1 00:00:00,000 --> 00:00:09,640 Good morning this is Marty Rivers chair of the economic development board and I'd like 2 00:00:09,640 --> 00:00:18,520 to call this meeting to order at 11 a.m. remind everybody since we're doing this on zoom to 3 00:00:18,520 --> 00:00:27,040 one keep your microphones on mute unless you're visiting please and two when we vote on anything 4 00:00:27,040 --> 00:00:36,280 I'm going to go around my computer screen and ask for you to say yay or nay with a hand 5 00:00:36,280 --> 00:00:43,720 raise and a voice would be great and also I guess we need to do roll call for who is 6 00:00:43,720 --> 00:00:51,080 present today once we do that we go ahead and get started with the meeting so and let 7 00:00:51,080 --> 00:01:07,800 me know if I miss somebody but I'm going to start with mr. Baines present Tony Clark 8 00:01:07,800 --> 00:01:20,480 Steve Edgar present Chris Davis Jill Jester present Councilman Jesse Davis present Jason 9 00:01:20,480 --> 00:01:32,040 Tomlinson present and Mark McClellan present did I miss anybody any board members we've 10 00:01:32,040 --> 00:01:37,880 got a couple ex officio folks here too all right we've got the quorum so we'll go ahead 11 00:01:37,880 --> 00:01:44,600 with our first item which is edp 20 - 0 3 0 consider approval of the minutes from our 12 00:01:44,600 --> 00:01:55,480 July 8th meeting take any motions jill jester I move approval of the minutes of the city 13 00:01:55,480 --> 00:02:02,880 of Denton Economic Development Partnership board from June 8th 2020 John Baines I second 14 00:02:02,880 --> 00:02:11,640 that motion all right we've got a motion and a second any further discussion all those 15 00:02:11,640 --> 00:02:19,440 in favor say I gotta go around the horn see I already messed that up all right get ready 16 00:02:19,440 --> 00:02:33,880 John Baines hi Tony Clark Steve Edgar hi Chris Davis hi Jill Jester I Jesse Davis hi Jason 17 00:02:33,880 --> 00:02:42,080 Tomlinson hi and Mark McClellan all right looks like we have a unanimous approval of 18 00:02:42,080 --> 00:02:51,880 the minutes and we'll move on to our next item which is an item edp 20 - 0 1 4 hold 19 00:02:51,880 --> 00:02:56,520 discussion receive report hold discussion give staff direction regarding an incentive 20 00:02:56,520 --> 00:03:03,840 application from for from the future so we'll let Jessica take it from here right well good 21 00:03:03,840 --> 00:03:09,620 morning everyone I will actually be turning it over to Erica Sullivan to do the presentation 22 00:03:09,620 --> 00:03:15,480 but I want to take a quick moment to introduce our guests to everyone Mike Christian and 23 00:03:15,480 --> 00:03:22,160 Mark Talkington are here from from the future which is a local tech company some of you 24 00:03:22,160 --> 00:03:26,880 may be familiar with their operation but they've had some very exciting developments and have 25 00:03:26,880 --> 00:03:32,160 been a wonderful partner over the past few months as we have worked with them on an incentive 26 00:03:32,160 --> 00:03:38,740 application and we are very excited to present this to you and we'll have plenty of time 27 00:03:38,740 --> 00:03:46,240 for everyone to learn about VR at the end of this and it's an exciting very very fun 28 00:03:46,240 --> 00:03:50,800 technology that these guys have so we're happy to present this to you and happy that they 29 00:03:50,800 --> 00:04:00,320 have chosen to locate and didn't good morning I'm going to be presenting an incentive application 30 00:04:00,320 --> 00:04:06,800 from the future now I'm the economic development analyst here at the city so the objective 31 00:04:06,800 --> 00:04:12,240 is to present this incentive application provide some background on entrepreneurship tech initiative 32 00:04:12,240 --> 00:04:18,360 that we're undergoing right now and then consider possible incentive packages a little bit about 33 00:04:18,360 --> 00:04:24,840 the company from the future the software company specializing in customized and immersive virtual 34 00:04:24,840 --> 00:04:29,720 reality training some examples of some of this training include industrial safety training 35 00:04:29,720 --> 00:04:37,440 as well as medical training for therapists dealing with autism for example they were 36 00:04:37,440 --> 00:04:43,420 founded in 2009 they're based in downtown Denton but will soon outgrow their space they 37 00:04:43,420 --> 00:04:47,520 compete with high tech centers from across the country but desire to keep the company 38 00:04:47,520 --> 00:04:53,560 here in Denton to help attract a Denton talent pool here locally to Denton and they're using 39 00:04:53,560 --> 00:04:59,560 existing pipelines for their staffing needs they're currently in their seed round for 40 00:04:59,560 --> 00:05:06,400 funding and they're projecting rapid growth and value revenue customers and employees 41 00:05:06,400 --> 00:05:13,680 the revenue is projected to grow from 750,000 in 19 to 2.4 million in 2020 employees are 42 00:05:13,680 --> 00:05:20,720 expected to grow from 9 in 2019 up to 75 in 2021 and customers are expected to grow from 43 00:05:20,720 --> 00:05:28,400 8 in 2019 to to 96 in 2021 now keep in mind this timeline has been altered a little bit 44 00:05:28,400 --> 00:05:33,840 by covid I understand from the applicant it's been altered about six months so that's important 45 00:05:33,840 --> 00:05:38,520 to keep in mind I also want to talk about the growth of the industry it's projected 46 00:05:38,520 --> 00:05:48,600 to grow to 5.5 billion by 2023 the company's project goals are to reduce funding needed 47 00:05:48,600 --> 00:05:53,600 in the seed round to keep more of their company ownership local they want to offset costs 48 00:05:53,600 --> 00:05:58,860 needed to relocate offices for their larger facility recruit and add additional staff 49 00:05:58,860 --> 00:06:03,920 purchase furniture fixtures and equipment for their new facility and then make any necessary 50 00:06:03,920 --> 00:06:11,880 fiber infrastructure upgrades in this case it's typically fiber I want to tell you a 51 00:06:11,880 --> 00:06:18,560 little bit about how we got here I'm not going to go over each item but we have done a number 52 00:06:18,560 --> 00:06:25,800 of things to develop an entrepreneurial economic development tech-based program around our 53 00:06:25,800 --> 00:06:33,480 existing policy and our existing funding mechanism our economic development investment fund since 54 00:06:33,480 --> 00:06:41,460 we went over this last month I'm being brief our Senate policy has general position provisions 55 00:06:41,460 --> 00:06:49,180 that this project falls under and it creates quality high wage jobs as well as targeted 56 00:06:49,180 --> 00:06:56,480 industry sectors information technology R&D which are now more of ecosystems in our draft 57 00:06:56,480 --> 00:07:05,240 strategic plan some other priority considerations are presented here you can see that they meet 58 00:07:05,240 --> 00:07:11,600 the community investment diversifying the tax base public private partnerships high wage 59 00:07:11,600 --> 00:07:15,800 jobs and of course encouraging startup and small business to promote entrepreneurship 60 00:07:15,800 --> 00:07:23,760 and innovation the chapter 380 section of our policy also has provisions this meets 61 00:07:23,760 --> 00:07:34,800 four of the five provisions policy also has other considerations and this meets three 62 00:07:34,800 --> 00:07:44,360 of those other considerations including job-based grants tell you a little bit about the economic 63 00:07:44,360 --> 00:07:49,960 development investment fund that you're going to hear about more later today this fund was 64 00:07:49,960 --> 00:07:56,200 created in 2016 and it was created to provide a cash grant program so we can be competitive 65 00:07:56,200 --> 00:08:02,640 with other cities and so that we could attract high investment high wage jobs in order to 66 00:08:02,640 --> 00:08:08,080 be eligible the company must meet two of three criteria so higher wage knowledge-based jobs 67 00:08:08,080 --> 00:08:17,700 defined as 55,000 or greater for all an average or 65,000 or greater for 25% of the jobs substantial 68 00:08:17,700 --> 00:08:22,640 capital investment in this case 15 million and recruitment of industry sector targets 69 00:08:22,640 --> 00:08:31,080 what we previously discussed the R&D tech sector and high wage jobs so the application 70 00:08:31,080 --> 00:08:37,440 you can see is here over a three-year period the current employees are 12 you will see 71 00:08:37,440 --> 00:08:46,060 it added cumulatively to a total amount of 150 jobs the jobs paying 65,000 or more is 72 00:08:46,060 --> 00:08:57,040 82 and then to give you an idea again of this Tyson 13 of the 100 jobs were making 65,000 73 00:08:57,040 --> 00:09:03,360 or more and 30 of the 52 jobs of the last application we looked at team of defenders 74 00:09:03,360 --> 00:09:09,960 were making over 65,000 you can see the payroll the customers is that they grow throughout 75 00:09:09,960 --> 00:09:14,180 the years as well as a generated revenue and profit and again this has been slightly adjusted 76 00:09:14,180 --> 00:09:21,640 by six months how it's been affected by COVID the wage information you can see again the 77 00:09:21,640 --> 00:09:26,720 number of jobs if you look at the third column you can see the total jobs at 150 with a 78 00:09:26,720 --> 00:09:33,880 payroll of a little over 10 million again if you make a Tyson comparison their payroll 79 00:09:33,880 --> 00:09:40,320 was roughly half that for 50 less jobs for 100 jobs and then you see the weighted average 80 00:09:40,320 --> 00:09:48,780 annual wage and the sales and ops as well for one of these categories and the to give 81 00:09:48,780 --> 00:09:57,180 you an idea of the county average wage it's 48,277 and then the Denton County median wage 82 00:09:57,180 --> 00:10:06,920 is 42,650 our proposal is a performance-based business expansion incentive the expansion 83 00:10:06,920 --> 00:10:12,520 grant has the first component is to reimburse relocation costs find additional equipment 84 00:10:12,520 --> 00:10:17,400 make necessary site upgrades or a spaceship in the shout and these are based on actual 85 00:10:17,400 --> 00:10:22,000 demonstrated costs so this will be done on a reimbursement basis the second component 86 00:10:22,000 --> 00:10:27,440 is a stratified job-based incentive and this is divided into four categories and additional 87 00:10:27,440 --> 00:10:31,360 consideration is also given to employees that living in Denton as we want to recruit and 88 00:10:31,360 --> 00:10:38,560 retained employees here and it requires a chapter 380 agreement the economic development investment 89 00:10:38,560 --> 00:10:42,920 fund that we discussed is the source of funding for this and the agreement will include a 90 00:10:42,920 --> 00:10:49,960 limit on the term and it will also include a cap you'll see in this table the incentive 91 00:10:49,960 --> 00:10:56,840 proposal they proposed three years we're allowing them five years in order to reach that the 92 00:10:56,840 --> 00:11:01,680 first component again is the one-time expansion grant in the amount of fifty thousand dollars 93 00:11:01,680 --> 00:11:06,400 then we have a job-based grant that's stratified into four categories ranging from five hundred 94 00:11:06,400 --> 00:11:13,560 to five thousand reimbursement for jobs making over sixty five thousand and a hundred thousand 95 00:11:13,560 --> 00:11:17,840 and that's for those eighty two and then you'll see that total is a hundred and twenty four 96 00:11:17,840 --> 00:11:24,040 thousand five hundred for the job-based stratified incentive and then the bonus if all employees 97 00:11:24,040 --> 00:11:29,360 were to meet this would be sixty nine thousand for a total incentive value of two hundred 98 00:11:29,360 --> 00:11:37,880 and forty three thousand five hundred some of the qualitative impact benefits economic 99 00:11:37,880 --> 00:11:44,120 impacts and fiscal impacts I'd like to highlight until last month this job this particular 100 00:11:44,120 --> 00:11:48,520 project really represents a break from what we've typically funded they're usually capital 101 00:11:48,520 --> 00:11:53,560 intense projects with facilities and high business personal property but this is an 102 00:11:53,560 --> 00:11:58,920 investment in human capital and quality jobs which is in line with creating a pipeline 103 00:11:58,920 --> 00:12:05,200 for university training programs and reduction of brain drain it keeps a startup in Denton 104 00:12:05,200 --> 00:12:10,160 it fosters entrepreneurship it diversifies the tax base and it's a development of an 105 00:12:10,160 --> 00:12:14,280 ecosystem that supports entrepreneurship and locally owned business again these ecosystems 106 00:12:14,280 --> 00:12:19,520 is what we're moving towards in our draft strategic plan and then there's less demand 107 00:12:19,520 --> 00:12:26,560 on utilities services and infrastructure since it's not a capital intense project some of 108 00:12:26,560 --> 00:12:32,200 the quantitative benefits that I'll be highlighting are the direct impact jobs and sales output 109 00:12:32,200 --> 00:12:36,600 directly created by the event so there's a hundred and thirty eight new jobs with this 110 00:12:36,600 --> 00:12:43,340 is an average wage of sixty two thousand so the ripple effects of the induced and indirect 111 00:12:43,340 --> 00:12:48,680 is set sixty five point eight jobs with an average wage of twenty nine thousand six sixty 112 00:12:48,680 --> 00:12:53,600 one property tax sales tax utility system revenue generated by the projects is also 113 00:12:53,600 --> 00:12:58,320 included in this model and the attraction of venture capital and investors and again 114 00:12:58,320 --> 00:13:03,680 that's been delayed about six months the fiscal impacts the cost to provide government utility 115 00:13:03,680 --> 00:13:08,720 service remains low because this isn't a capital intense with a lot of truck traffic and then 116 00:13:08,720 --> 00:13:14,760 the return on investment is seven point three percent for the jobs so our summary and recommendation 117 00:13:14,760 --> 00:13:18,960 is a five-year even though they anticipate doing it in three or three and a half years 118 00:13:18,960 --> 00:13:23,280 performance-based incentive not to exceed the cap of two hundred and forty-three thousand 119 00:13:23,280 --> 00:13:28,800 five hundred and an expansion grant of fifty thousand to reimburse actual demonstrated 120 00:13:28,800 --> 00:13:33,560 cost a stratified job-based grant and the four categories for hundred and twenty four 121 00:13:33,560 --> 00:13:39,240 thousand five hundred and a residency bonus of five hundred per employee which could equal 122 00:13:39,240 --> 00:13:44,880 a total of sixty nine thousand and we will verify the wage and residency based on irs 123 00:13:44,880 --> 00:13:49,760 and then we would utilize the chapter three eighty agreement and the investment fund is 124 00:13:49,760 --> 00:13:56,600 our funding source so some of the options and recommendations include the staff recommendation 125 00:13:56,600 --> 00:14:01,440 that we presented the board can come up with a modified or new incentive recommendation 126 00:14:01,440 --> 00:14:08,160 or offer not offer an incentive and i'd be happy to entertain questions 127 00:14:08,160 --> 00:14:20,240 do the question um erica yes mr veins hang on a second if anybody has any questions uh 128 00:14:20,240 --> 00:14:27,240 raise your hand i'll call on you and make sure we um uh get you on the record and um 129 00:14:27,240 --> 00:14:31,420 also i guess we have questions for for our applicants we can do that just let us know 130 00:14:31,420 --> 00:14:42,640 that so john thank you marty i apologize for breaking the protocol um let's see um erica 131 00:14:42,640 --> 00:14:51,040 when you when you talked about the the criteria set for providing the incentive uh could you 132 00:14:51,040 --> 00:14:56,960 go back to that screen in a minute and and i'd like to kind of match up what we're seeing 133 00:14:56,960 --> 00:15:01,680 here based on what the criteria was i'm i'm seeing a discrepancy and i want i want to 134 00:15:01,680 --> 00:15:09,240 make sure i'm understanding what i'm not seeing all right are you talking about the ed investment 135 00:15:09,240 --> 00:15:15,040 fund the two or three criteria are you talking about priority considerations well you talked 136 00:15:15,040 --> 00:15:22,400 about you know something in the millions and so um i was just trying to make sure that 137 00:15:22,400 --> 00:15:30,600 you know is this something different from what i saw earlier i just wanted to make sure 138 00:15:30,600 --> 00:15:35,400 so the criteria in order to use the uh investment fund they need to meet two or three they meet 139 00:15:35,400 --> 00:15:40,040 the higher wage or knowledge-based jobs and the recruitment of industry sector targets 140 00:15:40,040 --> 00:15:43,960 okay so it's entrepreneurship and tech for the industry sector targets the higher wage 141 00:15:43,960 --> 00:15:49,880 knowledge-based jobs are 55 000 or greater which they meet for all and then in 65 000 142 00:15:49,880 --> 00:15:56,760 or greater for 25 and they meet that with 82 of their 150 jobs so the substantial capital 143 00:15:56,760 --> 00:16:01,760 investment is not a not a requirement for that's correct it's two of three so we can 144 00:16:01,760 --> 00:16:07,120 have another project come in there might be an industry sector target um let's say it's 145 00:16:07,120 --> 00:16:11,280 a large scale uh project to come in in the future and it might meet the investment but 146 00:16:11,280 --> 00:16:15,600 not have high wage jobs and they could also be eligible under the investment fund thank 147 00:16:15,600 --> 00:16:22,080 you for the clarification