Air Mobility Symposium.

00:55:32.560 --> 00:55:34.600
 So we are out and about representing Denton.

00:55:34.600 --> 00:55:39.280
 And then we met with the Dallas Regional Chamber.

00:55:39.280 --> 00:55:41.160
 In case you don't know,

00:55:41.160 --> 00:55:42.440
 we get leads from the state of Texas

00:55:42.440 --> 00:55:44.680
 and we also get leads from the Dallas Regional Chamber.

00:55:44.680 --> 00:55:48.280
 And so we want to ensure that our partnership is strengthened

00:55:48.280 --> 00:55:50.520
 so if they have any prospects,

00:55:50.520 --> 00:55:52.400
 we want them to continue sending them to us

00:55:52.400 --> 00:55:54.200
 because as you can imagine,

00:55:54.200 --> 00:55:56.000
 with all the cities in the Department of Agriculture,

00:55:56.000 --> 00:55:58.480
 it could be hard to say, "Oh, this city."

00:55:58.480 --> 00:55:59.720
 They say they don't play favorites,

00:55:59.720 --> 00:56:02.280
 but let's, you know, 'cause everyone plays favorites.

00:56:02.280 --> 00:56:04.520
 So we met with them, Mike Rosa and Kevin Shatley,

00:56:04.520 --> 00:56:07.680
 they're the head leaders of the Economic Development Division

00:56:07.680 --> 00:56:09.600
 and it's always great to talk to them

00:56:09.600 --> 00:56:11.160
 because it's like talking to a therapist.

00:56:11.160 --> 00:56:12.000
 They're really great.

00:56:12.000 --> 00:56:14.280
 They kind of know what's going on in the region

00:56:14.280 --> 00:56:15.360
 and kind of the pros and cons.

00:56:15.360 --> 00:56:17.640
 But what they did say is it didn't just seem to make sure

00:56:17.640 --> 00:56:19.040
 that they are out there promoting,

00:56:19.040 --> 00:56:20.760
 continuing promoting yourselves.

00:56:20.760 --> 00:56:22.880
 So, next slide.

00:56:24.680 --> 00:56:28.000
 Our new CRM, so we currently,

00:56:28.000 --> 00:56:30.480
 well, we're using POSFET as a database

00:56:30.480 --> 00:56:32.080
 to track our prospects and leads.

00:56:32.080 --> 00:56:34.080
 So now we officially moved over to a new system

00:56:34.080 --> 00:56:37.120
 called EDOIQ that specializes in economic development.

00:56:37.120 --> 00:56:41.000
 So as you can see already, the dashboard is 100% better.

00:56:41.000 --> 00:56:42.800
 So once we start loading,

00:56:42.800 --> 00:56:44.560
 our data from POSFET has already been loaded

00:56:44.560 --> 00:56:46.400
 into the system and so now we're gonna start adding

00:56:46.400 --> 00:56:48.360
 our new prospects and leads.

00:56:48.360 --> 00:56:49.880
 So you'll start seeing better reporting

00:56:49.880 --> 00:56:51.360
 from us in the near future.

00:56:52.520 --> 00:56:55.840
 So Projects in Progress, our downtown area utility grant.

00:56:55.840 --> 00:56:58.000
 Kristen Pulio and our city management team in finance

00:56:58.000 --> 00:57:00.880
 has put this downtown utility grant together

00:57:00.880 --> 00:57:02.520
 and I wanna ask her to come up here and speak

00:57:02.520 --> 00:57:04.960
 just a little bit on it.

00:57:04.960 --> 00:57:07.440
 She's primarily a project manager.

00:57:07.440 --> 00:57:15.840
 - Hello, good morning.

00:57:15.840 --> 00:57:19.000
 I wanted to talk briefly about the utility grant.

00:57:19.000 --> 00:57:24.000
 So according to the council strategic plans,

00:57:24.000 --> 00:57:26.120
 council priorities, small business,

00:57:26.120 --> 00:57:27.880
 development of small businesses was key

00:57:27.880 --> 00:57:29.480
 with a key focus area.

00:57:29.480 --> 00:57:32.840
 And so city leadership reached out

00:57:32.840 --> 00:57:33.840
 and so they wanna put together

00:57:33.840 --> 00:57:35.800
 this downtown small business utility grant

00:57:35.800 --> 00:57:38.880
 and on September 24th, council approved the grant.

