WEBVTT

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 Good morning this is Marty Rivers chair of the economic development board and I'd like

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 to call this meeting to order at 11 a.m. remind everybody since we're doing this on zoom to

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 one keep your microphones on mute unless you're visiting please and two when we vote on anything

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 I'm going to go around my computer screen and ask for you to say yay or nay with a hand

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 raise and a voice would be great and also I guess we need to do roll call for who is

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 present today once we do that we go ahead and get started with the meeting so and let

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 me know if I miss somebody but I'm going to start with mr. Baines present Tony Clark

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 Steve Edgar present Chris Davis Jill Jester present Councilman Jesse Davis present Jason

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 Tomlinson present and Mark McClellan present did I miss anybody any board members we've

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 got a couple ex officio folks here too all right we've got the quorum so we'll go ahead

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 with our first item which is edp 20 - 0 3 0 consider approval of the minutes from our

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 July 8th meeting take any motions jill jester I move approval of the minutes of the city

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 of Denton Economic Development Partnership board from June 8th 2020 John Baines I second

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 that motion all right we've got a motion and a second any further discussion all those

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 in favor say I gotta go around the horn see I already messed that up all right get ready

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 John Baines hi Tony Clark Steve Edgar hi Chris Davis hi Jill Jester I Jesse Davis hi Jason

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 Tomlinson hi and Mark McClellan all right looks like we have a unanimous approval of

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 the minutes and we'll move on to our next item which is an item edp 20 - 0 1 4 hold

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 discussion receive report hold discussion give staff direction regarding an incentive

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 application from for from the future so we'll let Jessica take it from here right well good

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 morning everyone I will actually be turning it over to Erica Sullivan to do the presentation

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 but I want to take a quick moment to introduce our guests to everyone Mike Christian and

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 Mark Talkington are here from from the future which is a local tech company some of you

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 may be familiar with their operation but they've had some very exciting developments and have

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 been a wonderful partner over the past few months as we have worked with them on an incentive

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 application and we are very excited to present this to you and we'll have plenty of time

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 for everyone to learn about VR at the end of this and it's an exciting very very fun

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 technology that these guys have so we're happy to present this to you and happy that they

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 have chosen to locate and didn't good morning I'm going to be presenting an incentive application

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 from the future now I'm the economic development analyst here at the city so the objective

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 is to present this incentive application provide some background on entrepreneurship tech initiative

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 that we're undergoing right now and then consider possible incentive packages a little bit about

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 the company from the future the software company specializing in customized and immersive virtual

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 reality training some examples of some of this training include industrial safety training

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 as well as medical training for therapists dealing with autism for example they were

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 founded in 2009 they're based in downtown Denton but will soon outgrow their space they

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 compete with high tech centers from across the country but desire to keep the company

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 here in Denton to help attract a Denton talent pool here locally to Denton and they're using

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 existing pipelines for their staffing needs they're currently in their seed round for

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 funding and they're projecting rapid growth and value revenue customers and employees

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 the revenue is projected to grow from 750,000 in 19 to 2.4 million in 2020 employees are

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 expected to grow from 9 in 2019 up to 75 in 2021 and customers are expected to grow from

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 8 in 2019 to to 96 in 2021 now keep in mind this timeline has been altered a little bit

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 by covid I understand from the applicant it's been altered about six months so that's important

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 to keep in mind I also want to talk about the growth of the industry it's projected

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 to grow to 5.5 billion by 2023 the company's project goals are to reduce funding needed

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 in the seed round to keep more of their company ownership local they want to offset costs

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 needed to relocate offices for their larger facility recruit and add additional staff

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 purchase furniture fixtures and equipment for their new facility and then make any necessary

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 fiber infrastructure upgrades in this case it's typically fiber I want to tell you a

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 little bit about how we got here I'm not going to go over each item but we have done a number

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 of things to develop an entrepreneurial economic development tech-based program around our

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 existing policy and our existing funding mechanism our economic development investment fund since

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 we went over this last month I'm being brief our Senate policy has general position provisions

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 that this project falls under and it creates quality high wage jobs as well as targeted

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 industry sectors information technology R&D which are now more of ecosystems in our draft

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 strategic plan some other priority considerations are presented here you can see that they meet

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 the community investment diversifying the tax base public private partnerships high wage

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 jobs and of course encouraging startup and small business to promote entrepreneurship

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 and innovation the chapter 380 section of our policy also has provisions this meets

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 four of the five provisions policy also has other considerations and this meets three

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 of those other considerations including job-based grants tell you a little bit about the economic

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 development investment fund that you're going to hear about more later today this fund was

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 created in 2016 and it was created to provide a cash grant program so we can be competitive

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 with other cities and so that we could attract high investment high wage jobs in order to

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 be eligible the company must meet two of three criteria so higher wage knowledge-based jobs

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 defined as 55,000 or greater for all an average or 65,000 or greater for 25% of the jobs substantial