anybody else have any questions tony 148 00:16:22,080 --> 00:16:37,320 yeah thanks marty eric could you just clarify for me on pay i think on page 53 just kind 149 00:16:37,320 --> 00:16:50,520 of go over how the funds the 243 would would potentially be advanced to our prospect here 150 00:16:50,520 --> 00:16:55,360 they get 50 000 up front and then the rest of it's kind of an earned in top scenario 151 00:16:55,360 --> 00:17:02,540 that's correct not not entirely correct so the 50 000 uh could be up front it's based 152 00:17:02,540 --> 00:17:08,680 on demonstrated costs so once they had demonstrated the cost we would make a one-time payment 153 00:17:08,680 --> 00:17:14,800 so if they were able to demonstrate those upon execution of the contract yes up front 154 00:17:14,800 --> 00:17:19,280 but if it if they needed to move and relocate and they wanted to accumulate those costs 155 00:17:19,280 --> 00:17:26,560 it would be a one-time payment maybe sometime in year one of the term yes it's a reimbursement 156 00:17:26,560 --> 00:17:31,720 and then going forward there would be periodical payments based on the the criteria that you 157 00:17:31,720 --> 00:17:41,280 outlined that's correct yes we were our goal is to certify the salaries based on irs documents 158 00:17:41,280 --> 00:17:48,120 so the way that we have proposed this to our applicant is that after they file their w-2s 159 00:17:48,120 --> 00:17:53,440 for their employees and we can certify the salaries that we would make the payment for 160 00:17:53,440 --> 00:17:58,920 that year based on the data provided so it gives them time over that five-year period 161 00:17:58,920 --> 00:18:06,680 to meet the thresholds so uh without being uh two negatives so from a from a i guess 162 00:18:06,680 --> 00:18:12,040 a risk perspective uh what our risk really comes out to is the first year we're going 163 00:18:12,040 --> 00:18:21,360 to in theory advance fifty thousand dollars and uh we know uh obviously that the the percentage 164 00:18:21,360 --> 00:18:29,360 of these businesses that survive are you know it's uphill battle for new businesses obviously 165 00:18:29,360 --> 00:18:35,920 but but assuming these guys uh next year this doesn't play out it just doesn't work our 166 00:18:35,920 --> 00:18:41,840 our exposure at that point really is about 50 grand is that correct yes because it's 167 00:18:41,840 --> 00:18:48,440 all performance based so our exposure is pretty limited it's based on demonstrated hiring 168 00:18:48,440 --> 00:18:54,120 so none of the job based grants are made prior to us certifying that that person is on the 169 00:18:54,120 --> 00:19:00,880 payroll and that they've certified the salary on the threshold that you've seen okay perfect 170 00:19:00,880 --> 00:19:05,680 and i would just say i i think this is an exciting uh kind of change of pace for our 171 00:19:05,680 --> 00:19:10,720 group to look at you know we've since i've been involved there's been a few of these 172 00:19:10,720 --> 00:19:15,880 that have come in that we've done uh whether it's a restaurant or things like that that 173 00:19:15,880 --> 00:19:19,860 you know have not worked out i think these type of businesses have a lot of upside obviously 174 00:19:19,860 --> 00:19:24,280 there is risk involved these things materialize that it really creates a whole different kind 175 00:19:24,280 --> 00:19:30,120 of business for our community so kudos to these guys for getting this going this company 176 00:19:30,120 --> 00:19:34,800 was created in 2009 i just wanted to highlight a few things in this table if you'll see the 177 00:19:34,800 --> 00:19:40,760 the orange the peach the blue and the green you'll see how the jobs come on each year 178 00:19:40,760 --> 00:19:47,320 so for that and per bracket so you have 8 12 47 and 15 coming on so you can see when 179 00:19:47,320 --> 00:19:52,920 the number of jobs are actually coming online 180 00:19:52,920 --> 00:19:57,400 uh anybody else have any questions or comments steve 181 00:19:57,400 --> 00:20:05,680 yeah um i have to tony i think that the structure of this is really exciting i particularly 182 00:20:05,680 --> 00:20:11,320 like the residency bonus um didn't know if there was any opportunity in that to scale 183 00:20:11,320 --> 00:20:21,040 it to thank you uh to scale that to a uh based on the salaries that of those positions where 184 00:20:21,040 --> 00:20:28,920 there's greater reward if a higher salary live in the city it is possible to to stratify 185 00:20:28,920 --> 00:20:34,400 it in a similar manner that we did the job wage thresholds right is there a particular 186 00:20:34,400 --> 00:20:37,000 range this board would like to see or amount 187 00:20:37,000 --> 00:20:48,480 forward for consideration just to have those conversations and with other uh requests and 188 00:20:48,480 --> 00:20:54,280 how do we try to bring the folks that are managing and operating the company to the 189 00:20:54,280 --> 00:21:00,560 to the city as well thank you erica we can certainly do that that's a good point steve 190 00:21:00,560 --> 00:21:08,680 um erica and jessica is that a one time so this is over five years and if we we when 191 00:21:08,680 --> 00:21:15,280 do we um like year two i guess they have new employees and those new employees prove they 192 00:21:15,280 --> 00:21:20,000 live in denton then they get they get the bonus and they can either pass that on to 193 00:21:20,000 --> 00:21:25,120 the employee or do whatever they want with it is that how that works we uh prepared it 194 00:21:25,120 --> 00:21:31,760 as a one time okay we did prepare it so that it could apply to any employee so a pull an 195 00:21:31,760 --> 00:21:36,480 employee who had their salary may be certified in year one that was brought on board but 196 00:21:36,480 --> 00:21:41,400 maybe they moved to denton in year two they would still be eligible in year two they would 197 00:21:41,400 --> 00:21:46,180 just certify that employee's residency in the second year instead of the first if that 198 00:21:46,180 --> 00:21:53,400 makes sense but we only check one time yes okay so we hope that people come and stay 199 00:21:53,400 --> 00:21:59,720 in denton yes but part of the compliance sort of certificate that would be attached to the 200 00:21:59,720 --> 00:22:05,800 contract would we would be asking for that information every year so we would be wanting 201 00:22:05,800 --> 00:22:10,700 ongoing compliance and ongoing tracking of how many employees are moving to denton and 202 00:22:10,700 --> 00:22:24,780 staying in denton okay anybody else have any comments or questions 203 00:22:24,780 --> 00:22:34,360 i'm curious uh for mark and mike do you guys work with our universities and our disd or 204 00:22:34,360 --> 00:22:41,160 nctc already on any kind of programs i hope i didn't miss that i got you john 205 00:22:41,160 --> 00:22:55,160 we're not able to hear you mike 206 00:22:55,160 --> 00:23:01,640 oh hi this is mark i guess since we can't hear mike so yes we are 207 00:23:02,520 --> 00:23:08,440 already have a strong relationship with the university of north texas both as a hiring 208 00:23:08,440 --> 00:23:18,280 pipeline for a new talent and working with a number of the professors on academic research 209 00:23:18,280 --> 00:23:27,320 and including a partnership with the christian farmer autism center which is connected with the 210 00:23:27,320 --> 00:23:37,560 university of north texas and we have also been we have not worked with i would say the 211 00:23:37,560 --> 00:23:45,880 the school district the high school district yet but occasionally our cto has volunteered to 212 00:23:45,880 --> 00:23:54,280 provide seminars at the high school level so does that answer your question mr rivers 213 00:23:54,280 --> 00:24:03,400 yes sir mikey john had a question uh thank you again marty my question is for both mark and for 214 00:24:03,400 --> 00:24:11,800 mike i'd first like to say that i'm a big uh fan of high tech and i'm a big fan of high tech coming 215 00:24:11,800 --> 00:24:19,480 to denton the question i have is um this the high tech industry kind of has a poor record 216 00:24:20,040 --> 00:24:28,840 when it comes to black and brown uh employees and developing uh people in that uh of that particular 217 00:24:28,840 --> 00:24:36,760 um segment demographic can you talk a little bit mark and and mike about how you plan to approach 218 00:24:36,760 --> 00:24:40,840 that uh that track record and and and make it a little bit better 219 00:24:40,840 --> 00:24:49,560 mike do you want to try go ahead hear me now uh yeah yeah sorry about that early john 220 00:24:50,120 --> 00:24:55,720 thank you for your question yeah we're we're uh we're a big supporter of diversity and and 221 00:24:55,720 --> 00:25:03,000 you're right it has been a poor track record we've been in tech for more years and i'd like to admit 222 00:25:03,000 --> 00:25:12,120 and uh it's really and and whenever we can we were more than happy to be inclusive with with uh you 223 00:25:12,120 --> 00:25:19,800 know all all types of diversity you know whether it's uh women or people of color and um we we have 224 00:25:19,800 --> 00:25:27,400 been working with you know a variety of people from the university um and we haven't been at that 225 00:25:27,400 --> 00:25:36,520 stage in growth recently to where we can hire a lot of people so i mean i mean i am and i am 226 00:25:36,520 --> 00:25:41,800 absolutely thrilled anytime i can uh interview someone to bring some diversity because every 227 00:25:41,800 --> 00:25:48,120 time we have in the past it's brought uh whole new dimensions that are that are really hard to 228 00:25:48,120 --> 00:25:53,480 um articulate but that that point of view especially when it comes to the creative 229 00:25:53,480 --> 00:25:58,680 work that we do um you know whether we bring on a on a female or somebody from a different 230 00:25:58,680 --> 00:26:03,640 background it brings in a a new and fresh perspective and when you're doing something 231 00:26:03,640 --> 00:26:09,240 new in high tech like virtual reality education and training it's really important to have 232 00:26:09,240 --> 00:26:16,280 um as many perspectives as you can and i've i've always regretted the fact that you know a lot of 233 00:26:16,280 --> 00:26:24,040 uh a lot of us you know are just old white guys for lack of a better better term and i think that 234 00:26:24,040 --> 00:26:31,320 really limits our thinking you know and and so i i always welcome a broad range of of of input and 235 00:26:31,320 --> 00:26:34,600 if you've got any follow-up questions to be happy to answer but that's probably the best i can 236 00:26:34,600 --> 00:26:41,800 articulate it right now my my my uh my concern is that at least there's the consideration 237 00:26:41,800 --> 00:26:46,120 now as a guy that's getting close to 70 years old i don't know how much longer i'm going to 238 00:26:46,120 --> 00:26:54,840 be in this game so i'm an older black guy so uh but uh i i i do appreciate your response and just 239 00:26:54,840 --> 00:27:02,600 wanted to to make the point that you know this is a this is an opportunity uh to to be groundbreaking 240 00:27:02,600 --> 00:27:07,240 in a number of areas and i and i hope that that that will be a part of your mission statement as 241 00:27:07,240 --> 00:27:18,200 well yeah absolutely absolutely thank you john anybody else have any comments or questions 242 00:27:18,200 --> 00:27:20,600 about the incentive application 243 00:27:20,600 --> 00:27:30,520 all right keely griggs has joined us i i guess i want to make sure um we also know jimmy joined 244 00:27:30,520 --> 00:27:36,600 us and while i'm at that uh i got a personal text from our superintendent to remind me i did not 245 00:27:36,600 --> 00:27:44,360 introduce him earlier today either so jamey wilson is also on the call as well so already 246 00:27:44,360 --> 00:27:47,720 katie oh raised her hand all right yeah keely go ahead 247 00:27:47,720 --> 00:27:56,840 yeah thank you uh are we giving i jumped in a little bit late so i are we all giving direction 248 00:27:56,840 --> 00:28:05,480 on on this uh recommendation uh because i i'm in favor and i'm glad to see the uh residency bonus 249 00:28:05,480 --> 00:28:11,720 in there and i'd like to echo what mr bain said about um minorities in the tech industry and 250 00:28:11,720 --> 00:28:21,960 hopefully um we can uh expand there and grow and see some um some some growth in that area 251 00:28:21,960 --> 00:28:27,080 but as far as this uh incentive i am i am in favor of it 252 00:28:29,400 --> 00:28:37,560 yeah i was about do you want to put that in the form of a motion uh yes i would i make a motion to 253 00:28:37,560 --> 00:28:46,040 to approved based on staff recommendations okay jill jester i'll second that all right we have a 254 00:28:46,040 --> 00:28:53,160 motion and a second any further discussion uh yes i'd like to say it's very nice to see dr jamie 255 00:28:53,160 --> 00:29:00,120 wilson with us today as a side note uh but no further discussion on this incentive package 256 00:29:00,120 --> 00:29:07,800 all right i'm gonna go around the horn and uh please remind me if i leave somebody out 257 00:29:07,800 --> 00:29:14,920 the squares are moving every once a while but uh john baines i vote yes all right tony clark 258 00:29:15,480 --> 00:29:24,440 yes steve edgar yes and welcome to uh superintendent wilson chris davis 259 00:29:24,440 --> 00:29:41,160 is that a yay yes all right jill jester uh in favor aye jason tomlinson aye mark mcclellan 260 00:29:42,040 --> 00:29:45,800 all right jimmy maja 261 00:29:45,800 --> 00:29:52,040 you're on you're on mute jimmy 262 00:29:52,040 --> 00:29:57,400 all right that's an eye and 263 00:29:57,400 --> 00:30:08,200 the keely made the motion uh yes yep all right that's a unanimous uh eye so the motion carries 264 00:30:08,840 --> 00:30:16,840 thank you so much um mark and mike for being here today we're excited to keep you in denton and look 265 00:30:16,840 --> 00:30:22,040 forward to seeing you guys grow thank you so much for being here thank you marty and thanks 266 00:30:22,040 --> 00:30:27,160 everybody else really appreciate your time on this absolutely you're welcome to stick around and 267 00:30:27,160 --> 00:30:33,320 listen to the rest of our meeting if you don't have anything better to do we're going to go on 268 00:30:33,320 --> 00:30:42,120 to our item c edp 20-031 which is um receive a report hold discussion give staff direction on 269 00:30:42,120 --> 00:30:49,160 our tip strategies uh strategic plan so i'd like to welcome tom and jacklyn back and 270 00:30:49,160 --> 00:30:55,320 and look forward to hearing an update well i will turn it over to tom and jacklyn after one quick 271 00:30:55,320 --> 00:31:01,320 second i want to just make sure that everyone knows where we are in process and timeline so 272 00:31:01,320 --> 00:31:09,080 this is scheduled to go to the city council on august 18th which is next tuesday so our goal today 273 00:31:09,080 --> 00:31:16,040 is to make sure that we capture any of the of this board's final recommendations or changes and make 274 00:31:16,040 --> 00:31:22,520 sure that everyone is comfortable with the plan um the matrix as drafted and i believe this agenda 275 00:31:22,520 --> 00:31:28,920 item and the next agenda item both relate to this topic so we'll we'll start with the plan itself 276 00:31:28,920 --> 00:31:34,120 and then move on to the additional discussion on funding um but just so everyone knows the context 277 00:31:34,120 --> 00:31:39,320 in which this item and and what the next steps are as we go forward so if there's a comment 278 00:31:39,320 --> 00:31:44,440 you've been holding back on or you haven't sent it to me or tom or jacklyn now is the opportunity 279 00:31:44,440 --> 00:31:52,040 to do so and with that i will turn it over to tom and jacklyn to take us through the presentation 280 00:31:54,600 --> 00:32:03,480 hey thanks jessica can everybody hear me okay all right good good deal good deal uh as jessica 281 00:32:03,480 --> 00:32:11,320 mentioned the next agenda item jessica is going to go over some more details in terms of budget and 282 00:32:11,320 --> 00:32:21,880 proposed structure so we look forward to that but without further ado if you don't mind advancing 283 00:32:21,880 --> 00:32:30,120 the slide um i'll do a quick recap of our last meeting and you guys gave us a little bit of 284 00:32:30,120 --> 00:32:36,760 homework last time and so we're going to share a little data around incentives and some comparisons 285 00:32:36,760 --> 00:32:43,560 and you also ask us to start putting some numbers to some things so we're gonna we're gonna do that 286 00:32:43,560 --> 00:32:48,840 but also explain some of the rationale for that a little data behind that and then talk about next 287 00:32:48,840 --> 00:32:57,560 steps so next slide um i guess i kind of repeat that we're going to share additional information 288 00:32:57,560 --> 00:33:04,840 on economic development funds and then as jessica also mentioned the idea today is if you guys have 289 00:33:04,840 --> 00:33:09,720 questions or other things that need to be resolved between now and the council meeting we're happy to 290 00:33:09,720 --> 00:33:18,200 happy to help do that next slide next slide so as you guys recall you received the economic 291 00:33:18,200 --> 00:33:28,040 development plan the overall goals were structured around three items we in a sense we pivoted 292 00:33:28,040 --> 00:33:35,080 because covid hit you know right right as we were wrapping up our community input and stakeholder 293 00:33:35,080 --> 00:33:43,240 input and so we put right up front strategies around accelerating the recovery and as you guys 294 00:33:43,240 --> 00:33:51,560 saw in the plan and also in the the implementation metrics many of these items are marked as already 