CITY OF SANTA FE REGULAR MEETING JULY30, 2024 7:00 P.M. COUNCIL CHAMBERS 12002 HWY. 6, SANTAFE, TEXAS  ECONOMIC DEVELOPMENT CORPORATION  MINUTES  The meeting was called to order at 7:00 p.m. by President Bob Wylie.  Roll Call:  Present:  President Bob Wylie Vice President Matt Crable Secretary/Treasurer Terri O'Connell Director Johnny Helpenstill Director Pam Schwertner Director Ryan McCamy Director Gary Summerville  Absent:  The Invocation was given by President Wylie, and the pledge to the U.S. Flag and to the Texas Flag was led by  President Wylie. Citizens' Comments:  Economic Development Corporation (EDC)Coordinator. Josh Dearing introduced Lance LaCour, Executive Director for the Galveston County Economic Development Department. Mr. LaCour addressed the Board of Directors and stated that he has been in the economic development profession for 33 years. Mr. LaCour previously worked for the Katy Economic Development Corporation for 16 years and also worked in the private non-profit sector prior to that. Mr. LaCour stated that they are performing an assessment on their Department's current programming to maximizei thes services thatt theyoffer. President Wylie asked Mr. LaCourw where the officei is located fort the Galveston County Economic Development Department, and Mr. LaCour replied that their offices are in League City. Vice President Crable asked how long Mr. LaCourh has beeni in his current role, andl Mr. LaCour replied that hel has been Executive Director for approximately one month. President Wylie thanked Mr. LaCour for attending the meeting and  encouraged Mr. LaCour to continue working with Mr. Dearing.  Reports  a. Approval of Board Minutes from the Regular Meeting of June 25, 2024 by Secretary/Treasurer O'Connell. The motion passed unanimously. b. Current Budget Update & Financial Statements, period ending June 2024  Motion by Director McCamy to approve the Board minutes from the regular meeting on June 25, 2024, seconded  Economic Development Corporation (EDC) Executive Director Rudy Zepeda gave an overview oft the current budget  and financial statements as of June 30, 2024: Current Revenue: $585,910 Current Expenses: $270,617  Current Net Revenue over Expenses approximately: e $315,293    Minutes (cont) 07/30/2024 Page 2of7  Ending Fund Balance: $3,311,340  C. Sales Tax Report May 2024 (Collected in May, Received in July)  Executive Director Rudy Zepeda gave an overview oft the sales tax report for. June 2024 sales:  June total revenue to the Economic Development Corporation (EDC) was $88,344, which represents a  6.9% increase over June 2023.  Year-to-date revenue is up approximately 6.9% compared to 2023.  Secretary/Treasurer O'Connell asked Mr. Zepeda what the projected sales taxi increase was att the beginning of the fiscal year compared to the 6.9% thati iti is currently at. Mr. Zepeda explained that the initial projection was tol be 9% above fiscal year 2023. Mr. Zepeda stated that the EDC is currently at approximately 7% above the previous fiscal  year andi is projecting tos surpass the previous fiscal year in sales tax collections.  d. Economic Development Update Services Department for. June 2024:  Economic Development Corporation (EDC) Coordinator Josh Dearing presented an overview of the Community  Total permits issued-4 415 (compared to 391 permits issued in June of 2023) Fees collected $43,598 (compared to $46,108 collected in June of 2023) Completed inspections - 236 (compared to 258 inspections in June of 2023) Mr. Dearing also provided updates for ongoing commercial projects, including:  New residential construction permits issued - 87 (compared to 102 permits issued in June of 2023)  Hubcap Grill - Finishing interior work Whataburger - Interior trades continue operations RC Systems - Interior construction has begun 646 RV Park- Site work has begun Kwik Kar Buildout - Under plan review  Starbucks - Submitted new drainage plan and reviewing with engineer Mulberry Farms Gas Station and Shopping Center- - Under plan review  President Wylie asked Mr. Dearing if the 646 RV Park was located oni the FM 646 south of Highway 6, next to the Eagles Hall. Mr. Dearing stated that he was not very familiar with the project but would confirm the location. President Wylie also asked for clarification whether iti is an RV park or a mobile home park, and Mr. Dearing replied Director Schwertner asked how many units the RV park would have and Mr. Dearing replied that he did not know Director Summerville asked who the owner oft the RV parki is and President Wylie replied that he did not know. secretaly/rreasurer O'Connell asked for clarification of whether it was an RV park or a mobile home park and President Wylie responded that you cannot build mobile homes in Santa Fe anymore. Mr. Dearing stated that itis President Wylie stated that Mulberry Farms was moving forward with their gas station and shopping center project and Mr. Dearing stated that Mulberry Farms are actively marketing available pad sites for a proposed retail center.  