00:57:38.880 --> 00:57:42.200
 And so we sent out over 500 letters

00:57:42.200 --> 00:57:43.640
 to our downtown small businesses.

00:57:43.640 --> 00:57:47.800
 As of today, we have 23 businesses that have applied,

00:57:47.800 --> 00:57:50.160
 which is about even to the businesses

00:57:50.160 --> 00:57:52.600
 that applied for the ARPA funding.

00:57:52.600 --> 00:57:55.760
 This is what we're using the remaining ARPA funding money

00:57:55.760 --> 00:57:59.080
 for is for this downtown small business grant.

00:57:59.080 --> 00:58:01.480
 And so I think back in 2021,

00:58:01.480 --> 00:58:04.480
 only about 28 businesses applied for the ARPA funding.

00:58:04.480 --> 00:58:05.800
 And so we're right on track

00:58:05.800 --> 00:58:08.640
 and hopefully we can continue to get our small businesses.

00:58:08.640 --> 00:58:10.520
 This is a reimbursement grant.

00:58:10.520 --> 00:58:11.920
 So they will see the reimbursement

00:58:11.920 --> 00:58:16.280
 on their December bill up to $1,000.

00:58:16.280 --> 00:58:18.400
 So each business has to apply

00:58:18.400 --> 00:58:20.440
 and then they can be reimbursed for up to $1,000

00:58:20.440 --> 00:58:21.640
 on their utility bill.

00:58:21.640 --> 00:58:24.160
 Thank you.

00:58:24.160 --> 00:58:26.200
 All right, in addition,

00:58:26.200 --> 00:58:28.960
 we are hosting a small business bootcamp

00:58:28.960 --> 00:58:29.960
 in partnership with SCORE.

00:58:29.960 --> 00:58:32.800
 SCORE is funded by the Small Business Administration.

00:58:32.800 --> 00:58:35.840
 So they have a network of mentors across the United States

00:58:35.840 --> 00:58:37.480
 and their former executives like yourselves

00:58:37.480 --> 00:58:39.080
 that are just, they're retired,

00:58:39.080 --> 00:58:39.920
 they don't know what else to do.

00:58:39.920 --> 00:58:42.120
 And so they're helping entrepreneurs get into business

00:58:42.120 --> 00:58:45.000
 and helping them with general business resources.

00:58:45.000 --> 00:58:47.000
 And so we have partnered

00:58:47.000 --> 00:58:49.720
 with our Community Services Department

00:58:49.720 --> 00:58:51.520
 and our Development Services Department

00:58:51.520 --> 00:58:52.960
 to host these workshops.

00:58:52.960 --> 00:58:56.600
 So Courtney Donohue, I know I'm gonna miss...

00:58:56.600 --> 00:58:58.080
 Oh gosh, should I say it first thing?

00:58:58.080 --> 00:58:59.040
 Courtney Donohue.

00:58:59.040 --> 00:59:00.440
 Okay, I can't say her last name.

00:59:00.440 --> 00:59:01.260
 She's great.

00:59:01.260 --> 00:59:03.760
 She had a grant that supported these workshops.

00:59:03.760 --> 00:59:06.960
 And so our second workshop is this Thursday.

00:59:06.960 --> 00:59:09.000
 Initially 17 people signed up

00:59:09.000 --> 00:59:12.320
 and we had about 10 people show up last Thursday,

00:59:12.320 --> 00:59:13.140
 which is great.

00:59:13.140 --> 00:59:14.400
 It was raining that night,

00:59:14.400 --> 00:59:16.240
 but there just seems to be a real hunger

00:59:16.240 --> 00:59:19.680
 for small business education for our residents.

00:59:19.680 --> 00:59:21.280
 So we're excited about that.

00:59:21.280 --> 00:59:24.080
 And then we plan to continue hosting workshops.

00:59:24.080 --> 00:59:24.920
 Priscilla.

00:59:24.920 --> 00:59:26.880
 - We have three more people call like the next day

00:59:26.880 --> 00:59:28.740
 and I'll have to find out who they are.

00:59:28.740 --> 00:59:31.460
 (indistinct)

00:59:31.460 --> 00:59:33.280
 - That was really important getting that.

00:59:33.280 --> 00:59:34.640
 - So we sent it out.

00:59:34.640 --> 00:59:38.160
 We have social media ads and we sent it out via,

00:59:38.160 --> 00:59:39.960
 oh gosh, I think we contacted a church,

00:59:39.960 --> 00:59:41.560
 we contacted churches.