295 00:33:51,560 --> 00:33:57,880 going but we thought that it was important to capture the things that the city and the chamber 296 00:33:57,880 --> 00:34:04,440 and others were already initiating around recovery and have that in the plan to make sure that 297 00:34:04,440 --> 00:34:09,560 everybody's on the same page there so we thought that was important fostering growth is where a lot 298 00:34:09,560 --> 00:34:15,000 of the things that we traditionally think about from an economic development standpoint fit and 299 00:34:15,000 --> 00:34:22,680 then we have we put in a third goal around strengthening community inclusion because we 300 00:34:22,680 --> 00:34:29,240 we do think that needs to be part of your efforts going forward so next slide and marty feel free to 301 00:34:29,240 --> 00:34:32,360 you know if we need to stop somewhere along the way i'll just kind of i'll go through this and 302 00:34:32,360 --> 00:34:39,800 there's a couple of key points that i think you know i want to pause on for sure but we last time 303 00:34:39,800 --> 00:34:50,600 introduced the idea of there being a a fund that would allow for the city of denton to be more 304 00:34:50,600 --> 00:34:59,960 competitive within the dfw marketplace and i really applaud the the approval this morning of the 305 00:34:59,960 --> 00:35:08,200 incentive package for from the future i do think we're we're seeing an overall trend of communities 306 00:35:08,200 --> 00:35:14,280 being willing to take more risks on what we would consider startups and tech startups and the way 307 00:35:14,280 --> 00:35:21,000 that you guys have structured that in terms of the phasing and certification of jobs you're doing it 308 00:35:21,000 --> 00:35:27,080 in a very what i'd consider a you know a conservative way a smart way a very prudent way and so i was 309 00:35:27,080 --> 00:35:33,480 very impressed with that but the purpose of the catalyst fund is to you know have begin to move 310 00:35:33,480 --> 00:35:40,600 denton to a little more competitive footing within the the dfw area and we'll talk about actual 311 00:35:40,600 --> 00:35:51,880 numbers here in a moment the next slide in your packet i don't know if you guys have had a chance 312 00:35:51,880 --> 00:36:00,440 to review we took the recommendations in the overall strategy document and put it into what 313 00:36:00,440 --> 00:36:07,160 we call an implementation matrix where we identify partners timelines 314 00:36:07,160 --> 00:36:19,560 potential costs to items in the implementation matrix so that this ultimately would be the 315 00:36:19,560 --> 00:36:27,800 document that the edp would come back to in the future and refer to as to to note you know where 316 00:36:27,800 --> 00:36:39,240 your progress is on items within the plan next slide please so i i do want to pause here for a 317 00:36:39,240 --> 00:36:46,680 moment because it's when we talk about incentives many times that's what you know like in your 318 00:36:46,680 --> 00:36:50,680 meeting today a big part of your discussion is around the incentives package for a particular 319 00:36:50,680 --> 00:36:56,920 company that's coming in and i think it's important to remind ourselves in economic development that 320 00:36:56,920 --> 00:37:01,720 economic development happens in many different ways there are actually programs that support 321 00:37:01,720 --> 00:37:07,400 economic development but a big part you know in the upper right hand corner infrastructure investment 322 00:37:07,400 --> 00:37:15,800 you know i've spoken with many brokers over the years and for them the incentives that are 323 00:37:15,800 --> 00:37:23,160 kind of the cash oriented incentives are really typically icing on the cake or you know might move 324 00:37:23,160 --> 00:37:29,320 the needle on two properties or two cities that are relatively equal but many times they're 325 00:37:29,320 --> 00:37:33,960 they're up you know they're driven by is the infrastructure in place already is this something 326 00:37:33,960 --> 00:37:39,480 we're going to have to pay for and if the city or the you know business park owner whoever has that 327 00:37:39,480 --> 00:37:44,120 is already making the infrastructure investments you know that many times will drive an investment 328 00:37:44,120 --> 00:37:49,880 over a cash incentive per job in other words they're really looking at is the you know am i 329 00:37:49,880 --> 00:37:55,720 going to get my trucks to be able to get my trucks in and out you know is the infrastructure in place 330 00:37:55,720 --> 00:38:00,760 is the water wastewater utilities in place that's going to drive investments and so just a reminder 331 00:38:00,760 --> 00:38:06,760 that sit the city of dentin and all cities are constantly making investments around infrastructure 332 00:38:06,760 --> 00:38:12,600 and that's that's one of the big parts of it obviously marketing is part of what you do data 333 00:38:12,600 --> 00:38:19,000 analysis is what you do but this is just a reminder that economic development decisions are made based 334 00:38:19,000 --> 00:38:25,400 on you know multiple factors and incentives are from a cash in standpoint are really just one of 335 00:38:25,400 --> 00:38:35,000 the drivers of that decision so that's that's my preamble before i talk about the specific 336 00:38:35,000 --> 00:38:42,200 recommendations so go ahead with the next slide please so this is just a repeat i think from what 337 00:38:42,200 --> 00:38:48,600 you guys may have seen last time we had we had put in information about type a and type b move 338 00:38:48,600 --> 00:38:58,360 move forward please um and i i do i think it's important to remind ourselves that type a and type 339 00:38:58,360 --> 00:39:05,720 b within the dfw area is makes for a very aggressive economic development uh market and 340 00:39:05,720 --> 00:39:14,600 it's not necessarily the intent or for dentin to try to compete with groups that have this you know 341 00:39:14,600 --> 00:39:21,800 huge pots of cash and while you know many times the type b facility type t be economic development 342 00:39:21,800 --> 00:39:28,440 incentive is is going to projects that we wouldn't necessarily consider traditional economic development 343 00:39:28,440 --> 00:39:34,280 there are there's a lot of type a money out there a lot of type a money out there so next slide 344 00:39:34,280 --> 00:39:44,680 so we do have a couple of new slides here i i did speak with one of my contacts in the dfw area 345 00:39:44,680 --> 00:39:51,720 who keeps a a pretty good database of different incentive projects and they were willing to share 346 00:39:51,720 --> 00:39:58,280 some recent projects that they had worked on just as examples of incentive deals 347 00:39:58,280 --> 00:40:06,280 i think this is good background as you can see you know they're sort of and these are 348 00:40:06,280 --> 00:40:11,480 incentives beyond infrastructure these are incentives that are either jobs based or capital 349 00:40:11,480 --> 00:40:16,680 investment based just to give you an idea of some of the current kinds of projects 350 00:40:17,400 --> 00:40:24,520 i will say that um and i think you know chris and some of you that are out at the business park 351 00:40:24,520 --> 00:40:29,560 you know the activity that you're likely seeing right now was reinforced by the broker that i 352 00:40:29,560 --> 00:40:37,720 spoke with which is right now warehouse space is at a premium cold storage at a premium 353 00:40:37,720 --> 00:40:44,280 of course there's a lot of folks out there looking right now even in a market where um you know 354 00:40:44,280 --> 00:40:49,960 overall jobs are still down sales tax still down but that's the kind of activity that they're 355 00:40:49,960 --> 00:40:56,120 seeing right now a lot of their their biggest concerns were in the office market especially 356 00:40:56,120 --> 00:41:01,960 you know class a office with companies that right now they mentioned they were working on 357 00:41:01,960 --> 00:41:06,280 some large projects across the country that were office projects that had essentially come to a 358 00:41:06,280 --> 00:41:15,960 complete stop because not only were they questioning their you know the timing for the market but many 359 00:41:15,960 --> 00:41:20,760 of their companies that they were representing were actually questioning how many of their employees 360 00:41:20,760 --> 00:41:25,480 were going to actually come back and want you know how much office space were they going to need going 361 00:41:25,480 --> 00:41:32,440 forward industrial really strong but some concerns around the future for office in the short to mid 362 00:41:32,440 --> 00:41:47,080 term so next slide jacqueline put together a quick little chart that shows the layering of different 363 00:41:47,080 --> 00:41:54,520 types of incentives and we did this primarily just to as a way to educate ourselves but also you guys 364 00:41:54,520 --> 00:42:00,520 to remind you that denton actually does participate in the number of the types of grants and incentives 365 00:42:00,520 --> 00:42:07,080 that are offered in the communities that you compete with your dollar amounts for you know 366 00:42:07,080 --> 00:42:13,800 job cash grants may not be as much as some of the others but you do have those categories 367 00:42:13,800 --> 00:42:22,360 and i don't know jessica are you erica wanted to add anything to that but that's really this is 368 00:42:22,360 --> 00:42:28,600 really more of just a reminder that you know you guys are in the game it's just the numbers 369 00:42:29,160 --> 00:42:34,440 may be a little different than what you're competing with right now sure i'll just add that 370 00:42:34,440 --> 00:42:42,120 we always get as creative as we can and when an applicant approaches us and we always try and use 371 00:42:42,120 --> 00:42:47,000 every tool at our disposal which is what you see here and i'll go over it in my presentation 372 00:42:47,000 --> 00:42:53,160 subsequently of how these tools have been used in denton and some members of this board are probably 373 00:42:53,160 --> 00:42:59,480 familiar with what erica calls our multi-tax tools it's when we write really complicated 374 00:42:59,480 --> 00:43:07,560 agreements where we fold in a number of these tools to get applicants kind of where we want 375 00:43:07,560 --> 00:43:14,040 in terms of attracting the type of applicant that we want or company here that will will layer and 376 00:43:14,040 --> 00:43:20,120 will build these very complex agreements that that erica really enjoys administering every year 377 00:43:22,040 --> 00:43:31,480 hey jessica uh i guess i maybe misunderstood but i thought from prior conversation with city staff 378 00:43:31,480 --> 00:43:40,920 that we could were prohibited from waiving impact fees and permit fees that's correct that's why it 379 00:43:40,920 --> 00:43:49,720 is white under our area we don't waive impact fees or permit fees is that a city choice 380 00:43:50,680 --> 00:43:55,400 i thought that i thought you couldn't do that across the state of texas apparently you can 381 00:43:55,400 --> 00:44:00,040 this is mac in the city attorney's office that's that's certainly our interpretation as a city 382 00:44:00,040 --> 00:44:05,640 attorney's office that they can't be and that's the prevailing view of impact fee waivers i know 383 00:44:05,640 --> 00:44:09,400 there are some cities out there that do it i don't know if they've ever been challenged i know there's 384 00:44:09,400 --> 00:44:15,880 no cases that have ever challenged that but um no our position is that impact fees cannot be waived 385 00:44:17,240 --> 00:44:25,080 can they be reimbursed yes absolutely yes that was going to be my clarification is that there's 386 00:44:25,080 --> 00:44:29,240 other ways to accomplish the same goal thank you 387 00:44:29,240 --> 00:44:38,840 minko's example that received a reimbursement because they took on um all of phase one for 388 00:44:38,840 --> 00:44:50,840 ters number two but if you guys don't mind we've got one more section and then we can 389 00:44:50,840 --> 00:44:59,080 open it up for additional questions um so we'll go to the next slide 390 00:45:04,600 --> 00:45:11,320 and jacqueline if you don't mind taking this part um as we we spent some time thinking about 391 00:45:11,320 --> 00:45:19,720 well what what would it mean to structure uh to enhance your fund and i felt like jacqueline you 392 00:45:19,720 --> 00:45:27,400 do a great job of explaining this i'll let you handle that okay thanks tom um yeah so in response 393 00:45:27,400 --> 00:45:32,600 to the board's questions during our our last meeting about kind of potential size for the 394 00:45:32,600 --> 00:45:37,880 calisthenics we've been working with jessica and erica over the last couple of weeks to come up with 395 00:45:37,880 --> 00:45:44,040 some numbers for you um jessica will go over this in much more detail in her presentation so i'll 396 00:45:44,040 --> 00:45:50,200 just kind of set the context and give you some high high level information on this slide um we 397 00:45:50,200 --> 00:45:55,080 thought it would be important to talk about a couple of considerations your homework assignment 398 00:45:55,080 --> 00:46:00,840 was not as straightforward as i think we thought it was going to be but a couple things to think 399 00:46:00,840 --> 00:46:07,080 about um you know the ultimate goal of putting together a fund is to have enough resources to 400 00:46:07,080 --> 00:46:13,160 meet the objectives and goals in this plan and so just you know wanted to point that out it's not 401 00:46:13,160 --> 00:46:18,840 about increasing resources just to increase resources it's really about um having the resources 402 00:46:18,840 --> 00:46:25,480 you need to be strategic and meet kinds of goals that we've laid out and given the uncertain times 403 00:46:25,480 --> 00:46:32,280 that we're in it's also important to have some flexibility around what needs to be done and how 404 00:46:32,280 --> 00:46:38,920 much um funding you'll need to get there and so the numbers you'll see today are estimates based 405 00:46:38,920 --> 00:46:47,320 off of what we know now but of course the environment can change and um we also think it's important to 406 00:46:47,320 --> 00:46:54,040 work towards building resources over time so it's probably not realistic to go from where 407 00:46:54,040 --> 00:46:59,720 the city is today to something that's super aggressive tomorrow and so we're laying out a 408 00:46:59,720 --> 00:47:08,040 progression um similarly related to my point about flexibility the level of resources that you need 409 00:47:08,040 --> 00:47:13,320 each year is probably not static you'll see kind of averages but there's definitely a lot more 410 00:47:13,320 --> 00:47:21,080 nuance there um and ultimately we hope that the fund coupled with you know all of the different 411 00:47:21,080 --> 00:47:26,280 types of incentives and tools that you already have will just support denton with kind of a more 412 00:47:26,280 --> 00:47:33,160 sophisticated toolbox and different mechanisms to support economic development so next slide 413 00:47:33,160 --> 00:47:42,680 um so we worked with Jessica to get a better understanding of existing costs and project kind 414 00:47:42,680 --> 00:47:48,040 of future resources resources needed to implement all the different strategies and actions in the 415 00:47:48,040 --> 00:47:53,000 plan this gives you a high level overview of the progression that we're recommending 416 00:47:53,000 --> 00:47:59,640 so currently the city invests about four million in economic development which covers both operations 417 00:47:59,640 --> 00:48:07,320 and um existing incentives so we think to modernize what you're doing in economic development 418 00:48:07,320 --> 00:48:13,560 um on the operation side and increase capacity to a foundational level that's comparable to what 419 00:48:13,560 --> 00:48:19,240 other cities are doing the goal would be to start increasing the annual investment to about six 420 00:48:19,240 --> 00:48:26,280 million per year and then over a longer horizon the city can work towards a more aggressive 421 00:48:26,280 --> 00:48:32,520 investment which would look like seven to nine million per year so next slide 422 00:48:32,520 --> 00:48:39,960 and the way this breaks out according to the strategic growth areas and goals 423 00:48:39,960 --> 00:48:46,200 is laid out here we left out the first goal focused on economic recovery because most of that work is 424 00:48:46,200 --> 00:48:53,720 already happening and is already funded so this slide shows you um we estimated all of the costs 425 00:48:53,720 --> 00:49:01,320 for each strategy over five years and came up with annual averages the numbers in the foundational 426 00:49:01,320 --> 00:49:08,280 column is 50 percent of that average each year and then the aggressive is the full amount so 427 00:49:08,280 --> 00:49:14,520 again showing a progression how to step up from where you are to a foundational level and then 428 00:49:14,520 --> 00:49:19,720 move towards aggressive over time but this just gives you a sense of when we added up the numbers 429 00:49:19,720 --> 00:49:24,840 for the various strategies recommended and you can see all this detail in the implementation 430 00:49:24,840 --> 00:49:40,920 matrix this is how it rolls up and how it aligns to the different areas um and um jessica when she 431 00:49:40,920 --> 00:49:47,480 talks about the budget budgeting she'll help you you know help explain where that sort of current 432 00:49:47,480 --> 00:49:53,240 four million that we have because we we put that in as a placeholder because we felt like it was 433 00:49:54,200 --> 00:50:00,280 you can go back up one i guess um you know what what's currently how much is going toward 434 00:50:00,280 --> 00:50:05,480 operations and contracts uh with the chamber and other