that iti is an RVI park.  at the moment, but would find out.  an RV park and the RV's have tol be mobile in case an evacuation is necessary.    Minutes (cont.) 07/30/2024 Page 3of7  Director Summerville stated that he had seen a sign stating there is anew gas station coming soon on Highway 6 on the southeast corner of the intersection with Tower Road. Mr. Dearing replied that he has also seen that sign, but the City of Santa Fel has not received any plans or drawings for a gas station at that intersection. Director Summerville asked whether Starbucks had received approval from TxDOT for their driveway permit and Mr. Dearing replied that he wasn'tsurei if there was a relation between the TXDOT driveway permit and the change in the drainage plans. Mr. Dearing also stated that he believes that Starbucks would have begun construction on  their driveway if they had received TXDOT approval.  Old Business  a. Discussion with possible action on funding a fire sprinkler system for SCV Valve, LLC for an undetermined amount to facilitate the expansion of the business to include a new shipping warehouse: and Economic Development Corporation (EDC) Coordinator. Josh Dearing presented thel Board of Directors (Board) with copies of a cost proposal for ai fire sprinkler system for SCV Valve, LLC and copies ofe emails exchanged between Mr. Dearing and SCV Valve, LLC representatives. However, Mr. Dearing explained that shortly after receiving the cost proposal fort thet fire sprinkler system, he was informedby SCVValve, LLC thatt the company'sboard of directors held a meeting and decided to move forward with an expansion plan that includes an 11,980 square foot shipping and inventory warehouse. A building that is less than 12,000 square feet does not require at fire sprinkler system and the company'sh board of directors decided that they would like to move forward quickly with the expansion plans. Any funding fromt the EDC would require a mandatory 60-day public comment period and SCVValve, LLC wants to begin expansion plans in thei immediate future. Mr. Dearing also stated that the good news is that SCVValve, LLC remains committed to hiring the same amount of new employees as they would have with a larger shipping and inventory warehouse, and had already hired two (2) new employees earlier in the week. SCV Valve, LLC also intends to continue their expansion process following construction of the shipping and inventory warehouse that President Wylie questioned whether it would be best to table the action item for the time being in case SCV Valve, LLC decided to reconsider or if the Board should vote to deny any funding for a fire sprinkler system. Executive Director McCamy stated that it was his understanding that the fire sprinkler system would not be required for a smaller building. Mr. Dearing confirmed that anything under 12,000 square feet does not require a fire sprinkler Director Helpenstill stated that SCVValve, LLC would have to approach the EDC with ar new proposalf for any future phases of expansion due to the Board deciding to let the action item die. President Wylie confirmed that a new proposal would be required because any new expansion would be a different project. Mr. Dearing explained that the next expansion phase is anticipated to be well in excess of 12,000 square feet and will require at fire sprinkler system. President Wylie stated that the process was still beneficial because SCV Valve, LLC now realizes the process and timelines that the EDC must follow when a project is approved, and SCV Valve, LLC can incorporate  future manufacturing and inventory warehouse  includes an additional manufacturing and inventory warehouse in the near-term future.  Director Rudy Zepeda clarified that the action item would diei ifr nobody made a motion.  system.  those timelines into their future expansion plans if they intend tor request funding. No motion made for funding at fire sprinkler system for SCV Valve, LLC.  b. Discussion with possible action on approval of the fiscal year 2024-2025 budget for the Economic Development Corporation, beginning October 01, 2024 and ending September 30, 2025    Minutes (cont) 07/30/2024 Page 4of7  Economic Development Corporation (EDC) Executive Director Rudy Zepeda presented the proposed fiscal year 2025 budget to the Board of Directors (Board) thati includes 25% ofp projected revenue for the Business Expansion Attraction and Retention (BEAR) program and operational costs, and the remaining 75%1 for infrastructure related projects and grants. Total projected expenses for the fiscal