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 capital investment in this case 15 million and recruitment of industry sector targets

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 what we previously discussed the R&D tech sector and high wage jobs so the application

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 you can see is here over a three-year period the current employees are 12 you will see

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 it added cumulatively to a total amount of 150 jobs the jobs paying 65,000 or more is

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 82 and then to give you an idea again of this Tyson 13 of the 100 jobs were making 65,000

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 or more and 30 of the 52 jobs of the last application we looked at team of defenders

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 were making over 65,000 you can see the payroll the customers is that they grow throughout

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 the years as well as a generated revenue and profit and again this has been slightly adjusted

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 by six months how it's been affected by COVID the wage information you can see again the

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 number of jobs if you look at the third column you can see the total jobs at 150 with a

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 payroll of a little over 10 million again if you make a Tyson comparison their payroll

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 was roughly half that for 50 less jobs for 100 jobs and then you see the weighted average

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 annual wage and the sales and ops as well for one of these categories and the to give

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 you an idea of the county average wage it's 48,277 and then the Denton County median wage

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 is 42,650 our proposal is a performance-based business expansion incentive the expansion

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 grant has the first component is to reimburse relocation costs find additional equipment

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 make necessary site upgrades or a spaceship in the shout and these are based on actual

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 demonstrated costs so this will be done on a reimbursement basis the second component

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 is a stratified job-based incentive and this is divided into four categories and additional

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 consideration is also given to employees that living in Denton as we want to recruit and

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 retained employees here and it requires a chapter 380 agreement the economic development investment

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 fund that we discussed is the source of funding for this and the agreement will include a

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 limit on the term and it will also include a cap you'll see in this table the incentive

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 proposal they proposed three years we're allowing them five years in order to reach that the

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 first component again is the one-time expansion grant in the amount of fifty thousand dollars

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 then we have a job-based grant that's stratified into four categories ranging from five hundred

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 to five thousand reimbursement for jobs making over sixty five thousand and a hundred thousand

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 and that's for those eighty two and then you'll see that total is a hundred and twenty four

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 thousand five hundred for the job-based stratified incentive and then the bonus if all employees

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 were to meet this would be sixty nine thousand for a total incentive value of two hundred

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 and forty three thousand five hundred some of the qualitative impact benefits economic

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 impacts and fiscal impacts I'd like to highlight until last month this job this particular

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 project really represents a break from what we've typically funded they're usually capital

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 intense projects with facilities and high business personal property but this is an

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 investment in human capital and quality jobs which is in line with creating a pipeline

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 for university training programs and reduction of brain drain it keeps a startup in Denton

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 it fosters entrepreneurship it diversifies the tax base and it's a development of an

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 ecosystem that supports entrepreneurship and locally owned business again these ecosystems

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 is what we're moving towards in our draft strategic plan and then there's less demand

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 on utilities services and infrastructure since it's not a capital intense project some of

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 the quantitative benefits that I'll be highlighting are the direct impact jobs and sales output

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 directly created by the event so there's a hundred and thirty eight new jobs with this

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 is an average wage of sixty two thousand so the ripple effects of the induced and indirect

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 is set sixty five point eight jobs with an average wage of twenty nine thousand six sixty

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 one property tax sales tax utility system revenue generated by the projects is also

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 included in this model and the attraction of venture capital and investors and again

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 that's been delayed about six months the fiscal impacts the cost to provide government utility

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 service remains low because this isn't a capital intense with a lot of truck traffic and then

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 the return on investment is seven point three percent for the jobs so our summary and recommendation

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 is a five-year even though they anticipate doing it in three or three and a half years

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 performance-based incentive not to exceed the cap of two hundred and forty-three thousand

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 five hundred and an expansion grant of fifty thousand to reimburse actual demonstrated

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 cost a stratified job-based grant and the four categories for hundred and twenty four

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 thousand five hundred and a residency bonus of five hundred per employee which could equal

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 a total of sixty nine thousand and we will verify the wage and residency based on irs

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 and then we would utilize the chapter three eighty agreement and the investment fund is

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 our funding source so some of the options and recommendations include the staff recommendation

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 that we presented the board can come up with a modified or new incentive recommendation

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 or offer not offer an incentive and i'd be happy to entertain questions

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 do the question um erica yes mr veins hang on a second if anybody has any questions uh

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 raise your hand i'll call on you and make sure we um uh get you on the record and um

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 also i guess we have questions for for our applicants we can do that just let us know

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 that so john thank you marty i apologize for breaking the protocol um let's see um erica

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 when you when you talked about the the criteria set for providing the incentive uh could you

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 go back to that screen in a minute and and i'd like to kind of match up what we're seeing

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 here based on what the criteria was i'm i'm seeing a discrepancy and i want i want to

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 make sure i'm understanding what i'm not seeing all right are you talking about the ed investment

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 fund the two or three criteria are you talking about priority considerations well you talked