activities that are currently considered 435 00:50:05,480 --> 00:50:11,000 economic development versus how much is actually part of incentives packages that are currently 436 00:50:11,000 --> 00:50:17,880 obligated or you know that are being funded at as your as you're operating right now and that came 437 00:50:17,880 --> 00:50:24,440 out to a total of about four million and so what we're recommending as foundational is that you guys 438 00:50:24,440 --> 00:50:29,880 move up to about six million that would be a combination of increasing your operational 439 00:50:29,880 --> 00:50:37,160 programmatic and increasing and creating more of a fund that gives you flexibility so that you have 440 00:50:37,160 --> 00:50:43,400 more dollars to offer from an incentive standpoint and then you know the question you guys ask what 441 00:50:43,400 --> 00:50:49,640 is it really going to take longer term for dentin to be more competitive and that's where we feel 442 00:50:49,640 --> 00:50:55,880 like the seven to nine million and i you know this is one of those areas that we felt confident that 443 00:50:55,880 --> 00:51:01,880 if you guys get to that level in the next three to five years that you guys will be you'll change 444 00:51:01,880 --> 00:51:09,240 the perception of dentin as a business location within the region and there's some that might 445 00:51:09,240 --> 00:51:13,640 argue that well if we're going to compete with somebody like frisco we have to double that 446 00:51:13,640 --> 00:51:19,480 yeah that's true but i i think that the types of projects that you are going to be 447 00:51:19,480 --> 00:51:29,080 well positioned for that this is a pretty solid number going forward how you get there you know 448 00:51:29,080 --> 00:51:34,120 i think that's where there's been a lot of work put in behind the scenes to talk about you know 449 00:51:34,120 --> 00:51:38,120 where these funds could come from and how that might be structured and how you would get there 450 00:51:38,120 --> 00:51:46,440 over time and but that's really the next the next conversation that jessica's going to help help lead 451 00:51:46,440 --> 00:51:56,760 so if you don't mind let's go to the next step slide and then we'll transition whatever way you 452 00:51:56,760 --> 00:52:03,080 guys think makes makes sense because it was really the implementation metric that was shared with you 453 00:52:03,080 --> 00:52:10,360 guys since we last met and then a little more detail here some of this you know i'm happy to 454 00:52:10,360 --> 00:52:16,360 stick around if you want to wait until after jessica you've gone through some of yours and 455 00:52:16,360 --> 00:52:20,760 you have questions about however you guys would like to handle it marty i'm happy to we're not 456 00:52:20,760 --> 00:52:25,560 going anywhere august 18th is going to be a busy day 457 00:52:31,240 --> 00:52:36,600 all right anybody have any questions uh for tom or jacklyn or anybody else 458 00:52:36,600 --> 00:52:45,320 i like i think one of the small changes that was in there is we talked about adding somebody from 459 00:52:45,320 --> 00:52:52,280 the ed board on that kind of monthly working group i think that's a that's a good um 460 00:52:52,280 --> 00:53:00,360 opportunity to have somebody involved from the board level and it might this is small potatoes 461 00:53:00,360 --> 00:53:04,280 i guess but you might say chair and or vice chair just to make sure somebody can 462 00:53:04,280 --> 00:53:09,960 can be there or somebody from the board but john raised his hand had some questions john 463 00:53:09,960 --> 00:53:18,360 yes i do uh can you hear me okay um i guess for the sake of my of my 464 00:53:18,360 --> 00:53:24,600 limited capacity i needed a little more clarification um 465 00:53:26,840 --> 00:53:33,960 when i think of a fund i guess i want to know how much is sitting there unencumbered 466 00:53:33,960 --> 00:53:41,240 and not bothered and not designated for anything else other than let's get some business in so i 467 00:53:41,240 --> 00:53:46,040 know there was a four million dollar figure thrown out but how much of that is actually 468 00:53:46,040 --> 00:53:53,480 sitting in a fund ready to be directed specifically for attracting new business 469 00:53:54,200 --> 00:54:00,600 and then to transition would that nine million be an inclusive of all things 470 00:54:00,600 --> 00:54:07,720 or would that be money sitting in a in a category unencumbered so i'd kind of like a little 471 00:54:07,720 --> 00:54:15,800 clarification on those numbers please i will be going over that in extensive detail in the next 472 00:54:15,800 --> 00:54:22,520 presentation um and we'll kind of walk through what those numbers mean and the various and pretty 473 00:54:22,520 --> 00:54:29,480 complex variables that get us to those numbers that jacqueline and tom presented thank you 474 00:54:29,480 --> 00:54:43,400 i did also want to mention i'm sorry i just wanted to make sure that the board 475 00:54:43,400 --> 00:54:49,800 in your packet you do have the implementation matrix that we filled out and as tom and jacqueline 476 00:54:49,800 --> 00:54:56,760 have said before the um the matrix is something that we will revisit over time it's not meant to 477 00:54:56,760 --> 00:55:03,960 be static it's meant to track and update as we kind of move through this process and be updated 478 00:55:03,960 --> 00:55:08,600 regularly and an addition that you had in your packet this time that you haven't had previously 479 00:55:08,600 --> 00:55:15,560 was the public comments that we received as we did our virtual public comments for so i just wanted 480 00:55:15,560 --> 00:55:19,880 to make sure that the board was aware that you had that information and and then i'll just turn it 481 00:55:19,880 --> 00:55:33,000 over to back to marty and i think jill had a question um jill jester i just want to comment 482 00:55:33,000 --> 00:55:40,760 that um i think uh there are lots of different components that has made have made um this 483 00:55:42,040 --> 00:55:49,400 report very helpful to not only us but i think the general public as far as um you know everyone 484 00:55:49,400 --> 00:55:53,000 kind of has their idea of what economic development might look like but to see the 485 00:55:53,000 --> 00:55:59,560 comparables to what some of our surrounding cities and competitors are doing is very helpful so that 486 00:55:59,560 --> 00:56:05,720 we level the playing field and can tout some of the unique aspects of denton but we do have to be 487 00:56:05,720 --> 00:56:11,160 in the ballpark in order to play the game so i think that this has been very very helpful to 488 00:56:11,160 --> 00:56:17,320 see where we need to be again just to be relevant in those conversations of where um some of these 489 00:56:17,320 --> 00:56:23,880 businesses want to relocate knowing how important sales tax is to be able to pay for our city and 490 00:56:23,880 --> 00:56:31,320 streets and all of and our schools and things like that um i would also want to i want to commend um 491 00:56:31,320 --> 00:56:39,400 jessica erica and everyone else that worked on the matrix i think that is the real nuts and bolts of 492 00:56:39,400 --> 00:56:47,240 how we make give effect to all of these findings and the pivot that was done tom by you and your 493 00:56:47,240 --> 00:56:53,640 group as far as making sure that first we take care of the businesses we have that we work on 494 00:56:53,640 --> 00:56:59,080 doing whatever it is that we can to sustain our current businesses if at all possible that that 495 00:56:59,080 --> 00:57:04,200 was a very important pivot and we can see in the comments that's very important to the public as 496 00:57:04,200 --> 00:57:09,960 well of course but that that is being addressed in the short term but at the same time we have to 497 00:57:09,960 --> 00:57:16,040 recognize that um you know this this will not last forever and we do need to be taking action now to 498 00:57:16,040 --> 00:57:23,080 be again in the ballpark so i'm very happy on behalf of denton on behalf of the city the chamber 499 00:57:23,080 --> 00:57:30,360 and all of the groups associated um who were able to come together and really put how can we make 500 00:57:30,360 --> 00:57:36,520 sure we're covering our bases as much as possible who is best able to fulfill certain types of duties 501 00:57:36,520 --> 00:57:43,560 and again the emphasis on um you know the the green power sustainability working with the black 502 00:57:43,560 --> 00:57:48,520 chamber of commerce hispanic chamber of commerce and working with our existing businesses as well 503 00:57:48,520 --> 00:57:55,480 as situating ourselves to be um a real player in the field of getting to pick who comes here 504 00:57:55,480 --> 00:58:00,840 um as opposed to you know it being any kind of leftover i think is really important for our city 505 00:58:00,840 --> 00:58:07,720 and i'm just uh very excited that um the city manager the city staff the ed staff that everyone 506 00:58:07,720 --> 00:58:16,120 has been uh uh recognizing uh the importance of economic development and how we do it and you know 507 00:58:16,120 --> 00:58:23,560 it it's not easy and it might hurt in some areas but this is an investment that we demand uh returns 508 00:58:23,560 --> 00:58:30,440 on in order to see to the end but um i'm just so very excited for this new chapter in the 509 00:58:30,440 --> 00:58:33,800 life of the city of denton and just wanted to say um a big thank you 510 00:58:33,800 --> 00:58:50,600 right it seems that we have temporarily lost um marty so john would you like to take over as 511 00:58:51,400 --> 00:58:56,520 in your vice chair role i will take over until our our grand leader returns 512 00:58:56,520 --> 00:59:06,280 um i think you have your hand uh raised for a comment please yes i do um i have a question 513 00:59:06,280 --> 00:59:16,520 about the implementation or about the the chart um the matrix so there are items that have a timeline 514 00:59:16,520 --> 00:59:26,680 like 12 to 18 2 to 3 and 3 to 5 years and then there is an ongoing uh section and so my question 515 00:59:26,680 --> 00:59:35,080 is does that mean that we are doing it now and we will continue to do it throughout or um so 516 00:59:35,080 --> 00:59:40,280 just for example there's highlight businesses owned by women and people of color and marketing 517 00:59:40,280 --> 00:59:47,640 materials through digital marketing channels and increase awareness so that says it's ongoing um 518 00:59:47,640 --> 00:59:52,040 what exactly does that mean and if it's ongoing can i find that somewhere currently 519 00:59:52,040 --> 01:00:00,600 sorry erica can you just take it down so we can see each other and marty's rejoining us 520 01:00:00,600 --> 01:00:07,080 and so yes our intention with some of the ongoing elements are not that they're 521 01:00:07,080 --> 01:00:13,480 being adopted on a timeline it means that it will be done throughout the five-year period it may 522 01:00:13,480 --> 01:00:22,520 not be something that as of august 12th 2020 is in its absolute implementation stage but it is 523 01:00:22,520 --> 01:00:28,760 something that we intend to do over the entirety of the five-year horizon there are some elements 524 01:00:28,760 --> 01:00:35,400 that are in progress and those elements are both in progress and ongoing and there are some that 525 01:00:35,400 --> 01:00:43,880 will be new and ongoing well may i chair some some of these that have ongoing are really critical 526 01:00:43,880 --> 01:00:50,440 and i think important so if there's a way to at some point see if they are in progress or what 527 01:00:50,440 --> 01:00:58,600 that means ongoing because if i see um i don't know if there's some that are not yet in progress but 528 01:00:58,600 --> 01:01:05,880 we think they should be but without a timeline there we don't know when to expect it so um there's 529 01:01:05,880 --> 01:01:14,200 just a little bit more clarity on what ongoing means would be helpful sure yeah so any of the 530 01:01:14,200 --> 01:01:20,760 elements that are listed as ongoing um i think tom hit on this a little bit but i'll hit on this 531 01:01:20,760 --> 01:01:26,280 pretty hard and it'll be part of future presentations and this will come back many times 532 01:01:26,280 --> 01:01:31,640 is that we'll regularly report on progress for those items when we look at the ongoing items we 533 01:01:31,640 --> 01:01:38,200 may need to prioritize uh based on what is kind of the most critical element of the day i'm not 534 01:01:38,200 --> 01:01:44,920 sure that i can commit and say by the end of this next year every element um of year one plus ongoing 535 01:01:44,920 --> 01:01:50,440 will be fully implemented but anything that's indicated as an ongoing element or as a first 12 536 01:01:50,440 --> 01:01:58,040 to 18 month element we intend to start the ball rolling in year one so i'm not sure like i said 537 01:01:58,040 --> 01:02:04,520 if we would get to full implementation but we'll be regularly reporting on any of these items 538 01:02:04,520 --> 01:02:09,160 that are year one and ongoing in this first year as we move to implementation 539 01:02:09,160 --> 01:02:16,760 okay so there'll be a way to follow up and uh we can address each one if it's not moving quickly 540 01:02:16,760 --> 01:02:22,840 enough or we don't see that it's getting attention absolutely and our intention is to bring this back 541 01:02:22,840 --> 01:02:27,560 to the board on a regular basis and and keep you updated and hold ourselves accountable 542 01:02:27,560 --> 01:02:38,520 to making sure that we're implementing the strategic plan okay thank you 543 01:02:45,240 --> 01:02:52,200 sorry marty are you with us well i'm here our building internet went down and um i think it's 544 01:02:52,200 --> 01:02:58,680 back up and i can't see everybody's screen all at once so okay i think i'm we'll help you out 545 01:02:58,680 --> 01:03:00,920 anybody has a question to get after it 546 01:03:00,920 --> 01:03:12,840 yeah sorry i can see everyone and i think john can is there any additional questions that we can 547 01:03:12,840 --> 01:03:21,640 address i'm back 548 01:03:21,640 --> 01:03:30,280 no more questions comments 549 01:03:30,280 --> 01:03:37,960 i think i think jessica said she was going to cover some of my questions in the next 550 01:03:37,960 --> 01:03:46,600 presentation so yes i i'm waiting i'm waiting with bated breath my dear i think the uh key here is 551 01:03:46,600 --> 01:03:52,360 this is a fluid document that you don't set it like it is and it gets done this even even in 552 01:03:52,360 --> 01:03:59,000 our past tip strategies we've revisited this over the years and and changed things so you know if we 553 01:03:59,000 --> 01:04:04,680 had done this a year ago and we couldn't have planned for covid or any of those related events 554 01:04:04,680 --> 01:04:12,200 so you got to kind of change so that's a document for the board and city council to keep in mind 555 01:04:12,200 --> 01:04:19,240 going forward in the chamber so i guess um we need a motion to make a recommendation to 556 01:04:19,240 --> 01:04:23,960 city council to accept this plan as presented or some other kind of motion 557 01:04:29,960 --> 01:04:35,480 which would mean somebody on our edp board raised their hand and make a motion or something 558 01:04:35,480 --> 01:04:41,400 john i make the motion that we accept the 559 01:04:41,400 --> 01:04:48,280 edp proposal economic development plan for the city as presented 560 01:04:48,280 --> 01:04:57,320 okay got a motion second and a second from jason any further discussion 561 01:05:00,680 --> 01:05:06,520 all right we're going to try to go around the horn here again so john i'm in favor 562 01:05:06,520 --> 01:05:21,560 tony hi steve hi jill hi mark hi keely 563 01:05:23,480 --> 01:05:32,280 i'm in that this is fluid and we'll get updates i'm an i jason hi and jimmy 564 01:05:32,280 --> 01:05:40,920 i think jimmy's logged on he's on mute 565 01:05:40,920 --> 01:05:45,720 you remember a couple seconds 566 01:05:48,600 --> 01:05:55,640 all right uh motion gary's appreciate the time and all the work that um tom and jacklin have put 567 01:05:55,640 --> 01:06:01,480 into this and and uh looking forward to um i guess the discussion at city council level 568 01:06:01,480 --> 01:06:09,320 so getting on to our next item which we'll talk about funding and item edp 20-033 569 01:06:09,320 --> 01:06:15,320 uh receiver report whole discussion give staff direction regarding funding for economic development 570 01:06:18,760 --> 01:06:24,760 all right well i haven't gotten to do a presentation in a while so i'm excited to 571 01:06:24,760 --> 01:06:32,120 to present to the board and go over some of the details and really nuance behind um the funding 572 01:06:32,120 --> 01:06:37,080 options and how we got to the numbers that you saw in the strategic plan presentation so next slide 573 01:06:37,080 --> 01:06:46,680 so i'm going to break the presentation down into four sections and we can kind of discuss at each 574 01:06:46,680 --> 01:06:52,280 point and they build on each other so first i'll take you through how we currently fund economic 575 01:06:52,280 --> 01:06:57,720 development and what our budget looks like um i'll take you also through the current tools that we 576 01:06:57,720 --> 01:07:04,040 use which uh jacklin summarized for you previously and then i'll walk you through how we got to the 577 01:07:04,040 --> 01:07:10,040 estimated cost to implement the strategic plan and i felt a little bit like i was back in calculus 578 01:07:10,040 --> 01:07:16,440 class as i was working on that so that was fun um and then we'll talk about what options are are 579 01:07:16,440 --> 01:07:24,440 feasible or or that we can explore further to increase economic development program funding so 580 01:07:24,440 --> 01:07:28,840 i'll