year 2025 budget are! $1,200,300 and itis al balanced Director Schwertner asked if therei is any money budgeted for new office furniture for the new offices being built at City Hall. Mr. Zepeda replied that EDC Coordinator Josh Dearing has an existing desk that will be relocated to the new office, and the proposed budget includes $1,000 for office supplies that could be utilized. Ifr needed, the Board of Directors (Board) could also amend the budget to reallocate funds from the advertising account for additional Director Schwertner asked for clarification of whether the membership to the Bay Area Houston Economic Partnership (BAHEP) was included in the advertising account or another account. Mr. Zepeda explained that the BAHEP membership is included in the professional contract services account and that the advertising account has historically been underutilized, but could be used for items such as banners, business cards and other marketing Director Schwertner asked for confirmation that the funds in the webmail services account are for the new website for the EDC. Mr. Zepeda explained that the EDC has already paid for the new website, but the annual service agreement will be more expensive in fiscal year 2025 and the webmail services account also accounts for the Director Schwertner asked what the $8,000 increase in the professional contract services account entails. Mr. Zepeda explained that figure accounts for subscription fees to commercial property listing services LoopNet and CoStar. Director Schwertner explained to the Board that LoopNet is a commercial property listing website and CoStar also provides commercial property listing but also has additional resources such as creating customized reports. Director Schwertner questioned why the EDCI is paying for CoStar because BAHEP also has as subscription and offers their members access to CoStar's information. Mr. Zepeda explained that the CoStar subscription's renewal will be during fiscal year 2025 and ift the EDC determines that they would rather utilize the service through BAHEP, the EDC can cancel their subscription to CoStar. Mr. Zepeda stated that when the CoStar and LoopNet renewal dates are nearing, that Mr. Dearing will provide a report on the pros and cons oft the EDC having their own subscription to those services. Mr. Dearing explained that the EDC's subscription to CoStar allows for easier responses to state issued requests for information and requests for proposals in an attempt to locate new businesses and companies into Santal Fe, which usually have very short response timelines. Mr. Zepeda stated that another benefit to the EDC having a subscription to CoStar is that some oft the property information is outdated or incorrect, but thel EDC can provide the correct or updated information to CoStar to have the property listing updated. Mr. Zepeda explained that the LoopNet service is directly linked to the City of Santal Fe's website and any property owner or realtor that has a subscription to LoopNet can have their available properties displayed on the City's website fori increased exposure. Executive Director of the Galveston County Economic Development Department, Lance LaCour stated that they are in the process of updating their information on their website for available properties. Mr. LaCour stated that their organization will utilize as system called Location One Information System (LOIS) thati is free of charge and allows for property listings and demographic information. Once it is updated and inp place, the Galveston County Economic Development Department will allow for property listings for all of the municipalities within Galveston County. Mr. Dearing stated that Mr. LaCour has provided as spreadsheet to thel EDC ThatN Mr. Dearing willi filli inwith appropriate information for available sites within Santal Fet to appear ont the Galveston Vice President Crable asked for clarification on the 25% allocation of the budget towards the BEAR program. Vice  budget.  office furniture.  materials.  domain registration and fees associated with the new website.  County Economic Development Department's website.    