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 about you know something in the millions and so um i was just trying to make sure that

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 you know is this something different from what i saw earlier i just wanted to make sure

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 so the criteria in order to use the uh investment fund they need to meet two or three they meet

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 the higher wage or knowledge-based jobs and the recruitment of industry sector targets

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 okay so it's entrepreneurship and tech for the industry sector targets the higher wage

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 knowledge-based jobs are 55 000 or greater which they meet for all and then in 65 000

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 or greater for 25 and they meet that with 82 of their 150 jobs so the substantial capital

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 investment is not a not a requirement for that's correct it's two of three so we can

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 have another project come in there might be an industry sector target um let's say it's

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 a large scale uh project to come in in the future and it might meet the investment but

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 not have high wage jobs and they could also be eligible under the investment fund thank

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 you for the clarification anybody else have any questions tony

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

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 of go over how the funds the 243 would would potentially be advanced to our prospect here

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 they get 50 000 up front and then the rest of it's kind of an earned in top scenario

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 that's correct not not entirely correct so the 50 000 uh could be up front it's based

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 on demonstrated costs so once they had demonstrated the cost we would make a one-time payment

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 so if they were able to demonstrate those upon execution of the contract yes up front

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 but if it if they needed to move and relocate and they wanted to accumulate those costs

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 it would be a one-time payment maybe sometime in year one of the term yes it's a reimbursement

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 and then going forward there would be periodical payments based on the the criteria that you

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 outlined that's correct yes we were our goal is to certify the salaries based on irs documents

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 so the way that we have proposed this to our applicant is that after they file their w-2s

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 for their employees and we can certify the salaries that we would make the payment for

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 that year based on the data provided so it gives them time over that five-year period

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 to meet the thresholds so uh without being uh two negatives so from a from a i guess

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 a risk perspective uh what our risk really comes out to is the first year we're going

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 to in theory advance fifty thousand dollars and uh we know uh obviously that the the percentage

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 of these businesses that survive are you know it's uphill battle for new businesses obviously

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 but but assuming these guys uh next year this doesn't play out it just doesn't work our

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 our exposure at that point really is about 50 grand is that correct yes because it's

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 all performance based so our exposure is pretty limited it's based on demonstrated hiring

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 so none of the job based grants are made prior to us certifying that that person is on the

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 payroll and that they've certified the salary on the threshold that you've seen okay perfect

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 and i would just say i i think this is an exciting uh kind of change of pace for our

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 group to look at you know we've since i've been involved there's been a few of these

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 that have come in that we've done uh whether it's a restaurant or things like that that

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 you know have not worked out i think these type of businesses have a lot of upside obviously

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 there is risk involved these things materialize that it really creates a whole different kind

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 of business for our community so kudos to these guys for getting this going this company

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 was created in 2009 i just wanted to highlight a few things in this table if you'll see the

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 the orange the peach the blue and the green you'll see how the jobs come on each year

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 so for that and per bracket so you have 8 12 47 and 15 coming on so you can see when

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 the number of jobs are actually coming online

00:19:52.920 --> 00:19:57.400
 uh anybody else have any questions or comments steve

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

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

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

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

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 it in a similar manner that we did the job wage thresholds right is there a particular

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 range this board would like to see or amount

00:20:37.000 --> 00:20:48.480
 forward for consideration just to have those conversations and with other uh requests and

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

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

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

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

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

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

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

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

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

00:21:41.400 --> 00:21:46.180
 just certify that employee's residency in the second year instead of the first if that

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

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

00:21:59.720 --> 00:22:05.800
 contract would we would be asking for that information every year so we would be wanting

00:22:05.800 --> 00:22:10.700
 ongoing compliance and ongoing tracking of how many employees are moving to denton and

00:22:10.700 --> 00:22:24.780
 staying in denton okay anybody else have any comments or questions

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

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

00:22:41.160 --> 00:22:55.160
 we're not able to hear you mike

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

00:23:02.520 --> 00:23:08.440
 already have a strong relationship with the university of north texas both as a hiring

00:23:08.440 --> 00:23:18.280
 pipeline for a new talent and working with a number of the professors on academic research

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 and including a partnership with the christian farmer autism center which is connected with the

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

00:23:37.560 --> 00:23:45.880
 the school district the high school district yet but occasionally our cto has volunteered to

00:23:45.880 --> 00:23:54.280
 provide seminars at the high school level so does that answer your question mr rivers

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

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

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

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

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

00:24:36.760 --> 00:24:40.840
 that uh that track record and and and make it a little bit better

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

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

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

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

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

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

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

00:25:36.520 --> 00:25:41.800
 absolutely thrilled anytime i can uh interview someone to bring some diversity because every

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

00:25:48.120 --> 00:25:53.480
 um articulate but that that point of view especially when it comes to the creative

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

00:25:58.680 --> 00:26:03.640
 background it brings in a a new and fresh perspective and when you're doing something