pause after each section and see if there are questions so go to the next slide 581 01:07:28,840 --> 01:07:38,040 so this is a current look at our budget and our financials now this isn't totally comprehensive 582 01:07:38,040 --> 01:07:44,200 but this is our primary economic development tool so the first uh sort of three rows that you see 583 01:07:44,200 --> 01:07:49,400 are our revenue where we get our funding from so economic development is primarily funded by general 584 01:07:49,400 --> 01:07:54,680 general fund revenues as well as we have a small contribution from the utility funds those actual 585 01:07:54,680 --> 01:07:59,640 those funds help fund our contract with the chamber of commerce so they actually align with 586 01:07:59,640 --> 01:08:06,440 um a certain percentage of that contract our expenditures which are our operational expenditures 587 01:08:06,440 --> 01:08:11,480 broken out in the first three lines under expenditures so personnel and operations so those 588 01:08:11,480 --> 01:08:16,760 are the people and the things that we need to operate our office as well as we have an agreement 589 01:08:16,760 --> 01:08:21,640 with hickory and rail ventures for the operation of stoke and so that item that you see there is our 590 01:08:21,640 --> 01:08:27,640 ongoing contribution that contract ends in the next fiscal year um and then the next item that 591 01:08:27,640 --> 01:08:32,520 you see is the chamber of commerce agreement and that is something that we're still working through 592 01:08:32,520 --> 01:08:37,320 so we have a little bit of a placeholder in there in our 2021 budget but that will also be 593 01:08:37,320 --> 01:08:42,600 discussed with city council on august 18th and then that last section that you see there is our 594 01:08:42,600 --> 01:08:50,200 improved approved incentives and so as you see um to answer uh board member baines's question about 595 01:08:50,200 --> 01:08:54,920 how much are the of that four million or our incentive obligations and how much are in the 596 01:08:54,920 --> 01:09:02,200 fund you can see those improved approved incentives as we track those over the years as well as the 597 01:09:02,200 --> 01:09:07,800 investment fund so that answers i think his questions relates to of the four million what's 598 01:09:07,800 --> 01:09:14,360 in the fund versus what are we putting aside uh to fund future incentives and what are we funding 599 01:09:14,360 --> 01:09:21,960 currently now i will say it looks like a big decline from the 1920 column to that 2021 column 600 01:09:21,960 --> 01:09:28,360 the primary decrease in that is actually we have an incentive that's rolling off in the 1920 fiscal 601 01:09:28,360 --> 01:09:34,280 year and that makes up the biggest majority of the decrease otherwise the decrease is associated with 602 01:09:34,280 --> 01:09:43,800 some uh our forecasted decline in sales tax revenue uh we do pay for those sales tax incentives out of 603 01:09:43,800 --> 01:09:49,880 the general fund as that's where sales tax comes in as a revenue so it's offset in a decreased 604 01:09:49,880 --> 01:09:55,720 revenue and a decreased expense and then that last section you see there is our ongoing commitment to 605 01:09:55,720 --> 01:10:01,640 the existing investment fund which is about 150 000 a year now if you look at that end of your 606 01:10:01,640 --> 01:10:07,240 fund balance it doesn't actually increase by 150 000 per year and that's because that fund gets an 607 01:10:07,240 --> 01:10:13,240 investment or excuse me an interest contribution from interest earned as that fund sits um and 608 01:10:13,240 --> 01:10:19,960 isn't being used and so are there i'll have erica take down the slide real quick and just make sure 609 01:10:19,960 --> 01:10:26,120 there aren't any questions about um our budget it's pretty straightforward um it's it's not a 610 01:10:26,120 --> 01:10:31,720 overwhelmingly complicated budget when we kind of break it down uh in those categories but just 611 01:10:31,720 --> 01:10:35,800 want to make sure there aren't questions about that or how we how we track that information 612 01:10:35,800 --> 01:10:44,680 any comments or questions about the current funding john 613 01:10:47,560 --> 01:10:53,320 you jessica for that thank you for that presentation my question is this so when i 614 01:10:53,320 --> 01:11:01,800 see the um what was that what was the nomenclature you used um uh for the for the annual spending 615 01:11:01,800 --> 01:11:09,480 it's uh i forget the language you used for our operations yes under the expenditure section 616 01:11:09,480 --> 01:11:16,680 there was a large amount what did you the approved incentives yes those are our contractually approved 617 01:11:16,680 --> 01:11:21,480 agreements that we have today that money is actually going out but it's not being storehouse 618 01:11:21,480 --> 01:11:28,040 anywhere no sir okay the only money that you see that's being stored in a fund today is the 619 01:11:28,040 --> 01:11:33,400 existing investment fund at the bottom that was about that nine hundred thousand dollars so that's 620 01:11:33,400 --> 01:11:38,920 just our current state and we'll talk through how we're um looking at changing that profile going 621 01:11:38,920 --> 01:11:44,680 forward that was the point i was looking for thank you very much i appreciate it i will mention that 622 01:11:44,680 --> 01:11:50,680 a couple things don't get captured in those numbers that we showed you um we don't budget abatements 623 01:11:50,680 --> 01:11:57,000 so we have existing tax abatement agreements those agreements that revenue never comes to the city 624 01:11:57,000 --> 01:12:01,800 anyone who has a tax abatement agreement simply doesn't pay the amount of taxes that's abated so 625 01:12:01,800 --> 01:12:06,680 we don't budget for those we would only see those reflected in the budget when those revenues start 626 01:12:06,680 --> 01:12:11,800 coming on board or increasing going forward if that makes sense so we do have additional incentives 627 01:12:11,800 --> 01:12:18,680 that you don't see reflected in budget numbers and so let's bring the presentation back up 628 01:12:18,680 --> 01:12:20,760 and go to the next section 629 01:12:20,760 --> 01:12:31,960 we're frozen oh there we go 630 01:12:31,960 --> 01:12:40,840 okay so the next section um gives you a little bit more detail onto what jacklyn presented to you in 631 01:12:40,840 --> 01:12:46,280 the summary of the tools that are available to us and one thing that i i want to make sure that 632 01:12:46,280 --> 01:12:52,840 that the board is aware of is that we have a number of tools already uh that we use and that 633 01:12:52,840 --> 01:13:00,520 we work with any of our applicants uh on first and foremost is the general fund what do we use that 634 01:13:00,520 --> 01:13:05,880 for that's going to be our ongoing staff and operations that's also how we as i mentioned 635 01:13:05,880 --> 01:13:11,400 pay for our chapter 380 sales tax and property tax agreement so those were the numbers that you saw 636 01:13:11,400 --> 01:13:17,800 reflected in the budget we also can rely on utility funds and i believe we've had projects 637 01:13:17,800 --> 01:13:22,440 come forward where an additional or a small utility improvement needs to be made and we've 638 01:13:22,440 --> 01:13:30,520 used those utility funds to offset some of those improvements that might be needed for that development 639 01:13:32,040 --> 01:13:36,760 one of the biggest tools that we have at our disposal is our tax abatements and those are 640 01:13:36,760 --> 01:13:42,120 where we reduce property taxes over a set period of time for developments that meet our certain 641 01:13:42,120 --> 01:13:46,920 policy criteria and that's probably the most common tool that we've used here in denton 642 01:13:46,920 --> 01:13:54,600 second to that is our chapter 380 agreements those are by our policy based on performance 643 01:13:54,600 --> 01:14:00,040 so they're either sales tax property tax or job-based grants that create significant jobs or 644 01:14:00,040 --> 01:14:05,160 significant investments in accordance to our policy the next item is our infrastructure 645 01:14:05,160 --> 01:14:12,040 development plan line funds these are funds that we set aside for certain developments as they come 646 01:14:12,040 --> 01:14:17,880 online or they are getting developed out of our utilities we can make an additional investment 647 01:14:17,880 --> 01:14:23,400 to help maybe complete a water line or a wastewater line that needs to get extended or maybe 648 01:14:23,400 --> 01:14:27,560 upsized a little bit on a development so we have access to those funds as well 649 01:14:28,760 --> 01:14:33,080 we also have access to our investment fund so that was the dollar amount that you saw reflected on 650 01:14:33,080 --> 01:14:39,000 the on the budget side we expect to be around nine hundred thousand dollars at the end of the 651 01:14:39,000 --> 01:14:46,440 next fiscal year and that doesn't include the uh two incentives that we've just approved the one 652 01:14:46,440 --> 01:14:51,240 today and the one in last meeting those will be factored in moving forward if city council approves 653 01:14:51,240 --> 01:14:56,520 those and then we have a couple other tools that we use pretty regularly the dme economic growth 654 01:14:56,520 --> 01:15:02,440 rider that's the demand reduction charge for our high electric usage and sometimes that's one of 655 01:15:02,440 --> 01:15:09,000 the largest incentives that we're able to offer to our big electric users we use to the tax increment 656 01:15:09,000 --> 01:15:14,200 reinvestment zones as well to facilitate infrastructure and public improvements we have 657 01:15:14,200 --> 01:15:18,920 two we have a downtown tours as well as the west park tours this board of course serves as the 658 01:15:18,920 --> 01:15:27,800 board for the west park tours we also have the ability uh to with city council approval um use 659 01:15:27,800 --> 01:15:33,000 public improvement districts we currently have one in the city of detton and the razor ranch public 660 01:15:33,000 --> 01:15:38,360 improvement district as of today that public improvement district is not levying any additional 661 01:15:38,360 --> 01:15:45,000 fees um and may choose not to um as i mentioned we layer these tools on many times so if you think 662 01:15:45,000 --> 01:15:51,080 about razor ranch you have to remember that the razor ranch development has a chapter 380 sales 663 01:15:51,080 --> 01:15:56,760 tax agreement they also have a public improvement district that they could activate as well as uh 664 01:15:56,760 --> 01:16:03,560 o'reilly separately has agreements and so when we talk about what tools are at our disposal and how 665 01:16:03,560 --> 01:16:07,400 we're making these match together we're really working with different projects to figure out 666 01:16:07,400 --> 01:16:13,800 which tools fit that project best and generate the most roi back to the city of detton and to 667 01:16:13,800 --> 01:16:19,560 the citizens of detton and the last two are ones that we don't uh excuse me the next one the 668 01:16:19,560 --> 01:16:23,880 neighborhood empowerment zones that's a tool that we haven't used here in detton it's very similar 669 01:16:23,880 --> 01:16:30,680 to a um to a tax increment district it's just a smaller usually more residential or mixed use 670 01:16:30,680 --> 01:16:36,040 based developments they are used pretty frequently uh throughout the metroplex we haven't activated 671 01:16:36,040 --> 01:16:41,640 that tool just yet and then the last one is our hotel occupancy taxes and this committee doesn't 672 01:16:41,640 --> 01:16:47,480 see it but we have a large number of organizations in our community that are supported through hotel 673 01:16:47,480 --> 01:16:52,840 occupancy taxes and i know in the past we've talked about the ability to use hotel occupancy 674 01:16:52,840 --> 01:16:59,080 taxes for for certain types of development that encourage tourism and so we have that tool at our 675 01:16:59,080 --> 01:17:04,440 disposal as well and so i just want to make sure that everyone is aware that we have quite a hefty 676 01:17:04,440 --> 01:17:11,720 toolbox right now of how we can layer and work with applicants to recruit businesses that we want 677 01:17:11,720 --> 01:17:17,720 and really encourage development and that that makes sense for us and really meets our strategic 678 01:17:17,720 --> 01:17:24,360 goals and so if there are any questions about the tools i'll let erica take that down because the 679 01:17:24,360 --> 01:17:30,680 next part we're going to start getting into um a little bit more details on the financing structures 680 01:17:30,680 --> 01:17:38,200 so any questions about the tools that we have in place today 681 01:17:38,200 --> 01:17:46,200 all right well we'll move on to the next section 682 01:17:57,720 --> 01:18:00,840 sorry we freeze every time the computer's freezing every time i'm 683 01:18:00,840 --> 01:18:04,040 having her take the presentation down let's see if we can 684 01:18:04,040 --> 01:18:16,760 let's see i'm sorry give us one second we have a little technical difficulty 685 01:18:16,760 --> 01:18:25,160 it just freezes every time 686 01:18:27,720 --> 01:18:34,600 all right well i'll try and get through the the rest of this since we're we're causing a little 687 01:18:34,600 --> 01:18:39,640 bit of technical issue when we're taking it down so so the next section i'm going to walk you 688 01:18:39,640 --> 01:18:45,640 through how we got to the investment to implement in the strategic plan so i want to caveat some of 689 01:18:45,640 --> 01:18:50,680 the information and similar to what jacqueline said is that we base this off of our known current 690 01:18:50,680 --> 01:18:57,240 financial and operational limitations and needs um particularly when it comes to the financial 691 01:18:57,240 --> 01:19:03,160 aspect particularly we know that we're in a little bit of a compressed economic environment 692 01:19:03,160 --> 01:19:07,480 we know that there's probably going to be some short-term challenges related to the 693 01:19:07,480 --> 01:19:13,240 pandemic that we have to take into account the second point is that these estimates are based on 694 01:19:13,240 --> 01:19:19,240 assumptions related to known projects and they're applied to future unknown projects which is a 695 01:19:19,240 --> 01:19:24,280 complicated concept that we get to and really has us building assumptions based on future 696 01:19:24,280 --> 01:19:30,520 decisions and i'll explain what that means and how that factors into our decision in a little bit 697 01:19:30,520 --> 01:19:36,520 um but basically we're taking the knowledge that we have today and we're trying to apply it to a 698 01:19:36,520 --> 01:19:43,960 project that we may not know exists at this time and then the third bullet point is that again we 699 01:19:43,960 --> 01:19:48,760 establish costs based on our current economic environment and pricing things and looking at 700 01:19:48,760 --> 01:19:54,200 projects that were done on the past and that changes in the economic environment could impact 701 01:19:54,200 --> 01:20:01,000 estimates we don't know the the future of inflation of certain costs we don't know the future investments 702 01:20:01,000 --> 01:20:06,680 that businesses may be seeking as they're locating or going through their site selection process and 703 01:20:06,680 --> 01:20:13,400 so we just use what we know today and lastly the know that costs that we're going to talk about 704 01:20:13,400 --> 01:20:19,160 aren't necessarily an annual expenditure but an estimate of a fund for funding of a program or 705 01:20:19,160 --> 01:20:25,080 goal which i think gets to mr baines's point is that we're not always talking about writing a check 706 01:20:25,080 --> 01:20:30,280 in a given year we're talking sometimes about establishing a fund and if you go to the next 707 01:20:30,280 --> 01:20:37,560 slide i'll walk you through the different variables that we went through so when we looked at the 708 01:20:37,560 --> 01:20:43,320 strategic plan we wanted to demonstrate a progression of funding over time and that's 709 01:20:43,320 --> 01:20:50,360 how we came up with the foundational and the aggressive concept so in the foundational concept 710 01:20:50,360 --> 01:20:58,840 we split costs of the strategic plan in three key areas the first is one-time costs and so those 711 01:20:58,840 --> 01:21:06,440 one-time costs represent an investment in something like a marketing plan or some study that might be 712 01:21:06,440 --> 01:21:11,960 needed but it's going to be a one-time expenditure in a given year and it's not something that will 713 01:21:11,960 --> 01:21:18,040 recur over time the second category that we were quantifying are those recurring costs so these 714 01:21:18,040 --> 01:21:26,040 would be additions to an operating expense personnel or a program that we might implement 715 01:21:26,040 --> 01:21:30,920 a sponsorship of a program or development of a program over time and that we're going to see 716 01:21:30,920 --> 01:21:38,280 those costs increase over time as we adopt more of the tasks and goals in the strategic plan 717 01:21:39,160 --> 01:21:45,400 so those are our two traditional expenditure sections the last section is the fund development 718 01:21:45,400 --> 01:21:51,080 section and those are the dollars that we would be setting aside every year to build up a fund 719 01:21:51,080 --> 01:21:57,800 balance that we could then use those funds to attract projects or to incentivize certain 720 01:21:57,800 --> 01:22:04,040 projects over time and so what you see there in the foundational plan is a little bit of a lower 721 01:22:04,040 --> 01:22:11,880 level of making an investment over time and sort of how we align this again is that this is a five 722 