CITY OF SANTA FE REGULAR MEETING May 28, 2024 7:00 P.M. COUNCIL CHAMBERS 12002 HWY. 6, SANTA FE, TEXAS  ECONOMIC DEVELOPMENT CORPORATION  MINUTES  The meeting was calledi to order at 7:00 p.m. by President Bob' Wylie.  Roll Call:  Present:  President Bob Wylie Secretary/Treasurer Terri O'Connell Director Johnny Helpenstill Director Pam Schwertner Director Ryan McCamy Director Gary Summerville Vice-President Matt Crable  Absent:  The Invocation was given by Secretary/Treasurer O'Connell, and the pledge to the U.S. Flag and to the Texas Flag  was led by Secrelary/Treasurer O'Connell. Citizens' Comments: There were no comments from citizens. Reports  a. Approval of Board Minutes from the Regular Meeting of April 30, 2024 30, 2024, seconded by Director McCamy. The motion passed unanimously. b. Current Budget Update & Financial Statements, period ending April 2024 current budget and financial statements as of April 30, 2024:  Motion by Secretary/Treasurer O'Connell to approve the Board minutes from the regular meeting on April  Economic Development Corporation (EDC) Executive Director Rudy Zepeda gave an overview of the  Current Revenue: $394,600 Current Expenses: $264,977 Ending Fund Balance: $3,125,670  Current Net Revenue over Expenses approximately: $129,624  Sales Tax Report April 2024 (Collected in March, Received in May)  Executive Director Rudy Zepeda gave an overview oft the sales tax report for April 2024 sales:  April total revenue to the Economic Development Corporation (EDC) was $90,766, which  represents a 4.9% increase over April 2023.  Year-to-date revenue is up approximately 5.9% compared to 2023.    Minutes (cont) 05/28/2024 Page 2of6  d. Economic Development and Substandard Structures Fund Update Development. The following properties were identified for demolition:  Building Official Ray Burgess provided an update on the substandard structures fund. The Economic Development Corporation (EDC) allocated $100,000 tor raze substandard structures to advance Economic  4206. Jackson Street 2610 Avenue L 5010 Birch Road  An additional property located at 5003 Birch Road was identified, but thep property owner has! been granted an extension to potentially demolish the property themselves. The total financial commitment to raze these properties is $67,587. Mr. Burgess stated that nine (9) more properties had been identified as substandard structures and voluntarily demolished the properties, bringing the total number of identified substandard structures to thirteen (13). President Wylie clarified that the Substandard Structures Fund is a self- sustaining program as the City of Santa Fe puts a lien on the identified properties that will be recovered  when the property is sold.  Old Business  a. Discussion with possible action on approval of the Business Expansion Attraction and Retention Executive Director Rudy Zepeda requested feedback from the Board of Directors (Board) on desired changes to the program for modification in order to finalize and approve the program at the next Board meeting, scheduled for Tuesday, June 25, 2024 at7:00 p.m. Mr. Zepeda also provided the desired timeline for adoption oft the program, which would include approval from the Santal Fe City Council, ar mandatory 60- day waiting period for public, feedback, two (2). public hearings by the Santa Fe City Council with final approval and adoption in September of 20241 fori implementation of the program in October of 2024, which  (BEAR) program fori further consideration by the Santa Fe City Council  is the beginning oft the 20251 fiscal year. The feedback from the Boardi is as follows:  President Bob Wylie: President Wylie asked on behalf of Vice-President Crable if the amount of funding for the Business Expansion Attraction and Retention (BEAR) Program should be closer to $200,000i instead of $100,000. Mr. Rudy Zepeda explained that 75% of the budget is committed to infrastructure and the remaining 25% is committed to "everything else," which includes all other operations. Once all of the other operations are accounted for, the remaining funds are closer to $100,000. However, as the sales tax base grows, that number could increase in subsequent fiscal Secretary/Treasurer Terri O'Connell: Secretary/reasurer O'Connell questioned why the program would be reimbursable since a struggling business would require the funds in order to do a renovation project. The Board of Directors discussed potential funding options including direct payment to the contractor, direct payment to the business and/or property owner and payment to both parties. It was decided to include that grant payments would be endorsedl by both thel business Secretaly//reasurer O'Connell asked for confirmation that the review committee could decide to partially fund a grant instead of awarding the entire amount that was applied for. Mr. Zepeda  years.  owner and the contractor.  confirmed that the review committee could award a partial grant.    