00:59:41.560 --> 00:59:42.480
 Who else did we contact?

00:59:42.480 --> 00:59:44.080
 Priscilla, can you answer that?

00:59:44.840 --> 00:59:47.200
 - Churches, social media.

00:59:47.200 --> 00:59:50.160
 We actually did flyers in the Southeast Denton area

00:59:50.160 --> 00:59:52.280
 and direct mailers.

00:59:52.280 --> 00:59:53.760
 - And we distributed it in the Friday report,

00:59:53.760 --> 00:59:56.660
 which (indistinct)

00:59:56.660 --> 00:59:59.080
 (indistinct)

00:59:59.080 --> 01:00:07.120
 - Thank you.

01:00:07.120 --> 01:00:09.960
 - Next time.

01:00:09.960 --> 01:00:10.780
 - Okay.

01:00:10.780 --> 01:00:13.200
 In addition, we are working on

01:00:13.200 --> 01:00:14.480
 Tourism and Boundary Amendment.

01:00:14.480 --> 01:00:17.160
 That is what Jeremy spoke about.

01:00:17.160 --> 01:00:22.080
 We are the men group who worked on the downtown master plan

01:00:22.080 --> 01:00:24.720
 has recommended that we expand the boundaries.

01:00:24.720 --> 01:00:27.500
 And so we will include Quaker Town Park.

01:00:27.500 --> 01:00:29.960
 They wanted to include north of the right of ways

01:00:29.960 --> 01:00:32.120
 on North on Carroll Street to university.

01:00:32.120 --> 01:00:33.880
 Those are areas not currently included

01:00:33.880 --> 01:00:36.640
 in the downtown tourist boundaries.

01:00:36.640 --> 01:00:39.320
 And so if we're expanding, of course that'll allow

01:00:39.320 --> 01:00:41.720
 more funding to use for some of the bigger products

01:00:41.720 --> 01:00:43.600
 that are proposing the master plan.

01:00:43.600 --> 01:00:45.940
 And so it's an entire process.

01:00:45.940 --> 01:00:49.840
 We have our first public hearing on December 3rd,

01:00:49.840 --> 01:00:51.880
 second public hearings, December 17th,

01:00:51.880 --> 01:00:55.160
 and then our four tours were meeting on December 4th.

01:00:55.160 --> 01:00:58.880
 And so it's, we're kind of pushing the deadline right now.

01:00:58.880 --> 01:01:01.680
 It's a little bit, it's moving quickly,

01:01:01.680 --> 01:01:03.760
 but we really want to include this base year value

01:01:03.760 --> 01:01:06.400
 so we can start collecting increment next year.

01:01:06.400 --> 01:01:07.720
 So that's a goal.

01:01:07.720 --> 01:01:11.360
 And then the last one is incentive effectiveness study.

01:01:11.360 --> 01:01:12.200
 That's something that I mentioned

01:01:12.200 --> 01:01:13.480
 when we first got here.

01:01:13.480 --> 01:01:15.000
 We all know that we're not as competitive

01:01:15.000 --> 01:01:17.080
 in our incentives area.

01:01:17.080 --> 01:01:20.720
 So we're going to release the RFI to several consultants

01:01:20.720 --> 01:01:24.100
 so that they can tell us, compare us to other cities

01:01:24.100 --> 01:01:26.120
 and compare our incentive policies

01:01:26.120 --> 01:01:29.920
 and also compare maybe impact fee waivers,

01:01:29.920 --> 01:01:31.880
 whatever it may be to make us,

01:01:31.880 --> 01:01:35.040
 to help us recruit more companies in the future.

01:01:35.040 --> 01:01:38.560
 So that's what we're aiming to be part of that study.

01:01:38.560 --> 01:01:40.400
 - Yes, it is, it is.

01:01:40.400 --> 01:01:41.560
 So thank you.

01:01:41.560 --> 01:01:42.800
 - So getting rid of the train

01:01:42.800 --> 01:01:43.960
 going to be part of that study.

01:01:43.960 --> 01:01:46.360
 I'd like to see that as an option.

01:01:46.360 --> 01:01:48.260
 - We're definitely looking to funding, yes.

01:01:48.260 --> 01:01:50.800
 - That would be a huge part of that.

01:01:50.800 --> 01:01:53.280
 - Thanks, Lee, appreciate it.