00:26:03.640 --> 00:26:09.240
 new in high tech like virtual reality education and training it's really important to have

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

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

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

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

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

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

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

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

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

00:27:07.240 --> 00:27:18.200
 well yeah absolutely absolutely thank you john anybody else have any comments or questions

00:27:18.200 --> 00:27:20.600
 about the incentive application

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

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

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

00:27:44.360 --> 00:27:47.720
 katie oh raised her hand all right yeah keely go ahead

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

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

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

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

00:28:21.960 --> 00:28:27.080
 but as far as this uh incentive i am i am in favor of it

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

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

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

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

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

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

00:29:15.480 --> 00:29:24.440
 yes steve edgar yes and welcome to uh superintendent wilson chris davis

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

00:29:42.040 --> 00:29:45.800
 all right jimmy maja

00:29:45.800 --> 00:29:52.040
 you're on you're on mute jimmy

00:29:52.040 --> 00:29:57.400
 all right that's an eye and

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

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

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

00:30:22.040 --> 00:30:27.160
 everybody else really appreciate your time on this absolutely you're welcome to stick around and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

00:33:18.200 --> 00:33:28.040
 development plan the overall goals were structured around three items we in a sense we pivoted

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

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

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

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

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

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

00:34:09.560 --> 00:34:15.000
 of the things that we traditionally think about from an economic development standpoint fit and

00:34:15.000 --> 00:34:22.680
 then we have we put in a third goal around strengthening community inclusion because we

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

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

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

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

00:34:50.600 --> 00:34:59.960
 competitive within the dfw marketplace and i really applaud the the approval this morning of the

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

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

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

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

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

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

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

00:35:51.880 --> 00:36:00.440
 to review we took the recommendations in the overall strategy document and put it into what

00:36:00.440 --> 00:36:07.160
 we call an implementation matrix where we identify partners timelines

00:36:07.160 --> 00:36:19.560
 potential costs to items in the implementation matrix so that this ultimately would be the

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

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

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

00:36:46.680 --> 00:36:50.680
 meeting today a big part of your discussion is around the incentives package for a particular

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

00:36:56.920 --> 00:37:01.720
 economic development happens in many different ways there are actually programs that support

00:37:01.720 --> 00:37:07.400
 economic development but a big part you know in the upper right hand corner infrastructure investment

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

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

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

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

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

00:37:39.480 --> 00:37:44.120
 is already making the infrastructure investments you know that many times will drive an investment

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

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

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

00:38:00.760 --> 00:38:06.760
 that sit the city of dentin and all cities are constantly making investments around infrastructure

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

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

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

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

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

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

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

00:38:58.360 --> 00:39:05.720
 b within the dfw area is makes for a very aggressive economic development uh market and

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

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

00:39:21.800 --> 00:39:28.440
 incentive is is going to projects that we wouldn't necessarily consider traditional economic development

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

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

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

00:39:51.720 --> 00:39:58.280
 some recent projects that they had worked on just as examples of incentive deals

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

00:40:06.280 --> 00:40:11.480
 incentives beyond infrastructure these are incentives that are either jobs based or capital

00:40:11.480 --> 00:40:16.680
 investment based just to give you an idea of some of the current kinds of projects

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

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

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

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

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

00:40:49.960 --> 00:40:56.120
 seeing right now a lot of their their biggest concerns were in the office market especially

00:40:56.120 --> 00:41:01.960
 you know class a office with companies that right now they mentioned they were working on

00:41:01.960 --> 00:41:06.280
 some large projects across the country that were office projects that had essentially come to a

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

00:41:15.960 --> 00:41:20.760
 of their companies that they were representing were actually questioning how many of their employees

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

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

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

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

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

00:42:00.520 --> 00:42:07.080
 that are offered in the communities that you compete with your dollar amounts for you know

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

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

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

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

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

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

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

00:42:53.160 --> 00:42:59.480
 familiar with what erica calls our multi-tax tools it's when we write really complicated

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

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

00:43:14.040 --> 00:43:20.120
 will build these very complex agreements that that erica really enjoys administering every year

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

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

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

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

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

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

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

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

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

00:44:25.080 --> 00:44:29.240
 other ways to accomplish the same goal thank you

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

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

00:44:50.840 --> 00:44:59.080
 open it up for additional questions um so we'll go to the next slide

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

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

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

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

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

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

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

00:45:50.200 --> 00:45:55.080
 thought it would be important to talk about a couple of considerations your homework assignment

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

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

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

00:46:13.160 --> 00:46:18.840
 about increasing resources just to increase resources it's really about um having the resources

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

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

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

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

00:46:47.320 --> 00:46:54.040
 work towards building resources over time so it's probably not realistic to go from where

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

00:46:59.720 --> 00:47:08.040
 progression um similarly related to my point about flexibility the level of resources that you need