Minutes (cont) 07/30/2024 Page 5of7  President Crable said it was his understanding that the 25% allocation should be towards all programs and should include the BEAR program, but all 25% should not be allocated specifically to just the BEAR program. Director McCamy used an example from the past when the EDC assisted the City of Santal Fe in purchasing a new Gradall that would not qualify as ani infrastructure investment but would also fall outside of the BEAR program's criteria. Mr. Zepeda explained that anything that falls outside of what is in the proposed budget is amendable and the Board could reallocate funds that were not expended. Vice President Crable asked if a budget amendment requires an additional meeting and prolongs the timeline for a desired project. Mr. Zepeda explained that al budget amendment could be approved by the Board in the same meeting that a project was approved, and then the amendment and project would go to the Santa Fe City Council for approval. Vice President Crable stated that he felt that the BEAR program should bei included within the 25% allocation, but not specifically earmarked fori the entire 25% allocation. President Wylie stated that it could be possible that the entire 25% could be allocated tot the BEAR program, but if the Board desired to pursue a project that fell outside of the criteria of the BEAR program, the funds would be available. Mr. Zepeda explained that program expenses account within the budget has an allocation of $115,000 andi includes the BEAR program. Mr. Zepeda pointed out that the language on the cover sheet of the agenda item specifically mentions the BEAR program, however the budget allows for the $115,000 budgeted for program Motion by Secretary/Treasurer O'Connell to approve the proposed budget for the Santa Fe EDC for fiscal year  expenses could be used toward any project that the Board desires toy pursue. 2025, seconded Director McCamy. The motion passed the roll call vote unanimously.  New Business  a. Discussion with possible action on amending the bylaws of the Santa Fe Economic Development Corporation to move the annual meeting to October to allow for the appointment of Officers to align with Economic Development Corporation (EDÇ) Coordinator Josh Dearing explained to the Board of Directors (Board) that the bylaws of the EDC require the EDC to hold their annual meeting in August of each year. The Santa Fe City Council appoints new Directors to the Board or reappoints existing members to the Board in September of each year. The proposed amendment to the bylaws would move the annual meeting from August of each year to October ofeach year to allow the Board to appoint Officers tot their respective positions following the new appointments or Vice-President Crable questioned why the annual Board meeting was being moved to October instead of September. Vice-President Crable stated that the fiscal year ends each year on September 30th and any new members to the Board would be able to begin the newi fiscal yeari in their respective Director's or Officer's role. Mr. Dearing explained that moving the annual meeting to October instead of September provides for a little more ofa safeguard in caset there were: any extenuating circumstances that didn'tallowt the City Council to appointorreappoint Director Helpenstill asked ifs someone was appointed tot the Board in September, then their first EDC Board meeting would not take place until October. Mr. Dearing stated that it depend on how the meetings were scheduled in a particular year, but most likely the EDC Board would meet following any City Council appointments in September Motion by Director McCamy to approve the 2nd amendment to the bylaws of the Santa Fel EDC and present them tot the Santa Fe City Council, seconded by Director Helpenstil. The motion passed unanimously.  their terms of service  reappointments to the Board by the Santal Fe City Council.  members during a September meeting, such as failure to make a quorum.  ofagiven year because the EDC Board meets on the final Tuesday of each month.    Minutes (cont) 07/30/2024 Page 6of7  b. Discussion with possible action on approval of expenditure of advertising funds from the Economic Development Corporation to sponsor a Sunrise with Santa Fe breakfast with the Santa Fe Chamber of Economic Development Corporation (EDC) Coordinator Josh Dearing informed the Board of Directors (Board) that the EDC will be hosting a Sunrise with Santal Fel breakfast with the Santa Fe Chamber of Commerce (Chamber) on Wednesday, August 28th at 7:45 a.m. The purpose of hosting the breakfast is to introduce the community to the recently approved Business Expansion Attraction and Retention (BEAR) program and to hold a ribbon cutting for the new office spaces that are being built at Santa Fe City Hall. Mr. Dearing stated that the hosting entity for the breakfast will provide breakfast and beverages for attendees, which will require an expenditure of advertising funds from thel EDC's budget. Mr. Dearing stated an additional expenditure fromi the advertising budget fort the EDC would Director Schwertner stated that thet funds toj payf fort thel breakfast and beverages shouldi not exceed $150 and would Secretary//reasurer O'Connell stated that the breakfast offers a great opportunity for community members, business owners and non-community members to interact and leam more about the hosting entity, which in this case will be the