01:01:53.280 --> 01:01:56.820
 Okay, so we have a lot of good things in the works.

01:01:56.820 --> 01:01:59.500
 We've been, we've been busy for sure.

01:01:59.500 --> 01:02:01.680
 So if you have any questions for us, any ideas,

01:02:01.680 --> 01:02:02.920
 and then future let us know.

01:02:02.920 --> 01:02:03.760
 That's all I have.

01:02:03.760 --> 01:02:06.320
 Oh, sorry.

01:02:06.320 --> 01:02:08.680
 - Yeah, comment and a question.

01:02:08.680 --> 01:02:12.400
 I'll just share if it wasn't already obvious that on the,

01:02:12.400 --> 01:02:14.600
 it's not a complete coincidence

01:02:14.600 --> 01:02:16.880
 that the downtown area utility grant

01:02:16.880 --> 01:02:19.360
 happened around the same time

01:02:19.360 --> 01:02:22.000
 that the state decided to cream downtown

01:02:22.000 --> 01:02:25.900
 with a surprise construction project in September.

01:02:25.900 --> 01:02:27.520
 So I'm just bringing that out to you.

01:02:27.520 --> 01:02:31.020
 I figured why you saw council action on that.

01:02:31.020 --> 01:02:33.240
 But my question is,

01:02:35.580 --> 01:02:39.440
 35 days of Halloween, my observation to everybody is,

01:02:39.440 --> 01:02:41.080
 what a home run.

01:02:41.080 --> 01:02:43.000
 I'm curious if you have a sense yet

01:02:43.000 --> 01:02:45.600
 of sales tax versus expenditures.

01:02:45.600 --> 01:02:47.820
 - Not yet, sales tax is about a two month delay

01:02:47.820 --> 01:02:50.080
 before you get the reporting information from the state.

01:02:50.080 --> 01:02:52.880
 So we'll be doing a full report once we have those numbers.

01:02:52.880 --> 01:02:54.800
 The initial numbers we have on foot traffic

01:02:54.800 --> 01:02:59.760
 show 145,000 visitors above last year in the same time period

01:02:59.760 --> 01:03:02.360
 with 60% of those not being residents.

01:03:02.360 --> 01:03:06.400
 So really outstanding foot traffic numbers.

01:03:06.400 --> 01:03:09.600
 And then the initial response from the downtown businesses,

01:03:09.600 --> 01:03:11.940
 one of the businesses on the square sent that email

01:03:11.940 --> 01:03:15.520
 saying that it was a record year for their sales.

01:03:15.520 --> 01:03:19.840
 And typically during an election year, sales are down

01:03:19.840 --> 01:03:21.440
 and they were the highest they've been.

01:03:21.440 --> 01:03:23.240
 And typically his highest numbers

01:03:23.240 --> 01:03:24.800
 are around the tree lighting day.

01:03:24.800 --> 01:03:27.040
 And he was in record numbers every weekend.

01:03:27.040 --> 01:03:29.440
 - In fact, another downtown owner this morning

01:03:29.440 --> 01:03:32.440
 said that in October was the biggest month they'd ever had.

01:03:32.440 --> 01:03:37.100
 - There was an article in the Denton record probably.

01:03:37.100 --> 01:03:37.940
 - We were, yes.

01:03:37.940 --> 01:03:41.100
 - It said 145,000 and 43K in merchandise sales.

01:03:41.100 --> 01:03:45.080
 - We're really looking forward to being able to show

01:03:45.080 --> 01:03:46.820
 that full economics report.

01:03:46.820 --> 01:03:48.520
 We released some preliminary stats,

01:03:48.520 --> 01:03:50.840
 but overwhelming positive response.

01:03:50.840 --> 01:03:53.000
 So just excited to see that.

01:03:53.000 --> 01:03:55.520
 - Everybody give a thumbs up to the parks department.

01:03:55.520 --> 01:03:57.340
 I mean, they work pretty well.

01:03:57.340 --> 01:03:59.580
 - We appreciate that man.

01:03:59.580 --> 01:04:04.580
 - You can invite him next week and speak about that.

01:04:04.580 --> 01:04:06.760
 - Well, let him get all the stuff.

01:04:06.760 --> 01:04:07.600
 (laughing)

01:04:07.600 --> 01:04:08.760
 - We want him to take a vacation.

01:04:08.760 --> 01:04:09.600
 - Yeah.