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

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

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

00:47:26.280 --> 00:47:33.160
 sophisticated toolbox and different mechanisms to support economic development so next slide

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

00:47:42.680 --> 00:47:48.040
 of future resources resources needed to implement all the different strategies and actions in the

00:47:48.040 --> 00:47:53.000
 plan this gives you a high level overview of the progression that we're recommending

00:47:53.000 --> 00:47:59.640
 so currently the city invests about four million in economic development which covers both operations

00:47:59.640 --> 00:48:07.320
 and um existing incentives so we think to modernize what you're doing in economic development

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

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

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

00:48:26.280 --> 00:48:32.520
 investment which would look like seven to nine million per year so next slide

00:48:32.520 --> 00:48:39.960
 and the way this breaks out according to the strategic growth areas and goals

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

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

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

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

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

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

00:49:19.720 --> 00:49:24.840
 for the various strategies recommended and you can see all this detail in the implementation

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

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

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

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

00:50:00.280 --> 00:50:05.480
 operations and contracts uh with the chamber and other activities that are currently considered

00:50:05.480 --> 00:50:11.000
 economic development versus how much is actually part of incentives packages that are currently

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

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

00:50:24.440 --> 00:50:29.880
 move up to about six million that would be a combination of increasing your operational

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

00:52:20.760 --> 00:52:25.560
 going anywhere august 18th is going to be a busy day

00:52:31.240 --> 00:52:36.600
 all right anybody have any questions uh for tom or jacklyn or anybody else

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

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

00:52:52.280 --> 00:53:00.360
 opportunity to have somebody involved from the board level and it might this is small potatoes

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

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

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

00:53:18.360 --> 00:53:24.600
 limited capacity i needed a little more clarification um

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

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

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

00:53:46.040 --> 00:53:53.480
 sitting in a fund ready to be directed specifically for attracting new business

00:53:54.200 --> 00:54:00.600
 and then to transition would that nine million be an inclusive of all things

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

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

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

00:54:22.520 --> 00:54:29.480
 complex variables that get us to those numbers that jacqueline and tom presented thank you

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

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

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

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

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

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

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

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

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

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

00:55:49.400 --> 00:55:53.000
 kind of has their idea of what economic development might look like but to see the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

00:57:43.560 --> 00:57:48.520
 chamber of commerce hispanic chamber of commerce and working with our existing businesses as well

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

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

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

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

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

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

00:58:30.440 --> 00:58:33.800
 life of the city of denton and just wanted to say um a big thank you

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

00:58:51.400 --> 00:58:56.520
 in your vice chair role i will take over until our our grand leader returns

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

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

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

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

00:59:35.080 --> 00:59:40.280
 just for example there's highlight businesses owned by women and people of color and marketing

00:59:40.280 --> 00:59:47.640
 materials through digital marketing channels and increase awareness so that says it's ongoing um

00:59:47.640 --> 00:59:52.040
 what exactly does that mean and if it's ongoing can i find that somewhere currently

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

01:00:00.600 --> 01:00:07.080
 and so yes our intention with some of the ongoing elements are not that they're

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:02:04.520 --> 01:02:09.160
 that are year one and ongoing in this first year as we move to implementation

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

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

01:02:22.840 --> 01:02:27.560
 to the board on a regular basis and and keep you updated and hold ourselves accountable

01:02:27.560 --> 01:02:38.520
 to making sure that we're implementing the strategic plan okay thank you

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

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

01:02:58.680 --> 01:03:00.920
 anybody has a question to get after it

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

01:03:12.840 --> 01:03:21.640
 address i'm back

01:03:21.640 --> 01:03:30.280
 no more questions comments

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

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

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

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

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

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

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

01:04:19.240 --> 01:04:23.960
 city council to accept this plan as presented or some other kind of motion

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

01:04:35.480 --> 01:04:41.400
 john i make the motion that we accept the

01:04:41.400 --> 01:04:48.280
 edp proposal economic development plan for the city as presented

01:04:48.280 --> 01:04:57.320
 okay got a motion second and a second from jason any further discussion

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

01:05:06.520 --> 01:05:21.560
 tony hi steve hi jill hi mark hi keely

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

01:05:32.280 --> 01:05:40.920
 i think jimmy's logged on he's on mute

01:05:40.920 --> 01:05:45.720
 you remember a couple seconds

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

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

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

01:06:09.320 --> 01:06:15.320
 uh receiver report whole discussion give staff direction regarding funding for economic development

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

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

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

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

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

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

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

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

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

01:07:16.440 --> 01:07:24.440
 feasible or or that we can explore further to increase economic development program funding so

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

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

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

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

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

01:07:54.680 --> 01:07:59.640
 those funds help fund our contract with the chamber of commerce so they actually align with

01:07:59.640 --> 01:08:06.440
 um a certain percentage of that contract our expenditures which are our operational expenditures

01:08:06.440 --> 01:08:11.480
 broken out in the first three lines under expenditures so personnel and operations so those