01:22:11,880 --> 01:22:17,480 year horizon and so you see that fund development grow in years one two and three and then decrease 723 01:22:17,480 --> 01:22:24,040 back down and the reason for that is that we're aiming to hit the foundational fund level goal 724 01:22:24,040 --> 01:22:31,080 in year three and then in years four and five we would be doing a replenishing of the fund to maybe 725 01:22:31,080 --> 01:22:36,920 increase it back up to the balance if we are making a future project investment and so that's why you 726 01:22:36,920 --> 01:22:41,560 that was my reference to we're basing it on unknown future projects we don't know that a 727 01:22:41,560 --> 01:22:46,120 project's going to come in in year four that's going to need this fund but we were estimating 728 01:22:46,120 --> 01:22:51,160 based on the number of projects we've seen over time and and what we've seen in our current state 729 01:22:51,160 --> 01:22:59,240 that we could project out and so if you go to the next slide this is what it looks like on the 730 01:22:59,240 --> 01:23:06,840 aggressive schedule and so again one-time costs staying pretty static recurring costs growing a 731 01:23:06,840 --> 01:23:11,560 little bit above what you saw in the foundational costs and in the fund development section you see 732 01:23:11,560 --> 01:23:21,080 that grow even more and so what you see is that in the between the aggressive and the fund development 733 01:23:21,080 --> 01:23:27,320 section or excuse me the foundational to the aggressive a range of about seven and a half to 734 01:23:27,320 --> 01:23:34,920 15 million dollars of investment over new investment over time and go to one more slide before i'll take 735 01:23:34,920 --> 01:23:41,480 this down and take questions so what does this look like so we established goals for various 736 01:23:41,480 --> 01:23:46,440 incentive programs as they're described in the implementation matrix and as you know them today 737 01:23:46,440 --> 01:23:52,520 those might be for new business recruitment business recruit retention and expansion or maybe 738 01:23:52,520 --> 01:24:01,240 a new program like a specific entrepreneurship or job-based program we figured out what those values 739 01:24:01,240 --> 01:24:06,760 would be based on achieving an available fund balance to use for various programs so that's 740 01:24:06,760 --> 01:24:11,880 that fund development process is getting to a goal in our fund balance whether it's one million 741 01:24:11,880 --> 01:24:17,640 or four million that we hit that fund balance and then we move to a replenishing concept where we're 742 01:24:17,640 --> 01:24:23,880 just supplementing those payments and keeping that fund balance available over time and that's how 743 01:24:23,880 --> 01:24:29,560 those payments get increased or decreased so over the five-year time horizon as i mentioned we would 744 01:24:29,560 --> 01:24:35,080 look at somewhere between a seven and a half to 15 million dollar new investment which are layered 745 01:24:35,080 --> 01:24:40,440 with other tools so that's not saying that we're only going to spend that amount of money on 746 01:24:40,440 --> 01:24:46,200 economic development but that we would be looking to layer those and leverage those dollars to 747 01:24:46,200 --> 01:24:51,320 combine with all of those other tools that we have at our disposal to create the most competitive 748 01:24:51,320 --> 01:24:56,120 packages that we can and encourages the type of development that we want to see here in Denton 749 01:24:56,120 --> 01:25:05,960 let's go that is the end of that section so i'm going to ask Erica to take it down one more time 750 01:25:05,960 --> 01:25:10,680 hopefully we won't freeze but see if there are questions about how we got there 751 01:25:11,720 --> 01:25:16,200 and again this brought me back to calculus class and variables that had different 752 01:25:16,200 --> 01:25:20,760 timelines this is a little bit complicated and a different concept than we've looked at before 753 01:25:20,760 --> 01:25:35,640 marty i'm gonna john has a question i'm gonna 754 01:25:39,800 --> 01:25:44,760 yes marty i hope this doesn't put anyone on the spot but i was really interested in kind of getting 755 01:25:44,760 --> 01:25:52,280 tony clark's and chris davis's perspective on the on the funding amounts i mean we we had some 756 01:25:52,280 --> 01:25:58,040 substantive conversations previously and i i would value greatly your input 757 01:25:58,040 --> 01:26:08,920 hi this is toey well first off i would say we all know what the definition of insanity is right 758 01:26:09,880 --> 01:26:15,000 uh trying you know doing the same thing over and over again expecting different results and 759 01:26:15,000 --> 01:26:20,760 it seems like we have as a city we've done that historically so that would be my first comment i 760 01:26:20,760 --> 01:26:26,440 think my second comment would be you got to start somewhere and i'm encouraged to see uh that there 761 01:26:26,440 --> 01:26:33,080 is you know thought process here and trying to start to build more resources uh that we have 762 01:26:33,080 --> 01:26:39,080 available to us the city for economic development i guess my biggest question would be how 763 01:26:39,960 --> 01:26:45,800 certain or what are the what are the avenues of these funding sources and how constant or 764 01:26:45,800 --> 01:26:51,800 you know are they are they going to be there for the future 765 01:26:51,800 --> 01:26:59,640 where does the money come from you know i know going into where we are today with covid we're 766 01:26:59,640 --> 01:27:04,040 kind of behind the eight ball so to speak so it's not like we can do this tomorrow but i think having 767 01:27:04,040 --> 01:27:10,920 a you know five-year plan getting where we want to be it's a great start so uh john that would be my 768 01:27:10,920 --> 01:27:18,520 comments and we will cover that in the next section on some options that we've really explored and we 769 01:27:18,520 --> 01:27:24,840 want to continue to explore both with the board and the city council you know john one other 770 01:27:24,840 --> 01:27:29,880 comment i would make i think if you know if i went to go back and look at what other cities are doing 771 01:27:29,880 --> 01:27:37,720 in our area that was in our previous presentation uh you know obviously we're still uh i think 772 01:27:37,720 --> 01:27:43,080 there's still a big gap between what other cities are doing what we're doing once again i think my 773 01:27:43,080 --> 01:27:47,960 where i'm encouraged is that we have recognized that we're beginning a plan 774 01:27:47,960 --> 01:27:55,000 i mean i never get to where we want to be from our competition the more resources we can make 775 01:27:55,000 --> 01:28:00,840 available obviously the more successes we can have when it comes to bringing in other businesses 776 01:28:00,840 --> 01:28:09,960 and i'll shut up well good good points tony i think uh jessica's next part of her presentation 777 01:28:09,960 --> 01:28:14,760 will help kind of define where some of that those fundings come and kind of talk about limitations 778 01:28:14,760 --> 01:28:22,680 ultimately council has to approve any funds that we're doing so but if anybody doesn't have any 779 01:28:22,680 --> 01:28:27,320 other questions let's let her get on a couple other slides and she's got some suggestions 780 01:28:27,320 --> 01:28:30,200 for how we're funding what we're doing 781 01:28:30,200 --> 01:28:39,000 right we'll go back to the presentation one last time and i promise this is the the last time erica 782 01:28:39,000 --> 01:28:44,680 will have to take it down and and put it back up for me anyways we can always go back to it 783 01:28:52,920 --> 01:28:58,360 make it full screen everything always gets back to money we just had the money 784 01:28:58,360 --> 01:29:06,600 sure i think the to sum up i told you all of that so i could tell you this um i think is where 785 01:29:06,600 --> 01:29:11,160 we're at so erica can you make that full screen in the presentation mode 786 01:29:11,160 --> 01:29:20,600 oh it is on hers so i'm sorry um you guys aren't seeing the full screen are you 787 01:29:22,840 --> 01:29:24,840 okay 788 01:29:24,840 --> 01:29:32,840 i apologize for our technical difficulties thank you for your patience 789 01:29:32,840 --> 01:29:44,520 we can see the slide you're on by the way that's okay 790 01:29:44,520 --> 01:29:49,800 so if you may have to presentation it's still i think we can all 791 01:29:50,600 --> 01:29:58,200 see which one you're on and there we go all right so again told you all of that so we could get to 792 01:29:58,200 --> 01:30:04,520 this point is how do we fund those additional investments so some of you have had the honor 793 01:30:04,520 --> 01:30:09,240 of meeting david gains who is our new assistant city manager and cfo and he's here in the meeting 794 01:30:09,240 --> 01:30:15,960 with us um but david and i have spent a lot of time over the past few weeks exploring what options 795 01:30:15,960 --> 01:30:23,240 we have that we think um are feasible given the environment that we're in and think warrant some 796 01:30:23,240 --> 01:30:28,920 additional discussion so the first would be dedicating a percent of utility system our 797 01:30:28,920 --> 01:30:35,160 roi and actually the recommended option is the second option not the first option so i apologize 798 01:30:35,160 --> 01:30:40,360 for that but the advantage to that is it doesn't create that burden to the general fund i think 799 01:30:40,360 --> 01:30:46,360 we're all aware of the economic environment that we're in we are seeing sales taxes lower than 800 01:30:46,360 --> 01:30:52,120 expected we're seeing some other revenue sources really challenged right now and so we don't want 801 01:30:52,120 --> 01:30:58,840 to burden the general fund of the city with an additional cost and so the disadvantage is that is 802 01:30:58,840 --> 01:31:04,440 again it could have an impact to the rate payers because instead of being in the general fund it's 803 01:31:04,440 --> 01:31:11,400 in the utility system and so just to give you an idea of what the roi or return of investment 804 01:31:11,400 --> 01:31:18,040 on the utility system revenue is is that for about one percent of roi it's about 2.75 million 805 01:31:18,040 --> 01:31:24,600 dollars the second option which is the recommended option and that we've come up with is that we do a 806 01:31:24,600 --> 01:31:29,720 little bit of a hybrid approach is that we utilize some fund balances that already exist in the 807 01:31:29,720 --> 01:31:36,040 utility systems to kick off the fund and then we continue that replenishment process by using a 808 01:31:36,040 --> 01:31:42,680 smaller percentage of utility system roi so it mitigates that impact to the rate payers and again 809 01:31:42,680 --> 01:31:49,240 helps reduce the burden of the existing funds over time so again we establish the fund with a transfer 810 01:31:49,240 --> 01:31:55,080 of existing fund balance at a to-be-determined amount but then over time we have about 1.38 million 811 01:31:55,080 --> 01:32:01,720 dollars per year for about half a percentage point of roi the third option is what we call the 812 01:32:01,720 --> 01:32:06,840 plano option so this is what plano does similar situated city that doesn't have a 4a or 4b 813 01:32:06,840 --> 01:32:13,640 system and that is dedicating a portion of or actually saying we're going to add an additional 814 01:32:13,640 --> 01:32:18,840 property tax in plano they do it by ordinance that two cents of their property tax goes directly to 815 01:32:18,840 --> 01:32:23,720 their economic development fund the advantages of that of course is that it's a stable revenue 816 01:32:23,720 --> 01:32:29,240 source over time property tax is a very stable revenue source for us for a municipality the 817 01:32:29,240 --> 01:32:34,760 challenge with that is if we do it out of our existing property tax that it has that funding 818 01:32:34,760 --> 01:32:39,320 has to be made up in the general fund and that's one of the hardest things that we would have to do 819 01:32:39,320 --> 01:32:46,280 or by adding it it actually directly impacts rate payers or excuse me the property tax payers and 820 01:32:46,280 --> 01:32:51,080 that's again a challenge in this sort of economic environment and not something that we want to do 821 01:32:53,000 --> 01:32:58,520 to kind of quantify that on what range of funding for every one penny of your property tax rate it 822 01:32:58,520 --> 01:33:03,160 actually generates about 1.3 million dollars in revenue for the city so right about the same 823 01:33:03,160 --> 01:33:08,760 place as that half a percentage point of the roi the other option that you see below the 824 01:33:08,760 --> 01:33:13,160 incentive roll off is something that we've talked about with the board before and that as current 825 01:33:13,160 --> 01:33:19,560 incentives roll off we recapture those funds over time in the investment fund the advantages 826 01:33:19,560 --> 01:33:25,800 of that is there's no sudden impact to the general fund however the general fund has in its forecast 827 01:33:25,800 --> 01:33:31,560 taken into account that those revenues would be coming into that as future funding sources so 828 01:33:31,560 --> 01:33:37,800 there is a slight challenge on the on the revenue side of we've already sort of assumed that those 829 01:33:37,800 --> 01:33:42,920 dollars are eventually going to come back to the revenue to the general fund and one of the biggest 830 01:33:42,920 --> 01:33:47,960 disadvantages is there's not going to be an immediate revenue source for us to have access 831 01:33:47,960 --> 01:33:53,480 to those incentives are going to roll off over time some a very long time and that source is 832 01:33:53,480 --> 01:33:57,400 going to be variable it's not going to be static over time it's not going to necessarily be 833 01:33:57,400 --> 01:34:02,680 consistent right now we would say it's approximately six hundred and thirty thousand dollars per year 834 01:34:02,680 --> 01:34:08,280 over time if we started with roll-offs in this fiscal year and again that would be variable 835 01:34:08,280 --> 01:34:14,760 based on as incentives are rolling off so it's really hard to forecast that value over time over 836 01:34:14,760 --> 01:34:20,840 a long time horizon and the last option is the option that the city of dallas used which was they 837 01:34:20,840 --> 01:34:26,360 actually called a bond election for economic development funding first it would have no impact 838 01:34:26,360 --> 01:34:33,160 on existing city funds the disadvantage is that it could increase property tax rates again and 839 01:34:33,160 --> 01:34:39,480 i think that that's again a very challenging scenario given the economic environment environment 840 01:34:39,480 --> 01:34:45,720 that we're in and again the rain the funding is we'd consider it a variable funding source 841 01:34:45,720 --> 01:34:50,680 because it's going to be for a set amount over a given set of time but we don't know if there 842 01:34:50,680 --> 01:34:56,440 would be future bond elections and it would be really hard to forecast that out over the horizon 843 01:34:56,440 --> 01:35:02,920 so those are the options that we really did i won't call them deep dives on but sort of 844 01:35:02,920 --> 01:35:09,560 mid-range dives on that we think probably warrant additional discussion and review with our 845 01:35:09,560 --> 01:35:15,000 recommended option being that hybrid option of limiting the impact as much as possible given the 846 01:35:15,000 --> 01:35:20,840 economic environment that we're in which is using some additional existing fund balance and then 847 01:35:20,840 --> 01:35:28,200 replenishing over time with that utility system roi so if we go to one last slide it might be 848 01:35:28,200 --> 01:35:33,320 exactly what i just said our recommended option is the hybrid option we're limiting those impacts 849 01:35:33,320 --> 01:35:39,560 and then as the last two bullet points say is that we're going to reevaluate the implementation 850 01:35:39,560 --> 01:35:44,600 of programs and the timelines as part of our annual budgeting process with this board with 851 01:35:44,600 --> 01:35:50,120 the city council and so we want to make sure that we're developing something that's sustainable and 852 01:35:50,120 --> 01:35:56,200 makes sense and our ultimate goal no matter what the number is is on innovation best practices and 853 01:35:56,200 --> 01:36:01,880 achieving those goals and less focus on a specific dollar amount because we know that's going to be 854 01:36:01,880 --> 01:36:07,320 dynamic and so we want to reiterate that we're going to review this as frequently as we need to 855 01:36:07,320 --> 01:36:14,440 to develop something that best positions the city to move forward and so with that i will stop 856 01:36:14,440 --> 01:36:20,920 talking and turn it back over to marty we can take down the presentation and have a discussion about 857 01:36:20,920 --> 01:36:30,680 those items job um i guess just to set things in perspective um as you saw on the earlier slide 858 01:36:30,680 --> 01:36:40,360 we're setting aside 150 000 dollars um a year right now so all of those options are significantly 859 01:36:40,360 --> 01:36:49,880 higher going forward um my question is i mean council has to do this so if we recommend a 860 01:36:49,880 --> 01:36:55,560 council approves the hybrid approach and there's a transfer of money um from the dme fund over 861 01:36:55,560 --> 01:37:03,880 immediately and then a half a cent or half a percent transfer over i guess annually is that 862 01:37:03,880 --> 01:37:11,800 something that i guess one is that you asked is dme aware of that and two um is that something 863 01:37:11,800 --> 01:37:17,400 that gets approved annually so that could be changed to zero or five percent or