01:04:09.600 --> 01:04:11.040
 (laughing)

01:04:11.040 --> 01:04:13.400
 - But honestly, he's already planning next year.

01:04:13.400 --> 01:04:14.340
 Like he was already.

01:04:14.340 --> 01:04:17.900
 - We're lucky to have him.

01:04:17.900 --> 01:04:19.200
 - Brittany, thank you.

01:04:19.200 --> 01:04:20.840
 Any other questions for Brittany?

01:04:20.840 --> 01:04:22.980
 Thank you.

01:04:22.980 --> 01:04:23.820
 Jamie.

01:04:28.040 --> 01:04:30.380
 (murmuring)

01:04:30.380 --> 01:04:38.060
 Jamie, how's economic building partnerships?

01:04:38.060 --> 01:04:39.160
 I just got a handful of slides.

01:04:39.160 --> 01:04:40.520
 We'll talk about our business protection

01:04:40.520 --> 01:04:42.140
 and expansion efforts.

01:04:42.140 --> 01:04:43.800
 Any feedback you have would be great

01:04:43.800 --> 01:04:46.240
 or any advice you have would be great.

01:04:46.240 --> 01:04:51.240
 But what the EDP is tasked with is engaging

01:04:51.240 --> 01:04:52.960
 with our established businesses.

01:04:52.960 --> 01:04:55.420
 And that's key within our Denton community.

01:04:55.420 --> 01:04:57.840
 We want to identify needs and provide support.

01:04:57.840 --> 01:04:58.680
 Welcome to stay here.

01:04:58.680 --> 01:04:59.980
 One of the things I always tell everybody,

01:04:59.980 --> 01:05:02.100
 I don't want you to leave until the night.

01:05:02.100 --> 01:05:02.940
 I want you to be here.

01:05:02.940 --> 01:05:03.780
 I want you to be in Denton.

01:05:03.780 --> 01:05:06.640
 I want you to talk to me about how we can help you stay

01:05:06.640 --> 01:05:08.960
 and also help you expand.

01:05:08.960 --> 01:05:10.320
 Going out and meeting with everybody

01:05:10.320 --> 01:05:13.480
 and getting tours is a great resource for that.

01:05:13.480 --> 01:05:15.320
 And that's kind of our main approach

01:05:15.320 --> 01:05:17.560
 as opposed to sending online surveys

01:05:17.560 --> 01:05:19.660
 or just reaching out via email.

01:05:19.660 --> 01:05:23.880
 Four strategies I focus on are obviously

01:05:23.880 --> 01:05:25.760
 assisting businesses, like I said,

01:05:25.760 --> 01:05:27.040
 proactive engagement.

01:05:27.040 --> 01:05:29.000
 You don't want to meet with somebody and they say,

01:05:29.000 --> 01:05:30.360
 hey, we're 90 days from closing.

01:05:30.360 --> 01:05:31.720
 We want to make sure we're out visiting everybody

01:05:31.720 --> 01:05:34.740
 who can address their needs and help them provide

01:05:34.740 --> 01:05:37.240
 any economic benefits that they have.

01:05:37.240 --> 01:05:40.000
 That essentially means I've come to help desk

01:05:40.000 --> 01:05:42.920
 and help them find answers that are needed

01:05:42.920 --> 01:05:45.420
 where they'd be community partners in our first city.

01:05:45.420 --> 01:05:50.720
 The next part is over the course of a year,

01:05:50.720 --> 01:05:55.220
 I try to approach 48 businesses about four a month.

01:05:55.220 --> 01:05:58.800
 And I want to point out that a lot of,

01:05:58.800 --> 01:06:01.560
 when you think BR&E, you think we're just visiting

01:06:01.560 --> 01:06:03.240
 major businesses, we are.

01:06:03.240 --> 01:06:05.680
 Down there was Jocelyn, it's after Winko,

01:06:05.680 --> 01:06:08.160
 but I visited a taekwondo place.

01:06:08.160 --> 01:06:09.160
 We visited restaurants.

01:06:09.160 --> 01:06:11.440
 We visited entertainment venues.

01:06:11.440 --> 01:06:14.680
 Trying to get out and visit as many people as possible

01:06:14.680 --> 01:06:16.320
 I think is very important.

01:06:16.320 --> 01:06:18.360
 So that's our overall reporting,

01:06:18.360 --> 01:06:20.040
 which you'll see at the end of the year,

01:06:20.040 --> 01:06:23.040
 we're producing a lot of information.