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:10:07.240 --> 01:10:13.240
 investment or excuse me an interest contribution from interest earned as that fund sits um and

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

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

01:10:26.120 --> 01:10:31.720
 overwhelmingly complicated budget when we kind of break it down uh in those categories but just

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

01:10:35.800 --> 01:10:44.680
 any comments or questions about the current funding john

01:10:47.560 --> 01:10:53.320
 you jessica for that thank you for that presentation my question is this so when i

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

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

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

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

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

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

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

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

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

01:11:50.680 --> 01:11:57.000
 so we have existing tax abatement agreements those agreements that revenue never comes to the city

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

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

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

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

01:12:18.680 --> 01:12:20.760
 and go to the next section

01:12:20.760 --> 01:12:31.960
 we're frozen oh there we go

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

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

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

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

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

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

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

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

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

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

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

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

01:13:46.920 --> 01:13:54.600
 second to that is our chapter 380 agreements those are by our policy based on performance

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

01:14:00.040 --> 01:14:05.160
 significant investments in accordance to our policy the next item is our infrastructure

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

01:14:12.040 --> 01:14:17.880
 online or they are getting developed out of our utilities we can make an additional investment

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

01:14:23.400 --> 01:14:27.560
 upsized a little bit on a development so we have access to those funds as well

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

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

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

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

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

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

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

01:15:09.000 --> 01:15:14.200
 reinvestment zones as well to facilitate infrastructure and public improvements we have

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

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

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

01:15:33.000 --> 01:15:38.360
 improvement district as of today that public improvement district is not levying any additional

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

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

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

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

01:16:03.560 --> 01:16:07.400
 we're making these match together we're really working with different projects to figure out

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

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

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

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

01:16:30.680 --> 01:16:36.040
 based developments they are used pretty frequently uh throughout the metroplex we haven't activated

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

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

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

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

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

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

01:17:11.720 --> 01:17:17.720
 and really encourage development and that that makes sense for us and really meets our strategic

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

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

01:17:30.680 --> 01:17:38.200
 so any questions about the tools that we have in place today

01:17:38.200 --> 01:17:46.200
 all right well we'll move on to the next section

01:17:57.720 --> 01:18:00.840
 sorry we freeze every time the computer's freezing every time i'm

01:18:00.840 --> 01:18:04.040
 having her take the presentation down let's see if we can

01:18:04.040 --> 01:18:16.760
 let's see i'm sorry give us one second we have a little technical difficulty

01:18:16.760 --> 01:18:25.160
 it just freezes every time

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

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

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

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

01:18:50.680 --> 01:18:57.240
 financial and operational limitations and needs um particularly when it comes to the financial

01:18:57.240 --> 01:19:03.160
 aspect particularly we know that we're in a little bit of a compressed economic environment

01:19:03.160 --> 01:19:07.480
 we know that there's probably going to be some short-term challenges related to the

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

01:19:13.240 --> 01:19:19.240
 assumptions related to known projects and they're applied to future unknown projects which is a

01:19:19.240 --> 01:19:24.280
 complicated concept that we get to and really has us building assumptions based on future

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

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

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

01:19:43.960 --> 01:19:48.760
 establish costs based on our current economic environment and pricing things and looking at

01:19:48.760 --> 01:19:54.200
 projects that were done on the past and that changes in the economic environment could impact

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

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

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

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

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

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

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

01:20:37.560 --> 01:20:43.320
 strategic plan we wanted to demonstrate a progression of funding over time and that's

01:20:43.320 --> 01:20:50.360
 how we came up with the foundational and the aggressive concept so in the foundational concept

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

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

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

01:21:11.960 --> 01:21:18.040
 recur over time the second category that we were quantifying are those recurring costs so these

01:21:18.040 --> 01:21:26.040
 would be additions to an operating expense personnel or a program that we might implement

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

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

01:21:39.160 --> 01:21:45.400
 so those are our two traditional expenditure sections the last section is the fund development

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

01:21:51.080 --> 01:21:57.800
 balance that we could then use those funds to attract projects or to incentivize certain

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

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

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

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

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

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

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

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

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

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

01:22:59.240 --> 01:23:06.840
 aggressive schedule and so again one-time costs staying pretty static recurring costs growing a

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

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

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

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

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

01:23:41.480 --> 01:23:46.440
 incentive programs as they're described in the implementation matrix and as you know them today

01:23:46.440 --> 01:23:52.520
 those might be for new business recruitment business recruit retention and expansion or maybe

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

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

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

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

01:24:17.640 --> 01:24:23.880
 just supplementing those payments and keeping that fund balance available over time and that's how

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

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

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

01:24:40.440 --> 01:24:46.200
 economic development but that we would be looking to layer those and leverage those dollars to

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

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

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

01:25:05.960 --> 01:25:10.680
 hopefully we won't freeze but see if there are questions about how we got there