whatever every year 864 01:37:19,720 --> 01:37:25,400 so we've faced it actually off of total utility system roi so it's not even though the electric 865 01:37:25,400 --> 01:37:31,800 fund makes up the largest percentage of that so it is total utility system roi and yes you're 866 01:37:31,800 --> 01:37:37,480 correct that would be possible to be changed it is subject to approval by the city council both 867 01:37:37,480 --> 01:37:42,920 the any of the amounts and the transfers and that it would be something that would be variable or 868 01:37:42,920 --> 01:37:48,920 could be variable over time our goal would be to set the percentage amount so we could forecast it 869 01:37:48,920 --> 01:37:55,560 and have a little bit of reliability in the future but because it's a percentage as those revenues 870 01:37:55,560 --> 01:38:00,920 and that fund might move then certainly that's going to impact the total amount of funding 871 01:38:00,920 --> 01:38:09,800 and i like the utility approach because if we're doing our job the utility revenues going up that 872 01:38:09,800 --> 01:38:17,640 helps us increase our economic development um so um all right i'll open it up for questions keely 873 01:38:19,080 --> 01:38:28,280 i have a few questions um one can someone speak to why our utility um fund balance is is so large 874 01:38:28,280 --> 01:38:39,000 sure this is david gaines assistant city manager uh in each as you referenced in each of our 875 01:38:39,000 --> 01:38:44,520 utility funds right now we have a significant fund balance and part of that is as we're going 876 01:38:44,520 --> 01:38:47,880 through the budget discussions obviously we're looking at rate decreases and we've had rate 877 01:38:47,880 --> 01:38:54,440 decreases over the past few years and a number of those funds to that end as well and each one has 878 01:38:54,440 --> 01:39:01,800 its own unique reasons one of the kind of overarching reasons that our fund balances have increased so 879 01:39:01,800 --> 01:39:07,480 much is just we've had a lot of we had a lot of capital projects that had existing funds that 880 01:39:07,480 --> 01:39:12,520 weren't being spent and it's obviously been an initiative over the past three to four years to 881 01:39:12,520 --> 01:39:17,080 spend down those existing dollars that were out there so what that's resulted in is we haven't 882 01:39:17,080 --> 01:39:23,800 had to send more funds out for capital projects which has helped our performance as we've as we've 883 01:39:23,800 --> 01:39:29,240 gone out so that's been a big piece of it and then when you look at the electric fund in particular 884 01:39:29,240 --> 01:39:34,360 which obviously has a strong fund balance there's that piece of the capital projects but also 885 01:39:34,360 --> 01:39:40,280 last year in the summer we had higher than expected usage which had added to our fund balance and 886 01:39:40,280 --> 01:39:47,640 another factors that went into it so i think all those kind of together led to led to this point 887 01:39:47,640 --> 01:39:52,360 we're really focused on the fund balances that we have and how we can use them moving forward 888 01:39:52,360 --> 01:40:00,280 marty i have another comment and a question keep going okay so i i think that's really it's 889 01:40:00,280 --> 01:40:06,360 creative and owning our own utility allows us to be innovative like you said but i do have a concern 890 01:40:06,360 --> 01:40:11,880 that a lot of people view our utility as a monopoly and that they don't have a choice and 891 01:40:11,880 --> 01:40:16,680 that if something like this is put out it would need to be completely transparent and shown in a 892 01:40:16,680 --> 01:40:23,880 way where it would just not be a surprise to anyone so that would just be my my concern that 893 01:40:23,880 --> 01:40:30,840 it was transparent and shown in a way where everybody knew what what was going on and there 894 01:40:30,840 --> 01:40:39,480 weren't all these strange transfers the next question i have is about the bond elections how 895 01:40:39,480 --> 01:40:46,760 often can the city have a bond election and then i know we've had several and have any of those in 896 01:40:46,760 --> 01:40:55,640 have we had any tax rate increases because of the bonds that the bonds that were passed in the past 897 01:40:58,040 --> 01:41:02,040 there's there's no limitation on how frequently we can have bond elections there is some limitation 898 01:41:02,040 --> 01:41:06,360 if a bond a bond proposition fails the amount of time that you can come back with the same proposition 899 01:41:06,360 --> 01:41:11,560 but you could have you could have multiple you know in may and november of each year as you move 900 01:41:11,560 --> 01:41:21,320 forward as far as the tax rate on the 2012 and 2014 bond elections we anticipated or in the 2014 901 01:41:21,320 --> 01:41:26,680 specifically anticipated a tax rate increase which we haven't realized this is a big a regrowth has 902 01:41:26,680 --> 01:41:31,720 has gone higher than we anticipated for the 2019 bond program obviously we anticipated a three and 903 01:41:31,720 --> 01:41:37,800 a half cent increase on the debt service side so we just haven't seen those increases just due to 904 01:41:37,800 --> 01:41:44,600 av growth being higher than we expected okay all right i'm going back to the transparency part 905 01:41:44,600 --> 01:41:51,000 you know it's pretty easy to bake in to the economic development budget it's going to have 906 01:41:51,000 --> 01:41:56,200 to be a transfer through the general fund so you basically you would show a transfer in for 907 01:41:56,200 --> 01:42:00,680 economic development purposes and right into economic development and it'd be it'd be pretty 908 01:42:00,680 --> 01:42:06,200 easy to show that and articulate it but right now we feel comfortable heading making that 909 01:42:06,200 --> 01:42:09,560 recommendation to council because we just don't think it's going to have much bearing on the 910 01:42:09,560 --> 01:42:14,600 utilities they're all in very strong positions the reason you see such large fund balances is 911 01:42:14,600 --> 01:42:20,360 they're highly volatile the weather dependent and and we've got bond covenant restrictions on top of 912 01:42:20,360 --> 01:42:26,200 that so we we've analyzed all that and feel that it's uh it's a good way to seed it right now as 913 01:42:26,200 --> 01:42:31,000 marty stated he's right that particularly with these large electric users that come in and if 914 01:42:31,000 --> 01:42:35,720 they're the right type of users it can significantly benefit the system so there's a there's a direct 915 01:42:35,720 --> 01:42:47,160 logic there to to using that keep going keely uh missy said miss is there a way to um track those 916 01:42:47,160 --> 01:42:53,000 say with the incentives that um that come in and with the with the chamber or the economic 917 01:42:53,000 --> 01:43:00,120 development those um large users is there a way to track that so that it can show a direct relation 918 01:43:00,120 --> 01:43:06,520 for um a reason why it's transferring we can we can certainly do that it's not going to be as 919 01:43:06,520 --> 01:43:11,480 granular as you want uh because with the with the economics of all the utilities there's always 920 01:43:11,480 --> 01:43:17,480 there's always a point with which there's there's an economic benefit to it uh where it benefits all 921 01:43:17,480 --> 01:43:21,800 the rest of the customers so it's got a lot of it's going to depend on when they're taking their 922 01:43:21,800 --> 01:43:27,960 energy if it especially if it's at night and it's low energy that revenue rolls right back into the 923 01:43:27,960 --> 01:43:36,040 system here so it i think we can show um and we do track what you know how they're doing financially 924 01:43:36,040 --> 01:43:41,240 um it's not going to be so simple though so just pull it up and say it had this benefit for every 925 01:43:41,240 --> 01:43:49,800 user i mean every every um every investment that comes in that generates additional revenue above 926 01:43:49,800 --> 01:43:55,080 and beyond what we need for the cost of power in theory benefits all the residents in the city 927 01:43:55,080 --> 01:44:00,920 keeps their power prices lower yeah i've just because i know that there's some projects that 928 01:44:00,920 --> 01:44:08,840 come through this uh this group that to specifically have that utility tie-in so there's some kind of 929 01:44:08,840 --> 01:44:15,880 correlation and i was just curious if that could be shown if somebody you know asked we can we can 930 01:44:15,880 --> 01:44:21,880 definitely um report back on the writers for sure and that's going to be a little easier and simpler 931 01:44:21,880 --> 01:44:29,960 thank you tony yeah this isn't off the subject but i'd be interesting in your uh your thoughts 932 01:44:29,960 --> 01:44:35,080 or comments on the interest rate environment and how that will affect uh you know future bond or 933 01:44:35,080 --> 01:44:42,760 existing bond packages that we have well the the interest rate environment right now is crazy low 934 01:44:42,760 --> 01:44:47,800 so i mean i think if the mayor had his way we'd be financing the government with it right now but 935 01:44:47,800 --> 01:44:53,320 we just issued debt at like one percent the other day um so i i think for a while there's going to 936 01:44:53,320 --> 01:45:00,280 be a short-term impact um probably the the bigger issue with us right now is what happens to prolong 937 01:45:00,280 --> 01:45:05,800 unemployment rates and what happens in d cad that is our biggest threat right now and why we're 938 01:45:05,800 --> 01:45:11,320 trying to stay away from the property taxes is we're heading into a budget this year we're 939 01:45:11,320 --> 01:45:17,320 40 days away from adopting a budget and we still have 40 of the valuation outstanding which is 940 01:45:17,320 --> 01:45:24,280 crazy we're typically around two or three percent right now so you know that that is something where 941 01:45:24,280 --> 01:45:29,000 i think the unemployment rate the d cad values all that stuff is going to start becoming 942 01:45:29,960 --> 01:45:34,200 you know in a year it could really be we could be in a real interesting scenario right now and 943 01:45:34,200 --> 01:45:40,440 i'm just not sure that we feel as comfortable predicting um that that rate environment is 944 01:45:40,440 --> 01:45:46,200 possible the i'm also not i'm not sure where a bond would necessarily stand with the voters 945 01:45:46,200 --> 01:45:50,840 right now uh you know in this environment you want consumer confidence to be a lot stronger 946 01:45:50,840 --> 01:45:55,240 in the economy than it is right now you know if you're going to float a bond out there 947 01:45:55,240 --> 01:46:01,880 uh a bond proposition quite frankly the only the only other option that we saw that we invested 948 01:46:01,880 --> 01:46:08,280 investigated and i know i was expecting this come up is because of the because of the decision years 949 01:46:08,280 --> 01:46:15,720 ago to put a half-set sales tax or dcta our options are severely limited and i've had 950 01:46:15,720 --> 01:46:22,600 folks ask me about well you know can we repeal that and reassign it and the issue is 951 01:46:23,160 --> 01:46:28,360 we've studied that and even if you went down that boat path even if the voters supported it 952 01:46:28,360 --> 01:46:34,440 they have so leveraged that half-cent that that we donate it would take years and years and years 953 01:46:34,440 --> 01:46:41,640 to untangle that so we've kind of been working in the inner with them right now to develop 954 01:46:41,640 --> 01:46:47,320 what's called an elap program which is essentially a capital funding grant program you're getting 955 01:46:47,320 --> 01:46:52,440 rebating back our own sales tax dollars which could create some room that things stabilize in 956 01:46:52,440 --> 01:46:58,920 the general fund to put towards this issue but right now i think for the immediate future the 957 01:46:58,920 --> 01:47:04,520 utilities is the way to grease the skids without impacting our residents our rates our taxes that 958 01:47:04,520 --> 01:47:11,160 sort of thing long term if we see unemployment levels decreasing and consumer confidence really 959 01:47:11,160 --> 01:47:15,080 being boosted it may be worth a bond election depending on where we are at that time 960 01:47:17,960 --> 01:47:26,920 yeah sorry i didn't want to unmute ahead of time i have a a comment and then a question first with 961 01:47:26,920 --> 01:47:32,440 a comment i certainly can tell all of the thought that was put into the staff recommendation 962 01:47:32,440 --> 01:47:37,320 uh you know unfortunately the world is not our oyster right now and we do have to deal with the 963 01:47:37,320 --> 01:47:42,840 facts on the ground and where we are so i think balancing the need to invest in our future while 964 01:47:42,840 --> 01:47:49,480 recognizing the current pressure points um you know i'll be honest i don't know if i was completely 965 01:47:49,480 --> 01:47:54,520 in favor initially but i certainly have come around to see that this is a great first step 966 01:47:54,520 --> 01:48:02,520 to echo mr clark um i would if you don't mind asking me asking um why not throw in the incentive 967 01:48:02,520 --> 01:48:10,120 roll off is it because the budgets in the future have already calculated those funds being returned 968 01:48:10,120 --> 01:48:18,760 is that and so the the hurt there is too much but i was just curious because the sales tax is 969 01:48:18,760 --> 01:48:23,960 it's if it was a if it was a property tax you'd be having a different discussion because that's 970 01:48:23,960 --> 01:48:31,400 pretty stable um the sales tax is such a volatile revenue stream um you know it's bouncing up and 971 01:48:31,400 --> 01:48:36,520 down and we're basically projecting out future property tax increases based upon what we think 972 01:48:36,520 --> 01:48:45,720 the sales tax is going to do so um we've had to use that sales tax um and bake it into the 973 01:48:45,720 --> 01:48:51,560 the upcoming years primarily because you know we're not expecting any property tax increases 974 01:48:51,560 --> 01:48:56,840 that's how we make that trade-off and and i think right now that's our big concern is if you start 975 01:48:56,840 --> 01:49:02,280 seeing right now we're expecting a anywhere from an eight to ten percent decline this year in our 976 01:49:02,280 --> 01:49:07,880 sales tax only because we were so far ahead in february before covid hit but it wouldn't take 977 01:49:07,880 --> 01:49:15,240 too much uh you know in terms of a prolonged coronavirus uh you know job losses that sort of 978 01:49:15,240 --> 01:49:21,320 thing to hit that sales tax even harder and so it's difficult peeling off part of it when you are 979 01:49:21,320 --> 01:49:26,920 when you see a negative trend i mean essentially what you what you've essentially done is cause 980 01:49:26,920 --> 01:49:33,080 yourself to either cut services reduce you know personnel or raise the property tax levy and that 981 01:49:33,080 --> 01:49:38,760 that's the danger with messing around with the sales tax thank you for that explanation that makes 982 01:49:38,760 --> 01:49:50,600 sense keely yeah just to follow up on a question because uh the city of manchurian mentioned dcta 983 01:49:50,600 --> 01:49:55,800 and um i just want to say i hope that we explore those conversations with them because i know that 984 01:49:55,800 --> 01:50:00,920 transit oriented development i mean we all have a common a common goal as far as economic development 985 01:50:00,920 --> 01:50:06,680 and all that can go back and so if there's a a partnership opportunity there um with funding 986 01:50:06,680 --> 01:50:15,000 i'd like to see that explored more we're pushing it uh in fact we've we've been uh successful at 987 01:50:15,000 --> 01:50:22,360 least getting an initial five and a half million dollar uh elat program set up to split between us 988 01:50:22,360 --> 01:50:26,600 and lewisville for the most part for the next year so so we'll be using that to offset some 989 01:50:26,600 --> 01:50:31,560 capital projects once the budget's finalized they have not formally adopted the budget yet 990 01:50:31,560 --> 01:50:35,000 that is exactly the point is to try to provide a little bit of relief to the 991 01:50:35,000 --> 01:50:39,320 to the general fund and the taxpayers by using some of those other dollars 992 01:50:39,320 --> 01:50:44,840 having them returned into the community cool thanks 993 01:50:47,320 --> 01:50:52,680 all right any other comments or questions 994 01:50:52,680 --> 01:50:56,440 we have to make a recommendation on this jessica 995 01:50:56,440 --> 01:51:05,800 we're probably going to do the same presentation to city council and incorporate the feedback and 996 01:51:05,800 --> 01:51:10,200 comments that we got today i don't know that we need an official recommendation the staff 997 01:51:10,200 --> 01:51:15,880 recommendation i think is what we'll be taking forward to city council um at this time but 998 01:51:15,880 --> 01:51:22,200 certainly taking into account the comments and questions we're hearing today does it help if 999 01:51:22,200 --> 01:51:29,640 this board um supports the staff recommendation or one of the other recommend objects out there 1000 01:51:29,640 --> 01:51:42,120 because that matter it never hurts it doesn't hurt no sir uh i guess that my thoughts are if 1001 01:51:42,120 --> 01:51:47,480 if our board is inclined to support the staff recommendation we ought to put that in the form 1002 01:51:47,480 --> 01:51:53,320 of a motion and send that up to city council or one of the other recommendations 1003 01:51:53,320 --> 01:52:05,160 well marty i'll move that um on behalf of the board that uh we put forward that we are in favor of the 