01:06:23.040 --> 01:06:26.520
 Top five challenges we're hearing from everybody.

01:06:26.520 --> 01:06:29.040
 Obviously workforce development is one of them.

01:06:29.040 --> 01:06:34.040
 Everybody wants to have a partner with their education.

01:06:34.040 --> 01:06:38.620
 People in town from UNT, T of U, NCTC, or NISD.

01:06:38.620 --> 01:06:41.480
 Transportation assistance.

01:06:41.480 --> 01:06:43.320
 How do I get my employees to work?

01:06:43.320 --> 01:06:45.840
 Brittany's favorite, incentives.

01:06:45.840 --> 01:06:48.600
 People always want to ask about incentives.

01:06:48.600 --> 01:06:52.060
 Employee satisfaction ideas has come up a lot.

01:06:52.060 --> 01:06:54.080
 You know, from, do we put a weight in their manner,

01:06:54.080 --> 01:06:57.720
 or do we take them to a Cowboys game, or whatever it may be.

01:06:57.720 --> 01:06:59.520
 So they always want to pick my brand

01:06:59.520 --> 01:07:03.200
 and learn some good employee satisfaction ideas.

01:07:03.200 --> 01:07:05.920
 Top five challenges we hear, time to time.

01:07:05.920 --> 01:07:10.920
 Some other, you know, broader feedback we get.

01:07:10.920 --> 01:07:13.560
 Hey, my rent increased, I'm looking for some resources.

01:07:13.560 --> 01:07:15.080
 That's typically, we recommend people

01:07:15.080 --> 01:07:17.000
 to Swell Business Development Center.

01:07:17.000 --> 01:07:19.560
 I want to expand, which is always great.

01:07:19.560 --> 01:07:21.320
 I want to be involved with more industry leaders.

01:07:21.320 --> 01:07:23.160
 That's when we sign up for the EDP.

01:07:23.160 --> 01:07:27.200
 Seeking connections, workforce development.

01:07:27.200 --> 01:07:28.960
 Transportation assistance, like I mentioned.

01:07:28.960 --> 01:07:32.340
 And, you know, a lot of turnover from young young people.

01:07:32.340 --> 01:07:36.160
 So we're working a lot with the Grown Academy

01:07:36.160 --> 01:07:39.320
 and developed that youth pipeline.

01:07:39.320 --> 01:07:42.240
 So we hear a lot, and it was talked about this morning

01:07:42.240 --> 01:07:44.200
 at breakfast, that high school students

01:07:44.200 --> 01:07:46.320
 aren't ready for workforce, ready for college,

01:07:46.320 --> 01:07:48.560
 and trying to help them be there.

01:07:48.560 --> 01:07:51.280
 So there's not that term for it, it's important.

01:07:51.280 --> 01:07:57.040
 Help that's provided from my standpoint,

01:07:57.040 --> 01:07:58.920
 business to business relationship,

01:07:58.920 --> 01:08:01.560
 workforce connections, business to community,

01:08:01.560 --> 01:08:05.160
 relationship is huge too, and infrastructure concerns.

01:08:05.160 --> 01:08:08.080
 And that's a lot of that is just sharing information

01:08:08.080 --> 01:08:10.640
 or connecting with the right people

01:08:10.640 --> 01:08:12.760
 so they can get their questions answered.

01:08:12.760 --> 01:08:16.040
 Over the last couple, over the last year,

01:08:16.040 --> 01:08:17.280
 we've hosted a couple of events

01:08:17.280 --> 01:08:19.360
 that kind of spoke to business potential expansion.

01:08:19.360 --> 01:08:23.680
 We had a HR round table, which is always great

01:08:23.680 --> 01:08:26.360
 to get to know our HR leaders in the community.

01:08:26.360 --> 01:08:29.620
 That was a really good event.

01:08:29.620 --> 01:08:32.400
 And then we had a couple of industrial round tables,

01:08:32.400 --> 01:08:35.360
 one at Unity, Discovery Park, one at Tetra Pak.

01:08:35.360 --> 01:08:38.280
 But the main, one of the main things I want to point out

01:08:38.280 --> 01:08:41.760
 is when I met Brittany within five minutes of meeting her,

01:08:41.760 --> 01:08:43.840
 she told me I need to have manufacturing dates.