EDC. Secretary/reasurer O'Connell also stated that it has historically been well attended with usually at least 30 people in attendance. Secretary/Treasurer O'Connell said that the breakfast is already being Director Schwertner stated that the breakfast will provide an opportunity toi introduce the EDC to the community and hold a ribbon cutting for the new office space being built for the EDC Coordinator's office at Santa Fe City Hall. Director Schwertner mentioned" that Mr. Dearing should also speak at the monthly luncheon hosted by the Chamber Director Schwertner showed an image of a bear wearing an EDC logo shirt that was created by the Chamber's President. Amber Miessner. Director Schwertner also mentioned that the previous EDC Coordinator ordered a plush bear wearing the EDC logo and that Mr. Dearing was collecting cost estimates to order more oft them. Mr. Dearing stated that he was looking for comparable plush bears because the previous seller was out of stock of the plush bear that had previously been ordered. Mr. Dearing also stated that he was unable to purchase the plush bears until Director Schwertner stated that she was referred to Corporate Printing, located in Dickinson to purchase a retractable banner. The pricing for the banner would be $280 to purchase and $40 per hour for design work. Itis Motion by Director McCamy to authorize the expenditure of advertising funds from the EDC to purchase breakfast for the Sunrise with Santa Fe breakfast and the purchase of a retractable banner, seconded by Director  Commerce  include purchasing ai retractable banner to market the services that the EDC offers.  be given tot the Chamber top purchase the breakfast.  advertised ont the Chamber's website.  tor mention the BEAR program during the announcements portion of the luncheon.  Amazon has processed the EDC's tax-exempt status.  approximately 3' wide and 5' tall.  Summerville. The motion passed unanimously. Citizens' Comments and Announcements  Director Schwertner asked for an update on Project Warpath from President Wylie. President Wylie stated that he had attended ar meeting between the City of Santa Fe (City) and the Santa Fe Independent School District (SFISD) recently for paving Warpath Avenue with concrete. President Wylie stated that the City's Street Department Superintendent, Billy Creppon intends to replace the existing pavement with concrete from Highway 61 to 6th Street.    Minutes (cont) 07/30/2024 Page 7of7  President Wylie stated that there were questions about placing esplanades in the middle of the new roadway. President Wylie explained that an esplanade is a gap between the drivable lanes that could be filled with landscaping. President Wylie stated that Mr. Creppon spoke against thei installation ofe esplanades becausei itv would levy a maintenance burden on the City. President Wylie stated that anyi improvements to Warpath Avenue would Executive Director Rudy Zepeda stated that SFISD is gathering documents such as previous surveys and metes andl bounds to minimizei the cost ofe engineering the project. Mr. Zepeda stated that the goalist top presenti information tor move forward with the project to the Santa Fe Economic Development Corporation (EDC) Board of Directors President Wylie stated that the stormwater drains along Warpath Avenue have been cleaned out by the Water Control and Improvement District (WCID) #8. President Wylie statedi that! he will ask' WCID to also camerai the drains Secretary/lreasurer O'Connell stated thatt the Santal Fe Chamber of Commerce (Chamber) is hosting their monthly Secreltary/lreasurer O'Connell stated that the EDC will be hosting the Sunrise with Santa Fe breakfast on Wednesday, August 28th at7:45a.m. and the Chamber will also be hosting an after-hours mixer later in August. Director Schwertner informed the Board of Directors that she, Secretary/lreasurer O'Connell, EDC Coordinator Josh Dearing and Director McCamy attended the 2024 Governor's Small Business Summit (Summit) in July. Att the Summit, Anthony Macaluso, owner of The Gun Vault of Texas, received an award for Historically Underutlized Small Business after being nominated by Secretary/Treasurer O'Connell. Mr. Macalusol I had ap previous engagement  not happen until next year during the summer while school is on summer break.  (Board) by! November of 20241 to stay on thei timeline to begin the project in summer of 2025.  toe ensure that they are clear of any debris.  luncheon on August 14that11:30 a.m. att the Hidden Palms event venue.  and Director McCamy accepted the award on behalf of Mr. Macaluso.  Adjournment  Director Helpenstill motioned to adjourn the meeting, seconded by Vice President Crable. The motion passed  unanimously, andi the meeting adjourned at 8:01 p.m.  Ppu Bob Wylie, President  ATTEST: Rudy  GB