Minutes (cont) 05/28/2024 Page. 3of6  Secretary/Treasurer O'Connell asked if all of the funds were not expended in fiscal year 2025if that money would roll over into fiscal year 2026. Mr. Zepeda explained that the money would not Director Pam Schwertner: Director Schwertner askedif ifasuccessful applicant was awarded agrant in fiscal year 2025, but the project carried over into fiscal year 2026, which year the funds would come from. Mr. Zepeda stated that the funds would have been awarded in fiscal year 2025 and would remain encumbered in that fiscal year until the project was completed and the accounting Director Schwertner asked for clarification on the timeline for entering into the Performance Agreement for a successful applicant. After discussion amongst the Board of Directors, it was decided that the Performance Agreement would be executed within ten (10) business days Director Schwertner asked howt thel BEAR Program relates toi the Comprehensive Plan. Mr. Zepeda explained that the Targeted Areas" of the BEAR Program are identified in the Comprehensive Director Schwertner askedi for clarification on at timeline for response to an applicanti if they request an extension tot the six (6) month deadline for project completion. The Board of Directors discussed different timelines and decided that there should be af forty-five (45) day response time for approval Director Schwertner asked for clarification as to why there was a clause that stated the funding would only cover 50% of the improvements. Mr. Zepeda explained that it was an error and would Director Schwertner asked for clarification for a timeline on grant reimbursement funding following project completion and approval. Mr. Zepeda explained that payment would be awarded within Director Schwertner asked for clarification on the BEAR Program clause that requires a business to remain in business for twenty-four (24) months following grant reimbursement payment. It was discussed about potentially placing al lien ont the property, and a decision was made to consult legal Director Schwertner asked for clarification on the inspection portion of the document related tot the City of Santa Fe. She mentioned that there are some parts of the eligible areas for the BEAR Program that would be inspected by Galveston County, such as properties served by well and septic services. It was decided to amend the document toi include City of Santa Fe inspectors and Director Johnny Helpenstill: Director Helpenstill stated that he believed forming the review committee for the BEAR Program should be done closer to the time of implementation of the program in case of any turnover among the Board members. Mr. Zepeda stated that each subsequent fiscal year, the Board of Directors willl have the ability to adjust the program's  roll over for the next fiscal year but would instead return to thet fund balance.  logs would then be adjusted to show that grant payment.  following notification of grant approval to the applicant.  Plan.  or denial of an extension.  be stricken from the document.  seven (7) days following project completion and approval.  counsel ont the legality oft the clause.  any other applicable health or safety inspectors.    Minutes (cont) 05/28/2024 Page 4of6  parameters based on the successes and mishaps of the program that are discovered during the Director Ryan McCamy: Director McCamy asked what would happen if an applicant was awarded agrant for a certain amount, but then requested more money after the award due to unforeseen circumstances. Mr. Zepeda explained that the Economic Development Corporation (EDC) would not be responsible for additional funds beyond the awarded amount due to the binding nature of Director Gary Summerville: Director Summerville asked what safeguards are in place for ap property owner that leases a property that had al lessee apply for the BEAR Program but did not use the money as intended for the property. Mr. Zepeda clarified to the Board of Directors that any successful applicant to the program would be required to enter into a Performance Agreement to ensure that the approved application was adhered tob byt the applicant prior to receiving grant funds. Director Summerville asked what safeguards are in place to ensure that a contractor does not perform subpar work compared to what the review committee approved in the application. President Wylie explained that any improvements would be done to City of Santa Fe's code of ordinances and building code standards and would be inspected by the City's Building Official.  previous fiscal year.  the Performance Agreement signed byt the applicant.  b. Discussion with possible action regarding the branding and logo for the Economic Development Executive Director Rudy Zepeda displayed two (2) logos to the Board of Directors (Board), one of which has a lighter green background and the other with a darker green background, both with the inclusion of "SF" to the "EDC" on the logo. Director Schwertner mentioned that there has been confusion in the past regarding the' "SF" between Santa Fe, Texas and Santa Fe, New Mexico. Ity was pointed out that thel bottom oft thel logo spells out Santal Fe, Texas to avoid thatt type of confusion. Following a brief discussion regarding another revision to the logo or voting on the options presented, a roll call vote was called for each Board member's preference. Option two (2), which- includes the darker green background, was selected over option one (1), which has the lighter