1004 01:52:05,720 --> 01:52:14,200 city council adopting the staff recommendation regarding uh how to begin a change in our funds 1005 01:52:14,200 --> 01:52:21,560 for the um fund that has been presented in the strategic plan and so in order to start taking 1006 01:52:21,560 --> 01:52:28,920 steps towards um meeting that that we are in favor of city council adopting the staff recommendation 1007 01:52:28,920 --> 01:52:39,080 on funding okay i'll second that motion all right we have a motion and a second uh any further 1008 01:52:39,080 --> 01:52:52,840 discussion keely um yeah so i am i am in favor of uh a fund and i'm in favor of exploring these more 1009 01:52:53,400 --> 01:53:00,200 but as far as voting to um the the staff recommendation today without seeing more 1010 01:53:00,200 --> 01:53:06,360 information that i asked for the city manager i don't i i don't know that i am at 100 because 1011 01:53:06,360 --> 01:53:12,440 i see other options on the table that i i would like to explore and so i i don't know that if we 1012 01:53:12,440 --> 01:53:20,280 do this if the other options will still be explored or not they're all ready to go we can talk about 1013 01:53:20,280 --> 01:53:26,600 any of them and and our intention our intention was just because of timing to take the council 1014 01:53:26,600 --> 01:53:32,600 through every every one of these as well again so um there's a way i and i think it's important to 1015 01:53:32,600 --> 01:53:38,600 put this in context you know at a meeting a month or two ago there was a lot of concern about when 1016 01:53:38,600 --> 01:53:44,920 we saw frisco and some of these other 4a 4b's how will we ever compete and i think the point today 1017 01:53:44,920 --> 01:53:51,640 is we've got the ability to compete without having to claw back the half cent from dcta um there's 1018 01:53:51,640 --> 01:53:56,600 all kinds of options there and just to make sure that we we really wanted people calm down that 1019 01:53:56,600 --> 01:54:03,320 we have the ability to be competitive if we want and there isn't a way to get there um my guess is 1020 01:54:03,320 --> 01:54:10,040 in two or three years we may end up shifting the strategy a little bit uh because one of the things 1021 01:54:10,040 --> 01:54:15,240 that we're going to have to deal with in the general fund is whether or not we leave on or turn off this 1022 01:54:15,240 --> 01:54:22,280 roi that we from the utilities that we turned on in order to avoid service cuts this year but so this 1023 01:54:22,280 --> 01:54:28,120 is probably a one or two year solution practically and then it'll be revisited again but council is 1024 01:54:28,120 --> 01:54:32,920 going to be able to see all those options um you're not you're not pinning him down to anything other 1025 01:54:32,920 --> 01:54:39,160 than just suggesting we'd like to see this fund built somehow so well i i am in favor of seeing 1026 01:54:39,160 --> 01:54:50,040 the fund built somehow so thanks right anything else all right i'll go go around the horn again uh john 1027 01:54:50,040 --> 01:55:05,160 i'm in favor of presenting this um idea to council tony all right jill aye 1028 01:55:07,080 --> 01:55:10,440 steve hi keely 1029 01:55:10,440 --> 01:55:17,880 yeah i i am in favor of hearing more yes jason 1030 01:55:17,880 --> 01:55:27,880 jace i think you're on mute 1031 01:55:27,880 --> 01:55:36,760 helps if you pull the microphone back down hi yes we couldn't hear what you were thinking 1032 01:55:37,160 --> 01:55:45,400 uh thank you so much i think that's uh i think we lost a couple folks so uh and marty your vote 1033 01:55:45,400 --> 01:55:52,120 oh and i'm and i also i don't know if i did that for myself on any of them i'm gonna i want all of 1034 01:55:52,120 --> 01:56:00,040 them marty i'm and i also oh mark oh mark there you go got moved around sorry about that all right 1035 01:56:00,040 --> 01:56:05,880 motion carries and we'll move on thank you for the uh presentation we got a lot of work done today 1036 01:56:05,880 --> 01:56:16,280 and a lot of work uh just to get to this point um our not quite last item is to uh edp 20-034 1037 01:56:16,280 --> 01:56:22,040 to receive report whole discussion give staff direction regarding nominations for our annual 1038 01:56:22,040 --> 01:56:28,920 business reports so i'll let staff take it over from here sure so we have a pretty simple item 1039 01:56:28,920 --> 01:56:32,920 shouldn't take more than a few minutes we're going to continue with we wanted to give one last 1040 01:56:32,920 --> 01:56:37,720 opportunity for anyone on the board to submit a nomination we'll finalize the nominations today 1041 01:56:37,720 --> 01:56:45,880 go back complete oh bye tom and jacklyn thank you thank you thank you to everyone 1042 01:56:45,880 --> 01:56:52,120 we'll finalize those nominations and come back to the board at your september meeting with the 1043 01:56:52,120 --> 01:56:57,320 scoring sheets so because we weren't on a timeline this year we won't be holding the normal awards 1044 01:56:57,320 --> 01:57:04,680 breakfast so we wanted to give one last opportunity for nominations so ones that um we've discussed 1045 01:57:04,680 --> 01:57:11,640 for the large business have included um texas health presbyterian and obviously medical cities 1046 01:57:11,640 --> 01:57:17,000 in both hospitals have made have had probably a very tough year and have made significant 1047 01:57:17,000 --> 01:57:23,720 contributions to our community um others that we saw as making significant investments and 1048 01:57:24,360 --> 01:57:31,640 over the last year included u.s cold storage jostens peter built aldi and fisher 59 for the 1049 01:57:31,640 --> 01:57:36,120 large business that we would look at so i don't know if the board wants us to narrow down the 1050 01:57:36,120 --> 01:57:41,640 list at this point if not we can score all of those according to the criteria um but those 1051 01:57:41,640 --> 01:57:48,920 are the ones we have currently uh jill jester would you mind repeating that list please sure 1052 01:57:48,920 --> 01:57:53,480 thank you texas health presbyterian and medical city and we did lump those together we know that 1053 01:57:53,480 --> 01:58:00,120 both hospitals have made significant contributions and have had a challenging year um jostens peter 1054 01:58:00,120 --> 01:58:12,440 built u.s cold storage aldi and fisher 59 okay so jill i have a question so if if we were to look at 1055 01:58:12,440 --> 01:58:18,360 hospitals would it be a combined acknowledgement or a singular acknowledgement 1056 01:58:20,840 --> 01:58:26,120 that's up to the board staff felt that it's hard to recognize one without the other knowing that 1057 01:58:26,120 --> 01:58:33,000 the challenge that and health commitment that has been made on behalf of both hospitals over 1058 01:58:33,000 --> 01:58:39,480 over the past few months to make sure i understood your your your communication and the intent so i 1059 01:58:39,480 --> 01:58:47,560 understand that it's a joint acknowledgement is what it is thank you also a quick question regarding 1060 01:58:47,560 --> 01:58:54,760 those that have um received awards in the past i see in you know the packet we've not given the 1061 01:58:54,760 --> 01:59:03,400 award twice to an entity thus far but the thought was an exception for this year or it's just never 1062 01:59:03,400 --> 01:59:09,640 been discussed we didn't have any limitation on awarding someone again and we did add peter 1063 01:59:09,640 --> 01:59:15,080 built to the list knowing that they made such a large contribution to the covid relief fund we 1064 01:59:15,080 --> 01:59:20,520 thought that we couldn't not put them on the list given how much commitment and financial 1065 01:59:20,520 --> 01:59:23,160 resources that they've made this year 1066 01:59:23,160 --> 01:59:31,320 it was it was a very difficult year there's been a lot of businesses that have made incredible 1067 01:59:31,320 --> 01:59:44,120 contributions to our community hey um this is steve uh i would say you know from a health care 1068 01:59:44,120 --> 01:59:50,760 standpoint that is part of our responsibility regardless of the the environment and i would 1069 01:59:50,760 --> 01:59:58,280 i appreciate the consideration but i i think jeff would echo that there are others that stepped up 1070 01:59:58,280 --> 02:00:02,440 and address things in the community that are outside of the norm of their business 1071 02:00:02,440 --> 02:00:10,120 priority or operation so i would say let's back off on the two hospitals 1072 02:00:14,120 --> 02:00:15,240 you steve yes 1073 02:00:15,240 --> 02:00:25,800 are there any other nominees for large business that we need to consider from the board if not 1074 02:00:25,800 --> 02:00:33,000 i will move on to our ideas for small business and i think we've lost marty again so john you're back 1075 02:00:33,000 --> 02:00:42,600 on deck as needed willing and willing and ready to serve thank you for the small business we thought 1076 02:00:42,600 --> 02:00:48,760 one unique one for this year might be united way of denton county they have done an incredible 1077 02:00:48,760 --> 02:00:53,640 amount of work we know that they are a non-profit but they have done a lot to support the business 1078 02:00:53,640 --> 02:00:59,800 community and residents of this community during the pandemic and serve pro of denton has also 1079 02:00:59,800 --> 02:01:09,160 done a significant amount of work to support businesses and and just saudi who has i believe 1080 02:01:09,160 --> 02:01:14,360 done a lot of work as our main for our main street association as they have been helping a lot of our 1081 02:01:14,360 --> 02:01:19,880 small local businesses just saudi has been their technical and marketing support and and so that's 1082 02:01:19,880 --> 02:01:26,120 a unique contribution that they've made the other nominees we received were gulki pools armadillo 1083 02:01:26,120 --> 02:01:40,600 ale works and bearded monk my question uh jessica is um with this listing are we trying to do 1084 02:01:40,600 --> 02:01:47,720 something today are we going to come back and finalize things so our goal um if the board wishes 1085 02:01:47,720 --> 02:01:53,160 we can narrow it down we don't have to if these are the nominees that we want to move forward with 1086 02:01:53,160 --> 02:01:58,680 staff will go through the process of filling out those uh criteria sheets that you have in your 1087 02:01:58,680 --> 02:02:04,920 backup for each of these businesses and then selecting the awardees from from these nominees 1088 02:02:04,920 --> 02:02:09,960 once you have the full criteria sheet filled out but we wanted to give the board an opportunity 1089 02:02:09,960 --> 02:02:16,360 uh to add any to the list or if we needed to narrow it down today so it's one both or neither 1090 02:02:21,560 --> 02:02:28,040 and then we'll go to keely thank you i got uh united way of denton county serve pro just saudi 1091 02:02:28,040 --> 02:02:33,240 gulki pools bearded monk and i know i missed one armadillo air works thank you 1092 02:02:33,240 --> 02:02:47,640 is there a um is there a pleasure of the board that we need to communicate to jessica 1093 02:02:48,440 --> 02:02:54,600 we can either um take all under consideration or are we looking to narrow things down today 1094 02:02:54,600 --> 02:02:58,600 please provide some feedback 1095 02:02:58,600 --> 02:03:17,400 yes council member briggs uh councilman councilwoman briggs uh yeah i know that uh 1096 02:03:17,400 --> 02:03:23,080 that's a it's a lot of nominations um and we can narrow some down but for me it's been helpful in 1097 02:03:23,080 --> 02:03:30,280 the past to see um the box checked and the the contributions it's um and that way you're not 1098 02:03:30,280 --> 02:03:35,000 really just trying to pick a favorite you're seeing their actual investment in the community 1099 02:03:35,000 --> 02:03:42,760 we will we we have no issue filling out the form for and doing a little more research on all of 1100 02:03:42,760 --> 02:03:47,560 these that's that's not an issue we didn't want to deny the board having hearing all of the 1101 02:03:47,560 --> 02:03:53,160 nominations that we had heard so marty i'm enjoying the power and the authority i'm not 1102 02:03:53,160 --> 02:04:00,600 sure when to give it back so i'm sorry our our building internet went down something's going on 1103 02:04:00,600 --> 02:04:08,920 over here um are we still talking about large businesses large and small what we've done marty 1104 02:04:08,920 --> 02:04:16,520 is i asked the board a question uh did we want to move forward with um the the large slate as 1105 02:04:16,520 --> 02:04:22,600 presented are we looking to narrow things down today and i will now yield uh the chair back 1106 02:04:22,600 --> 02:04:31,560 i don't i would uh my opinion is we'll just leave it as it is we can 1107 02:04:31,560 --> 02:04:38,120 i don't know that we'd have a reason to discount somebody if we don't have the forms filled out 1108 02:04:38,120 --> 02:04:39,560 would be my personal opinion 1109 02:04:39,560 --> 02:04:48,120 and we can do that no issue from staff on filling out the criteria form on any of the nominees that 1110 02:04:48,120 --> 02:04:55,640 we have so the so the task before us then is that the uh staff will go back through all the nominees 1111 02:04:55,640 --> 02:05:03,080 and then provide us with a chart with the boxes checked for each and from that then we can make 1112 02:05:03,080 --> 02:05:08,680 our selection and then we communicate that to you uh jessica or who do we communicate i believe in 1113 02:05:08,680 --> 02:05:13,560 the past we have scored it in the meeting and reviewed it and the board has made a motion on 1114 02:05:13,560 --> 02:05:22,760 which nominee they want to make the award to um and so we will provide the matrix in your back 1115 02:05:22,760 --> 02:05:27,240 in your backup for your next meeting and then allow the board to make a motion of who they 1116 02:05:27,240 --> 02:05:31,880 would like to make the award to and we're going through the same process with the downtown 1117 02:05:31,880 --> 02:05:37,720 economic development committee as well as the other groups that make awards typically at the 1118 02:05:37,720 --> 02:05:42,280 awards breakfast but since we're not having an in-person awards breakfast we're we're getting 1119 02:05:42,280 --> 02:05:48,680 creative and we are going to find a way to continue to acknowledge the significant contributions of 1120 02:05:48,680 --> 02:05:54,280 businesses to the business community in bedden thank you 1121 02:05:57,400 --> 02:06:04,760 all right do we have a list of small businesses yes i'm apologize marty while you were off the 1122 02:06:04,760 --> 02:06:11,880 nominees were united way of denton county surf pro gulkey pools armadillo ale works and bearded monk 1123 02:06:11,880 --> 02:06:16,920 and we would accept any additional nominations 1124 02:06:16,920 --> 02:06:22,520 anybody have any additional nominations 1125 02:06:28,040 --> 02:06:36,920 i would like to add um to that list john williams group of businesses and um 1126 02:06:36,920 --> 02:06:41,720 10-1 jeez 1127 02:06:41,720 --> 02:06:48,920 those have both been doing some pretty extensive community um 1128 02:06:48,920 --> 02:06:57,000 reinventing themselves and doing some extensive community service yes and i apologize i left off 1129 02:06:57,000 --> 02:07:01,240 just saudi just saudi was also nominated in the small business category 1130 02:07:01,240 --> 02:07:12,600 all good groups it's a very difficult decision this year 1131 02:07:12,600 --> 02:07:25,320 sorry keely well i i just also um i was gonna be recommending or asking for a chestnut tree to be 1132 02:07:25,320 --> 02:07:29,640 on there there's a lot of other good groups but i just wanted to give a shout out to them for 1133 02:07:29,640 --> 02:07:35,800 the innovation that they've done for doing the grocery delivery and um all of the different 1134 02:07:35,800 --> 02:07:42,520 changes that the lunch is to go that they've done i think it's any all of our businesses right now 1135 02:07:42,520 --> 02:07:47,480 are stressed and have stepped up and so it's going to be very difficult because we have a 1136 02:07:47,480 --> 02:07:57,560 lot of favorites and they've um they've done really well so i just wanted to say that and 1137 02:07:57,560 --> 02:08:03,800 mr chair uh yes this is an editorial note bringing in a sports reference sometimes 1138 02:08:03,800 --> 02:08:11,160 in years you do have a co-rookie of the year or co-defensive player of the year so it's not 1139 02:08:11,160 --> 02:08:16,600 unprecedented that as we go through the list we may have several people that we're looking to recommend 1140 02:08:18,440 --> 02:08:19,560 100 agree 1141 02:08:19,560 --> 02:08:30,840 so we'll have those lists of businesses to officially visit about at our next meeting 1142 02:08:30,840 --> 02:08:39,160 is that correct yes any other discussion or questions on that topic 1143 02:08:39,160 --> 02:08:47,240 all right uh since we're past two hours would it be okay with everyone if we 1144 02:08:48,280 --> 02:08:52,840 skip the staff reports unless staff has something that we need that we need to 1145 02:08:52,840 --> 02:08:58,360 inform the group about we've we've got information in our backup 1146 02:08:58,360 --> 02:09:06,120 i'm sure everybody's been over a few times already so unless jessica or charlie has anything 1147 02:09:06,120 --> 02:09:09,240 no sir nothing pressing 1148 02:09:11,800 --> 02:09:19,080 man we got a lot done today i would move for adjournment second and good job everybody 1149 02:09:19,080 --> 02:09:26,840 thank you yeah thank you for everybody and except for jesse look forward to the conversation 1150 02:09:26,840 --> 02:09:29,000 and we'll see you guys in a month 1151 02:09:29,000 --> 02:09:35,480 hi everyone thank you thank you