01:08:43.840 --> 01:08:45.620
 She's been pressing me on that.

01:08:45.620 --> 01:08:47.200
 We are, that's a national day

01:08:47.200 --> 01:08:48.640
 that we're going to sign up for and have it,

01:08:48.640 --> 01:08:50.520
 hopefully in the next fall working with her,

01:08:50.520 --> 01:08:53.560
 in ISD and NCTC to host a day

01:08:53.560 --> 01:08:56.280
 that brings our industrial partners together,

01:08:56.280 --> 01:08:57.920
 where students can get to know them

01:08:57.920 --> 01:09:00.080
 and know what it's like to work.

01:09:00.080 --> 01:09:04.200
 And I'll hopefully stay here and do that.

01:09:04.200 --> 01:09:07.160
 That was a quick and fast business potential expansion,

01:09:07.160 --> 01:09:09.920
 but, Mr. Toro, what we're doing.

01:09:09.920 --> 01:09:12.880
 Is there any questions on that or any questions for the EDP?

01:09:14.740 --> 01:09:15.740
 - Any questions?

01:09:15.740 --> 01:09:18.240
 I really appreciate the update on the projects,

01:09:18.240 --> 01:09:20.200
 so thank you for bringing that forward.

01:09:20.200 --> 01:09:21.840
 Appreciate the report.

01:09:21.840 --> 01:09:23.520
 Great.

01:09:23.520 --> 01:09:24.440
 All right, Christine.

01:09:24.440 --> 01:09:26.480
 - Last item, short and sweet.

01:09:26.480 --> 01:09:28.120
 We have our calendar for the end of the year.

01:09:28.120 --> 01:09:29.640
 Next month, I believe we just have

01:09:29.640 --> 01:09:31.840
 standard items on that agenda.

01:09:31.840 --> 01:09:33.880
 So if there are additional topics

01:09:33.880 --> 01:09:36.880
 as incentive agreements advance,

01:09:36.880 --> 01:09:39.200
 then we will add them to the calendar.

01:09:39.200 --> 01:09:41.880
 If there are any additional topics

01:09:41.880 --> 01:09:43.440
 that the committee's interested in,

01:09:43.440 --> 01:09:47.080
 please let Steve know and he'll work that with Brittany and I.

01:09:47.080 --> 01:09:48.120
 But through the end of the year,

01:09:48.120 --> 01:09:51.360
 we just expect updates and regular action items next month.

01:09:51.360 --> 01:09:56.160
 But very much appreciate the attendance and engagement

01:09:56.160 --> 01:10:01.160
 and encouragement as we go after these different incentives.

01:10:01.160 --> 01:10:05.820
 - All right, any other items to be brought forward?

01:10:05.820 --> 01:10:08.520
 - I'll just comment that the airport

01:10:08.520 --> 01:10:11.760
 has undergone a one-way repair,

01:10:11.760 --> 01:10:13.440
 actually a reconstruction.

01:10:13.440 --> 01:10:18.800
 Somebody somewhere along the line made the runway

01:10:18.800 --> 01:10:21.280
 so that it was higher in the middle than it was on each end.

01:10:21.280 --> 01:10:23.720
 You couldn't see an airplane run into the other.

01:10:23.720 --> 01:10:25.840
 That's against the FAA rules.

01:10:25.840 --> 01:10:28.760
 $17 million later, it has now been fixed.

01:10:28.760 --> 01:10:31.120
 You can see from one end to the other.

01:10:31.120 --> 01:10:32.800
 But it's a nose rule.

01:10:32.800 --> 01:10:34.160
 - You could make a mirror right in the middle.

01:10:34.160 --> 01:10:35.000
 - Yeah.

01:10:35.000 --> 01:10:36.880
 - It's very nice.

01:10:36.880 --> 01:10:38.360
 - So it's a big improvement,

01:10:38.360 --> 01:10:42.080
 and hopefully we'll start seeing some activity

01:10:42.080 --> 01:10:43.720
 to start opening the Westside.

01:10:43.720 --> 01:10:45.760
 - Thank you for that.

01:10:45.760 --> 01:10:49.000
 - All right, y'all, as always, thank you.

01:10:49.000 --> 01:10:51.240
 Appreciate your attendance and participation.

01:10:51.240 --> 01:10:56.480
 That time of internment, 12/13.

01:10:56.480 --> 01:10:57.320
 Thank you.