green background, by a vote of 4-2 with Director McCamy, Director Summerville, Director Helpenstill and Secretaryllreasurer O'Connell voting for option two (2) and Director Motion by Secretary/Treasurer O'Connell to select Option two (2) with the darker green background as the new logo for the Economic Development Corporation (EDC), seconded by Director McCamy. The motion Discuss with possible action on awarding a construction contract for building office space at City President Wylie opened the discussion regarding awarding ac construction contract for building office space at City Hall for Building Officials and the Economic Development Coordinator, and explained that only one (1) bid was received. President Wylie asked the Board of Directors to consider re-bidding the project to receive more competition among the bidders. Executive Director Rudy Zepeda mentioned that he spoke with two (2) other contractors that said that they would bid the projecti ifity were re-bid. Secretary/Treasurer O'Connell asked if the current bid would become public record following the meeting, allowing other contractors to see the bid if they filed a Public Information Request with the City Secretary of the City of Santa Fe. Director Helpenstill explained that iti is the right oft the Board of Directors to accept or reject any  Corporation (EDC)  Schwertner and President Wylie voting for option one (1).  passed unanimously.  Hall.    Minutes (cont.) 05/28/2024 Page 50f6  and all bids. Motion by Director McCamy to postpone the vote and to re-bid the project, seconded by  Secretary/Treasurer O'Connell. The motion passed unanimously. d. Update on the Amato property located at Anna Court and FM1764  Executive Director Rudy Zepeda informed thel Board ofD Directors (Board) thatl Mr. RobertA Amato had agreed tot the proposal from the Board to accept the monetary option of reimbursement. The final payment to Mr. Amato will be picked up at City Hall or mailed to him, and that will close out the matter and finalize the  FM1764 project.  e. Update on creating a Project Warpath committee and City Council's selected members President Wylie explained thati it was his desire to include the Santa Fe Independent School District in the conversation with the City of Santal Fe and Economic Development Corporation (EDC) regarding upgrading Warpath Avenue from an asphalt street to a concrete street. President Wylie expressed his concerns regarding potential future upgrades to the Santa Fe Junior High School and Kubacak Elementary, as well as safety concerns with students crossing the street from the school to the athletic facilities. Director McCamy stated that thei issue was discussed during a Santa Fe City Council meeting and iti is their stance thatt the only issue to be considered by the City of Santal Fei is to pave Warpath Avenue or not, andi thatt the safety component is a separate issue. Director McCamy also stated that any modifications to paving the road toi incorporate safety measures should require the school district to match the funds oft the EDC asit would now be a joint effort. Executive Director Rudy Zepeda stated that he believed the Santa Fe City Council would not be assigning a Councimember to sit on any committee that was formed. Director Summerville stated that by stipulating safetyi improvements in exchange for re-paving Warpath Avenue, it would open the EDC to liability ift there were tob be an accidentint thefuture. Mr. Zepeda reminded thel Board of Directors what the EDC's previous attorney advised, which is the Corporation only has two (2)  responsibilities, to create programs and polices, and toi issue checks.  New Business  a. Executive Session: Under Section 551.074 of the Texas Government Code, a governmental body can conduct a closed meeting to deliberate on an employee's appointment, employment,  evaluation, reassignment, duties, discipline, or resignation President' Wylie opened Executive Session at 8:18p.m.  b. Take possible action on matters discussed in the Executive Session  The Economic Development Corporation (EDC) Board of Directors (Board) returned from Executive President Wylie made a recommendation for the hiring of Josh Dearing as the Economic Development Coordinator for the EDC to begin employment on May 29, 2024. Motion by Secretary/Treasurer O'Connell to hire Josh Dearing as the Economic Development Coordinator for the EDC, seconded by Director  Session at 8:35 p.m.  McCamy. The motion passed unanimously. Citizens' Comments and Announcements  Secretary/Treasurer O'Connell announced that the Santa Fe Chamber of Commerce was holding a ribbon cutting  and after-hours mixer att the Thelma Webber Community Center on! May 29, 2024.    Minutes (cont) 05/28/2024 Page 6of6  Director Schwertner announced that Greg Gardner State Farm will be having their 50th anniversary celebration and Secretary/Treasurer: O'Connell stated that the Santa Fe Chamber of Commerce would be holding an after-hours  mixer at his business at 5:30 p.m. on June7 7,2 2024.  Adjournment  Director Helpenstill motioned to adjourn the meeting, seconded by Director McCamy. The motion passed  unanimously and the meeting adjourned at 8:44 p.m.  ATTEST: Rudy  Bbu Bob Wylie, President  Director  hs