01:25:11.720 --> 01:25:16.200
 and again this brought me back to calculus class and variables that had different

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

01:25:20.760 --> 01:25:35.640
 marty i'm gonna john has a question i'm gonna

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

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

01:25:52.280 --> 01:25:58.040
 substantive conversations previously and i i would value greatly your input

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

01:26:09.880 --> 01:26:15.000
 uh trying you know doing the same thing over and over again expecting different results and

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

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

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

01:26:33.080 --> 01:26:39.080
 available to us the city for economic development i guess my biggest question would be how

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

01:26:45.800 --> 01:26:51.800
 you know are they are they going to be there for the future

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

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

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

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

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

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

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

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

01:27:43.080 --> 01:27:47.960
 where i'm encouraged is that we have recognized that we're beginning a plan

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

01:27:55.000 --> 01:28:00.840
 available obviously the more successes we can have when it comes to bringing in other businesses

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

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

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

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

01:28:27.320 --> 01:28:30.200
 for how we're funding what we're doing

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

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

01:28:52.920 --> 01:28:58.360
 make it full screen everything always gets back to money we just had the money

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

01:29:06.600 --> 01:29:11.160
 we're at so erica can you make that full screen in the presentation mode

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

01:29:22.840 --> 01:29:24.840
 okay

01:29:24.840 --> 01:29:32.840
 i apologize for our technical difficulties thank you for your patience

01:29:32.840 --> 01:29:44.520
 we can see the slide you're on by the way that's okay

01:29:44.520 --> 01:29:49.800
 so if you may have to presentation it's still i think we can all

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

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

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

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

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

01:30:23.240 --> 01:30:28.920
 additional discussion so the first would be dedicating a percent of utility system our

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:33:13.160 --> 01:33:19.560
 incentives roll off we recapture those funds over time in the investment fund the advantages

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

01:33:25.800 --> 01:33:31.560
 taken into account that those revenues would be coming into that as future funding sources so

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

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

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

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

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

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

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

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

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

01:34:20.840 --> 01:34:26.360
 actually called a bond election for economic development funding first it would have no impact

01:34:26.360 --> 01:34:33.160
 on existing city funds the disadvantage is that it could increase property tax rates again and

01:34:33.160 --> 01:34:39.480
 i think that that's again a very challenging scenario given the economic environment environment

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

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

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

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

01:35:02.920 --> 01:35:09.560
 mid-range dives on that we think probably warrant additional discussion and review with our

01:35:09.560 --> 01:35:15.000
 recommended option being that hybrid option of limiting the impact as much as possible given the

01:35:15.000 --> 01:35:20.840
 economic environment that we're in which is using some additional existing fund balance and then

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

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

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

01:35:39.560 --> 01:35:44.600
 of programs and the timelines as part of our annual budgeting process with this board with

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:38:44.520 --> 01:38:47.880
 through the budget discussions obviously we're looking at rate decreases and we've had rate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:41:56.200 --> 01:42:00.680
 economic development purposes and right into economic development and it'd be it'd be pretty

01:42:00.680 --> 01:42:06.200
 easy to show that and articulate it but right now we feel comfortable heading making that

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:43:41.240 --> 01:43:49.800
 user i mean every every um every investment that comes in that generates additional revenue above

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:46:47.320 --> 01:46:52.440
 rebating back our own sales tax dollars which could create some room that things stabilize in

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

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

01:47:04.520 --> 01:47:11.160
 sort of thing long term if we see unemployment levels decreasing and consumer confidence really

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

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

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

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

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

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

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

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

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

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

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

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

01:48:31.400 --> 01:48:36.520
 down and we're basically projecting out future property tax increases based upon what we think

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

01:48:45.720 --> 01:48:51.560
 the upcoming years primarily because you know we're not expecting any property tax increases

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:50:26.600 --> 01:50:31.560
 capital projects once the budget's finalized they have not formally adopted the budget yet

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

01:50:35.000 --> 01:50:39.320
 to the general fund and the taxpayers by using some of those other dollars

01:50:39.320 --> 01:50:44.840
 having them returned into the community cool thanks

01:50:47.320 --> 01:50:52.680
 all right any other comments or questions

01:50:52.680 --> 01:50:56.440
 we have to make a recommendation on this jessica

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

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

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

01:51:15.880 --> 01:51:22.200
 certainly taking into account the comments and questions we're hearing today does it help if

01:51:22.200 --> 01:51:29.640
 this board um supports the staff recommendation or one of the other recommend objects out there

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

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

01:51:47.480 --> 01:51:53.320
 of a motion and send that up to city council or one of the other recommendations

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

01:52:05.720 --> 01:52:14.200
 city council adopting the staff recommendation regarding uh how to begin a change in our funds

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

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

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

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

01:52:53.400 --> 01:53:00.200
 but as far as voting to um the the staff recommendation today without seeing more

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

01:54:50.040 --> 01:55:05.160
 i'm in favor of presenting this um idea to council tony all right jill aye

01:55:07.080 --> 01:55:10.440
 steve hi keely

01:55:10.440 --> 01:55:17.880
 yeah i i am in favor of hearing more yes jason

01:55:17.880 --> 01:55:27.880
 jace i think you're on mute

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

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

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

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

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

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

01:56:16.280 --> 01:56:22.040
 to receive report whole discussion give staff direction regarding nominations for our annual

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

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

01:56:32.920 --> 01:56:37.720
 opportunity for anyone on the board to submit a nomination we'll finalize the nominations today

01:56:37.720 --> 01:56:45.880
 go back complete oh bye tom and jacklyn thank you thank you thank you to everyone

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

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

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

01:57:04.680 --> 01:57:11.640
 for the large business have included um texas health presbyterian and obviously medical cities

01:57:11.640 --> 01:57:17.000
 in both hospitals have made have had probably a very tough year and have made significant

01:57:17.000 --> 01:57:23.720
 contributions to our community um others that we saw as making significant investments and

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

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

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

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

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

01:57:53.480 --> 01:58:00.120
 both hospitals have made significant contributions and have had a challenging year um jostens peter

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

01:58:12.440 --> 01:58:18.360
 hospitals would it be a combined acknowledgement or a singular acknowledgement

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

01:58:26.120 --> 01:58:33.000
 the challenge that and health commitment that has been made on behalf of both hospitals over

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

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

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

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

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

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

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

01:59:20.520 --> 01:59:23.160
 resources that they've made this year

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

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

01:59:44.120 --> 01:59:50.760
 standpoint that is part of our responsibility regardless of the the environment and i would

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

01:59:58.280 --> 02:00:02.440
 and address things in the community that are outside of the norm of their business

02:00:02.440 --> 02:00:10.120
 priority or operation so i would say let's back off on the two hospitals

02:00:14.120 --> 02:00:15.240
 you steve yes

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

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

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

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

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

02:00:53.640 --> 02:00:59.800
 community and residents of this community during the pandemic and serve pro of denton has also

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

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

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

02:01:19.880 --> 02:01:26.120
 a unique contribution that they've made the other nominees we received were gulki pools armadillo

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

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

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

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

02:01:58.680 --> 02:02:04.920
 backup for each of these businesses and then selecting the awardees from from these nominees

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

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

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

02:02:28.040 --> 02:02:33.240
 gulki pools bearded monk and i know i missed one armadillo air works thank you

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

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

02:02:54.600 --> 02:02:58.600
 please provide some feedback

02:02:58.600 --> 02:03:17.400
 yes council member briggs uh councilman councilwoman briggs uh yeah i know that uh

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

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

02:03:30.280 --> 02:03:35.000
 really just trying to pick a favorite you're seeing their actual investment in the community

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

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

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

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

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

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

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

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

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

02:04:38.120 --> 02:04:39.560
 would be my personal opinion

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

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

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

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

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

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

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

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

02:05:31.880 --> 02:05:37.720
 economic development committee as well as the other groups that make awards typically at the

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

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

02:05:48.680 --> 02:05:54.280
 businesses to the business community in bedden thank you

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

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

02:06:11.880 --> 02:06:16.920
 and we would accept any additional nominations

02:06:16.920 --> 02:06:22.520
 anybody have any additional nominations

02:06:28.040 --> 02:06:36.920
 i would like to add um to that list john williams group of businesses and um

02:06:36.920 --> 02:06:41.720
 10-1 jeez

02:06:41.720 --> 02:06:48.920
 those have both been doing some pretty extensive community um

02:06:48.920 --> 02:06:57.000
 reinventing themselves and doing some extensive community service yes and i apologize i left off

02:06:57.000 --> 02:07:01.240
 just saudi just saudi was also nominated in the small business category

02:07:01.240 --> 02:07:12.600
 all good groups it's a very difficult decision this year

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

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

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

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

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

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

02:07:57.560 --> 02:08:03.800
 mr chair uh yes this is an editorial note bringing in a sports reference sometimes

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

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

02:08:18.440 --> 02:08:19.560
 100 agree

02:08:19.560 --> 02:08:30.840
 so we'll have those lists of businesses to officially visit about at our next meeting

02:08:30.840 --> 02:08:39.160
 is that correct yes any other discussion or questions on that topic

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

02:08:48.280 --> 02:08:52.840
 skip the staff reports unless staff has something that we need that we need to

02:08:52.840 --> 02:08:58.360
 inform the group about we've we've got information in our backup

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

02:09:06.120 --> 02:09:09.240
 no sir nothing pressing

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

02:09:19.080 --> 02:09:26.840
 thank you yeah thank you for everybody and except for jesse look forward to the conversation

02:09:26.840 --> 02:09:29.000
 and we'll see you guys in a month

02:09:29.000 --> 02:09:35.480
 hi everyone thank you thank you